Bank of Valletta is organizing its 50th General Meeting of Shareholders

Bank of Valletta held its 50th annual general meeting of Bank of Valletta, during which BOV President Gordon Cordina and CEO Kenneth Farrugia, together with the Bank’s directors, met with shareholders to present the results of the BOV Group for 2023 and propose several resolutions for approval to the Bank’s shareholders, which included a final gross dividend of EUR 0.1162 per share (representing a gross distribution of EUR 67.9 million), consisting of an interim dividend of EUR 0.0462 per share (representing a gross distribution of EUR 27, 0 million euros) already paid to shareholders in December on December 6, 2023 and a proposed dividend of 0.0700 euros per share (representing a gross payment of 40.9 million euros). All resolutions proposed for consideration by shareholders were adopted.

The Annual General Meeting also ended the director terms of Kevin J. Borg and Elizabeth Camilleri after they elected not to seek reappointment to the Board. This resulted in two vacancies as non-executive directors, with Christian Bonnici West and Jonathan Spiteri being appointed to the Board. Their appointment is subject to regulatory approval and will take effect on the date of approval.

Addressing shareholders during the meeting, Dr Cordina commented that: “2023 was a very positive year for Bank of Valletta Group, which recorded solid profits in a positive interest rate environment. The Bank’s performance can be seen in the context of an economic scenario that, despite the headwinds of high interest rates, elevated inflation and uncertainty, has ensured that the Maltese economy continues to grow at a steady pace.”

Dr. Cordina commented on the Bank’s balance sheet, which exceeded EUR 14 billion at the end of 2023. “The Bank’s balance sheet represents almost half of the total assets of Malta’s major domestic banks. BOV’s market share for 2023 was just over 40% for corporate loans and household deposits, and slightly less for home loans. These statistics clearly underscore the systemic importance of BOV and the critical role the Bank plays in sustaining the local economy.

BOV CEO Kenneth Farrugia

A key achievement in 2023 was also the resumption of dividend payments, supported by the security provided by the Bank’s strong capitalization and liquidity. The 2023 dividend payment was one of the highest dividend payments in recent years. It was distributed taking into account the Bank’s growth ambitions and corresponding capital requirements, affordability, as well as the expectations of regulators and shareholders. This structured approach is designed to ensure future sustainability of dividend payments and support our commitment to all our stakeholders, including our shareholders, customers and the economy as a whole.”

In his speech, CEO Kenneth Farrugia expressed his satisfaction with the extraordinary results recorded by the Bank in 2023. “Bank Valletta’s financial performance was undoubtedly one of the best in its 50-year history, with strong revenue growth achieved across all core business lines. Rising interest rates, the strength of our balance sheet, a solid risk management framework and organic growth in our core business lines are key elements that contributed to the financial results recorded during the year.”

Farrugia also referred to the strategic goals set by the Bank for 2024-2026 and commented that several fundamental changes were introduced to strengthen the Bank’s business and operating model, supporting key strategic directions for the next three years.

One area where BOV plays a more significant role is the ESG area, where Farrugia cites the Bank’s corporate social responsibility program, improving operational efficiency, as well as the development of green commercial and personal loans. “I am pleased to note the leading position the Bank takes on ESG issues. In 2023, we saw 33% of all sanctioned instruments in the form of green-certified loans. We have introduced incentives in our loan pricing model to support our clients in the transition to “green”, while on the investment side we observed 9.3% of the total instruments purchased under Sustainable Treasury Investments. In addition to our focus on ESG, we remain focused on our customers. Digitizing our operating model remains a high priority and various initiatives are underway to ensure that we deliver the quality of service our customers expect across our physical, digital and hybrid channels.

In his closing remarks, he expressed gratitude to the Bank’s shareholders, employees, valued customers and other members of the Board and Executive Committee for their commitment, passion, enthusiasm and unwavering support in the Bank continuing its trajectory towards continued growth and success.

Composition of the new Management Board

As Kevin J Borg and Elizabeth Camilleri are not seeking re-appointment to the Board of Directors and following the appointment of Christian Bonnici West and Jonathan Spiteri as non-executive directors, the composition of the new Board will be as follows:

• Gordon Cordina, non-executive director and chairman
• Nicola Angeli, non-executive director
• Christian Bonnici West*, non-executive director
• Diane Bugeja, non-executive director
• Anatoli Grech, executive director
• James Grech, non-executive director
• Kenneth Farrugia, Executive Director
• Anita Mangion, non-executive director
• Deborah Schembri, non-executive director
• Jonathan Spiteri*, non-executive director
• Robert Suban, non-executive director
• Godfrey Swain, non-executive director

* Subject to regulatory approval and the date of appointment is the date of receipt of regulatory approval.