 01-07 November 2000 |
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BOV record pre tax profit of Lm17.8 million Bank of Valletta announced yesterday that for the financial year ending 30 September 2000 the Group registered a record pretax profit of Lm17.8 million. This outstanding result represents an increase of 11.3% over the pretax profit of Lm15.8 million registered in September 1999. Shareholders' funds increased by Lm13.1 million or 15.8% and amount to Lm96.0 million. Group Net Asset value per share is Lm2.08 (September 1999 Lm1.79). The Board of Directors is proposing a gross dividend of 9 cents.  Announcing the financial results, BOV Group Chairman, Joseph F. X. Zahra stated that "the Group has achieved an annualised return of 9.7% on average shareholders' funds (1999' 20.3%) and of 1.2% on average total assets (1999 1.2%). This result is the outcome of a challenging and successful year, during which our people have managed to respond to strong competition and continuous market changes with conviction and determination. In fact, the Group has continued to experience balance sheet growth with Group Total Assets amounting to Lm1.6 billion. Customer Deposits have increased by Lm100.3 million or 9.8% since September 1999 and now exceed Lm1.1 billion. Advances to customers, net of provisions for doubtful debts have risen by Lm82.9 million over September 1999, an increase of 13.7%. Net advances now stand at Lm687.0 million." Mr Zahra added that "during this financial year, the Group has successfully managed to raise funds through two bond issues, the first, a subordinated bond issue of Lm10 million and the second, a bond issue of US$25 million. The response from investors was overwhelming and both issues were oversubscribed, with final amounts issued of Lm20 million and US$36 million. Moreover, BOV's successful results can also be attributed to the bank's focused strategy evidenced in the adoption of customer relationship management - a strategy which necessitated a comprehensive restructuring programme, a change in the bank's IT platform, as well as in its branch infrastructure and processes. This strategy enables us to offer a more personalised service to our clients. The diversification of sources of income attributed by the bank's subsidiaries and associates has been a major contributor to the growth in profits." Mr Zahra concluded that "the continuous innovation within the Group has also been a major factor which sustained and improved the Group’s results. Such innovation coupled with new initiatives such as the adoption of sales and performance related pay processes and the, identification and exploitation of new niche markets have helped Bank of Valletta to consolidate its leading position in the local financial services sector." | ||||||
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