BOV generates record profit in 2023

The MSE Equity Price Index decreased by 0.04% to 3,781.039 points as the gains in APS, BOV, Lombard, Farsons and Malta Properties were offset by the declines in FIMBank, Medserv and MaltaPost. Meanwhile, three equities closed unchanged as today’s trading in local equities amounted to €0.37 million. Download today’s Equity Market Summary.

Bank of Valletta plc advanced by 1.4% to a three-month high of €1.43 across twenty-seven trades totalling 214,020 shares . Today, BOV published its 2023 financial results. Net interest income surged by 74% to €352 million on the back of the continued growth in lending portfolios combined with rising interest rates. In contrast, BOV recorded a drop of 2.7% in non-interest income to €89 million as the decrease in trading profits offset the improvement in net fee and commission income as well as dividend income. On the expenditure side, total operating costs increased by 9.5% to €211 million largely reflecting the higher levels of administrative expenses and amortisation charges. BOV’s financial performance was also boosted by the net impairment reversal of €10.5 million, which however was lower than the reversal of €49.1 million in 2022. Overall, BOV reported a profit before tax of €251.6 million (2022: €49.1 million adjusted to €152.0 million when excluding the effect of the Deiulemar settlement). The net profit amounted to a record €167.9 million which translates into a return on average equity of 14.1%. BOV’s equity base expanded by 14% to €1.27 billion which translates into a net asset value of €2.171 per share. The Board of Directors is recommending a final net dividend of €0.0455 per share to all shareholders as at close of trading on 26 April 2024 subject to regulatory approval as well as shareholder approval at the Annual General Meeting scheduled for 31 May 2024. Coupled with the net interim dividend of €0.03 per share paid in December 2023, the total net dividend attributable for the 2023 financial year amounts to €0.0755 per share, which represents a payout ratio of 26.3% and a net dividend yield of 5.2% based on today’s closing price.

Also in the banking sector, APS Bank plc gained 1.9% to reach the €0.54 level across six trades amounting to 24,571 shares.

Lombard Bank Malta plc recovered from an intra-day low of €0.83 (-2.4%) as it closed today’s session 4.1% higher at the €0.885 level over three trades amounting to 17,500 shares .

Simonds Farsons Cisk plc rose by 5.3% to the €6.95 level, over four trades totalling 445 shares.

Malta Properties Company plc surged by 10.7% to the €0.31 level across five deals amounting to 8,550 shares.

On the other hand, FIMBank plc plummeted by 29.5% to an all-time low of USD0.155, albeit on a single trade of 14,108 shares.

MedservRegis plc slumped by 7.0% to a two-month low of €0.66 on two deals of 4,000 shares after recovering from an intra-day low of €0.60 (15.5%)

MaltaPost plc fell by 4.3% to an almost three-month low of €0.45 on a single trade of 3,000 shares.

Meanwhile, Malta International Airport plc held the €5.85 across 2,740 shares.

HSBC Bank Malta plc also traded flat at the €1.35 level over two deals amounting to 3,813 shares.

Similarly, Trident Estates plc closed unchanged at the €1.16 level over trivial volumes.

Today, GO plc announced that it has signed a share purchase agreement for the acquisition of a 51% equity stake in AQS Med Limited for a consideration of €1.2 million with the possibility of a further €2 million earnout depending on the performance of AQS over a five-year period. The transaction is still subject to a number of conditions being satisfied. GO explained that AQS is a market leader in the local renewable energy sector . GO stated that the transaction underlines its commitment to renewable energy.

The RF MGS Index rose by 0.21% to 898.730 points. A speech by Italian ECB board member Piero Cipollone set a dovish tone as he is likely to argue in favour of an interest rate cut during the upcoming ECB meeting in April if both wage growth and inflation continued to ease in line with the central bank’s forecasts.

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.