BOV 9-month pre-tax profit exceeds €220 million

 

The MSE Equity Price Index rose by 0.48% to reach an almost two-month high of 3845.538 points as the gains in APS, BOV, Lombard, Mapfre Middlesea, MaltaPost, M&Z and the ordinary shares of RS2 outweighed the declines in MIDI and MIA. Meanwhile, two other equities closed unchanged as today’s total trading activity in local equities amounted to €0.24 million. Download today’s Equity Market Summary.

Bank of Valletta plc increased by 1.1% to the €1.78 level across twelve trades amounting to 87,676 shares. Today, BOV issued a Quarterly Financial Update providing information about its performance during the nine-month period ended 30 September 2024. Net interest income surged by 14.5% to €290.5 million (3Q 2023: €253.8 million) through the continued growth in gross interest income (+14% to €329.5 million) primarily driven by an in the investment portfolio. Meanwhile, net fees and commission income moved 5.4% higher to €56.7 million. BOV also registered gains of around €11.8 million reflecting fair value gains on financial assets, foreign exchange and other income. Meanwhile, BOV’s financial performance was boosted by a €9.5 million release of Expected Credit Losses (ECL). On the expenditure side, operating costs rose by 3.8% to €151.3 million on the back of further investments in human resources, digitisation and regulatory compliance. BOV also recognised net profits of €6.25 million from its share of results of associates.  Overall, BOV recorded a pre-tax profit of €223.7 million which is 36.9% higher than the €163.4 million generated in the same period last year. After accounting for a tax charge of €76.4 million, BOV’s net profit for the first nine months of 2024 amounted to €147.3 million, which translates into an annualised return on average equity of 14.2%. Total equity grew by 9.3% (or +€0.11 billion) to €1.39 billion resulting in a net asset value per share of €2.373 (31 December 2023: €2.171)

Also in the banking sector, APS Bank plc gained 0.9% to the €0.585 level across two deals amounting to 3,000 shares. Today, BOV issued a Quarterly Financial Update providing information about its performance during the nine-month period ended 30 September 2024. Net interest income dropped by 11.6% to €49.1 million (3Q 2023: €55.5 million) as the continued growth in gross interest income (+9.7% to €84.7 million) was offset by higher interest expenses (+64.5% to €13.9 million). Net fees and commission income increased by 2.8% to €6.4 million. APS also registered gains of around €2.6 million reflecting fair value gains on financial assets. Meanwhile, the financial performance was dented by a €1.1 million (3Q 2023: €0.25 million) charge over the three Expected Credit Losses (ECL) stages Net operating income amounted to €56.9 million, which is 9.1% lower than the comparable figure of €62.6 million recorded in the first nine months of 2023.On the expenditure side, total operating costs increased by 4.1% to €41.1 million reflecting continuous investments in human resources, technology, regulatory and compliance requirements as well as general inflationary pressures .Net operating profit fell by 31.6% to €15.8 million from €23.1 million in the same period last year. APS also recorded a contribution of €0.7 million (3Q 2023: €0.2 million) from its share of results of associates. Profit before tax amounted to €16.5 million, which is 29.2% below last year’s comparable figure of €23.3 million. After accounting for a tax charge of €4.9 million, the Group reported a net profit of €11.6 million (3Q 2023: €15.0 million), which translates into an annualised return on average equity of 5.3%. Shareholders’ funds increased by 2.6% (or €7 million) to €280.1 million, which translates into a net asset value per share of €0.738.

Lombard Bank Malta plc surged by 5.1% to the €0.83 level as 3,850 shares changed hands.

Mapfre Middlesea plc moved 2.2% higher to the €1.40 level over two deals amounting to 3,560 shares.

M&Z plc advanced by 3.5% to the €0.59 level over three trades totalling 65,480 shares. Today, M&Z plc announced that it will be implementing the share buyback program which was approved during the Annual General Meeting held last June. In this respect, M&Z will be buying back 500,000 of its own shares in the market at a price of €0.60 per share on one or more occasions between Monday 4 November 2024 and until Friday 29 November 2024. All buybacks will be undertaken by the company on-exchange. As of today, the Company does not hold any of the 44,000,000 shares which it has in issue. Completed acquisitions of its own shares will be reported to the market in due course.

A single deal of 2,500 pushed the share price of the ordinary shares of RS2 plc 4.0% higher to the €0.52 level.

MaltaPost plc gained 0.4% to the €0.454 level on one trade of 4,000 shares.

On the other hand, MIDI plc slumped by 4.0% to the €0.24 level across three deals amounting to 29,000 shares.

Malta International Airport plc shed 0.8% to the €5.85 level over four trades totalling 3,440 shares.

Meanwhile, Malta Properties Company plc held the €0.34 level over trivial volumes.

PG plc closed unchanged at the €1.90 level on a single trade of 1,071 shares.

The RF MGS Index registered the largest daily decline in over four months as it fell by 0.64% to 908.279 points, reflecting a sharp upward movement in euro area sovereign bond yields. In particular, the German 10-year bund yield rose to a three-month high of over 2.4%. Inflation in the euro area during October was 2.0%, higher than expectations of 1.9%. Inflation rebounded from 1.7% in the previous month. The rise in inflation was driven by a slower decline in energy prices as well as a faster growth in food prices. Moreover, core inflation (which excludes food and energy prices) remained flat at 2.7% and did not decline to 2.6% as anticipated.

 

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.