Bank of Valletta stakeholders yesterday approved the bank’s results for the financial year ending 30 September this year.
BOV chairman Roderick Chalmers, addressed the stakeholders before 10 resolutions were put forward for approval, at the 34th annual general meeting, held at Hilton Malta’s Grand Master’s Suite.
On 26 October, the bank had announced that it had made a pre-tax profit of Lm43.7 million (e101.8m) – an increase of 14 per cent over the profits for the previous year.
“In view of these good results, your board feels able to recommend for approval, by you, the shareholders at this meeting, a final gross dividend of 13.5 cents per share.
“Taken together with the gross interim dividend of 6.75 cents per share paid in May of this year, this makes for a total gross dividend of 20.25 cents per share for financial year (FY) 2007,” said Mr Chalmers.
This total dividend (paid and proposed) for FY 2007 represents an increase of 22.7 per cent on the total gross dividend of 16.50 cents per share paid for FY 2007.
The chairman said FY 2007 has been characterised by four dominant themes. These were the sustained improvement in the performance of the Credit Division and the quality of its loan book, the continuing growth in customer deposits and BOV’s strength in this sector, the volatile international credit environment in which the bank’s business financial markets and investments division has operated, and the scale of the bank-wide preparations for the adoption of the euro.
Mr Chalmers said that, looking forward, the fundamentals for the bank’s business remain strong, both from an operational and a balance sheet perspective.
BOV chief executive officer Tonio Depasquale also addressed shareholders, giving a detailed presentation on the bank’s performance and speaking about some of BOV’s strategic priorities.
Mr Depasquale said the financial performance of the Bank of Valletta Group has to be analysed within the wider context of a Maltese economy that is performing well. Latest statistics show accelerating real growth in GDP coupled with record employment figures.
With Malta making an excellent name for itself as an international financial centre, the BOV Group is positioning itself to play a leading role in this new environment by developing expertise in fund administration, fund valuation and custodial services, he said.
Other areas of opportunity are opening up as a result of increased capital market activity in Malta – management and registrar services for IPOs are in increasing demand.
Personal banking needs and increased customer expectations are being addressed through a focus on wealth management, including rapidly developing areas such as trustee services, discretionary portfolio management, stockbroking and financial advice.
Among others, the shareholders approved the bank’s profit and loss account and balance sheet for the year ended 30 September 2007 and the directors’ and auditors’ report.
The meeting reappointed Deloitte & Touche Malta jointly with Deloitte & Touche United Kingdom, as auditors.
Another four extraordinary resolutions were put to the meeting which approved, among others, changes and increases to the bank’s share capital and granted the power to the bank’s board to consider and, if considered appropriate, to buy back, up to 10 per cent of the bank’s shares.
At the end of the meeting Mr Chalmers informed the shareholders that the government, by its letter of 14 November, 2007, addressed to the company, appointed two directors, namely himself as director and chairman and James Grech as director. UniCredito had appointed Roberto Cassata as director.
An election for the directors followed the annual general meeting.