On 29 April 2011, Bank of Valletta plc published its half-year results covering the six months ended 31 March 2011. The results show a stable bottom line and the declaration of an unchanged interim dividend. From an income perspective, net interest income increased by 9.5% to €67.8 million whereas non-interest income was unchanged compared to the equivalent 6 monthly period in 2010. Fair value movements on the bond book increased markedly to the downside resulting in a €5.6 million ‘charge’ for the period compared to a €5.9 million ‘writeback’ last year.
On the costs side, the bank reported a marginal increase in costs although these remain well under control. The bank in fact, reported a very commendable cost to income ratio of 42.5%, amongst the best industry ratios worldwide.
Given the prevailing economic conditions and the political situation in Libya, BOV incurred €10.4 million in impairments compared to the €7.2 million incurred in the comparable period last year. Most of this was offset by the significant improvement reported by the Group’s share of results of associate and jointly controlled entities. In fact, BOV reported a share of profit of €3.8 million in contrast to the €3.6 million loss booked in the accounts for the six months ended 31 March 2010.
Overall, BOV reported a pre-tax profit of €45.2 million representing a 4.9% decline from the pre-tax profit of the previous comparable period. However, after accounting for a lower tax charge of €14.5 million, the net profit for the period works out at €30.3 million (earnings per share: €0.126) compared to the net profit for the six months ended 31 March 2010 of €29.2 million.
The Directors declared a gross interim dividend of €0.0625 per share which is the same as that paid last year. This dividend will be paid on 26 May to all shareholders as at close of trading on Monday 9 May.