Bank of Valletta plc – Interim Directors Statement

Bank of Valletta plc announced that during the financial period commencing on October 1, 2013 up to January 30, 2014, no material events and/or transactions have taken place that would have an impact on the financial position of the bank or the group, such that they would require specific mention, disclosure or announcement pursuant to the applicable Listing Rule.

The period under review was characterised by subdued credit growth that was mitigated by a satisfactory increase in the demand for house loans. On the other hand, deposits, both retail and institutional, grew at a faster rate than expected. Higher levels of liquidity, coupled with the continuing low interest rate scenario indicate that pressures on the narrowing margins of the Bank's proprietary operations are expected to continue over the coming months. Local competition also maintained pressure on interest margins in the retail business. 

Concurrently, net commission income continued to register satisfactory growth across all business lines, primarily driven by investment related activities, trade finance and card related business.

During the same period, Fitch ratings confirmed BOV's long-term credit rating at BBB+, citing the Bank's leading domestic franchise, its strong funding base and its satisfactory liquidity position, which benefits from a large and stable customer deposit base. 

To view the official company announcement, click here.