Bank of Valletta Results: Lending Growth and Upgraded Guidance
Bank of Valletta reported a pre-tax profit of €189.6 million for the period ending September 2026, close to last year’s figure, and raised its full-year profit guidance.
- Profit before tax
- €189.6 million (compared with €192.1 million a year earlier)
- Full-year guidance
- €230 million to €250 million, up from a previous floor of €210 million
- Pre-tax return on average equity
- 16.7%
- Share price
- €2.40, up 27% since the start of the year
- Market capitalisation
- Above €1.54 billion
Income and Profit
Total operating income rose 6.0% to €387.1 million, driven mainly by a 10.6% increase in net interest income, which reached €316.8 million. Net fee and commission income held steady at €60.0 million. Management attributed the slight fall in pre-tax profit to income recorded in 2025 that did not recur, alongside continued strategic investment.
Balance Sheet Growth
Total assets grew 7.4% to €17.8 billion and customer deposits rose 6.5% to €14.6 billion. Gross loans and advances increased 9.9% to €8.9 billion. The biggest gains were in home loans, up 11.8%, followed by business lending, up 8.0%, and personal lending, up 8.6%. As a result, the loans-to-deposits ratio rose from 59.0% to 60.9%.
| Lending segment | Growth |
|---|---|
| Home loans | 11.8% |
| Personal lending | 8.6% |
| Business lending | 8.0% |
Shareholders
The share price has risen 27% this year to €2.40, lifting market value above €1.54 billion. Trading volume grew by more than 21% year on year to over €19 million. Shareholders also received €33.6 million in net dividends for the first half of 2026.
Capital Management
The bank has received regulatory approval to redeem its Senior Non-Preferred notes early, in December 2026. It has also put in place preparations for a possible Senior Note issue of up to €350 million, subject to market conditions and regulatory clearance.
Leadership Comments
Chairperson Gordon Cordina said the results show the resilience of the bank’s business model and its ability to support Malta’s economic development. CEO Kenneth Farrugia said momentum in lending and ongoing investment in operational infrastructure give the bank a solid base for the rest of 2026.
