Malita halts dividend amid rising costs for housing project

The MSE Equity Price Index fell by 0.38% to 3,822.647 points as the declines in BOV, MIA, and Malita outweighed the gains in APS, Mapfre Middlesea and MaltaPost. Meanwhile, HSBC Bank Malta plc traded flat at the €1.36 level as 7,659 shares changed hands. Today’s daily trading activity in local equities was muted at just €44,000, the lowest level since the beginning of May. Download today’s Equity Market Summary.

Malita Investments plc was today’s most actively traded equity as it dropped by 3.8% to the €0.456 level across five trades totalling 31,002 shares. Yesterday, Malita published its condensed interim financial statements covering the six-month period ended 30 June 2025. Revenues increased by 6.7% to €5.16 million. On the expenditure side, administrative costs almost doubled to €1.15 million. Consequently, operating profit fell by 5.2% to €4.02 million (H1 2024: €4.23 million). The financial performance of Malita was positively impacted by a fair value increase in investment property of €1.42 million. The net profit for the period under review amounted to €5.28 million compared to €3.17 million in the first half of 2024. Total equity grew by 0.7% (or €1.42 million) to €203.3 million, which translates into a net asset value per share of €0.976 (31 December 2024: €0.970). The Directors resolved that no interim dividend will be declared for the current financial period and will undertake an assessment on dividend distribution when reviewing the full-year results. The decision reflects the substantial cash requirement for the completion of the Luqa project where three new blocks will be completed between 2026 and 2028. The company noted that cash flow requirements for its development projects have increased beyond original projections due to certain project delays and increases in project costs. These factors have necessitated a reassessment of the company’s funding requirements and strategic approach.

Bank of Valletta plc shed 1.6% to the €1.90 level over five deals amounting to 1,600 shares.

Malta International Airport plc fell by 1.7% to the €5.90 level on two deals totalling 418 shares.

On the other hand, APS Bank plc gained 2.7% to the €0.565 level on two trades totalling 7,238 shares.

Mapfre Middlesea plc surged by 6.7% to the €1.43 level on two trades amounting to 4,511 shares.

MaltaPost plc moved 0.5% higher to the €0.446 level on a single deal of 6,320 shares.

Yesterday, FIMBank plc published its interim financial statements covering the six-month period ended 30 June 2025. Net interest income dropped by 13.6% to USD23.7 million. Non-interest income streams translated into a loss of USD2.32 million mainly on the back of a USD4.50 million fair value decline in financial instruments carried at fair value. On the other hand, net trading income rebounded to a USD1.60 million profit. Meanwhile, total operating costs declined slightly by 2.0% to USD20.4 million. Nonetheless, the cost-to-income ratio worsened to 95.4% compared to 77.7% in H1 2024. Furthermore, the financial performance was dented by a net impairment loss of USD1.40 million. As a result, operating income fell by 20% to USD20 million. Overall, FIMBank reported a pre-tax loss of USD0.42 million compared to the pre-tax profit of USD4.02 million in H1 2024. After accounting for a tax charge of USD1.33 million and non-controlling interests of USD0.07 million, the net loss for the period under review attributable to shareholders of FIMBank amounted to USD1.82 million. When compared to December 2024, shareholders’ funds remained practically unchanged at USD182 million, which translates into a net asset value per share of USD0.350. Furthermore, the directors noted that in June 2025, Fitch Ratings upgraded the Group’s rating to B+ (from B) with a Stable Outlook, providing external validation of the Group’s strategy, capital strength, and operational resilience.

The RF MGS Index decreased by 0.05% to 908.473 points on the back of continued concerns about inflation. In this respect, data released today showed that producer prices in the US during July rose by 0.2% month-over-month, whilst core producer prices increased by 0.3%. Meanwhile, headline producer prices remained unchanged at 2.6% whilst headline core producer prices increased to a five-month high of 2.9%.

 

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.