Daily Market Highlights (30.03.2023)

BOV reports profits of €31m despite Deiulemar settlement


The MSE Equity Price Index declined by 0.41% to 3,539.706 points as the declines in HSBC, Lombard and VBL outweighed the gain in Main Street Complex. Meanwhile, BOV, MIA and MaltaPost closed unchanged as total trading activity amounted to €0.14 billion. Download today’s Equity Market Summary.

Bank of Valletta plc held the €0.895 level on eleven trades totalling 76,088 shares depsite dropping by 3.9% intraday to a 2-month low of €0.86. Today, BOV published the 2022 annual results showing double-digit growth in net interest income as well as improvement in non-interest income. In aggregate, BOV’s total operating income increased by 20.8% (or +50.4 million) to €293.4 million. BOV’s performance was also boosted by lower operating costs and a net impairment reversal of €49.1 million. Meanwhile, the financial results were dented by the €103.0 million net litigation settlement charge related to the Deiulemar case. Overall, BOV reported a profit before tax of €48.7 million (2021: €80.7 million), while excluding the effect of the Deiulemar settlement, adjusted profit before tax amounted to €151.7 million. BOV’s net profit amounted to €31.2 million (2021: €56.2 million). BOV’s equity base expanded by 2.8% to €1.16 billion which translates into a net asset value of €1.983 per share (31 December 2021: €1.929 per share). The Directors of BOV elected not to recommend any interim or final dividends as despite the significant recovery in underlying profitability, the financial performance remained impacted by the cost of the Deiulemar settlement.

Also within the banking sector, HSBC Bank Malta plc erased some of yesterday’s uplift as it went down by 1.9% to the €1.02 level across four trades totalling 18,709 shares.

Two trades totalling 11,702 shares pulled the share price of Lombard Bank Malta plc down by 9% to the €0.91 level.

VBL plc shed 2.4% to the €0.24 level as 20,500 shares exchanged hands.

Meanwhile, Main Street Complex plc advanced by 2.7% to the €0.46 level across two deals totalling 6,000 shares after recovering from a 9-month low of €0.354.

Malta International Airport plc closed unchanged at the €5.65 level on eight trades totalling 5,790 shares. MIA shareholders as at close of trading on 4 April 2023 will be entitled to a final net dividend of €0.12 per share, subject to approval at the upcoming Annual General Meeting scheduled for 10 May 2023.

MaltaPost plc closed unchanged at the €0.45 level on two deals totalling 5,286 shares.

The RF MGS Index gained 0.3% to 886.738 points. The eurozone economic sentiment indicator moved lower for the second consecutive month in March as consumer confidence diminished amongst manufacturers, retailers and constructers. Also within the Euro Area, Germany annual consumer price inflation fell to 7.4% in March 2023, down from 8.7% in the previous two months, however remained slightly above expectations. Elsewhere in the US, updated data showed that the GDP expanded by an annualised rate of 2.6% in the fourth quarter of 2022, marginally below initial estimates of 2.7%.



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.