BOV reports strong performance as leaders highlight bank’s role in Malta’s economic resilience

Look at almost any international headline over the past few years and the picture has often been dominated by uncertainty. Geopolitical tensions, inflationary pressures, and concerns about the health of major economies have become recurring themes. Yet in Malta, the story has been somewhat different, and considerably more positive. One place where that resilience can be clearly seen is in the performance of BOV. Ahead of its Annual General Meeting, the Bank is once again reporting a strong set of results, reflecting not only its own performance but, in many ways, the continued strength of the Maltese economy itself.

As Chairman Dr Gordon Cordina and Chief Executive Officer Kenneth Farrugia explain, BOV sees itself as more than simply a bank, but as a major economic enabler, supporting the individuals, businesses, and projects that continue to drive Malta forward.

The figures bear that out. As of 2025, the Bank’s balance sheet stood at €16.5 billion, equivalent to around two-thirds of Malta’s GDP. It serves more than 350,000 customers, holding approximately 50 per cent market share across many key banking metrics, and contributes more than €400 million annually to the Maltese economy, which equates to around 1.6 per cent of GDP. It finances major national projects while supporting businesses, households, pensioners, and community initiatives across sport, culture, and beyond.

“There are two dimensions to these results,” Dr Cordina explains. “One is our legacy nature, and the other is the size of the Bank. Together, they require us to be present across all customer segments. We don’t have the luxury of cherry-picking only the customers we want to serve.”

It is a position Mr Farrugia echoes, and one that drives the Bank’s ongoing push for improvement. “No matter how far we’ve come, there’s always another step to take,” he says. “It’s a bit like running a marathon, and that’s the mindset we’re fostering among our people. We’re doing well, but let’s continue to push towards great, because that’s where we should always be heading.”

A clear measure of success has been BOV’s ability to support confidence among those who rely on the bank every day. Part of meeting these evolving needs, Mr Farrugia is clear, means continuing to invest in digital infrastructure and the customer experience. BOV has made significant strides in recent years in improving its digital platforms, including its mobile app, to be launched shortly to the first group of customers, streamlining everyday banking interactions, and reducing the friction that customers have historically associated with traditional banking. “The expectation of our customers is changing rapidly,” he says. “We have to be where our customers are, and increasingly, that means being fast, intuitive, and available.”

The chairman also points out that BOV fulfils a unique role within the Maltese economy, particularly when it comes to financing larger projects and creating conditions that allow households and businesses to plan ahead with greater certainty. “Because of our size, we have the capacity to support projects of a certain scale and risk profile that are important to the country’s continued development,” he explains.

This stable approach to lending and interest rates is also reflected in the Bank’s loan portfolio, with non-performing exposures falling to around 1.6 per cent, a level comparable with many larger European banks.

These results are all the more striking when viewed against the backdrop of where Malta found itself only a few years ago, emerging from FATF greylisting, with questions being asked internationally about governance, financial controls, and the reputation of the country’s financial sector. That period already feels increasingly distant.

That renewed confidence can be seen in the Bank’s own relationships with major international institutions such as Citibank and Bank of New York, correspondent banking partnerships which are essential for facilitating international payments, foreign currency transactions, and cross-border banking services for BOV’s customers. These international institutions carry out extensive due diligence, scrutinising everything from governance structures and anti-money laundering controls to sanctions screening and risk management frameworks.

For the CEO, the contrast with just a few years ago is a measure of just how far Malta has come in such a short time. He points to the Bank’s recent €300 million bond issuance, which attracted interest far beyond the amount being sought. “We have seen very strong demand from international investors. That’s a signal. It says a lot about the Bank, the quality of our people, our technology, our strategies, and the framework we’ve built.”

Of course, earning trust is one thing; maintaining it is another. Both Mr Farrugia and Dr Cordina are keenly aware that as financial crime becomes increasingly sophisticated and digital threats continue to evolve, banks must constantly strengthen their defences. To that end, BOV has invested heavily in its anti-money laundering (AML) framework, enhanced risk management systems, and expanded the teams responsible for safeguarding both the Bank and its customers, which is now 150 people strong.

Equally important is building a culture where risk awareness becomes everyone’s responsibility. “We’re increasingly advocating to staff that if they see risks or red flags, to speak up,” Mr Farrugia explains. “By empowering our employees to raise concerns, BOV is effectively creating additional eyes and ears across the organisation, helping us identify and respond to risks early.”

The Bank’s improved performance is also being felt by shareholders. After a period marked by uncertainty and suspended dividends, BOV has returned to a position where it can reward investors while continuing to invest in future growth. For Dr Cordina, however, this is not simply about distributing profits but about striking the right balance. “Only after we have made sure that our capital plans are sufficient to meet our current and future needs can we distribute reasonable dividends to shareholders,” he explains.

He also reserves particular thanks for BOV’s shareholders. “This AGM is an opportunity to recognise the trust and patience our shareholders have shown over recent years,” he says. “They stood by the Bank through periods of uncertainty, including years when dividends could not be distributed. The progress we’ve made, the return to dividend payments, and the recovery in shareholder value are all part of rebuilding that confidence. We remain fully focused on continuing to meet those expectations.”

This is further reflected by the fact that both leaders remain cautiously optimistic about the years ahead. International agencies continue to forecast economic growth for Malta, supported by strong consumer spending, healthy liquidity levels, and continued demand for credit. Yet neither the Chairperson nor the CEO sees this as a moment for complacency. For Mr Farrugia, the focus now is on building from a position of strength and ensuring sustainable growth for all stakeholders: “It is important that we ensure sustainable growth through disciplined execution.”

Dr Cordina builds on this, pointing out that the future of banking will be shaped by a combination of changing demographics, rapid technological advancement, evolving regulatory requirements, and growing competition. Together, these forces are redefining what customers expect from their bank and how institutions like BOV must respond.

Perhaps fittingly, when asked about the challenges ahead, Mr Farrugia identifies BOV’s greatest competitor not as other banks, but itself. “We have to continuously challenge ourselves to do better,” he says. “We’re doing well today, but our focus is always on how we can do even better tomorrow.”

Bank of Valletta p.l.c. is a public limited company regulated by the MFSA and is licensed to carry out the business of banking in terms of the Banking Act (Cap. 371 of the Laws of Malta).