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Author: Mel Chamber

BOV reports profit before tax of €63.7 million for the first three months of 2024

Posted on by Mel Chamber

Year-on-year increase of 36.8%

The beginning of 2024 marks a promising start for the Bank of Valletta Group as it maintains its strong financial standing, achieving a profit before tax of €63.7 million for the first three months of 2024, a 36.8% increase over the same period in 2023. These results reflect the Group’s thrusts to grow its commercial and retail loan portfolios, as well as deploy excess liquidity in high quality treasury assets.

This positive performance was influenced by the improvement in the Group’s operating income, reflecting a growth of 22.9% to €117.4 million when compared with the same period in 2023. This was driven by increased returns both from an interest and non-interest income perspective. Net Interest Income stood at €98.3 million, an increase of €24.8 million when compared with the first quarter of 2023. This reflected additional expansion in both the customer lending and proprietary investment portfolios over the last 12 months, as well as improved rates on cash balances. Net fee and commission income was up by 11%, mainly influenced by higher amounts being achieved on credit-related business.

Operating costs including strategy amounted to €49.1 million, equivalent to a 6.8% increase on previous year results, as the Bank sustained its efforts to enhance talent, improve compensation and benefits, invest in technology, and comply with regulations. The Cost to Income Ratio continued trending downwards, standing at 41.8% in the first quarter. These developments were reflected in a 20.4% pre-tax Return on Average Equity, which is a 4.4% improvement over that recorded in the first quarter of 2023.

The Bank’s balance sheet optimisation strategy related to the deployment of cash reserves into medium-to-longer-term interest-bearing assets continued, with the main shifts registered from balances with central bank to the credit and investments portfolios. With a gross loan-to-deposit ratio of 53.4% and strong sanctioning levels of business and retail loans, the Group is well positioned for further growth and to deliver its 2024 targets. The €47 million reduction in the deposit base equivalent to a 0.4% drop on FY23 end results aligns with expectations; nevertheless, the Group retained high levels of liquidity.

These results allow the Group to continue operating a robust capital position with the Common Equity Tier 1 (CET1) closing at 21.5%, which is well above regulatory thresholds. The net asset value per share at the end of the first quarter of 2024 stood at €2.2 per share.

“A strong first quarter, with sustained momentum in business growth” – Dr Gordon Cordina

Speaking during the announcement, BOV Chairman Dr. Gordon Cordina expressed satisfaction on the BOV Group performance. “These positive results are extremely encouraging and are testament to the Bank’s ongoing efforts to grow its core business. The operating performance of the Group’s revenue pillars was well in line with established targets, with market share (residents) figures on business portfolio also very encouraging with the percentage closing in on the 49% mark.

While the European Central Bank (ECB) has maintained the rate on its Deposit Facility fixed at 4% since September 2023, it is expected that the ECB may consider appropriate to start reducing the current level of monetary policy restriction sometime in 2024. In preparation of a falling interest rate scenario, the Bank has been proactively restructuring its balance sheet, through the redeployment of treasury funds into longer term assets, and a productive expansion in good-quality credit. The Bank’s exposure to cyclical fluctuations in rates has thus been reduced and this should generate a more stable positive performance over time.

We also believe that Malta’s current and near-term economic environment has remained benign, supporting our positive expectations vis-à-vis further growth in our loans, and the preservation of asset quality over the coming months.”

“These results show that we are steering the Bank from good to great, aiming to meet our customers’ expectations and deliver sustainable growth in the process” – Kenneth Farrugia

BOV CEO Kenneth Farrugia echoed Dr Cordina’s comments. “In the first quarter of 2024, the Bank continued to strengthen its position as a leading financial institution in Malta. During this quarter we have seen improvements in operating revenue, an increase in net loans and advances across our commercial, home, and personal loans business lines, as well as growth in green lending. During the quarter, €58 million of green loans were originated by the business, equivalent to nearly 9% of total sanctioned facilities.

This performance is being sustained by an ambitious strategy for 2024-2026. Over this first quarter we have successfully taken forward several initiatives to enhance employee satisfaction and productivity, including training, wellness, flexible work arrangements, competitive compensation packages and a more inclusive and diverse work environment. Our focus on customer experience remains unwavering and we are continually working on enhancing our service delivery and product offering. We have also been making significant strides in streamlining processes and automating routine tasks. In line with our commitment to uphold the highest standards of corporate governance, we also continue to make significant investment in ensuring full compliance with regulatory obligations.”

Both Chairman Dr Gordon Cordina and CEO Kenneth Farrugia thanked customers, shareholders, and employees for their continued support and commitment to the Bank as it supports the growth and development of Malta’s economy and seeks to achieve its overarching goal of being the Bank of Choice and Employer of Choice in Malta.

20 Years of EU Membership – Malta’s Prosperity and the Path Forward

Posted on by Mel Chamber

The Malta Business Bureau (MBB) is proud to commemorate Malta’s 20th anniversary as a member of the EU, which is a milestone marking two decades of growth, modernisation, and shared prosperity.

Since joining the EU on 1st May 2004, Malta has made significant strides in various economic sectors, and has positioned itself as an attractive location for companies to do business in Europe. This is largely owing to the EU Single Market, the jewel in the crown of the European project, which provides businesses with wider market opportunities and a greater pool of consumers and workers.

EU membership has also allowed Malta to benefit from a significant mobilisation of funding opportunities to support the improvement of infrastructure, education, technology, and to help Maltese businesses in their development and growth.

Over the last two decades, the EU itself has weathered significant challenges, including a financial and debt crisis, Brexit, an unexpected pandemic, and growing geo-political wars on its borders and close neighbourhood. At the same time, the EU has renewed its focus on certain key issues as it aims to become a world leader in the green and digital spaces.

Malta’s 20th anniversary coincides with the European Parliament election taking place in June this year, followed by the appointment of a new College of Commissioners shortly after. This stands for a delicate time in which the EU is facing growing pressures to strike a better balance between its policy agenda and ensuring the competitiveness of European businesses.

Ahead of the next EU term (2024-2029), the MBB has published its business priorities which shed light on the most crucial opportunities and challenges effecting Maltese businesses going forward.

Commenting on the Maltese business priorities, MBB President Alison Mizzi said “The EU is expected to keep its momentum and build upon the legislation adopted over the last five years. Stronger commitments will be reached to reduce emissions further, while technological advancements and their related risks will require new legislation. Our call is for EU policymakers to remain mindful of the heavy implementation costs which businesses are already facing and of Europe’s degrading competitiveness compared to other countries such as the USA and China.”

The publication is structured along three pillars: Competitiveness and Growth, the Green Transition, and the Digital Transition. Ensuring competitiveness is nonetheless a priority which features throughout and is expected to gain increasing importance in EU policy circles over the next term. The MBB calls for efforts to focus on reducing regulatory burdens, prioritising subsidiarity and proportionality, accounting for insularity and regional handicaps, and more.

With regards to the Green Transition, EU policymakers must address persistent financing gaps which limit private investment, reduce complex and overlapping regulation, and ensure the EU’s open strategic autonomy to develop its resilience to outside shocks. On the Digital Transition the MBB urges policymakers to put forward timely and future-proof rules governing high tech and the digital economy, only when genuine market failures are found.

Other issues addressed among others include the need to strengthen the Single Market, better regulation, future EU enlargement, consolidating tourism activity, and ensuring sufficient labour supply.
The full publication may be viewed on www.mbb.org.mt. Those interested in further information are encouraged to contact the MBB EU policy team on infobrussels@mbb.org.mt.

The Malta Business Bureau is the EU business advisory organisation of The Malta Chamber and The Malta Hotels and Restaurants Association. It is also a partner of the Enterprise Europe Network.

HSBC Malta Foundation partners with Foundation for the Conservation of the Maltese Honey Bee to Launch the ‘Bee Creative: Maltese Honey Bee artVenture’

Posted on by Mel Chamber

The HSBC Malta Foundation is excited to announce its partnership with the Foundation for the Conservation of the Maltese Honey Bee on the “Bee Creative: Maltese Honey bee artVenture,” a unique initiative designed to foster creativity and environmental awareness among Malta’s youngest citizens which is centred around the esteemed Maltese Honey Bee, the island’s proposed national Insect.

Through this initiative, students from Primary schools Years 4 to 6 (ages 8-11) will have the opportunity to explore the world of the Maltese Honey Bee through art. This initiative is inviting them to express their creativity and understanding of the Maltese Honey Bee through illustrations, drawings, poems, or paintings that highlight the significance of the Maltese Honey Bee in Maltese beekeeping and for pollination, combining educational and artistic elements to cultivate a deep appreciation for Malta’s natural heritage.

In recognition of their creativity, 15 student who participated in this initiative and according to merit, will receive hand-knitted Maltese honey bees. To extend the educational impact, A3 posters showcasing the NGO’s initiative to declare the Maltese Honey Bee as a national species will be distributed among the schools involved.

Glenn Bugeja on behalf of the HSBC Malta Foundation said, “We are delighted to support the ‘Bee Creative: Maltese Honey bee artVenture.’ This initiative is a testament to our commitment to the environment and education, aiming to instil a sense of responsibility and wonder in our children towards nature. By engaging with the arts, we believe students can develop a meaningful connection with the environment, fostering a generation that values and advocates for the preservation of our natural world”.

The HSBC Malta Foundation and the Foundation for the Conservation of the Maltese Honey Bee are proud to collaborate on this venture, aspiring to ignite a blend of creativity and environmental stewardship among the young participants. This partnership underscores a mutual commitment to a sustainable future, where Malta’s youth are educated and enthusiastic custodians of their natural environment.

A photo of the artwork should reach the Foundation by the 10th of May 2024 at nahlamaltija@gmail.com. For further details about the “Bee Creative: Maltese Honey Bee artVenture” one may contact the Foundation KNM at the same email address.

TradeMalta Facilitates Maltese Companies’ Participation at Libya Build

Posted on by Mel Chamber

TradeMalta is proud to announce its coordination of the Malta Pavilion at Libya Build 2024 between 29 April and 2 May

This event marks the return of Maltese companies to this fair after an absence of several years. The exhibition, now in its 15th edition, is renowned as the foremost gathering for the building, design, and construction sector in North Africa, and is taking place at the Tripoli International Fair Grounds from 29 April to 2 May. Libya Build serves as a vital platform, uniting thousands of construction solutions under one roof.

Five Maltese companies are participating, seizing the opportunity to forge new connections and explore potential partnerships. They are set to showcase their expertise with a diverse array of offerings spanning door designs, engineering solutions, integrated professional and technical services in building construction, fibreglass manufacturing, and operational risk management solutions.

Anton Buttigieg, CEO of TradeMalta, commented, “TradeMalta is delighted to spearhead the Malta Pavilion at Libya Build. Our involvement underscores TradeMalta’s dedication to facilitating international trade and fostering growth opportunities for Maltese businesses. We are committed to empowering local enterprises to expand their global footprint and seize promising prospects in international markets.”

Participation in Libya Build presents an excellent opportunity for Maltese companies to engage with industry leaders from North Africa and the Middle East and cultivating valuable relationships and accessing new avenues for growth. Visitors are encouraged to visit the Malta Pavilion in Hall 1 at the Tripoli International Fair Grounds to discover the latest innovations and capabilities offered by Maltese firms.

For further information about the services provided by TradeMalta, please visit www.trademalta.org or contact us at Tel: 22472400.

BOV apprenticeship programme offers MCAST students world of opportunities

Posted on by Mel Chamber

Members from the People & Culture team at Bank of Valletta met MCAST Paola students during this year’s MCAST Career Expo. In growing organisations such as BOV, it is very common that opportunities for work placement are offered regularly. One of the Bank’s focus is to support the education system, offering rewarding experiences that turn into lifelong careers.

Bank of Valletta offers an extensive Apprenticeship Programme specifically designed for MCAST students, which not only leads to a Banking and Finance career path, but includes also working opportunities in the areas of IT, Business Administration, Insurance, and other industry-specific areas such as ESG, Anti-Financial Crime, Risk and Compliance.

The Bank currently employs 49 students under the MCAST Apprenticeship Programme, with careers spanning various areas including Trade Finance, Stockbroking, and Corporate Finance. Placements are also found at various Branches, Business Centres, IT departments, Investment Operations, Controls, Risk & Compliance, Tax and Legal units amongst others. The experience has shown that in most instances, students who join the Apprenticeship Programme during their MCAST studies will eventually continue working for the Bank once they finish their studies. As is the case of Ms Tiffany Pace, who at just 21 years of age, has already gained over 4 years of experience working for Bank of Valletta, having started her career as an MCAST apprentice. “My journey at Bank of Valletta began while sitting for an Advanced Diploma in Business Administration at MCAST. Back then, I started performing front-line duties at Birkirkara Branch, an experience which provided me with adequate knowledge, thus making the shift to a full-time basis, a seamless one. Two years later, I am proud to be an integral part of the BOV community, forming part of the Talent Acquisition Team at the People & Culture unit. I am eager to keep on learning and growing within the People & Culture team, committed to furthering my studies, and fully confident that the Bank will continue to support me every step of the way.” 

The MCAST Career Expo served as a showcase of career opportunities available both in the Private and Public Sectors, where various organisations met under one roof to promote their workplace with MCAST students. Bank of Valletta offered additional value during the Expo, with an information session delivered by Senior Marketing Manager, Ms Vanessa Borg on the Marketing techniques used by the Bank in promoting its products and services.  Students following courses in Marketing and Business Management attended the session and were given insights into the marketing process adopted by Bank of Valletta, from identifying business opportunities and the right target audiences to implementing the creative visuals of a marketing campaign to analysing and measuring the effectiveness and tracking the sales records.

Further information on the MCAST Apprenticeship Programme, is available at https://mcast.edu.mt/apprenticeships-mcast/ and the currently available full-time career opportunities at BOV, can be obtained from https://bov.com/careers.

Political Decisions that undermine Integrity and Good Governance

Posted on by Mel Chamber

Too many wrongdoings happening systematically and frequently

The Malta Chamber of Commerce, Enterprise and Industry re-iterates its emphasis on the importance of good governance, and insists that the country needs to move from lip service and words on paper, to tangible action where full accountability and transparency, integrity, proper stewardship and sound leadership prevail.

Over the past few months, the country has witnessed systematic and frequent wrongdoings. The extent and spread of the benefits fraud scheme that is currently being exposed through court proceedings casts considerable questions on the integrity of everyone involved in the granting and disbursement of such payments, including the respective Ministry. The fact that such a scheme could be run for years, with such intensity, without anyone batting an eyelid, indicates that there is no accountability, as well as no internal auditing systems to detect and deter abuse, and that people are either actively involved in fraudulent activities and profiting from them, or they have grown accustomed to seeing them occur. Like the three monkeys, they see no evil, hear no evil, and say nothing about it.

Government seems intent on wiping out people’s criminal records as quickly as possible lest they are a hinderance in securing employment. Bearing in mind that the public service is the largest employer, one hopes that this urgency to cleanse the conduct of people who abused from social benefits is not intended to facilitate a quick transition from dependency on benefits to recruitment with the public service, whether directly or through agencies – we really need to have people who can be trusted both within the public service and state entities.

The Malta Chamber is also worried that top positions at key government authorities and agencies have become hotseats that people occupy for just a few months, before resigning or being transferred to another hotseat to possibly diffuse the next crisis. The practice of leveraging resignations to give the impression that action is being done, discourages capable people from taking on these crucial roles and executing the significant reforms required to shift course. Furthermore, a short-term period in these driving seats will mean even greater political involvement, because the drivers are dispensed with before they have been in place long enough to truly take charge of the issue and sniff out all those systematic abusive practices that may be widespread. This comes out loud and clear in what is being uncovered with respect to social benefits, licences, construction practices, as well as in public procurement.

The presidential pardon that has been granted to the recipients of social benefits in return to testify against the perpetrators of the scheme further reinforces a culture of impunity. It also undermines the newly appointed President – whereas many think that a presidential pardon lies completely within the prerogative of the President, in actual fact, the request for a presidential pardon is on the advice received.

Government needs to be on the side of what is right and send clear signals that it will not come to the rescue of abusers or restrain those who want to set things straight. This is what good governance is about. Anything short of this will come across as pandering to the masses and playing for time, which is running out.

Atlas Insurance presents “Centennial Chronicles: Celebrating Malta’s Commercial Legacy”

Posted on by Mel Chamber

Atlas Insurance’s exhibition is marking the hundred years of its legacy. “Centennial Chronicles: Celebrating Malta’s Commercial Legacy,” is currently underway at The Malta Chamber in Valletta. This unique exhibition, open until May 28th, is not just a celebration of Atlas’ 100-year journey but a comprehensive tribute to the vibrant commercial history of Malta.

The exhibition offers visitors a journey through Malta’s economic development, cultural history, and political dynamics, which are deeply intertwined with the narrative of Atlas Insurance. From pre-20th century insurance documents to a reconstructed 1920s-1930s office, the exhibition showcases the evolution of the insurance industry in parallel with the country’s social and economic evolution, as it adapted to reflect the shifting needs and risks of each period.

Catherine Calleja, Executive Director and Company Secretary of Atlas Insurance, commented: “This project has long been in the making. Atlas Insurance has chosen to put together an exhibition of commercial history in Malta rather than concentrate on its own journey alone, highlighting the fact that it is the commercial legacy of our clients which has made Atlas what it is today – and made the Atlas story.”

Curated by Justine Balzan Demajo, with archiving and research conducted by Nikolai Debono, the exhibition is open from Monday to Friday until the 28 May between 8am and 4.30pm. There will be daily curatorial tours on a drop-in basis at lunchtime from 22 April. 

Lectures by Liam Gauci, Dr Philip Farrugia Randon and Dr Mario Brincat will also be held, shedding light on various aspects of commercial history, from corsairing to memories of Valletta in the mid-twentieth century, to economic history between 1945-1959.  Bookings for these lectures and for evening curatorial tours are available online through the Atlas website.

For more info and bookings, click here.

The Malta Chamber BOM pays courtesy visit to the President of Malta

Posted on by Mel Chamber

The Malta Chamber Board of Management paid a courtesy visit to H.E. the President of Malta, Myriam Spiteri Debono. During the meeting, Chris Vassallo Cesareo, The Malta Chamber President, discussed the ongoing initiatives and outlined future plans for the business community.

He also highlighted two critical areas necessitating utmost prioritisation and expressed satisfaction in the alignment of objectives between The Malta Chamber and the President’s office:

  1. Constitutional reform – The Malta Chamber was proactive during public consultations for the necessary reforms to take place
  2. Enforcement – The Malta Chamber in its 2024 Pre-Budget Document insisted on having proper, co-ordinated and unselective enforcement of law and regulations

President Spiteri Debono thanked The Malta Chamber for its dynamic approach in being at the forefront on various national issues and for its valuable contribution to the local business community and the country at large.

As we have done in the past years, The Malta Chamber will remain committed to having a healthy and positive relationship with the Office of the President of Malta.

Celebrating Graduates of the Academy for Women Entrepreneurs

Posted on by Mel Chamber

During a reception on April 17, Deputy Chief of Mission Ken Toko and Chris Vassallo Cesareo, President of The Malta Chamber of Commerce, Enterprise, and Industry, celebrated participants who graduated from the U.S. Department of State’s Academy for Women Entrepreneurs (AWE). The AWE program provides women entrepreneurs around the world with the knowledge, networks, and access needed to start and scale successful businesses. Two of the participants excelled in pitching their business proposals, winning a competition for $9,000, as the first prize, and $4,000, as a second prize, that they will invest in their businesses.

In 2022 and 2023, the U.S. Embassy in Malta partnered with The Malta Chamber of Commerce, Enterprise, and Industry to implement the second and third iteration of this global entrepreneurship program in Malta. AWE supports the U.S. government’s National Strategy on Gender Equity and Equality aimed at advancing women’s economic empowerment globally. Implemented in nearly 100 countries since 2019, AWE has empowered approximately 25,000 women entrepreneurs from around the world, including in Malta.

Mr. Toko and Mr. Vassallo Cesareo presented certificates to the AWE graduates and participants and awarded prizes in seed funds to the winner and runner-up of the business plan pitch competition. In brief remarks, Mr. Toko said, “At the U.S. Embassy, we take pride in collaborating with our partners in Malta to advance the empowerment of women and girls in all their diversity across society, politics, and the economy. On behalf of the U.S. Embassy in Malta and the U.S. Department of State, I would like to congratulate you all. We are proud of your innovation and drive to follow your ambitions.”

In his remarks, Mr. Vassallo Cesareo said, “Our genuine enthusiasm for this project is founded on the widespread benefits it brings, not only to the participants or the business community, but to our society at large. I very much like to quote the United Nations term ‘He for She’ when embarking on solidarity with women to create a bold, visible, and united force for gender equality. The spheres of business and enterprise should not be an exception, but the rule. Together, and with each other to build businesses, raise families, and give back to our communities.”

Addressing the guests, Ms. Rachel Bondi Attard, Head of Media and Communication Strategist said, “I can say with confidence that your determination, resilience, and innovative spirit are the driving forces that will help you move forward, regardless of the obstacles you may encounter. The Malta Chamber is delighted to witness so many talented women completing this program successfully, and we eagerly anticipate seeing you pursue your entrepreneurial ideas with passion and conviction.”