Author: Mel Chamber

Additional digital services also enhanced

In a bid to continue refining the service it offers to customers, Bank of Valletta recently introduced further improvements to a number of customer-facing touchpoints across Malta and Gozo. These improvements provide more flexible solutions that positively impact the customer experience from the Bank’s branch network, while at the same time improving a number of digital services.

Enhanced Opening Hours from fourteen locations

During the past weeks, BOV introduced longer opening hours in a number of additional branches, bringing the total number to fourteen. Fgura, Marsaskala, Naxxar, Santa Venera, Qormi, Żebbuġ and Żejtun have been added to the other branches that already offered such services, namely Buġibba, Mosta, Paola, San Ġwann, Sliema, Victoria and Żurrieq.

All the branches offering extended hours accept different banking requests, including updating personal details, investments, home and personal loan applications, credit cards, account opening and other general queries except cashiering. This service is being offered every Thursday until 6 pm.

The largest fully functional ATM fleet across Malta and Gozo

Apart from recognising the importance that some of the Bank’s customers give to physical interaction, the Bank remains committed to upgrading and improving its existing ATM fleet, which is the largest fully functional fleet across Malta and Gozo offering both cash withdrawal and instant deposit-taking services, transfer between accounts, mobile top-up for all major mobile network providers in Malta and real-time statement and balance queries amongst other services.

Late last month BOV installed a new deposit-taking ATM in Xagħra, strengthening BOV’s presence in Gozo and bringing the total number of Bank ATMs to 94. Several important enhancements are also in the pipeline. The Bank is in the process of replacing 29 of its current ATMs with new, modern, and faster machines. In the medium term, the majority of the BOV ATMs will start accepting contactless technology, and the Bank also envisages gradually rolling out new ATMs that accept bulk deposits.

Online Booking System for all Branch Appointments

Following a highly successful trial period, an online booking system for Branches is now available across the Bank’s entire network. Through this booking system, customers who wish to make an appointment with any BOV Branch can do so easily and comfortably, without having to call or personally visit a branch.

The online booking system available through https://myappointment.bov.com offers many user-friendly and convenient features. It allows users to identify available time slots within the calendar of their preferred Branch, select the desired time, input details, and confirm the appointment. Users can also modify appointments made and set up automated notifications and reminders. The online booking system caters for appointments for all banking services including during the extended service on Thursday evenings.

Speaking about these enhancements, BOV’s Head of Personal Banking Channels, Mr Geoffrey Ghigo said “We recognise that some customers prefer the personal touch, while others prefer remote and online banking services. Our strategy for the current three-year period revolves around our customers and their preferences, through innovation across these various touch points. It is interesting to note that our ATMs currently process 62% of all ATM cash withdrawals and 42% of all ATM cash deposits in Malta. By enhancing our ATM network, extending opening hours and introducing innovative solutions, we continue to deliver on our promise to elevate the customer experience across all the Bank’s touchpoints, be it physical, digital or hybrid”.

Taking cue from May being Mental Health Awareness Month, BNF Bank rolled out several activities among its employees to strongly push the importance of physical, mental and emotional well-being.
Driven by its ESG Employee Wellness Pillar, the Bank’s human resources team crafted a series of events aimed at addressing different strands that contribute towards positive mental health, while pushing home the importance of being self-aware as a pivotal element in the individual’s understanding of their behaviour as part of their general wellbeing.

Staff attended an online talk about the importance of nutrition delivered by Antonella Grima, a public health specialist and registered nutritionist. The presentation was an interactive event through which employees were reminded of the benefits of nutrition and how what we eat greatly impacts our mental health.

Another insightful online discussion for staff was led by Patrick Psaila, managing partner, warranted psychologist and training consultant at PsyPotential. The talk offered practical tips and techniques to follow in one’s journey to wellbeing and the tools available that can enrich this journey and stay on track.
Others still took to the outdoors on a bright sunny morning for a rejuvenating fitness session aimed at connecting with inner vitality. Led by a BNF employee, Lara Sciberras, the class focused on physical awareness, stretching and working on muscles to stimulate and reinvigorate energy.

An event that was a resounding success was a visit to the offices from service dogs. The docile yet alert dogs provided therapeutic presence and petting these gentle animals gave everybody a sense of serenity and mindfulness. The therapeutic power of animals is well documented and hosting these special guests was a very welcome break in the working day.

And to keep the importance of good mental health top of mind, laptop lockscreens gave out regular empowering and thoughtful messages to encourage staff in their daily efforts at the desk.

Alison Grech, Head of Human Resources Management and Development Unit at BNF said: “Even with so much awareness out there of the importance of mental health, our busy lifestyles present constant challenges. We need to regularly stop to think about where we’re at in our mental health lifecycle. The activities we prepared were intended for this reason and served as reminders that our efforts towards this end should be constant, if we are to lead happy, balanced lives both at work and with our families.”

PwC Malta’s 5th edition of the Real Estate Survey, which was conducted towards the end of 2023, reveals that almost half of the respondents (Q4 2023: 49%; Q1 2023: 42%) indicate that they have plans to buy property.

Demand to rent property has dropped when compared to the last edition of the Survey, from 31% to 11%. Such decline is particularly evident in the younger demographic, suggesting that this cohort in the population is more interested in purchasing a permanent residency rather than renting property. Government incentives and regulatory developments are expected to further drive property ownership amongst young people. This is in line with recent data released by the National Statistics Office in 2023, which highlights that promise of sale agreements experienced a year-on-year increase of 9%.

The latest PwC survey indicates a decrease in the share of respondents who intend to purchase property as sole owners (Q4 2023: 51%; Q1 2023: 60%). Against this backdrop, published statistics indicate that young Maltese people are moving out of their parents’ home later when compared to other EU countries. According to the most recent local statistics, in 2022, the average age of people moving out of their family home was 30.1 years, compared to a European average age of 26.4 years.

In the context of an increasing awareness on sustainability, the survey registered a positive shift in the percentage of prospective buyers (Q4 2023: 70%; Q1 2023: 59%) who give weight to sustainability factors in their property purchase decision. Furthermore, whilst in Q1 of 2023 54% of respondents stated that they would not pay more for a property which has sustainability features, the latest results now indicate that 59% are willing to pay a premium for a property that carries such features.

The full results of the survey, which targeted a representative sample of residents and has a confidence level of 95% and a margin of error of 5%, can be accessed here.

Bank of Valletta held its 50th Annual General Meeting during which, BOV Chairman Dr Gordon Cordina, and CEO Kenneth Farrugia, together with the Bank’s Directors, met with shareholders to present the BOV Group performance for 2023 and propose several resolutions for approval to the shareholders of the Bank, which included the final gross dividend of €0.1162 per share (representing a gross payment of €67.9 million), consisting of the interim dividend of €0.0462 per share (representing a gross payment of €27.0 million) already paid to shareholders on 6 December 2023 and the dividend proposed of €0.0700 per share (representing a gross payment of €40.9 million). All resolutions proposed for shareholders’ consideration were approved.

The Annual General Meeting also brought the directorship term of Kevin J. Borg and Elizabeth Camilleri to an end, after they chose not to seek re-appointment to the Board. This led to two vacant Non-Executive Director positions, where Dr Christian Bonnici West and Dr Jonathan Spiteri were appointed to the Board. Their appointment is subject to regulatory approval and will become effective from the date of approval.

Sustaining our commitment to our shareholders, our clients and Malta – Dr Gordon Cordina
Addressing shareholders during the meeting, Dr Cordina commented that “2023 was a very positive year for the Bank of Valletta Group, which registered healthy profits in a situation of positive interest rates. The Bank’s performance can be seen within the context of an economic scenario that, despite the headwinds of high interest rates, elevated inflation, and uncertainty, saw the Maltese economy continue to grow at a sustained pace”.

Dr Cordina commented on the Bank’s balance sheet, that exceeded €14 billion at the end of 2023. “The Bank’s balance sheet accounts for almost half the total assets of Malta’s core domestic banks. BOV’s market share for 2023 was slightly above 40% with respect to corporate loans and household deposits, and slightly less in the case of home loans. These statistics clearly highlight the systemic importance of BOV, and the crucial role that the Bank plays in sustaining the local economy.

The resumption of a dividend payment, supported by the safety offered by the Bank’s strong capitalisation and liquidity, was also a key accomplishment in 2023. The dividend payout in 2023 was one of the highest dividend distributions paid in recent years. This has been distributed after taking into consideration the Bank’s growth ambition and corresponding capital requirements, affordability, as well as regulatory and shareholder expectations. This structured approach is aimed to ensure the sustainability of dividend payouts in the future and supportive of our commitment to all our stakeholders, including our shareholders, clients, and the economy at large.”

50 Years Shaping Malta’s Economy – Kenneth Farrugia
During his address, CEO Kenneth Farrugia expressed his satisfaction on the remarkable performance registered by the Bank in 2023. “Bank of Valletta’s financial performance was undoubtedly one of the best experienced during its 50-year history, with strong income growth achieved across all core business lines. The increase in interest rates, the strength of our balance sheet, our robust risk management framework, and organic growth in core business lines, were all key enablers of the financial results registered during the year.”

Kenneth Farrugia also referred to the strategic objectives set by the Bank for the period 2024-2026 and commented that several foundational changes are in place to strengthen the Bank’s business and operational model, supporting the key strategic thrusts over the next three years.

One of the areas where BOV has been taking a more prominent role is in the area of ESG, with Kenneth Farrugia citing the Bank’s Corporate Social Responsibility program, improvement in operational efficiencies, as well growth in green commercial and personal lending. “I am pleased to note the leadership position that the Bank is taking on ESG matters. In 2023 we saw 33% of the total facilities sanctioned in loans with green credentials. We have introduced incentives in our credit pricing model to support our customers in their transition to ‘Green’, while on the investment side we have seen 9.3% of total purchased instruments carried out in Sustainable Treasury Investments. Apart from our focus on ESG we continue to focus on our customers. The digitalisation of our operational model remains a high priority and various initiatives are in progress to ensure that across our physical, digital, and hybrid channels, we deliver the service experience expected by our customers.”

In his closing remarks he expressed gratitude to the Bank’s shareholders, employees, valued customers and fellow Board and Executive Committee Members for their commitment, passion, enthusiasm, and unwavering support, as the Bank continues its trajectory towards continued growth and success.

Composition of the new Board
With Mr Kevin J Borg and Ms Elizabeth Camilleri not seeking their re-appointments to the Board of Directors, and with the nomination of Dr Christian Bonnici West and Dr Jonathan Spiteri to occupy the role of Non-Executive Directors, the new Board will be composed as follows:

GORDON CORDINA NON-EXECUTIVE DIRECTOR AND CHAIRMAN
NICOLA ANGELI NON-EXECUTIVE DIRECTOR
CHRISTIAN BONNICI WEST* NON-EXECUTIVE DIRECTOR
DIANE BUGEJA NON-EXECUTIVE DIRECTOR
ANATOLI GRECH EXECUTIVE DIRECTOR
JAMES GRECH NON-EXECUTIVE DIRECTOR
KENNETH FARRUGIA EXECUTIVE DIRECTOR
ANITA MANGION NON-EXECUTIVE DIRECTOR
DEBORAH SCHEMBRI NON-EXECUTIVE DIRECTOR
JONATHAN SPITERI* NON-EXECUTIVE DIRECTOR
ROBERT SUBAN NON-EXECUTIVE DIRECTOR
GODFREY SWAIN NON-EXECUTIVE DIRECTOR

Subject to regulatory approval and the appointment date shall be deemed to be the date of receipt of regulatory approval.

‘Malta economic performance is standing out when compared to European counterparts and as the major financial institution in the country, we strongly believe in our critical role in continuing to shape and develop the economy and facilitate international business’. This was stated by Kenneth Farrugia, CEO at Bank of Valletta during ‘Malta – France – Aligning Business, Securing the Future’, an event organised by the Maltese French Chamber of Commerce addressed by H.E. Agnès Von Der Mühll, Ambassador of France to Malta and Mr Joseph Bugeja, President of the Malta French Chamber.

‘Bank of Valletta, as Malta’s largest Bank is pleased to sustain its support to the Maltese French Chamber of Commerce aiming to facilitate and enhance trade between the two countries which is currently on a positive growth trajectory. This year is an important one for the Bank as we celebrate our 50th year of operation. Over this period, the Bank has played a significant role in shaping our economy where we continue to support our personal customers as they go through the various stages of their lifecycle, as well as business customers in taking forward their projects both in Malta and outside of Malta. The Bank also continues to play a leadership role in attracting and supporting foreign direct investment towards our shores working closely with the Malta Enterpise’ said the BOV CEO. ‘Foreign Direct Investment is of the utmost importance as it significantly contributes to our economic growth and development this leading to social prosperity. The CEO went on to say that “within the context of these developments, the Bank is also attributing significant importance to the role and importance of ESG in the process and introducing various incentives that are contributing to the greenification of our economy.”

Bank of Valletta can proudly say that it has been partnering with the Maltese French Chamber for a number of years now, and it is one of the most active chambers on our island. At BOV, we commit ourselves to provide timely support to all businesses to ensure that we help the economic actors to continue contributing to our economic growth,’ continued Mr Farrugia. ‘Our forward-looking strategy is centered around those areas where we can create and generate economic and commercial value with a strong focus around Environment, Social and Governance (ESG), which now has an overarching role across the Bank’s business and operational arenas.’

BOV’s commitment to improving our customers’ financial wellbeing and our active involvement in the community are all contributing to sustaining our reputation as the Bank of Choice in Malta.

Earlier this month, PwC Malta held its second edition of Tech Week comprising a series of
technology-related events aimed at shedding light on the transformative power of Artificial Intelligence
(AI) and the critical role of trust in this rapidly evolving landscape.

This year’s Tech Week opened with the Intelligent Digital Conference, held at the Hilton on 10 May.
This gathering united C-suite executives and industry leaders to consider the profound impact of AI on
industries and the future of organisations. The conference featured a notable lineup of speakers and
panellists, including leading local business leaders, technology alliance partners, and PwC subject
matter experts from its local office and EMEA network.

Michel Ganado, PwC Malta’s Digital Services Leader, emphasised the importance of understanding the
transformative power of AI in business during his introduction speech. He stated, ”As AI continues to
grow exponentially, business organisations are increasingly relying on data analytics and large data
warehouses to make more timely and informed decisions. The move towards cloud technologies has
also facilitated further this transition. In today’s digital age, data has indeed become the new gold. This
conference and other events being held over the next few days as part of Tech Week 2024, bring to the
fore our firm’s continued investment into the digital space.”

The PwC Digital Services mini expo at the Intelligent Digital Conference also featured booths
showcasing several solutions related to Digital Strategy and Transformation, Business Solutions, Cyber
Security and Privacy, IT managed services & networking, as well as new areas dealing with the creation
of custom digital assets aimed at addressing specific niche areas. The exhibition also featured solutions
from PwC Malta’s technology alliance partners such as Microsoft, Oracle, Salesforce, Hewlett Packard
Enterprise and Acronis as well as hosted a designated space for The Malta College of Arts, Science &
Technology (MCAST), who brought along ‘Reachy’ the semi-humanoid robot.

The continuation of Tech Week featured a joint event with The Malta Chamber of Commerce,
Enterprise and Industry, titled Navigating the Future: Trust in the Digital Age. The event
included two brief presentations followed by a panel discussion on the importance of Operational
Resiliency in the local market. The discussion addressed aspects relevant to both regulated and
non-regulated Maltese businesses, highlighting how organisations can derive long-term sustained
value by becoming operationally resilient.

In addition, PwC Malta hosted a LinkedIn Live session on May 15th, which furthered the discussion on
AI and Trust and delved deeper into strategies for thriving in an age of continuous technology
reinvention. This dynamic session included a brief summary of the topics discussed during the
Intelligent Digital Conference and the key points addressed in the panel discussions, and is still
available on the firm’s LinkedIn and YouTube channels. The Tech Week concluded on 16 May with an
exclusive event for firm Alumni.

PwC’s Digital Services Partner, Andrew Schembri, stated that, “the consistent advancements of
Artificial Intelligence have been revolutionising the business world. That is why we believe it is crucial
to consistently shed light on the topic while providing the necessary support for organisations to
maximise on the benefits of AI. This while keeping their businesses, employees and clients secure. We
hope that this Tech Week provided the right insights for the business community to look forward to
and assess how AI technology can be used as an enabler for their strategy and transformation.”

Unlocking Liquidity & Mitigating Risks

Bank of Valletta successfully hosted a comprehensive Trade Finance Seminar earlier this month at Giardini Lambrosa in Rabat. This event was designed to provide local businesses and entrepreneurs with essential knowledge and tools to navigate the complexities of international trade. The seminar was led by Joseph Rodgers who heads the Bank’s Trade Finance arm. Among the key topics covered, there were the benefits of trade finance, incoterms, methods of payment, and pre- and post-shipping financing.

Unlocking the Benefits of Trade Finance

The seminar kicked off with a detailed presentation on the various benefits of trade finance. Attendees learned how these financial instruments can help mitigate risks, improve cash flow, and offer security for both importers and exporters, as well as manufacturers. Mr Rodgers showcased the Bank’s products, illustrating how they facilitate smoother and more efficient international transactions. Joseph Rodgers highlighted the team’s customised advisory services and customer-focused approach. “With years of experience in facilitating international trade transactions, the Bank has nurtured a team of seasoned professionals who understand the intricacies of global markets. This wealth of knowledge allows us to offer tailored solutions that address the specific needs of businesses at every stage of their trade cycle.”

Selecting the Right Incoterm

Understanding International Commercial Terms (Incoterms) is crucial for any business engaged in global trade. The seminar provided an extensive overview of these terms, explaining the obligations of the buyers and the sellers, the shifting of risk from seller to buyer (where and when the seller ‘delivers’) and which and who bears the costs involved. This session aimed to reduced disputes and ensure clarity in international trade agreements, a vital aspect for any successful business relationship.

Navigating Methods of Payment

Various methods of payment, such as Documentary Credits (DCs), Documentary Collections, Advance Payments, and Open Account transactions, were explained in detail.  The session highlighted the advantages and potential risks of each method, enabling businesses to make informed decisions tailored to their specific needs.

Exploring Pre- and Post-Shipping Financing Options

The seminar also covered financing options available both before and after the shipment of goods. Trade financing solutions such as back-to-back documentary credits, Collateral Management Agreement (CMA), Stock Monitoring Agreement (SMA), Security by Title Transfer Agreement (STTA), bill of lading financing, invoice discounting, factoring and reverse factoring were discussed. International experiences were also shared with attendees to elaborate on the importance of such trade financing. These options are designed to provide liquidity and support business growth, ensuring that companies have the necessary funds at every stage of the trade process.

Supporting Local Businesses

“We are committed to supporting our customers’ international business ventures by providing the necessary knowledge and financial tools to help them navigate this often complex but crucial part of their business”, explained Kenneth Farrugia, the Bank’s CEO during his brief intervention.  “Understanding the intricacies of trade finance is crucial for mitigating risks and maximising opportunities, and this is an area where we can really offer our support. At the heart of our success in trade finance is our dedication to building strong, long-term relationships with customers. We maintain open lines of communication and prioritise client needs. Our professional experts understand the intricacies of the global markets and are therefore able to offer tailored solutions that address the specific needs of the individual customer.”

The seminar concluded with an interactive Q&A session, where attendees could address specific concerns and gain personalised insights. Feedback from participants was positive, with many praising the practical approach and valuable information shared. Businesses and entrepreneurs wishing to discuss trade finance solutions or other financing requirements are encouraged to reach out to the Bank on 2275 1122 or businessdevelopment@bov.com. Alternatively, they may use the Bank’s Online Booking system on bov.com.