Bank of Valletta registers ‘record profit’ of €174.7 million
Bank of Valletta registered a “record profit” of €174.7 million for the financial year 2017, the bank’s chairman, Deo Scerri, announced at its annual general meeting yesterday.
“Financial year 2017 was a period of challenges and success for the group,” declared the chairman, citing the bank’s return on equity of 16.5 per cent, which is well above the EU average. Mr Scerri also referred to another key pillar of the group’s strategy, namely the level of capitalisation, which is now reflected in a healthy CET 1 ratio of 16.1 per cent, following the recent rights issue.
With reference to the discussion surrounding companies operating in the crypto currency industry, Scerri said that a strategic committee had been launched and that the policy for this new technology was constantly being reassessed.
He said that the major challenge at this stage was the reluctance of correspondence banks to accept crypto currency transactions. Currently, the area is still largely unregulated, with few countries such as Malta in the process of passing legislation to regulate the disruptive technology.
Scerri, together with the bank’s CEO, Mario Mallia, addressed shareholders during the 44th annual general meeting, which was well attended.
Looking ahead, Mr Scerri said that the bank’s capital base would enable it to continue with its plans to grow sustainably by investing in four key areas, namely IT, human resources, digitalisation and multi-channel banking. Mr Scerri concluded by reiterating the board’s commitment to the bank’s long-term sustainability, while continuing to support the local economy.
Mallia outlined the financial performance for 2017. He then referred to the group’s Vision 2020 strategy, explaining the four pillars of long-term sustainability, good governance, the revision of the business model and resourcing.
“A cornerstone of Vision 2020 is the implementation of the bank’s core banking transformation programme, which will see it not only replacing its core banking system, but also overhauling its processes with a view to becoming more efficient and seamless across different channels. This vision will enable the bank to digitalise itself, while ensuring that the customer remains at the core of its strategy.”
Five resolutions were put to the meeting. The ordinary resolutions included approval of the profit and loss account and balance sheet for the year ended 31 December 2017, approval of the final gross dividend and the reappointment of the bank’s auditors.
Approval was obtained for the ratification of the amendment in the bank’s Memorandum of Association regarding the change in the issued share capital, which following the rights issue, stands at €525 million.
The shareholders also approved changes to the bank’s Memorandum of Association to allow large shareholders holding more than 5 per cent of the bank’s issued share capital to dispose of their shareholding to a broader sector of the market.
No election of directors was held during the meeting. The bank’s Board of Directors, following the meeting, is composed of the following directors:
Taddeo Scerri (chairman), Stephen Agius, Alan Attard, Paul V Azzopardi, Miguel Borg (CRO), James Grech, Alfred Lupi, Mario Mallia (CEO), Anita Mangion, Antonio Piras and Joseph M. Zrinzo.