“The satisfactory financial results registered by Bank of Valletta for the financial year ended 30 September have led the board of directors to recommend a one for one bonus issue of shares. The objective of this bonus issue is to increase and strengthen the permanent paid up share capital of the bank and at the same time increase the affordability and liquidity of the bank’s shares.”

This statement was made by Bank of Valletta chairman Roderick Chalmers at a meeting with Malta’s stockbrokers and financial intermediaries during which he delivered a detailed presentation on the bank’s results and the underlying business fundamentals.

“The effective date of this bonus issue is 18 January. The shareholders will be asked to approve the recommendations of the board of directors on the bonus issue and to approve the proposed dividend at the annual general meeting of Bank of Valletta which is scheduled to be held on 16 December,” Mr Chalmers said.

BOV Group pre-tax profits for the financial year under review amounted to Lm26.6 million, an increase of 35 per cent over the comparative results for the previous financial year, as restated. The gross dividend per share, at 22.5 cents, is up by 40 per cent over last year.

The chairman said that the positive results are due to an improved interest margin, growth in profits from banking and other financial services and a decrease in the net impairment charge.

“The cost to income ratio of Bank of Valletta currently stands at 44.5 per cent. This is the strongest performance we have ever registered in this regard and we are pleased to be ranking among the top European banks in terms of this key performance indicator,” said Mr Chalmers.