Bank of Valletta recently welcomed the Malta ESG Alliance (MESGA) Consultative Council of Future Generations, a vibrant delegation of students from government, church, and independent schools to its Head Office in Santa Venera. This council aims to create a platform for students and business leaders to engage in meaningful discussions on ESG (Environmental, Social, and Governance) topics, challenging current practices in areas such as renewable energy, the circular economy, mental health, and sustainable development.
As one of the 13 founding members of MESGA, Bank of Valletta is committed to fostering collaboration among Maltese businesses to drive national ESG goals and serve as a catalyst for positive change.
BOV CEO Kenneth Farrugia and COO Ernest Agius hosted the Council at the Bank’s Head Office in Santa Venera. The discussions focused on the Bank’s role in achieving the UN Sustainable Development Goals (SDGs) and provided an opportunity for the members of the Council to voice their perspectives on creating a sustainable and thriving future.
The Council delved into topics such as the Bank’s carbon footprint and its efforts to reduce it, cash and cheque usage, sustainable lending, gender equality and community engagement among others. They challenged current practices and suggested mitigating solutions in an engaging discussion in an informal manner.
“The ESG landscape is increasingly complex, with businesses like Bank of Valletta facing mounting pressures related to climate risks, regulatory changes, and evolving societal expectations,” said Kenneth Farrugia, BOV CEO. “We welcome the innovative solutions and strategies proposed by the MESGA Consultative Council of Future Generations, whose fresh perspectives are invaluable in addressing the pressing concerns of the Maltese business community.”
Bank of Valletta remains dedicated to leading by example in the ESG arena, continuously seeking to integrate sustainable practices into its operations and encouraging other businesses to do the same. The Bank looks forward to ongoing collaboration with the MESGA Consultative Council of Future Generations and other stakeholders to build a more sustainable and resilient future for Malta.
A new chapter in economic collaboration between Malta and Ireland was opened last week as the Malta Business Bureau (MBB), in partnership with the Cork Chamber, hosted a virtual trade mission designed to foster cross-border business growth and innovation.
Entitled “Trade Horizons — Malta & Ireland: Market Insights and Collaboration”, the event brought together business leaders, diplomats, and industry experts from both island nations with a single aim: to unlock international opportunities for SMEs and strengthen economic ties through shared values and strategic sectors.
Michele Agius, Policy Advisor at MBB, launched proceedings by underscoring the enduring partnership between the two organisations. “Six years ago, our collaboration with Cork helped Maltese businesses expand into Ireland. Today, we’re building on that foundation to explore what the future of cross-border innovation and trade looks like”.
Ireland’s Ambassador to Malta, Caroline Whelan, called the event “a natural step forward,” highlighting the nations’ similar cultures, English language advantage, and growing connectivity – with three direct flight networks now linking the countries. She spotlighted areas ripe for collaboration, including aviation, MedTech, digital services, tourism, and education technology.
Her counterpart, Malta’s Ambassador to Ireland, Fione-Jayne Formosa, stressed the strategic alignment of both countries as gateways to their regions. “Malta and Ireland are not just open for business – we are ideally placed to act as global hubs. Our adaptable legislative systems and knowledge-based economies give us a competitive edge,” she remarked, pointing to Malta’s Life Sciences Park and Ireland’s strong pharmaceutical exports as areas of mutual benefit.
Panel sessions during the mission showcased each country’s business ecosystem, with experts discussing the ease of doing business, access to skilled workforces, and emerging sectors like fintech, agritech, Al, and green technology. Notably, Malta’s ties with Africa and Ireland’s transatlantic reach were identified as complementary routes to global markets.
The first panel session, exploring Malta’s business ecosystem, featured Helga Mizzi, International Relations Advisor at The Malta Chamber, and Catherine Hurley, LNG Consultant at Tutis Energy. Both praised Malta’s accessibility, strong EU links, and entrepreneurial spirit. Mizzi emphasised Malta’s strategic reach to Africa and educational ties with Ireland, while
Hurley highlighted Malta’s regulatory agility and English-speaking workforce as key assets for Irish investors.
The second panel, moderated by Monica Valdes, EEN Executive at Cork Chamber, focused on Ireland’s business landscape. Conor Hyde, founder of Bullseye and Hyde Irish Whiskey, and Mourad Mejdi, Economist at lbec, spoke of Ireland’s export-driven economy and its appeal to global investors. They also encouraged collaboration in agrifood, green tech, and environmental solutions, where both countries bring complementary strengths.
The mission concluded with targeted breakout sessions, offering participating businesses practical pathways to partnership and collaboration.
This event forms part of the MBB’s ongoing commitment to supporting Maltese enterprises in their internationalisation efforts, in conjunction with the Enterprise Europe Network.
Businesses seeking more information on internationalisation prospects or wishing to explore EU funding opportunities can contact Jasmine Cassar, MBB’s EEN Project Coordinator, at jcassar@mbb.org.mt.
Bank of Valletta announced its first-ever public webinar, aimed at helping individuals stay safe from scams and phishing attacks, offering practical advice to support people in protecting their personal and financial information. The one-hour webinar will take place online on Wednesday 7th May 2025 at 5pm. It is open to the public, free of charge, and will be delivered in Maltese.
This initiative forms part of the Bank’s ongoing commitment to financial education and customer protection. The webinar will be led by the Bank’s Group Chief Anti-Financial Crime and Money Laundering Reporting Officer, Ryan Caruana. CEO, Kenneth Farrugia, will also be present and making an intervention. During the session, attendees will learn about the methods used by fraudsters, how scams typically unfold, and the steps one can take to stay protected. Using real-world examples and straightforward language, the session will offer practical advice on how to recognise red flags, safeguard personal and financial information, and respond appropriately to suspicious activity.
Financial scams and phishing attempts continue to rise, targeting people from all walks of life. Cybercriminals are becoming increasingly sophisticated, using tactics that exploit emotions such as fear, urgency, and trust. Ryan Caruana emphasised that awareness and knowledge are the best defence, stating, “Our goal is to equip the public with the tools they need to protect themselves. Scammers are smart, but with the right information, you can be smarter. We encourage everyone to take this opportunity to learn more and stay one step ahead.”
Bank of Valletta invites everyone who wants to learn how to better protect themselves to register today. Registration for this webinar can be done through this link or by using the QR Code provided.
The session is open to the general public, and participants will also have the opportunity to ask questions during a short live Q&A session at the end. For more information, visit https://www.bov.com/anti-financial-crime-webinar or contact BOV Customer Service Centre agents on +356 21312020.
The Ministry for Education, Sport, Youth, Research and Innovation, HSBC Malta Foundation and JA Malta have officially launched the Centre of Excellence in Financial Capability and Entrepreneurship, a national initiative designed to integrate financial literacy and entrepreneurial thinking across Malta’s education system.
Backed by research highlighting significant gaps in financial knowledge among both young people and adults in Malta, the Centre will provide educators and students with the skills they need to make informed financial decisions and contribute positively to society. The PISA 2022 results showed Maltese fifteen-year-olds performing below the OECD average in core subjects that relate both directly and indirectly to financial literacy. Meanwhile, the OECD/INFE 2023 survey indicated negative financial attitudes among adults aged 18 to 29, and limited digital financial abilities across all age groups.
The Centre of Excellence is a strategic response to these challenges. Developed in partnership with JA Malta and supported by the HSBC Malta Foundation, the initiative seeks to embed financial capability across all areas of learning, including subjects not traditionally associated with finance, such as physical education and languages. A central component of the initiative is an accredited MQF Level 5 Award in Financial Capability and Entrepreneurship, which offers educators a structured training programme based on the EU/OECD financial literacy competence framework for youths. The training consists of three half-day sessions, along with four hours of personalised coaching to support implementation.
Five schools have already joined the pilot phase of the Centre, representing a mix of state, church and private institutions: St Catherine’s High School Primary, The Archbishop’s Seminary Secondary and Primary, St Clare’s College Pembroke Secondary, St Clare’s College San Ġwann Primary, and St Joseph Mater Boni Consilii Primary. These schools have embraced the Centre’s approach, incorporating financial education into their curricula and promoting a culture of financial literacy and entrepreneurship among their students.
Matthew Caruana, CEO of JA Malta, said: “The launch of the Centre of Excellence marks an exciting milestone in our commitment to embedding financial literacy and entrepreneurial skills within Malta’s educational framework. We’re proud to see educators and students empowered, building stronger futures for themselves and our community.”
Geoffrey Fichte, CEO at HSBC Malta said: “This groundbreaking partnership with the Ministry for Education and JA Malta will equip both educators and students with crucial financial and entrepreneurial skills. I would like to thank the five schools participating in the pilot phase of this Centre. We are proud to be part of shaping a generation capable of making informed financial decisions and look forward to expanding this initiative across Malta.”
Minister for Education, Sport, Youth, Research and Innovation Clifton Grima said: “This initiative will give students, parents and teachers essential skills that are relevant not just in the classroom, but in everyday life. By embedding financial education across the curriculum, we are taking an important step towards a financially conscious and entrepreneurial generation that is better equipped to navigate the opportunities and challenges of the future.”
With strong momentum from the pilot phase, the Centre is now looking to expand its reach in the next academic year. Schools across Malta are encouraged to join this important national effort to build a more financially capable and entrepreneurial generation. For more information about the Centre of Excellence and how to get involved, click here.
Climate change has emerged as one of the defining challenges of the 21st century. From rising temperatures to extreme weather events, its effects are no longer distant possibilities but immediate, pressing realities. Navigating this evolving landscape can often feel overwhelming. Recognizing the need for deeper dialogue and clearer foresight, EY Malta, in collaboration with The Malta Chamber of Commerce, Enterprise and Industry and the Climate Action Authority, hosted an event on Tuesday, 29th April, titled ‘CHANGE: Envisioning Malta’s Four Climate Futures’. Held at The Malta Chamber in Valletta and moderated by Rachel Attard Bondi from The Malta Chamber, the event offered an eye-opening and thought-provoking journey through the potential climate futures of Malta.
The event was opened by The Malta Chamber President William Spiteri Bailey, explaining how the business community feels the need to play its part in Malta’s climate adaptation challenge. He stated that the green transition should not be about ticking boxes, dishing taxes, or greenwashing. “It is about making alternatives possible (fuels and technology), for a practical, affordable transition,” he stated. The event continued with a statement from Ing. Abigail Cutajar, CEO of the newly set up Climate Action Authority, emphasising the importance of three key qualities for successful climate action: courage, conviction, and cooperation. She invited all stakeholders to engage actively and work together towards a common goal, stressing that only through collective effort can Malta secure a resilient climate future. This was followed by an opening statement by Chris Meilak, partner at EY, who laid the groundwork for the discussions to follow. He acknowledged the growing global uncertainty around climate priorities, stressed the importance of futures studies as a tool for navigating an unpredictable landscape, and emphasized the need for scenario thinking to prepare for multiple possible outcomes.
Providing critical context, Dr Jeanelle Arpa from EY delivered a technical presentation unpacking the complex factors driving climate change. The session detailed key trends and vulnerabilities, and the scientific projections that framed the day’s Futures-building exercise. This analytical backdrop offered attendees a foundation to understand the choices and trade-offs Malta may face over the coming decades.
Bringing the realities closer to home, video compilations featuring Maltese residents from different sectors and walks of life shared first-hand accounts of how climate change is already reshaping their work and our lives. From shifts in weather patterns affecting agriculture, to the impacts of rising sea levels on coastal communities, to emerging health challenges linked to environmental changes, the stories painted a vivid and urgent picture of a nation already feeling the strain of a changing climate.
The heart of the event was the presentation of Malta’s Four Climate Futures, developed through EY Malta’s detailed scenario analysis and disruption mapping techniques. Drawing on the framework created by futurist Jim Dator, the four scenarios — Business as Usual (BAU), Collapse, Constrain, and Transform — were tailored specifically to Malta’s unique circumstances. The analysis incorporated local trends, historic events, and global weather patterns to provide compelling visions of what Malta’s future could look like in 30 years, focusing particularly on adaptation.
To bring these futures to life, the presentation included a wide array of imagery, including AI-generated visuals, designed to immerse attendees in the atmosphere, challenges, and opportunities of each possible future. Participants were invited to step into these contrasting realities, reflecting not only on the risks, but also on the pathways to resilience and innovation that could emerge. The scenarios were intended to provoke strategic thinking across public, private, and civil society sectors, encouraging deeper engagement with the urgent choices that lie ahead.
The event concluded with a fireside chat featuring Margaret Cassar, Chief Policy and Strategy Officer from the Climate Action Authority, taking the audience through the role of the Authority, its pillars for action, and how its remit also includes top-down and bottom-up stakeholder involvement and consultations.
As the event drew to a close, one thing was clear: while the future remains uncertain, the actions taken today will define Malta’s trajectory in the face of climate change. The Malta Chamber, together with EY Malta and other stakeholders, reaffirmed its commitment to continuing this critical conversation, supporting organisations and policymakers in building adaptive, forward-looking strategies.
PwC has today unveiled a new brand positioning, visual and verbal identity. PwC’s new brand positioning and identity better reflect how it works today to support clients to unlock and protect value and to ensure its identity provides the right platform for the future.
At the heart of the new positioning is the idea that PwC helps clients to build, sustain and accelerate momentum. Changes to the visual identity include an updated logo with a new ‘ark’, a new signature colour of orange and new imagery. Alongside visual changes, there is a new verbal identity with a clear tone of voice based around the new personality traits of being bold, collaborative and optimistic.
The new positioning, which was developed with FutureBrand and McCann, can be seen from today on pwc.com and is being rolled out across the network in the coming months.
Antonia Wade, Global Chief Marketing Officer at PwC, said, “PwC is constantly evolving how we bring technology and expertise to help our clients create and protect value. Now, we are evolving another important part of who we are: our brand. As technology and other megatrends continue to transform the economy, it is important that our identity provides the right platform for the future.
“Today we are unveiling a new brand positioning, logo visual and verbal identity. At the heart of it all is greater clarity about the role we play for clients. In the environment our clients operate in, they need to work with a company that will help them build, sustain and accelerate momentum. That’s where PwC comes in.”
David Valenzia, Territory Senior Partner at PwC Malta went on to say how locally “we have the people, skill and experience to support our clients in making the most of the opportunities in a rapidly changing environment. Our brand will position these capabilities in a manner where both our clients and our people can develop a deeper insight as to how the firm can help them achieve the momentum that is necessary in today’s world.”
The brand update coincides with PwC sharing several initiatives to support clients in unlocking the value of AI at enterprise scale and advance to the leading edge of their industry. This includes activity around agentic AI, technology alliances and leveraging deep industry insights, processes, technology & data models to deliver industry specific transformation.
Bank of Valletta announced a strong profit before tax of €67.1 million for the first quarter of 2025, an increase of 5.3% over the same period in 2024. These results for the BOV Group were the outcome of a positive performance on both the revenue side and operational costs. It reflects the Bank’s focus on strengthening income from its key lines of business, increasing net fee and commission income, its strategic push to reallocate funds from liquid cash assets to the Bank’s investment portfolio, as well as the strategic balance sheet repositioning effected by the Bank since 2022.
During this period the Bank continued its efforts on increasing shareholder value, enhancing its capital structure and market position through the initiatives announced earlier this year, including a proposed bonus issue, a share buyback, and a bond issuance planned for the coming months. The Group remains on track to sustain its performance and deliver a profit before tax for 2025 in a range between €200 million and €250 million.
Financial Performance
Bank of Valletta registered a total operating income of €118.0 million for this period, which is marginally higher than that of 2024 (€117.4 million). Total costs for the first quarter amounted to €52.8 million, which was 7.5% above the same period in 2024, with personnel costs remaining the primary cost driver, followed by higher regulatory costs due to increases in the Bank’s deposit base and continued investment in technology-related expenses supporting the Bank’s drive for digitalisation.
The Group’s commitment to enhance the credit quality of its loan portfolio has led to a reduction in the non-performing loans ratio, closing at 2.5% at the end of the first quarter of 2025 compared to 2.7% at the end of December 2024.
The key highlights of the Group’s performance are shown below:
Performance Metric
Q1 2025
Q1 2024
Profit Before Tax
€67.1 m
€63.7 m
Net Interest Income
€92.5 m
€98.3 m
Net Fee & Commission Income
€20 m
€18.7 m
Cost to Income Ratio
44.7%
41.8%
ROAE Ratio (pre-tax)
18.8%
19.8%
Earnings Per Share
€0.076
€0.072
Net Asset Value per Share
€2.49
€2.41
Gross Loan-to-Deposits Ratio
56.7%
54.5% (Dec 2024)
Profit from Insurance Associates
€2.0 m
€1.9 m
The Group’s total assets increased by €549.2 million from year end 2024 to €15.6 billion as at end March 2025. Deposits experienced a slight increase of €2.9 million and the Bank’s Treasury Portfolio has seen significant growth, with a 9.5% uplift in investments during the period under review to reach €6.9 billion. The Group’s total equity closed at €1.5 billion, with capital ratios remaining strong and above regulatory requirements.
Strengthening Balance Sheet and operational systems to provide secure, reliable and innovative banking services – Chairman Dr Gordon Cordina
BOV Chairman Dr Gordon Cordina, stated that “The results obtained during the first quarter of 2025, both from an operational and financial perspective, indicate that the Bank is well-positioned to meet the targets for this financial year. Our focus on technological innovation, strategic balance sheet management and enhanced income diversification positions us favourably for sustained growth going forward. These results affirm our resilience and preparedness to capitalise on emerging opportunities whilst mitigating potential risks.
Our primary objective remains to provide shareholders with sustained and stable returns. We continue to maintain high capital and liquidity buffers, while adopting a proactive balance sheet management approach to optimise income and profitability levels. This strategy will be reinforced by additional long-term debt issuances in the coming months to support our growth strategy and the resultant need for increased risk-weighted assets.
Bank of Valletta has the necessary means and resources to continue to support the stable and sustained growth of the Maltese economy going into the future. In a situation of turbulence in the international scenario, with potential effects on national economic activity, as well as in the context of fundamental changes in the banking sector in Malta, Bank of Valletta will continue to remain strongly capitalized and active in servicing existing and new business and personal clients through a variety of products and channels. The Bank is making significant investments in the strength and quality of its balance sheet, as well as in its operational systems, to provide secure, reliable and innovative banking and financial services to its growing customer base.
I would like to thank our various stakeholders, including our loyal shareholders for their unwavering trust and support, as well as our employees for their continued drive and commitment.”
BOV sustains momentum with notable improvements in its core lines of business – CEO Kenneth Farrugia
Echoing Dr Cordina’s remarks CEO Kenneth Farrugia stated, “I am extremely pleased with the Bank’s performance for the first quarter of 2025, as we continue sustaining the momentum gained at the end of 2024. The Bank registered growth across its core lines of business, with notable improvements in credit-related activity including business, home and personal loans, increases in card-related fee income and also a significant growth in investments business.
We are now entering the second year of our current strategy, with a commitment to sustaining these results while transforming our business and operations to enhance the experience for both our personal and business customers, as well as our employees. To sustain this, we have launched a number of new initiatives covering customer engagement, business process re-engineering, IT and Cyber Security, as well as regulatory compliance.
It gives me great pleasure to see the Bank’s efforts recognised internationally, especially with Fitch Ratings announcing an upgrade of BOV’s Long-Term Issuer Default Rating and Viability Rating. This positive development follows the recent credit rating upgrade by Standard and Poor’s at the end of last year. I take this opportunity to thank our leadership team and employees for their dedication in pursuit of excellence, which augurs well for the continued success and growth of the Bank in the coming months.”
Embedding the values of sustainability in decision-making
During this period under review the Bank continued to make progress in its sustainability journey, building on its foundation for long-term sustainability and financial resilience by embarking on various initiatives aimed at the reduction of carbon emissions. The Bank has set ambitious scope 1 and scope 2 emission reduction targets, with the ultimate aim of leaving a positive impact on the environment and on society at large.
In addition to the internal operational initiatives, the Bank is actively promoting green financing and investment products. The CEO went on to say that “over the last few years we have launched several initiatives aimed at encouraging sustainable practices among our clients, including offering preferential loan rates for environmentally-friendly projects and investments in renewable energy. By embedding the values of sustainability in our decision-making processes, the Bank is not only supporting the green economy but also ensuring that our growth strategy aligns with global efforts to combat climate change. These initiatives reflect Bank of Valletta’s commitment to drive positive environmental impact while fostering long-term economic stability and growth”.
At the conclusion of the celebrations commemorating its 50th anniversary, Bank of Valletta provided its employees with a chance to showcase their photography skills. Eleven employees were selected to exhibit their works at an exhibition held on the ground floor of the Bank of Valletta Centre in Santa Venera.
Bank of Valletta encourages the artistic expression of its employees
Ernest Agius, Chief Operations Officer, emphasised that although art and banking may seem to belong to disparate worlds, creativity is an essential skill in both fields because it drives innovation, helps solve problems, and improves communication.
Events like this exhibition play a crucial role in fostering a sense of community among employees. “The main goal of this exhibition is to bridge the gap between the work that employees do outside of their jobs and their professional lives,” stated Mr. Agius.
Bank of Valletta actively supports art and culture in Malta
Bank of Valletta has played a significant role in supporting art and culture in Malta for decades. This exhibition showcases the bank’s ongoing commitment to staying vibrant and dynamic. The photographs, taken by eleven employees, are organised into themes that reflect BOV’s Corporate Social Responsibility (CSR) initiatives and focus on various subjects, including art and culture, architecture, history, the environment, and social issues. The employees showcasing their work include Brian Agius, Michelle Attard, Kurt Mario Bonello, Georges Boulanger, Robert Bugeja, Claudine Despott, Tonio Ellul, Ivan Gatt, Clare Piscopo, Carmela Loredana Umbro, and Ryan Zammit.
Charles Azzopardi, Head of CSR, noted that there is a dedicated space on the ground floor of the BOV Centre in Santa Venera, specifically designed to display the talents of employees, among other initiatives. In the past months, the Bank hosted an art exhibition featuring sixteen artworks created by its own employees.
Bank of Valletta’s CSR strategy emphasises dedication and commitment to cultural initiatives. This exhibition is open to Bank employees and all visitors attending appointments at the BOV Centre in Santa Venera. The Centre has undergone renovations in recent months.
The Facts: Under Item 14 of Part Two to the Fifth Schedule of the Malta VAT Act (Chapter 406 of the Laws of Malta), the supply of water services is exempt (without credit) only when such supply is made by a public authority.
This exemption applies, for example, when Malta’s Water Services Authority supplies water directly to end-users, whether households or businesses. However, the exemption is narrowly framed and does not extend to recharges or onward supplies of water by private entities.
In practice, this distinction becomes particularly relevant in scenarios such as the rental industry. Where a landlord receives a VAT exempt water bill from a public authority and subsequently recharges that same cost to a tenant, the landlord is not supplying water as a public authority. As a result, the recharge:
does not fall within the scope of the exemption, and
is subject to VAT at the standard rate of 18%.
This position reflects the settled principle in VAT law that exemptions are to be interpreted strictly, and that a recharge does not inherit the VAT treatment of the original supply where the conditions of the exemption are no longer met.
Conclusion: Water services are only exempt (without credit) when supplied by a public authority, otherwise VAT at the standard rate of 18% applies.
