During a meeting with licensed stockbrokers and financial intermediaries held this morning, Roderick Chalmers, chairman of Bank of Valletta announced that BOV had not only managed to register record results for the financial year ended 30 September 2006, but had also held or gained market share right across its range of products.

Roderick Chalmers was addressing a business breakfast meeting during which he gave a detailed presentation on the financial results of the BOV Group for financial year 2006, following the publication of the preliminary profit statement last Friday. BOV has registered a record pre-tax profit of Lm38.4 million for FY 2006, an increase of 44% over the previous year – results which led the Board of Directors to recommend a final gross dividend of 11c per share, which makes for a total gross dividend of 16.5c for the year, an increase of 47 per cent over last year.

“The results we have announced confirm BOV’s position as Malta’s leading bank in terms of assets. Bank of Valletta is also the largest bank in Malta in terms of customer deposits, making BOV the leading brand among the island’s depositors” said Mr Chalmers.

“This was a record year during which our total assets increased by an impressive Lm212.5 million; customers’ deposits were up by Lm165 million; while net advances increased by Lm149 million,” explained Mr Chalmers.

The results Bank of Valletta has announced were underpinned by increases in revenues across the board, coupled with the successful containment of costs.

Mr Chalmers said that the main drivers of profitability were an improved margin contribution through quality growth in the credit book and good performance from Financial Markets and Investments, an outstanding year from Fund Management business, and strong results from bancassurance and stockbroking. At the same time, the bank’s strategic investments performed well and the bank was able to report a decrease in the net impairment charge.

“Looking forward, we have to continue embracing change, accepting challenges and seeking out and seizing opportunity – a philosophy that today sees Bank of Valletta positioned as the leading organisation within Malta’s financial services sector,” said Mr. Chalmers. “The year ahead promises new challenges as Malta proceeds on its journey towards euro adoption. However, the Bank’s Executive Management team is determined to maintain the momentum and to keep growing the business – thus reinforcing and consolidating the position of the BOV brand in the market,” concluded Mr Chalmers.

Following the presentation, the chairman had the opportunity to answer a number of questions asked by the stockbrokers present.