BOV commences share buyback programme

First credit institution in Malta to introduce this scheme

Bank of Valletta is pleased to announce the formal commencement of its Share Buyback Programme, effective 18 August 2025. This initiative marks a significant milestone, positioning BOV as the first credit institution in Malta to implement such a scheme aimed at enhancing market liquidity and delivering sustained value to shareholders.

The Bank has allocated €7.8 million from H1 profits as a share buyback reserve. The Share Buyback Programme, which forms part of BOV’s broader Shareholder Value Optimization Framework, is designed to increase the trading liquidity of BOV shares and provide an alternative exit route for shareholders who wish to dispose of the shares at a reasonable market price.

Under the approved framework, the Bank is authorised to repurchase up to 3,060,000 shares on the Malta Stock Exchange over a period of 12 months. This mechanism will be activated in instances where shares placed for sale remain unacquired by other market participants. The programme operates on a voluntary basis, with the Bank enhancing market depth by facilitating trading in its shares.   

Chief Financial Officer, Kevin Cardona, explained how the programme will work, stating that the Bank’s Share Buyback Programme, as endorsed by shareholders at the latest AGM and approved by the regulator, is designed to enhance market liquidity and provide an orderly exit mechanism for shareholders unable to find a buyer within a reasonable timeframe. “Purchases will be executed at a price not exceeding the last independent trade or the highest current independent bid, within a range of €1.55 to €2.55 per share. The shares that will be repurchased will not be cancelled but retained as Treasury Shares, allowing for future reintegration into the Bank’s capital structure through initiatives that reinforce long-term shareholder value. The programme is governed by a comprehensive policy framework that ensures compliance with Market Abuse Regulations (MAR), transparency, and equitable treatment of all shareholders.”

The Bank’s Chairperson Dr Gordon Cordina and CEO Kenneth Farrugia expressed satisfaction on the launch of the Share Buyback Programme. “Through this programme, the Bank continues to extend value to its shareholders. We have recently introduced a number of initiatives, including the bonus share issue and the half year dividend announcement, that are all aimed at rewarding shareholders for the trust they continue to place in the Bank. The Share Buyback Programme continues along this vein.” The Chairperson and CEO also noted that there has been much interest in the Bank’s equity of late, and trading volumes have also increased significantly, especially following the positive financial performance that the BOV Group registered in the first six months of the year.

BOV’s Share Buyback Programme is operating in full transparency. All transactions executed under the programme will be disclosed to the market through Company Announcements on the Malta Stock Exchange website and will also be accessible on the Bank’s website under the Investor Relations section.