03 November 2004

Search all issues

powered by FreeFind

Send Your Feedback!

BOV Group registers robust financial performance

The BOV Group has registered an operating profit before tax of Lm 18.4 million for the financial year ended 30 September 2004, an increase of 24.6 per cent over the profit registered last year. This was announced today following a meeting of the Board of Directors, which approved the results.
BOV Chairman Joseph F X Zahra attributed the strong performance to the effectiveness of the strategy that the BOV Group has implemented over the past year and to the resilience that underpins the fundamentals of its operations. He comments, “BOV is today a modern financial services operator with an organisation structure that is well aligned to deliver on its key strategic thrusts.”
Elaborating on the financial results, Mr Zahra announced that the BOV Group’s interest income reached Lm 40.9 million (2003: Lm 34.6 million) an increase of 18.1 per cent. “Net commission income registered an increase of 15.6 per cent from Lm 8.5 million in 2003 to Lm 9.9 million this year. Operating costs increased by 8.5 per cent from Lm27.1 million last year to Lm 29.4 million,” said Mr Zahra.
Despite the increase in costs, the cost income ratio improved from 50.1 per cent in 2003 (restated to include share of profits from associates) to 48.0 per cent during the financial year ended 30 September 2004. This represents the strongest cost income ratio registered by the Group since September 1996 and continues to improve on the positive result achieved last year in line with the bank’s efforts to optimise on cost-effectiveness in its operations.
Provision for impairment allowances increased by Lm 13.4 million (2003: Lm12.2 million). This provision includes a final allocation in an exercise that has now been fully carried out by the Bank, bringing its impairment allowances in line with standards required by local legislation. Impairment allowances are provisions, which the Bank prudently sets aside to make good for any potential losses in the future.
The BOV Group preliminary statement of annual results for the financial year ended 30 September 2004 shows sustained balance sheet growth with Group total assets increasing by Lm 42.3 million (2.2 per cent) to reach Lm 2.03 billion (2003: Lm 1.99 billion). Customer deposits increased by Lm 30.3 million (2.1 per cent) to reach Lm 1.46 billion (2003: Lm 1.43 billion). Concurrently, net advances to customers increased by Lm 45.0 million (5.8 per cent) to reach Lm 826.1 million (2003: Lm 781.1million).
During the financial year ended 30 September 2004, shareholders’ funds increased by Lm2.8 million (2.2 per cent) and amount to Lm 129.8 million (2003: Lm 127.0million). Group net asset value per share increased from Lm2.29 to Lm 2.34
Mr Zahra announced that the Board of Directors is recommending to the Annual General Meeting of the company a final gross dividend of 10 cents per share which, together with the gross interim dividend of six cents per share paid out in May 2004, results in a gross total dividend payout of 16 cents per share. This represents a 45.5 per cent increase over the gross dividend per share paid out last year.

Copyright © Newsworks Ltd. Malta.
Editor: Saviour Balzan
The Malta Financial & Business Times, Newsworks Ltd, Vjal ir-Rihan, San Gwann
Tel: (356) 21382741-3, 21382745-6 | Fax: (356) 21385075 | E-mail