BOV nets €98.9m pre-tax profit for 2010

BOV Group Chairman Roderick Chalmers announced the profits during a press conference where he gave details about the bank's performance during 2010.

He said the bank had seen a 14% improvement in profits for core operations.

Chalmers said the bank had experienced an increased volume in deposits. Low-interest rates dampened margins, and are expected to remaon low until mid-2010.

The bank saw significant higher flows of foreign transactions, and a strong performance in its card business.

Chalmers said the bank had implemented a cost-conscience culture that had led to savings, with costs increasing by 2% to €78.7m over 2008.

But the bank also saw an increase in its impairment charge of €12.9 million - an increase of 222 per cent.

Its loan book saw an upturn in non-performing loans to some 5% of total loans.

BOV is reccommending final dividend of 16c per share for December 2010 after an interim dividend of 7c5 in May 2010 was paid out this year.

The BOV board is also recommending a bonus issue of 1 share for every 5 shares held. Thos will be funded by reserves capitalisation of €40m.

Board of Directors

Meanwhile a Bank statement has followed the conclusion of meeting also heald today by the Board of Directors of Bank of Valletta.

The board approved the audited financial statements for the financial year ended 30 September 2010, and resolved that these audited financial statements be submitted for the approval of the shareholders at the forthcoming Annual General Meeting which is scheduled for Thursday, 16 December 2010.

The Board also resolved over the following:

1. The payment of a final gross dividend of €0.160 per share making for a final net dividend of €0.104 per share which, if approved by the Annual General Meeting, would make for a total gross dividend for the year of €0.235 per share (total net dividend per share €0.15275).

2. A bonus share issue of one (1) share for every five (5) shares held which will be allotted to shareholders on the Bank’s share register as at close of business on 12 January 20111. The bonus issue will be funded by a capitalisation of reserves amounting to €40 million.

Application will be made for the necessary authorisations concerning the listing of the bonus
share issue on the Malta Stock Exchange.

Shareholders on the Bank’s share register, at the Central Securities Depository of the Malta Stock Exchange, as at the close of business on Wednesday 10 November 20102 will receive notice of the Annual General Meeting, together with the Financial Statements for the financial year ended 30 September 2010.

The final dividend, if approved at the Annual General Meeting, will be paid on the 17 December 2010 to the shareholders on the Bank’s share register at the Central Securities Depository of the Malta Stock Exchange as at the close of business on Wednesday 10 November 2010.