Bank of Valletta received a strong vote of confidence last week when international rating agency FITCH upgraded its outlook for BOV from negative to stable. Concurrently, FITCH has affirmed all the bank's ratings, namely, Long Term A-, Short Term F2, Individual C.

FITCH stated that the rating action reflects “BOV's position as the largest bank within the Maltese financial system, its improving profitability and sound capitalisation”. FITCH acknowledged the improvement of BOV's asset quality indicators up to March 2005.

The ratings were based on BOV's performance during the financial year ended 30 September 2004 as well as the half yearly figures as at March 2005.

FITCH also highlighted BOV's positive performance during the period under review resulting in a combination of improved net interest margins and net fee and commission income. While noting the challenges ahead, FITCH acknowledged the improvement of BOV's asset quality over the past years.

Commenting on this international rating report, BOV's CEO Tonio Depasquale said, “This upgrade in BOV's outlook is a vote of confidence as well as international acknowledgement f the all round improvement BOV has been sustaining. The bank continues to focus on being supportive to its customers and to be responsive to the increasing sophistication of the markets in which it operates.

“We are pleased that our efforts are receiving recognition even at an international level. The FITCH rating upgrade is especially welcome as it was announced on the same day that BOV was being awarded the Bank of the Year Award 2005 by The Banker, the monthly banking publication of the Financial Times.”