The Bank of Valletta Group reported a €54 million profit before tax for the first quarter of 2026, down 19.5% from the same period in 2025. Chairperson Dr Cordina attributed this decline to specific non-recurring factors, including heightened geopolitical tensions that led to increased financial-market volatility and an unrealised valuation impact on the equity investment portfolio.
Despite these challenges, the Group's core operating performance remained resilient, with net interest income benefiting from continued lending growth and disciplined treasury management. Net Fee and Commission Income rose by 1.1% to €20.2 million, reflecting strong customer activity.
However, profitability was also influenced by higher impairment charges, primarily driven by the growth in the commercial lending book and an increase in stage 1 assets. The Group recognised an impairment charge of €5.6 million during the period.
Asset-quality indicators remained strong, supported by prudent underwriting standards and disciplined credit-risk management. The NPL ratio improved to 1.57%, while ECL coverage ratio for credit-impaired assets stood at 55.1%.
The Group's financial position remains robust, with total assets standing at €17 billion in March 2026, up from €16.5 billion in December 2025. Deposits increased by €351.9 million, surpassing the €14.1 billion mark.
Looking ahead, the Group remains well-positioned to deliver a profit before tax for the year in the range of €210 million to €250 million. The Share Buyback Programme continues to support trading activity in the Bank's shares, while preparations are underway for the issuance of a €300 million Senior Preferred Instrument, subject to regulatory approval.
CEO Kenneth Farrugia said that the Group sustained resilient operating performance and continued to grow its balance sheet, maintaining sound asset quality and sustaining lending and treasury activities. The depth of the deposit base reflects customer confidence in the Bank's credibility and long-term approach.
The Group continues to monitor the evolving geopolitical environment and its potential impact on the Maltese economy and the financial system. Its risk management framework incorporates forward-looking scenario analysis and early warning indicators to identify emerging stresses, ensuring that it remains well-positioned to absorb potential shocks and continue supporting customers and the wider economy amid an increasingly uncertain global backdrop.
The Bank's share price rose to highs of €2.14 during the period, supported by a strong capital base, resilient day-to-day performance, and consistent execution of its strategy.
