NEWS | Wednesday, 30 April 2008

BOV profits more than halved

Charlot Zahra

As forecast by international credit agency Moody’s in its latest credit rating for the bank issued on March 31, the Bank of Valletta (BOV) group saw its profits more than halved when compared to the same period last year.
In fact, BOV has recorded a net profit before taxation of €25 million for the six months which ended on 31 March 2008, as against a profit of €56.6 million for the equivalent period ended 31 March last year, a reduction of €31.6 million or 55.86 per cent.
Addressing a news conference at the bank’s offices in Valletta, soon after the Board of Directors approved the group’s half-yearly accounts, BOV Chairman Roderick Chalmers said that “after three years of impressive double digit growth in profits, it was disappointing, if not unexpected, to have to report a decline in profits for this half year”.
He explained that the results were influenced by a number of factors, and particularly by the impact of markdowns in the value of the bank’s financial markets and investments portfolio as a result of the extended disruption in the global financial markets since July 2007.
“Such markdowns, however, are expected to be largely temporary in nature, and the Board of Directors expects a significant proportion of the markdown amount to be clawed back over time, as the investments are held through to redemption and the fair value adjustment unwinds,” Chalmers said.
In spite of the losses affecting the results for the half year, the Board of Directors resolved to maintain the interim dividend at the same level as declared in 2007.
In trading on the Malta Stock Exchange (MSE) yesterday morning, the price of BOV shares was unaffected by the news, remaining unchanged at 5.19 with a single trade of 270 shares.

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30 April 2008

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