The Bank of Valletta Group has announced an operating profit of Lm43.7 million for the financial year ended 30 September. Featuring an increase of 13.9 per cent over the profit registered in 2006, these results once again represent a record year for Bank of Valletta, and the Board has been able to recommend the payment of an increased dividend to shareholders, together with a bonus share issue.

BOV chairman Roderick Chalmers announced that the Board of Directors is recommending a final gross dividend of Lm0.1350 per share which, taken together with the gross interim dividend of Lm0.0675 per share paid on 30 May of this year, makes for a total gross dividend of Lm0.2025 per share for FY 2007.

This represents an increase of 22.7 per cent on the total gross dividend of Lm0.1650 per share paid for FY 2006.

Mr Chalmers also announced that the Board is recommending, effective 15 January, an increase in the nominal and paid up value of the Ordinary shares in issue from EUR0.582343 (which will, after euro conversion, be the equivalent of the current nominal and paid up value of Lm0.25 per share) to EUR0.75 per share. The increase will be funded by a capitalisation of reserves amounting to EUR18.582 million (Lm7.977 million).

Furthermore, and also effective 15 January, the Board is recommending a bonus issue of one share for every 4.92581 shares held. The bonus issue will be funded by a capitalisation of reserves amounting to EUR16.875 million (Lm7.245 million).

The chairman reported that for Bank of Valletta, financial year 2007 (FY 2007) has been characterised by four dominant themes. These were (a) the sustained improvement in the performance of the Credit division and the quality of its loan book, (b) the continuing growth in customer deposits and BOV’s strength in this sector, (c) the volatile environment in which the Bank’s Financial Markets and Investments (FM+I) business operated and (d) the bank-wide preparations for the adoption of the Euro.

In his address, Mr Chalmers also focused on the bank’s preparations leading to the adoption of the euro as Malta’s currency as from 1 January. “BOV, as the National Partner Bank of the National Euro Changeover Committee, is playing a special role in ensuring a smooth and efficient transition for the benefit of the general public,” said Mr Chalmers. “In the final phase of the changeover process, the bank is involved in an extensive communications campaign for its customers, and in special simulation runs and the intensification of training for all our employees,” he announced.

The Chairman explained that cash management will be one of the key challenges of the currency changeover. During FY 2007, BOV worked on preparations to ensure that the actual exchange process will run smoothly, whilst further encouraging the general public and the business community to deposit surplus Maltese lira notes and coins into the banking system well before Euro-day.

The special security and logistical operation in which the bank will be involved over the transition period is staggering – for example, it is estimated that BOV will be handling over 450 tons of coins and over 35 million bank notes in the conversion process.

“All leave has been suspended during the transition period, and BOV staff will be putting in thousands of hours of overtime to ensure that service to our customers is as seamless as possible,” said Mr Chalmers.