Bank of Valletta’s strategic vision: driving shareholder value and sustainable growth

Malcolm Naudi
Bank of Valletta CEO Kenneth Farrugia (Photo: Darrin Zammit Lupi)

Bank of Valletta (BOV) is delivering on its ambitious 2024-2026 strategic plan, combining strong financial performance with a commitment to sustainability and customer-centric innovation, according to its Chief Executive Officer Kenneth Farrugia (above – photo: Darrin Zammit Lupi).

Enhancing shareholder value

BOV closed off Financial Year 2025 with a profit before tax of €260.4 million. This outcome reflects the strength of the Group’s underlying business model, the resilience of its core income streams and the disciplined execution of its strategic priorities throughout the year. As a result, it entered 2026 with stronger financial foundations and clear momentum for the next phase of its strategic development.

The strong financial performance enabled the Board to propose one of the most substantial dividend distributions in recent years, with a final gross cash dividend of €65.1 million being recommended for approval from H2 profits. Over and above, the Board also proposed a special dividend of €10.4 million gross, equivalent to €0.0162 per share gross. This results in a total cash dividend for FY25 of €0.2032 gross per share, equivalent to a total gross dividend of €130.5 million out of the year’s profits, with the payout being fully aligned with the Group’s Shareholder Distribution Policy.  

Complementing this cash dividend, the Bank has also allocated a €7.8 million reserve during the year to operate the regulated share buyback programme, activated during FY2025.

Strategic priorities: people, customers, risk and operations

At the heart of BOV’s strategy are four pillars: people, customers, risk governance and internal operations. “People first” remains the guiding principle, ensuring that employee engagement drives customer satisfaction and business success.

Digital transformation and customer experience

Digitalisation is a key enabler. A new mobile banking app is in development and planned for launch in 2026, expanding from under 20 functions to hundreds of functionalities, including PIN changes, lost card notifications and other assisted services.

BOV continues to invest in its branch and ATM network, introducing extended opening hours and opening a new Financial Well-Being Centre in Gozo. Other innovations, such as an appointment booking system and a dedicated UX Lab, further enhance customer journeys.

Operational efficiency

Customer onboarding has been streamlined, with new personal accounts opened within 1-2 working days and corporate accounts within three weeks. Operational metrics around this, and other operational processes, ensure efficiency across all product delivery areas.

Commitment to ESG

BOV is embedding Environmental, Social and Governance (ESG) principles into its operations. Initiatives include:

  • Environmental: The ‘walk to print’ programme that eliminated 280 desktop printers, replacing them with around a dozen print hubs that reduced paper usage by €120,000 annually. Branch refurbishment projects incorporate renewable materials and energy-efficient systems, while green lending and green investment products incentivise eco-friendly practices.
  • Social: The BOV Foundation continues to enhance its support to local communities, including Puttinu Cares, the Dar tal-Providenza, Caritas and Heritage Malta, as well as cultural heritage projects that include the restoration of various paintings of importance around Malta and Gozo.
  • Governance: A robust risk management framework ensures higher compliance across the organisation, as well as stronger cybersecurity protection, initiatives that have been recognised and endorsed by correspondent global institutions such as Citi and Bank of New York.

Future outlook

BOV aims to further strengthen its core business and service delivery across all touchpoints, expanding into pensions, non-life insurance and new technologies, driving long-term value for customers and shareholders, while reinforcing its position as a leader in Malta’s financial services sector.