BOV generates record net profit of €200 million, increases dividend

The MSE Equity Price Index advanced for the second consecutive session as it rose by 0.58% to reach a one-year high of 3,927.781 points. The gains in BOV, GO, BMIT and PG outweighed the declines in HSBC, IHI, Malita and MaltaPost. Meanwhile, three other equities closed unchanged as today’s trading activity in local equities amounted to €0.60 million. Download today’s Equity Market Summary. 

Bank of Valletta plc was today’s most actively traded equity as it gained 3.0% to reach a seventeen-year high of €2.08 level across fifty-two trades amounting to 201,070 shares. Today, BOV published its Annual Report and Financial Statements for the financial year ended 31 December 2024. Net interest income increased by 9.6% to €386 million as gross interest income increased by 8.9% to €437 million whilst interest expenses increased by 3.8% to €51 million. In this respect, BOV explained that the performance reflects the continued growth in lending portfolio and investments portfolio as part of the Group’s strategy in optimising the balance sheet by productively deploying funds in long-term interest-bearing assets.

BOV also recorded an increase of 12.2% in non-interest income to just under €100 million. In aggregate, BOV’s total operating income increased by 10.1% to €486 million. BOV’s financial performance was also boosted by the net impairment reversal of €23.8 million. BOV explained that non-performing exposures as at the end of 2024 stood at 2.68% compared to 3.06% in the previous year. In view of the notable growth in operating income, the cost-to-income ratio improved to 44.6% compared to 47.8% in 2023. BOV’s share of results from associate investments (namely Mapfre MSV Life plc and Mapfre Middlesea plc) amounted to €9.5 million.

Overall, BOV reported a profit before tax of €302.4 million (2023: €251.6 million). After accounting for a tax charge of €102.8 million, the net profit amounted to a record of €199.6 million which translates into a return on average equity of 14.9% Total equity expanded by 11% to €1.41 billion which translates into a net asset value of €2.411 per The Bank’s capital ratios remained above regulatory requirements with the CET 1 ratio at 22.3% and the Total Capital Ratio at 27.1%

The Board of Directors is recommending a final net dividend of €0.0854 per share to be paid on 12 June 2025 to all shareholders as at close of trading on 25 April 2025 subject to regulatory approval and approval by the Annual General Meeting scheduled for 29 May 2025. Coupled with the net interim dividend of €0.06 per share paid in December 2024, the total net dividend attributable for the 2024 financial year amounts to €0.1455 per share, which is 92.6% higher than the previous year and represents a payout ratio of 42.6%.

GO plc moved 1.5% higher to the €2.70 level across three deals amounting to 900shares.

Meanwhile, GO’s datacentre and technology subsidiary, BMIT Technologies plc surged by 3.0% to the €0.34 level across dour trades amounting to 252,000 shares. BMIT shareholders as at close of trading on Thursday 15 May 2025 will be entitled to a net dividend per share of €0.0189. Shareholders will have the option to receive the dividend either in cash or in new ordinary shares at an attribution price of €0.319 per share.

PG plc rose by 1.6% to the €1.85 level across five deals amounting to 4,655 shares.

On the other hand, HSBC Bank Malta shed 1.3% to the €1.52 level across four deals amounting to 17,650 shares. The Board of Directors recently recommended a final net dividend of €0.078 per share. The dividend will be paid on 20 May 2025 to all shareholders as at close of trading on 9 April 2025 subject to approval by the Annual General Meeting scheduled for 13 May 2025.

International Hotel Investments plc fell by 2.3% to the €0.43 level over seven trades amounting to 18,917 shares.

MaltaPost plc slumped by 6.8% to the €0.41 level as 14,500 shares changed hands.

Malita Investments plc declined by 2.0% to the €0.49 level across three trades amounting to 28,000 shares.

Meanwhile, APS Bank plc traded flat at the €0.60 level as 60,508 shares changed hands. The Directors of APS recommended the payment of a final net dividend of €0.017 per share to shareholders as at close of trading on 4 April 2025, subject to regulatory and AGM approvals. Shareholders will have the option to receive the dividend either in cash or in new ordinary shares at an attribution price of €0.57 per share.

Also in the banking sector, Lombard Bank Malta plc held the €0.77 level on a single deal of 4,502 shares.

Malta International Airport plc held the €6.10 level on muted activity.  MIA shareholders as at the close of trading on Thursday 10 April 2025 will be entitled for a final net dividend of €0.12 per share to be paid by not later than Saturday 31 May 2025.

The RF MGS Index rose by 0.05% to 904.205 points as the economy in the euro area continues to show signs of recovery as during the last quarter of 2024, housing prices in Germany increased year-over-year for the first time since the first quarter of 2022. Similarly in the US, house prices rose by 4.7% year-over-year in January up from 4.5% in December. Furthermore, seasonally adjusted home sales rose by 1.8% in February rebounding from a revised 6.9% drop in the previous month. Nonetheless, the continued improvement of the housing sector is uncertain going forward due to the recent increase, and volatility of borrowing rates. Elsewhere in the US, consumer confidence fell for the fourth straight month, reaching a 12-year low on the back of persistent inflation as well as worries over tariffs. Furthermore, consumers’ optimism about future income which was held up strongly in the last few months largely vanished.

 

This report contains only public information and is not to be construed as investment advice or an offer to buy or sell 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.