BOV withstood negative economic climate during debt crisis - chairman

Bank of Valletta chairman Roderick Chalmers warned today that the European economic climate would become more serious if the crisis of confidence spreads to Italy and Spain, after the sovereign debt crisis that hit Greece, Portugal and Ireland.

16 December 2010, 12:00am
by Matthew Vella

2 min read

He was addressing BOV shareholders at the bank's Annual General Meeting, which proposed a €0.16c dividend for a final dividend value of €0.23c5 and an issue of 1 share for every 5 shares.

"Given the current economic climate, BOV managed to expand its balance sheet while its liquidity stayed strong at 41 per cent and its total capital ratio was reinforced by a €70 million bond issue," Chalmers said.

The BOV chairman said the bank had registered a total asset value of €6.3 billion while maintaining shareholders' equity at €470 million.

Speaking during the AGM, Chalmers also expressed regret both for the property fund’s poor performance and at how some investors attempted to question the bank’s integrity.

Chalmers told shareholders that the negative publicity on the loss in asset value on the La Valletta Sicav's multi-manager property fund were met with by counter-protests rebutting the allegations.

He affirmed that the bank is doing its best to minimise negative impact on investors, steering clear however from addressing the accusations levelled at the bank.

He nevertheless warned that there is a difference between facts and the allegations or innuendo being made by investors.

“Allegations are sub judice and it is not my intention to answer matters pertaining... we greatly regret the poor performance of the fund. The bank fully respects the right of any party to file complaint or engage BOV in commercial litigation," he would only say.The meeting is currently electing its directors after shareholders unanimously approved a number of resolutions.

The resolutions include calling for a €0.16c dividend per share, a bonus share issue of one share for every five to increase the bank’s capital base to €240 million from €200 million, and granting the directors the power to buy back up to 10 per cent of the company's shares.

Another resolution approved a bonus share issue of one share for every five to increase the bank’s capital base to €240 million from €200 million and another gave directors the power to buy back up to 10 per cent of the company's shares.

Matthew Vella, a freelance journalist at MaltaToday, was formerly executive editor at Malt...