Bank of Valletta remains committed to sustainable growth and long-term value creation for all its stakeholders, including its loyal shareholders who have placed their trust in the Bank and who, in turn, seek adequate returns on their investment. The Bank has recently announced a number of initiatives aimed at adding value to its shareholders, initiatives that were ratified during the Bank's 51st Annual General Meeting.
One of the most significant initiatives is the record dividend announced by the Bank. The Bank continues to focus on balancing dividend payouts against its current and future capital requirements, aiming to ensure sustainable growth based on strong financial and capital fundamentals. The profits for the Financial Year 2024 allowed the Bank to continue strengthening its capital structures and, at the same time, distributing record dividends.
BOV shareholders will be receiving a record gross dividend of €0.2238 per share, reflecting a total dividend payout of €130.7 million on a gross basis. This is the highest dividend paid out by the Bank in the past ten years.
It is also good to note that over the past four years, the share price of BOV Shares increased materially from €0.92 in 2020 to €1.72 in December 2024, representing an 87% increase in share price during this period. The share price currently hovers around the €2 mark.
To further increase the benefits to shareholders, BOV also announced a Bonus Share Issue, where shareholders listed on the register as at 26th June 2025 will receive one additional share for every ten shares they hold. The bonus issue will be funded by a capitalisation of reserves amounting to €58.4 million. This measure has several benefits to shareholders, including the fact that it will provide an additional potential source of liquidity and increase the potential for the value of capitalisation and trading in the equity market.
During the Annual General Meeting, shareholders also approved a Share Buyback Initiative, which is still subject to regulatory approval. This Buyback Programme, which could see the Bank buying up to 2,800,000 shares (pre-bonus issue) from shareholders, aims to increase the stock liquidity and the trading in BOV's Shares. BOV will stand ready to buy on the Malta Stock Exchange reasonable amounts of shares offered at market price, which are not taken up by other buyers.
It will be a voluntary programme, meaning that no shareholder will be forced to sell their shares back to the Bank. The shares bought will not be cancelled.
Among the benefits of this initiative for shareholders is that it offers an additional potential source of liquidity and offers an alternative exit option to shareholders who wish to sell their shares, under certain conditions. It also increases the potential for the value of capitalisation and trading in the equity market. This initiative aims to ensure market transparency and will operate according to the relevant regulatory framework.
The Bank operates such initiatives through a solid governance policy framework, which factors in financial affordability, regulatory expectations with respect to capital positions, future capital requirements for business growth and reasonable shareholder expectations.
The initiatives are a testament of the high level of trust that the Bank enjoys within the local market. The Bank's recent announcement that it will be issuing the second series of Bonds under the €250 million Unsecured Euro Medium Term Bond Programme approved by the MFSA in October 2024, following the resounding success of the first tranche, also highlights the confidence that both investors and the public have in the Bank.
This second series includes an initial issuance of €100 million, with an overallotment option up to a maximum of €50 million in the event of oversubscription. The Bond's status is Unsecured Subordinated Tier 2, with bail-in clauses included. It will mature in 10 years and may be redeemed on any date between the fifth anniversary of the issue date and the maturity date. Interest will be paid annually at the rate of 5% and the issue price is set at par value.
Going forward, Bank of Valletta will continue with its aim of enhancing shareholder value. It remains focused on providing shareholders with sustained and stable returns, targeting a maximum distribution of 50% of Financial Year 2025 profits. The Bank is well-positioned to achieve a Profit Before Tax in the range of €200 - €250 million for Financial Year 2025.
Through sound strategic focus, the Bank will continue striving to strengthen its performance and achieve its goal to remain the Bank of Choice in Malta for years to come.
Issued by Bank of Valletta p.l.c., 58, Triq San Żakkarija, il-Belt Valletta VLT 1130. Bank of Valletta p.l.c. is a public limited company regulated by the MFSA and is licensed to carry out the business of banking and investment services in terms of the Banking Act (Cap. 371 of the Laws of Malta) and the Investment Services Act (Cap. 370 of the Laws of Malta).
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