Bank of Valletta plc - Quarterly Update

On 29 April 2026, Bank of Valletta plc issued a quarterly update providing information about its performance in Q1 2026 when compared to the same period in 2025.

Net interest income grew by 8.3% to €100.2 million (Q1 2025: €92.5 million), driven by sustained growth in customer lending and treasury management, notwithstanding a higher interest expense arising from subordinated bond issuances completed after the first quarter of 2025.

Meanwhile, Net fee and commission income remained broadly stable, edging up 1.1% to €20.2 million. Moreover, there was a net trading loss of €3.6 million compared to a gain of €5.5 million in the corresponding period of the prior year.

In aggregate, BOV’s operating income increased marginally to €119.1 million (Q1 2025: €118.0 million).

BOV’s financial performance was impacted by a net impairment charge of €5.6 million, significantly higher than the €0.17 million recognised in the first quarter of 2025. Notwithstanding the higher charge, the non-performing loan ratio improved to 1.57% compared to 1.68% as at the end of 2025.

On the expenditure side, total operating costs increased by 17% to €61.7 million, driven by higher personnel costs, increased IT expenditure, higher depreciation charges and elevated regulatory-related costs including contributions to the Depositor Compensation Scheme. As a result, the cost-to-income ratio increased to 51.8% compared to 44.7% in Q1 2025, remaining consistent with the low-to-mid-50% range outlined in the Group’s forward guidance.

BOV’s share of results from associates increased by 8.5% to €2.2 million (Q1 2025: €2.0 million).

Overall, BOV recorded a profit before tax of €54.0 million, which is 19.5% lower than the €67.1 million in the first three months of 2025. The net profit for the period amounted to €35.8 million, which translates into an annualised return on average equity of 14.2% (Q1 2025: 17.9%).

In terms of financial position, when compared to 31 December 2025, total assets increased by 3.0% to €17.0 billion, driven by growth in customer loans (+€278 million to €8.3 billion), higher treasury investments (+€119 million to €7.0 billion), and a rise in cash and balances held with the Central Bank of Malta (+€92 million to €1.0 billion).

Total liabilities increased by 3.1% to €15.5 billion, supported by strong deposit inflows. Customer deposits surpassed the €14.1 billion mark, increasing by €352 million or 2.6% over the quarter. As a result, the gross loan-to-deposit ratio edged up to 59.5% compared to 59.0% as at the end of 2025.

Total equity increased to €1.53 billion, with the net asset value per share rising to €2.40 (December 2025: €2.30). Capital and liquidity positions remained above regulatory requirements, with the CET1 ratio at 20.18% (December 2025: 20.88%) and total capital ratio at 28.32% (December 2025: 29.32%).

International Bond Issuance

BOV also announced that preparatory work is underway for the issuance of a €300 million Senior Preferred Instrument, subject to regulatory approval. The proposed issuance forms part of the Group’s long-term funding strategy, with an investor roadshow having already taken place in London. Further details on structure, timing and key terms will be communicated no later than the end of FY2026.

Financial Outlook

BOV confirmed that it remains on track to deliver a profit before tax for FY2026 in the range of €210 million to €250 million, in line with guidance provided at the start of the year. The Bank intends to retain its policy of distributing up to 50% of after-tax profits, subject to prevailing market conditions. BOV also confirmed that base rates applicable to its credit portfolio will remain unchanged up to end-June 2026, when the next review will be held.