BOV results ‘demonstrate strength of business model’ – Chairman Gordon Cordina

BOV has revised its profit guidance upwards after delivering positive results in the first nine months of 2026, with Chairperson Gordon Cordina saying they “demonstrate the continued strength and financial resiliance” of the bank’s business model.

While delivering its quarterly and year-to-date results, BOV raised the lower bound of its 2026 profit before tax guidance from €210 million to €230 million, while retaining the upper bound at €250 million.

“The revision in the full-year profit guidance reflects the progress achieved during the first nine months and our confidence in the group’s financial trajectory,” said Dr Cordina.

“The Board remains focused on ensuring that the bank pursues disciplined and sustainable growth, continues to support Malta’s economic development and delivers long-term value to its shareholders.”

BOV delivered a strong operating performance during the first nine months of 2026, reporting profit before tax of €189.6 million, broadly in line with €192.1 million in the corresponding period of 2025.

Operating income increased by 6.0 per cent to €387.1 million, driven principally by a 10.6 per cent increase in net interest income to €316.8 million. This reflected sustained growth across the Group’s customer lending and investment portfolios. Net fee and commission income remained resilient at €60.0 million.

The modest year-on-year reduction in profit principally reflected the non-recurrence of specific income items recognised in 2025, together with continued strategic investment. The strength of the group’s core operating performance largely absorbed these effects, with pre-tax return on average equity remaining robust at 16.7 per cent.

CEO Kenneth Farrugia said the performance “reflects strong execution across the group’s core banking activities, with positive momentum across home, business and personal lending.”

He added that “this growth was supported by the continued strength of our deposit franchise and translated into more productive deployment of thegGroup’s funding base.”

The bank’s strong performance and continued strategic progress have also been reflected in shareholder value. During the period, the share price reached €2.40, an increase of 27 per cent since the beginning of the year, with the bank’s price-to-book ratio reaching 1.0x and market capitalisation exceeding €1.54 billion.

Trading activity remained strong, with more than €19 million in shares traded, an increase of over 21 per cent year on year. Shareholders have also benefited from approximately €327 million in additional market value since the beginning of 2026, together with €33.6 million in net dividends distributed in respect of the first half of 2026.

Mr Farrugia said BOV “remains focused on serving our customers, maintaining disciplined lending and preserving the strength of our balance sheet. At the same time, we continue to invest in technology, operational resilience and customer experience to build a more efficient and responsive bank. The progress achieved to date provides a strong foundation for the remainder of 2026 and for the group’s next phase of sustainable growth.”