Bank of Valletta has raised the lower end of its full-year profit forecast to €230 million after reporting €189.6 million in profit before tax for the first nine months of 2026, supported by higher net interest income, strong lending growth and continued expansion of its balance sheet.

The Group's profit before tax was broadly in line with the €192.1 million recorded in the corresponding period last year, despite the non-recurrence of certain income items recognised in 2025 and continued strategic investment.

Operating income increased by 6% year on year to €387.1 million, primarily driven by a 10.6% increase in net interest income to €316.8 million. Net fee and commission income remained resilient at €60 million.

The performance prompted the Bank to revise its 2026 profit before tax guidance upwards, increasing the lower end of its forecast from €210 million to €230 million, while retaining the upper end at €250 million.

Pre-tax return on average equity stood at 16.7%, reflecting the strength of the Group's underlying operations.

BOV continued to record growth across its principal lending segments, with gross loans and advances increasing by 9.9% to €8.9 billion.

Home loans rose by 11.8%, business lending increased by 8%, and personal lending grew by 8.6%, highlighting continued momentum across the Bank's retail and commercial banking activities.

Total assets increased by 7.4% to €17.8 billion, while customer deposits grew by 6.5% to €14.6 billion. The Bank said this reinforced its stable, predominantly retail-funded deposit base.

The expansion in lending pushed the gross loans-to-deposits ratio to 60.9%, up from 59% in the previous comparison period, indicating a greater deployment of the Group's funding towards customer lending.

Asset quality also improved, with the non-performing exposure ratio falling to 1.41% from 1.68% at the end of December 2025.

The Group maintained strong capital and liquidity positions, reporting a Common Equity Tier 1 (CET1) ratio of 19.5%, a total capital ratio of 26.9% and a Liquidity Coverage Ratio of 401.8%. All three measures remained comfortably above regulatory requirements.

BOV's financial performance and strategic progress were accompanied by an increase in shareholder value.

The Bank's share price reached €2.40 during the period, representing a 27% increase since the beginning of 2026. Its price-to-book ratio reached 1.0 times, while its market capitalisation exceeded €1.54 billion.

Trading activity also strengthened, with more than €19 million worth of shares traded, an increase of over 21% year on year.

According to the Bank, shareholders benefited from approximately €327 million in additional market value since the beginning of the year, alongside €33.6 million in net dividends distributed in respect of the first half of 2026.

The Group also continued to manage its capital and funding structure, maintaining substantial headroom above regulatory requirements while supporting balance sheet growth.

Following the strengthening of its funding position during 2026, BOV has obtained the necessary regulatory and supervisory approvals and is proceeding with the early redemption of its outstanding Senior Non-Preferred notes in December 2026.

Preparatory work has also been authorised for a potential future Senior Note issuance of up to €350 million. Any issuance would remain subject to market conditions, regulatory approvals and the Bank's future funding requirements.

The Bank said these measures form part of a forward-looking approach to capital, minimum requirements for own funds and eligible liabilities (MREL), and funding management.

BOV Chairperson Gordon Cordina said the results demonstrated the continued strength and financial resilience of the Bank's business model.

He highlighted growth in operating income and customer lending, alongside sound asset quality and substantial capital and liquidity buffers.

"The revision in the full-year profit guidance reflects the progress achieved during the first nine months and our confidence in the Group's financial trajectory," Cordina said.

He added that the Board remained focused on disciplined and sustainable growth, supporting Malta's economic development and delivering long-term value to shareholders.

Chief Executive Officer Kenneth Farrugia said the results reflected strong execution across the Group's core banking activities, particularly in net interest income and customer lending.

He pointed to the 10.6% increase in net interest income and 9.9% growth in gross customer lending, supported by the strength of the Bank's deposit base.

Farrugia also highlighted continued investment in technology, operational resilience and customer experience, saying these initiatives were intended to make the Bank more efficient and responsive to customers' needs.

BOV said it remained on track to meet its broader financial objectives, supported by strong net interest income, customer loan growth of approximately 10%, sound asset quality and substantial capital and liquidity headroom.

The revised profit guidance reflects the Group's performance during the first nine months and its increased confidence in the remainder of the year.

With profit before tax already reaching €189.6 million by the end of September, the Bank is now targeting a full-year result of between €230 million and €250 million.

BOV said it remained well positioned to support its customers and the Maltese economy while pursuing disciplined growth and sustainable long-term returns for shareholders.