BOV reports improved profits in Q1

The MSE Equity Price Index fell by 0.29% to 3,785.351 points as the declines in APS, FIMBank, MIA and Malta Properties outweighed the gains in BOV, MIDI, Plaza and Main Street Complex. Meanwhile, two other equities closed unchanged as today’s total trading activity in local equities amounted to €0.06 million. Download today’s Equity Market Summary.

Bank of Valletta plc gained 0.7% to the €1.41 level across five trades totalling 19,592 shares. Today, BOV issued a quarterly financial overview providing information about its performance in Q1 2024 when compared to the same period in 2023. Net interest income surged by 33.7% to €98.3 million as gross interest income increased by a larger magnitude than interest expenses, reflecting the continued growth in the lending portfolio, the deployment of excess liquidity in high-quality treasury assets, and the benefit of the ECB Deposit Facility rate which remained fixed at 4% since September 2023. The net interest income in the first quarter of 2024 is in line with the level registered in the fourth quarter of 2023. Meanwhile, BOV recorded a drop of 13% in non-interest income to €19.1 million as the decrease in trading profits offset the improvement in net fee and commission income and dividend income. On the expenditure side, total operating costs increased by 6.8% to €49.1 million driven by higher employee compensation costs. Furthermore, BOV’s financial performance was impacted by net impairment charges of €6.6 million, which is higher than the charge of €5.0 million recognised in the first quarter of 2023. Overall, BOV recorded a profit before tax of €63.7 million compared to €46.5 million in the first three months of 2023. The net profit for the period amounted to €42.2 million which translates into an annualised return on average equity of 13.1%. Total equity increased by 3.2% to €1.31 billion, which translates into a net asset value per share of €2.242.

MIDI plc moved 1.6% higher to the €0.26 level on a single deal of 10,000 shares. The Directors of MIDI are recommending the payment of a net dividend of €0.009 per share to shareholders as at the close of trading on 24 May 2024, subject to shareholders’ approval during the upcoming Annual General Meeting scheduled to be held on 27 June 2024.

Plaza Centres plc increased by 3.3% to regain the €0.63 level as 16,450 shares changed hands. The Directors are recommending the payment of a final net dividend of €0.0137 per share to all shareholders as at close of trading on 16 May 2024 subject to shareholders’ approval at the upcoming Annual General Meeting scheduled to be held on Wednesday 19 June 2024.

Another shopping mall operator, Main Street Complex plc surged by 6.1% to the €0.35 level albeit over trivial volumes.

On the other hand, APS Bank plc, slumped by 5.2% to a one-week low of €0.55 level across four deals amounting to 13,151 shares.

Also in the banking sector, FIMBank plc shed 4.5% to the USD0.19 level on two trades of 14,000 shares.

Malta International Airport plc moved 0.9% lower to the €5.65 level across three deals amounting to 1,430 shares.

The share price of Malta Properties Company plc decreased by 2.1% to the €0.37 level on one deal of 2,500 shares.

Meanwhile, a single trade of 1,000 shares of International Hotel Investments plc left its share unchanged at the €0.49 level.

MaltaPost plc also closed unchanged at the €0.454 level on insignificant activity.

The RF MGS Index trended higher for the second consecutive session as it rose by 0.35% to a three-week high of 893.244 points. During separate interventions by a number of policymakers from the European Central Bank (ECB), including the ECB’s chief economist Philip Lane, noted that inflation in the eurozone is on a downward trend and should return to the target rate of 2% by the middle of next year. As a result, the same ECB policymakers reiterated the likelihood of announcing the first interest rate cut at the next monetary policy meeting in June.

This report contains public information only and is not to be construed as investment advice or an offer to buy or sell any securities. Information contained herein is based on data obtained from sources considered to be reliable, but no representations or guarantees are made with regard to the accuracy of the data. Stock markets are volatile and subject to fluctuations which cannot be reasonably foreseen. Past performance is not necessarily indicative of future results. Rizzo, Farrugia & Co. (Stockbrokers) Limited is a company licensed to undertake investment services in Malta by the MFSA under the Investment Services Act, Cap—370 of the Laws of Malta and a member of the Malta Stock Exchange.