Maltese banking landscape ‘entering period of increased competition and change’ – BOV CEO

The Maltese banking landscape is entering a period of increased competition and change, Bank of Valletta CEO Kenneth Farrugia said in his commentary on the bank’s half-yearly results.

“We welcome developments that strengthen the sector and broaden customer choice.”

Although the BOV CEO did not mention and specific changes to the banking landscape, one of the major changes that is expected in the foreseeable future is the sale of HSBC Malta to Crediabank.

The BOV CEO continued to say that BOV is entering the next phase “with a deep-rooted presence across Malta, strong customer relationships, a leading market position across deposits and lending, robust capital and liquidity, international market access and strengthening external ratings.”

These attributes, he said, combined with the bank’s long-standing commitment to Malta and continued investment in innovation and service, “position us well for the future.”

He also mentioned that, looking ahead, “we remain confident but vigilant.”

He mentioned that global uncertainty is expected to persist, influenced by geopolitical developments, interest rate expectations and evolving customer demands.

“Nevertheless, Malta’s economic fundamentals remain supportive, and we are well positioned to continue executing our strategy successfully.”

He said that the bank will continue to grow responsibly, preserve asset quality, maintain strong capital and liquidity buffers, expand its customer franchise and invest in technology, cybersecurity, data capabilities and customer experience.

Featured image by BOV