Bank of Valletta plc published its interim results to 31 March 2009 following a Board of Directors’ meeting held on Thursday 30 April. During the first six months of BOV’s financial year, the Group generated a pre-tax profit of €6.3 million, substantially lower than the €17.2 million recorded in the comparative 6-month period to 31 March 2008. The Directors explained that this drop in profits was mainly due to interest margin compression following several ECB rate cuts in recent months, a further €31.8 million in fair value adjustments on its investment portfolio and the €3.8 million share of losses incurred from its associate and joint-controlled companies involved in the insurance sector.
Notwithstanding the subdued profits, the Directors reassured that the BOV Group had strong capital and liquidity ratios enabling it to face the challenges ahead. Moreover the Directors confirmed that the Bank will soon tap the bond market with a subordinated bond issue which will further strengthen its capital ratios.
The Directors declared a gross interim dividend of €0.035 (net: €0.023) per share to those shareholders as at close of trading on Friday 8 May 2009. This dividend will be paid on 28 May 2009.
A copy of the Preliminary Profits Announcement can be downloaded from here.
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