‘We are a people-first organisation – taking care of our people means they will take care of our customers’ – Kenneth Farrugia

Having celebrated its 50th anniversary in 2024, Bank of Valletta is deeply embedded in the local financial landscape and stands as a cornerstone of Malta’s economy. Since becoming CEO in 2022, Kenneth Farrugia has championed sustainability and digital innovation, driving Bank of Valletta’s customer-focused transformation through a long-term strategy centred on the Customer Pillar, which aims to enhance customers’ financial well-being with excellent service and a comprehensive range of products.

Kenneth Farrugia’s journey with Bank of Valletta began in 1985, starting an almost 40-year tenure that has seen him in various executive roles. Throughout his career at the bank, Kenneth has honed his leadership skills across retail banking, asset management and credit business areas, embodying his commitment to both Bank of Valletta and the broader financial services sector.

His extensive experience includes serving in several prominent positions in financial services. He was Chair of the Malta Asset Servicing Association, where he worked to position Malta as a competitive player in the European finance sector. He was also a Board Member of the European Fund and Asset Management Association, as well as Chair of Malita Investments plc.

He counts his time as Chair of FinanceMalta – a public-private initiative promoting Malta as an international financial centre – as one of his career highlights. “I was very much involved in setting up FinanceMalta, which focused on the international branding of the country’s financial services industry. I’m immensely proud of all we achieved throughout that decade.”

Kenneth also sits on Bank of Valletta’s Board of Directors, chairs the Executive Committee and is a member of several management committees. Additionally, he serves on the Board of Directors of Bank of Valletta Fund Services Ltd, Bank of Valletta Asset Management Ltd and MAPFRE MSV Life plc.

Just before his appointment as CEO in October 2022, Kenneth completed a Harvard Business School General Management Programme, underscoring his lifelong commitment to learning. “As people move higher up the corporate structure, they tend to become disconnected, but I believe it is always important to make time for continued learning,” he asserts.

Kenneth describes his role as CEO as “setting the strategic direction of the company and overseeing its day-to-day business and operations, including people, governance and financials.” His passion for effective time management is both an advantage and a challenge. “I most enjoy discussing where we need to improve – not just ticking boxes but brainstorming and innovating solutions as a team. But it irks me when initiatives take too long to implement due to delays beyond our control and particularly those within our control.”

Viewing people as the backbone of Bank of Valletta’s operational success, Kenneth’s leadership ethos centres on empowering his team. “We are a people-first organisation,” he affirms. “We believe that taking care of our people means they will take care of our customers – a principle embedded in our values as we strive to understand what our customers expect from us and their evolving needs throughout different life stages.”

Founded in 1974, Bank of Valletta has grown over five decades to become one of Malta’s most prominent financial institutions and a lynchpin of the national economy. Kenneth highlights, “having just celebrated our 50th anniversary, we hold 50 per cent of the market in deposits and just over 50 per cent in commercial lending. Our market position brings both a weight of responsibility towards our economy and an immense sense of pride.”

Bank of Valletta’s strategy for 2024–2026 includes a strong emphasis on the ‘Customer Pillar’, prioritising community-centred banking and a commitment to staying at the forefront of customer experience. “The crux of customer experience is remaining relevant, which we achieve by staying adaptable,” Kenneth explains. “The minute you lose sight of relevance in your value proposition, you risk losing your connection with the customer. Our approach is simple yet impactful: To improve the financial lives of our customers through innovative, people-focused products. We organise customer panels to hear directly from them and understand how they view the bank. Going forward, we’ll deepen our research to explore customer experiences across individual products.”

Kenneth describes 2024 as “a record year for the bank, really, with stronger financial performance than expected.” His biggest challenge, he notes, is managing growth in the face of regulatory changes and external pressures. “It was fulfilling to see our new services and products embraced by customers,” he adds.

As global and local trends shift towards sustainability, Bank of Valletta embraces Environmental, Social and Governance (ESG) initiatives as integral to its long-term strategy. “ESG is not just a passing fad – it’s here to stay,” Kenneth asserts, outlining the bank’s focus on delivering sustainable growth by offering green lending options and supporting sustainable projects, while incentivising customers to invest in eco-friendly homes and businesses.

Kenneth also believes in leading by example on operational sustainability. The recently reopened Republic Street branch in Valletta now incorporates sustainable materials and a digital-first approach. “We’re committed to embedding sustainability in every facet of our operations, particularly given the deeply concerning impact of climate change and global emissions. Whether personal customers shifting from combustion engines to hybrid or electric cars, or businesses using recycled materials or investing in smart lighting, banks have a critical and important role in intermediating and bridging the information gap. Sustainable finance is a responsibility to our customers and future generations – it’s about creating lasting impact,” asserts Kenneth.

In parallel, Bank of Valletta addresses Malta’s cybersecurity challenges, safeguarding both digital and physical assets amid increasing technological reliance. “Cybersecurity is crucial, particularly as we embrace digital transformation. As a bank, we’re not only maintaining industry standards; we’re striving to stay ahead of potential threats to protect our customers and ensure seamless service delivery,” he notes, adding that 2024 also saw the launch of ‘Bovey’, Bank of Valletta’s instant customer support provider that is available 24/7 for all general enquiries.

Kenneth is optimistic about furthering Bank of Valletta’s commitment to digital transformation, sustainability and innovative services in 2025, particularly as impending regulatory changes such as the Digital Operational Resilience Act (DORA) and the Capital Requirements Regulation (CRR III) shape the bank’s compliance framework and operational structure. “Digitalisation continues to be an opportunity, while regulatory compliance is a challenge, especially with the new mandates. But we see growth potential,” he reveals. “The rise in digital services in 2024 brought significant opportunities to innovate, creating new avenues for customer interaction and improved service delivery. We are accelerating our digitalisation drive in 2025, focusing on automation and the digitalisation of processes to further streamline operations. Additionally, we are rolling out an enhanced digital platform and deepening our customer experience efforts with new tools and channels to enable easier access and communication with the bank.”

As ever, the customer remains central to Kenneth’s vision for Bank of Valletta in 2025 and beyond. “Ultimately, our mission is to better serve our customers and community through a highly trained and dedicated workforce while ensuring sustainable growth, which is essential for the future of the bank and Malta’s economy. We will continue to drive that forward, while viewing ESG as an opportunity to further embrace digitalisation and focusing on financial planning, retirement planning, facilitating transactions through alternative channels, and digitising products and services. We all look forward to 2025,” concludes Kenneth, with a smile. 

This article is part of the serialisation of 50 interviews featured in Malta CEOs 2025 – the sister brand to MaltaCEOs.mt and an annual high-end publication bringing together some of the country’s most influential business leaders.