The Bank of Valletta Group delivered a solid performance in 2025, generating a Profit Before Tax of €260.4 million and achieving a pre‑tax Return on Average Equity of 17.9%. This outcome reflects the strength of the Group’s underlying business model, the resilience of its core income streams, and the disciplined execution of its strategic priorities throughout the year. The Group continued to improve its balance sheet, enhance asset quality, diversify revenues and invest in its operational and digital capabilities. As a result, it enters 2026 with stronger financial foundations and clear momentum for the next phase of its strategic development.

The strong financial performance enabled the Board to propose one of the most substantial dividend distributions in recent years, with a final gross cash dividend of €65.1 million (€42.3 million net) being recommended for approval from H2 profits, equivalent to €0.1014 per share gross (€0.0659 net). Over and above, the Board also proposed a special dividend of €10.4 million gross (€6.8 million net), equivalent to €0.0162 per share gross (€0.0105 net). This special distribution reflects the portion of profitability generated during the financial year that exceeded the upper bound of the Bank’s forward‑looking PBT guidance which amounted to €250 million.

This results in a total cash dividend for FY25 (including interim payment and special dividend) of €0.2032 gross (€0.1320 net) per share, and equivalent to a total gross dividend of €130.5 million (€84.8 million net) out of the year’s profits, with the payout being fully aligned with the Group’s Shareholder Distribution Policy. The distribution underscores the Board’s commitment to delivering sustainable shareholder returns while preserving the capital strength and strategic flexibility needed to support future growth.

Complementing this cash dividend, the Bank has also allocated a €7.8 million reserve during the year to operate the regulated share buyback programme, activated during FY2025. This contributed to improved equity liquidity and more efficient capital management, showing the ever-increasing trust that markets, shareholders and the wider community have in BOV.

During the year, the Group strengthening its long‑term funding through targeted capital‑markets activity, completing the issuance of €150 million in unsecured Tier 2 bonds, concluding the €250 million EMTN programme launched in prior year. The Bank subsequently obtained regulatory approval for a new €325 million programme, under which €125 million in unsecured subordinated (Tier 2) bonds were issued, further enhancing the capital structure and supporting future growth. In parallel, the Group has commenced engagement with international markets in preparation for a €300 million Senior Preferred issuance, aimed at broadening and diversifying its wholesale funding sources while ensuring continued alignment with evolving MREL and strategic funding requirements. Further details will be issued during FY2026, with the issuance being subject to regulatory approval.

Financial Performance and Prevailing Economic Conditions

Despite normalising interest rates and sector-wide cost pressures, the Group delivered a solid financial performance, exceeding profitability targets and forward-looking expectations. While profitability declined when compared to FY2024, core operating performance remained resilient, with operating income increasing by 2.3% year-on-year, supported by disciplined balance sheet management, credit portfolio expansion, non-funded income diversification, and active cost and impairment management.

The Group further strengthened its balance sheet, with total assets increasing by €1.4 billion, with year-end figures exceeding €16.5 billion. Expansion was driven by sustained growth in customer deposits, which increased by €937 million, together with a €277 million rise in long-term liabilities following the successful issuance of Tier 2 subordinated debt, supporting strong loan book performance and expansion of the investment portfolio beyond targets.

One of the most substantial dividend distributions in years – Dr Gordon Cordina, Chairperson

Speaking during the announcement of the Group Financial Results, Chairperson Dr Gordon Cordina, said that “The Bank delivered strong profits notwithstanding the significant geopolitical tensions abroad, the normalisation of interest rates, and upward pressures on operating expenses. This highlights the resilience of our business model, the prudence of our strategic decisions, and our commitment to sustainable performance and effective risk management. The Group’s performance for 2025, which exceeded the initial profit guidance, enabled us to declare one of the most substantial dividend distributions in recent years.”

Dr Cordina continued by stating that, “As the country’s largest bank, developments within the Maltese economy directly influence our performance, just as our actions have a significant impact on households and businesses. Against this backdrop, throughout 2026, we will shape our next three-year strategy, remaining mindful of the risks, opportunities, and responsibilities we carry as Malta’s leading financial services institution.” 

Enhancing Customer Value, Accessibility, and Market Leadership – Kenneth Farrugia, CEO

CEO, Kenneth Farrugia, said that “During 2025, the BOV Group strengthened its leadership position across key customer segments, supported by targeted product innovation and improved customer experience. In retail business, home and personal lending, the Bank achieved double-digit growth. We strengthened our advisory capabilities, upgraded and modernised branches, opened a new Investment Centre in Sliema and upgraded two thirds of our ATM network. Our commercial banking performance also remained strong, with the relocation of our commercial operations to the Quad Central and a new Business Branch marking a strategic upgrade in service delivery. This reinforces our position as the Bank of Choice for both personal and commercial banking needs in Malta.”

Financial Performance

Operating income increased by 2.3% year-on-year, reflecting momentum across core business lines, optimisation of the funding and investment mix, and progress in revenue diversification. Commercial, Retail and Treasury remained the main pillars of income generation, delivering stable and recurring revenues.

Net Interest Income remained central to operating performance, increasing to €387.4 million as the Bank mitigates interest‑rate volatility through focused balance sheet optimisation and strong loan and investment activity. Net Fee and Commission Income also strengthened, rising by 8.2% to €88.1 million, driven by higher customer activity and the shift towards a more diversified, fee‑based earnings model.

Operating costs increased by 13.9% to €246.8 million over the prior year, reflecting a multi‑year investment programme aimed at strengthening technology, risk‑management and customer‑facing channels. Higher technology and cybersecurity expenditure mirrors accelerated digital implementation, transformation and resilience initiatives. Despite this, operating efficiency remains solid, with the cost‑to‑income ratio standing at 49.7% (FY2024: 44.6%).

The Non‑Performing Exposures ratio declined to 1.68%, supported by active remediation, improved portfolio monitoring and continued reduction of legacy positions. The coverage ratio increased to 59.4%, reflecting a resilient provisioning and approach to asset‑quality.

The Group’s profitability translated into a pre‑tax Return on Average Equity of 17.9%, comfortably above the 15% guidance. The year‑on‑year movement reflects both lower overall earnings when compared to the exceptional 2024 base and a higher average equity position driven by retained profits.

Profits from insurance associates increased to €10.4 million, reflecting the solid performance of the Group’s insurance operations in partnership with MAPFRE and their continued contribution to diversified earnings.

ESG remained a core priority, with progress on the Climate Transition Plan and further reductions in Scope 1 and Scope 2 emissions.

Outlook and Risk Management

The Group continues to monitor economic and geopolitical developments through risk monitoring frameworks, with assessments indicating no material emerging risks. Stress‑testing under ICAAP confirms strong capital buffers and resilience, while the Group remains vigilant towards maintaining transparent market disclosure.

The Board remains confident in the Group’s strategic direction, having delivered another year of strong performance underpinned by solid fundamentals, disciplined risk management and investment. Entering FY2026 from a position of strength, the Group remains focused on delivering sustainable growth, shareholder value and continued support for the Maltese economy.

The post BOV closes financial year 2025 with €260.4m profit before tax first appeared on The Malta Business Weekly.

Since its establishment in 2017, the Malta Development Bank (MDB) has supported around 750 firms, more than 90% of which are small and medium-sized enterprises (SMEs), CEO Alison Micallef said in an interview with this media house.

Micallef stressed that the MDB’s role is to intervene where “market failures” exist – in other words, where viable projects struggle to secure financing through commercial banks because of factors such as insufficient collateral, conservative lending appetites, or the long-term nature of the investment.

This focus on SMEs reflects their central role in Malta’s economy. Citing NSO data, Micallef said that 99.6% of all non-financial corporations in Malta are SMEs. Yet despite their dominance in numbers, they generate less than half of the country’s total net turnover.

“While SMEs are the backbone of the economy in terms of numbers and activity, revenue remains concentrated among a relatively small number of large enterprises,” she said, adding that SMEs therefore need greater support.

The MDB works alongside commercial banks rather than replacing them, stepping in through risk-sharing arrangements to make projects more bankable. “We do not want to displace private lenders,” Micallef said. “We want to work alongside them and help them make a project.”

As a development bank, the MDB is barred from financing speculative construction and real estate. Instead, it focuses on projects that create long-term economic and social value, particularly in areas such as productivity, innovation, energy resilience, and infrastructure.

One flagship example is the StudentAssist scheme, which helps students finance higher education in Malta or abroad. Around 900 students have benefited so far, with total support reaching approximately €38 million. Under the scheme, students can access interest-free loans of up to €100,000 to cover tuition, accommodation, and related expenses through partner banks BOV and APS.

Micallef said the scheme is an investment in Malta’s future workforce. “By removing financial barriers, we are helping to develop a skilled workforce in Malta that will materialise in the future,” she said.

MDB-backed projects typically involve long repayment periods and are monitored continuously, with formal annual reviews carried out jointly with partner banks. This allows the bank to track growth, market traction, and the overall impact of the financing.

The MDB’s importance was especially visible during the Covid-19 pandemic, when it estimates that its support helped safeguard around 40,000 jobs. According to Micallef, the bank’s contribution during that period amounted to 13% of Malta’s gross value added, or around €1.7 billion.

The bank has also recently strengthened its position internationally. In early 2026, it became the smallest bank in Europe to pass the European Commission’s pillar assessment, allowing it to access the InvestEU budget directly. This means the MDB can now help Maltese businesses tap into EU-backed guarantees without relying solely on intermediaries.

Looking ahead, Micallef said the MDB is concentrating on sectors critical to Malta’s long-term competitiveness, particularly innovation and energy resilience. She noted that these are precisely the areas where private markets can be more reluctant to take risks, especially during periods of uncertainty.

On innovation, the MDB is working with Xjenza Malta on a blended finance instrument to help businesses commercialise research and development. Rather than relying solely on grants, the new tool will provide longer-term loan financing to help ideas reach the market.

Infrastructure is another core pillar. The MDB focuses on sustainable, bankable projects that address clear market gaps, particularly those with long repayment periods that may exceed local banks’ risk appetite. As Malta’s only implementing partner for the Alternative Fuels Infrastructure Facility (AFIF), the MDB can also help entrepreneurs secure cheaper financing for eligible projects, provided they meet strict EU environmental and technical standards.

Despite its policy alignment with Malta Vision 2050 and EU green and digital priorities, Micallef insisted that “policy alignment never comes at the expense of financial discipline.”

“Our decisions are banking decisions, not political decisions,” she said.

This is an abridged version of an interview which was carried in The Malta Independent on Sunday on 22 March

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The proportion of counterfeit euro banknotes remains insignificant when compared to the 30.22 million genuine euro banknotes in circulation in Malta in 2025.

Among the 1,097 counterfeit euro banknotes seized in Malta during 2025, the middle denominations continued to be the most counterfeited. Nevertheless, the €20 denomination lost in importance, while the share of the €50 denomination increased. Together, these two denominations accounted for 87.5% of all seized counterfeits. The share of the lower denominations (€5 and €10) also decreased, while the percentage of the highest denominations remained very low.

The table below provides a percentage breakdown by denomination of the total number of counterfeits withdrawn from circulation in Malta during 2025, compared with the distribution by denomination across the entire euro area. It must be noted that while the €20 denomination predominates in Malta, the €50 is the most frequently detected counterfeit banknote in the euro area.

Notwithstanding the low figures of counterfeits reported locally, the Central Bank of Malta continues to advise the public to remain alert with regards to banknotes received in cash transactions. Most counterfeits are easy to detect as they have no security features, or only poor imitations of such features.

The post Counterfeit euro banknotes in Malta drop by nearly 30% in 2025 first appeared on The Malta Business Weekly.

The commencement of this series of announcements reflects improvements in the technical and governance systems and structures being used by the Bank for the determination of base rates. It also highlights the Bank’s continued commitment to improve and strengthen its communications with the financial markets, and to meet and exceed regulatory expectations.

The Bank Base Rates operate as a core component within the Bank’s enterprise‑wide pricing framework. It works in tandem with product‑specific parameters (such as risk‑based add‑ons, customer‑level adjustments, and contractual terms) to deliver pricing outcomes that are fair, transparent, and consistent with the principles laid out in the Bank’s internal pricing governance.

By anchoring lending rates to an internally governed benchmark, the Bank promotes coherence between individual credit decisions and broader balance sheet objectives, including profitability, capital efficiency, and portfolio risk appetite. These internal benchmark rates are subject to a structured governance and review process every quarter, the bank said.

In determining the Base Rate levels for the forthcoming period, the Bank undertook a comprehensive assessment grounded in its formal Base Rate Policy. This framework requires that every decision, whether to maintain or amend the rates, be evaluated holistically across key principles that safeguard financial resilience, prudent balance sheet management, and fair outcomes for customers.

Following this scheduled review of interest rate trends and prevailing market conditions, the Bank’s Base Rates applicable to its Credit Portfolio will remain unchanged for the forthcoming three‑month period up to end June 2026. Effectively, the Business Bank Base Rate remains at 2.15% per annum, the Home Loans Bank Base Rate remains at 2.15% per annum and the Personal Loans Bank Base Rate remains at 2.45% per annum.

The decision to retain the Base Rates for its credit portfolio unchanged for the forthcoming three‑month period is underpinned by internal financial projections which continue to indicate consistency with its strategic, budget and risk appetite, Key Performance Indicators and Key Risk Indicators. The capital and liquidity positions of the Bank remain strong without any indications of stresses.

Current geopolitical tensions abroad, the outlook for the economy, the Bank’s competitiveness in the market, and the safeguarding of the interests of the Bank’s clients also vouch for the need for continued stability in interest rates in Malta and in the Bank’s base rates in particular. The Bank also noted that, over recent years, it was able to maintain the Base Rates at stable levels notwithstanding changes in market conditions, including shifts in the European Central Bank’s monetary policy stance.

These rates will remain in effect, at least, until the next review scheduled for June 2026, the bank said.

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The Group delivered a pre-tax profit of €26.5 million (2024: €23.8 million), with the Bank posting €26.9 million pre-tax (2024: €22.5 million), driven by higher revenues and transaction volumes, and reduced cost of funding. Net interest income rose by 20% to €78.7 million, supported by increased credit and treasury activity, improved yields, and a strategic shift from fixed-term to overnight deposits that lead to wider net interest margins.

Operating income rose by 8% to €89.3 million, while net impairment losses dropped to €0.7 million, reflecting strong asset quality and disciplined underwriting with the NPL ratio closing the year at an all-time low of 1.4%. Operating costs increased due to continued investment in human resources, multiple technology projects, advisory overheads and regulatory costs, with the cost-to-income ratio closing at 70.7%.

The Bank’s financial position also strengthened, with total assets and customer deposits now exceeding €4.6 billion and €4.1 billion, respectively. Total equity increased to €355 million, boosted by the successful 2025 Rights Issue and retained earnings. Capital ratios improved markedly, with the CET1 ratio of 17.6% and Capital Adequacy Ratio of 23.2%. The Board is declaring a final net dividend of €7.4 million, bringing the total net dividend for the financial year to a highest ever distribution of €9.2 million.

APS Bank CEO Marcel Cassar commented: “We are proud to announce a standout performance marked by double‑digit growth over 2024 and a strong rebound in banking income in 4Q2025 – one of our best quarters on record for both operating and profit results. We strengthened margins, expanded retail and commercial lending, and increased revenues across every business line. Last year we promised an uplift in profitability, we are now delivering that consistently and aim for more – despite a volatile geopolitical and economic environment. With strong liquidity, capital and asset quality, we are exceptionally well positioned for the next phase of growth and confident in delivering even higher returns for our shareholders.”

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Minister Caruana stated that at present, Malta is spending €150 million on energy subsidies per year. He declared that with these calculations, the Maltese government is ready to increase this investment to at least €400 million if the war that has erupted in Iran and the Persian Gulf results in a large spike of local energy prices.

“If prices had to explode upwards, which I don’t foresee, the country has the equivalent of €250 million that it can use as a cushion against exogenous shocks from abroad,” Finance Minister Caruana stated.

Earlier this January, Minister Caruana announced that the Maltese government has already managed to lower its budget deficit to below the EU’s stipulated 3% threshold. He reaffirmed this on Wednesday, noting that on 22 April 2026, when the official statistics are published by Eurostat and the NSO Malta, we will see that Malta has managed to lower its budget deficit to “well below 3%.”

He said that this financial flexibility is possible thanks to the government’s sound leadership and fiscal management. The Government of Malta had initially aimed to lower its budget deficit to below 3% by the end of 2026. During the last budget in October, Minister Caruana advised the Maltese public that the budget deficit should lower to 3.3% by the end of 2025, before updating this just a quarter later that Malta is abiding by EU fiscal rules a year earlier than targeted.

While adjourning Parliament’s Wednesday plenary, Caruana remarked on how the international situation could affect the Maltese islands, financially and economically, as war in the Persian Gulf has recently flared up. He opened by stating that times have changed and that this emergence of war presents very different circumstances to when Russia invaded Ukraine just four years ago, in 2022.

The Minister for Finance commented that while most people are worrying on how this new conflict will impact energy prices, he is more worried on how this situation could impact Europe’s financial power, as different currencies appreciate and depreciate.

“I am more concerned about the conflict’s impacts on the Euro, rather than on its impact to natural resources,” Finance Minister Caruana said.

Citing academia, Caruana noted that in times of war, historically, the US dollar ($) strengthens while the euro (€) weakens. He said that as a result of this, “when we go buy something in dollars, from euros, we will need to pay more.”

Focusing on the US dollar, he mentioned that during these times, the US currency goes up in value similarly to how gold appreciates in value in times of uncertainty. He factored this to the USA having the world’s strongest economy, “militarily and all.” Hence, before this conflict broke out, the exchange rate between euros and dollars produced $1.19 from €1; this has already gone down to $1.16 for every €1 spent.

He noted that while the euro has already depreciated slightly, it has not weakened in value to near the same extent it did when Russia invaded Ukraine. However, “if this conflict sustains itself, the risk that the Euro depreciates will go up.”

On energy, Minister Caruana told the House that Europe’s landscape has changed drastically since Russia’s invasion of Ukraine in 2022 caused European energy prices to shoot upwards.

The Finance Minister discussed how back then, a large chunk of European energy infrastructure was responsible for importing Russian gas to generate electricity around the continent. At the time, natural gas was Europe’s most abundant natural resource for energy generation, he said.

Minister Caruana observed that despite the price of natural gas increasing because of the most recent developments in the Middle East, natural gas is still seven times cheaper to peak prices experienced in 2022. Natural gas now costs around $50/MWh, in contrast to the circa $350/MWh in 2022.

He stated that while natural gas prices were most affected by the Russian invasion of Ukraine, the present war in the Persian Gulf is most affecting the price of oil.

“This shows that there is a totally different impact on energy between these two conflicts,” he said.

The Minister for Finance shared that in 2022, the price of a single barrel of Brent crude oil nearly reached $120. Despite a scare this past weekend where weekend trading saw prices shoot up to $117 per barrel, the price of Brent crude oil today sits at around $90 per barrel.

“The difference between oil prices is not as significant as the difference between gas prices,” Minister Caruana assured.

Additionally, he noted that the price of diesel – which is a derivative of oil – now sits at around $2.80 per gallon. In 2022, diesel prices reached $4 per gallon. At the start of this year, diesel cost around $1 per gallon and has since nearly tripled in price.

“Diesel has gone up significantly, but it looks like even the price of diesel is far from what we observed four years ago, when it had even gone up to $3, $4, and remained that way for some six months,” he said.

Minister Caruana attributed these lesser felt energy price hikes partly to the European Union’s mission to reduce its exposed dependence on Russian gas. He said that since 2022, the EU has reduced its proportion of fossil fuels in its energy mix from 40% of its electricity generation down to 30%.

Caruana added that nowadays, half of all energy generated in Europe is generated from clean, renewable sources; he said that wind and solar energy combined contribute for more energy generation across the European continent than natural gas does.

“In just four years, the EU has reduced its dependence on fossil fuels so that what we experienced in 2022 is not felt to the same extent – not now, nor in the future. From these facts, one can see that there is a difference between realities now and four years ago” the Finance Minister said.

The post Malta has €250 million cushion amid Gulf conflict, excessive deficit procedure – Finance Minister first appeared on The Malta Business Weekly.

Movements in equity and bond indices

The MSE Equity Total Return Index closed the month of February with a 4.2% gain, to finish at 9,246.17 points. During the month total turnover increased by €9.5m to €12.6m, as 1,505 transactions were recorded. A total of 33 equities were active, as 20 advanced while 11 declined. The monthly increase in the turnover was mainly driven by higher trading activity in Hili Properties plc.

The MSE Corporate Bonds Total Return Index gained 0.6% to 1,155.283 points, as 103 issues were active, 55 of which headed north while another 42 closed in the opposite direction. The 4% International Hotel Investments plc Unsecured € 2026 headed the list of gainers, as it closed at €99.99, translating into an 8.7% increase in price. On the other hand, the 3.65% IHI plc Unsecured € 2031 closed 10.9% lower at €91.75.

The MSE MGS Total Return Index posted a positive 0.75% movement, to end the month at 976.84 points. A total of 52 issues were active, as 32 advanced while another four lost ground. The 3.5% MGS 2034 registered the best performance with a 2.6% increase to close the month at €66.19. Conversely, the 1.8% MGS 2051 traded 2.1% lower to close at €62.27.

Top 10 market movers

Hili Properties plc extended its upward momentum, climbing 12.5% to end the month at €0.27. During the period the price ranged from €0.24 to €0.272. Trading volumes were extremely high, as the most liquid equity of the month included 26,287,025 shares dealt across 692 trades, resulting in €7.1m in trading turnover.

Bank of Valletta plc advanced for the second consecutive month, gaining 9.4% to close at a monthly high of €2.10. Activity was robust, with 1,242,496 shares exchanged across 285 deals, generating a total turnover of €2.5m.

APS Bank plc also recorded a solid monthly uplift of 6.3% after a previous stagnant month. The share price settled at €0.51, as the equity oscillated between €0.466 and €0.51. A total of 44 trades worth €151,513 were executed.

HSBC Bank Malta plc closed at a price level of €1.47, as itedged 2.8% higher over the period. The bank touched a low of €1.43 and a high of €1.49. A total of 199,384 shares changed ownership through 55 transactions, producing a traded value of €288,640.

Lombard Bank Malta plc headed south by 7.9%, concluding the month at €0.70. The equity traded within a narrow band of €0.665 to €0.70. A total of nine deals involving 51,002 shares were executed, yielding a turnover of €34,292.

Malta International Airport plc (MIA) climbed slightly to €5.95, as the equity appreciated by 1.7% throughout the month. The share price varied between a low of €5.80 and a high €6. Trading activity included 147,772 shares exchanged over 69 transactions, resulting in €865,798 worth of trades.

Simonds Farsons Cisk plc posted a gain of 6.9%, ending the month at €5.45 after fluctuating between €4.90 and €5.60. Activity remained modest, with 24,551 shares traded in 17 deals, worth €125,382.

AX Real Estate plc delivered an extremely positive monthly performance, surging by 43.7%. The share price fluctuated between a low of €0.33 before closing at a high of €0.50. A total of 60,683 shares changed hands over 14 transactions, resulting in a trading value of €22,138.

Harvest Technology plc delivered an exceptional performance, rallying 68.6% to close at a monthly high of €1.18. Trading activity included 30,062 shares across seven deals, with a total turnover of €21,099. This is the third consecutive month that the equity has gained ground.

RS2 plc Pref Shares was the top performer of the month, as the equity surged by 134%. The price moved within a range of €0.35 and lastly closed at €0.59. Trading activity equalled €8,812 as 25,125 shares were exchanged across three deals.

Company announcements

The Board of MIA approved the Group’s financial results for the year ended December 31, 2025. The total revenue of the Group amounted to €157m, up from €142.9m in 2024. The aviation segment remained the main contributor to this result, accounting for 68% of total revenues. The Group reported a record net profit of €49.8m, marking a 7.6% increase compared to 2024. Further to the net interim dividend of €0.06 per share paid in 2025, the Board is recommending the payment of a final net dividend of €0.13 per share on all shares settled as at close of business on April 20, 2026, which dividend shall be paid by no later than June 5, 2026. The AGM is set for May 20, 2026.

HSBC Bank Malta plc reported a profit after tax of €71.6m for the year ended December 31, 2025, down 28.5% from the previous year. Net interest income amounted to €175.4m, representing a decrease of 15% compared to the prior year, reflecting the lower interest rate environment. The bank recommended a final net dividend of €0.0546 per share. This, together with the interim dividend paid in September 2025, represents a 60% dividend payout ratio.

MIDI plc has entered into a promise of sale agreement dated February 24, 2026 with 540 Hub Ltd for the sale of the T15 Building at Tigné Point, Sliema, for €5.5m. The property is held under a 99-year temporary emphyteusis originally granted by the Government of Malta and remains subject to annual ground rent and related conditions. The agreement is subject to customary conditions and remains valid until June 30, 2026. The net proceeds will be used towards the redemption of the Company’s €50m bond due in July 2026.

Plaza Centres plc has convened an Extraordinary General Meeting for March 25, 2026 in Sliema, following a requisition by Virgata HQ Limited. The EGM will consider amendments to the Company’s memorandum to revise the size of the Board depending on shareholder-appointed members. Shareholders will also vote on authorising a share buyback of up to 2.4m shares at prices between €0.75 and €0.95 over an 18-month period, subject to regulatory approval. In addition, the Board is proposing a 1-for-2 bonus share issue through the capitalisation of €2.6m from the share premium account, increasing issued share capital to 38.24m shares.

Computime Holdings plc announced that the Group delivered a strong performance in FY2025 and expects to report record revenue and profit before tax, exceeding IPO prospectus projections. Profitability and cash generation are also expected to support a final dividend in line with prospectus forecasts, implying a gross dividend yield of approximately 8.9%.

In addition, the Group will continue executing its AI-focused growth strategy across all divisions. In Business Software Division, the focus remains on advancing AI initiatives, with several proof-of-concept projects potentially developing into commercial products by late FY2026 or early FY2027. The ERP (Acumatica) business is expected to strengthen its local market leadership, supported by new client wins, while operational resilience will be enhanced through potential international outsourcing partnerships.

The FinTech Division is expected to consolidate its market leadership, with BRSAnalytics expanding its client base and exploring adjacent RegTech and GRC opportunities, including AI governance.

The Systems Integration Division recently secured multi-year IT infrastructure contracts which are expected to drive meaningful long-term revenue growth. The division will also continue expanding its cybersecurity and managed services offerings, with a strong focus on modern technologies, including solutions supporting AI security and governance in regulated sectors.

Loqus Holdings plc announced that revenue for the last six months of 2025 amounted to €7.8m, a 30% increase over the same period last year. This performance was supported by stronger trading conditions for the Group’s clients during the first half of the financial year, including seasonal retail activity, as well as the successful onboarding of a new customer from September 2025. Profit for the period amounted to €0.8m, rising from a loss of €0.3m the previous year.

This article, which was compiled by Jesmond Mizzi Financial Advisors Limited, does not intend to give investment advice and the contents therein should not be construed as such. The Company is licensed to conduct investment services by the MFSA and is a Member of the Malta Equity Exchange and a member of the Atlas Group. The directors or related parties, including the company, and their clients are likely to have an interest in securities mentioned in this article. For further information contact Jesmond Mizzi Financial Advisors Limited at 67, Level 3, South Street, Valletta, or on Tel: 21224410, or email info@jesmondmizzi.com

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Joined by Minister Silvio Schembri, the Prime Minister noted that the project serves as a clear signal of confidence in the national economy during a period of global uncertainty. He emphasised that Malta’s consistent stability remains a primary factor in attracting international investment and maintaining a competitive edge.

Abela described the hub not merely as a new workspace but as a vote of confidence in the bank, its workforce, and the country’s broader economic trajectory. In an era marked by geopolitical tension and rapid technological shifts, he argued that stability has become a vital asset.

He also referenced recent evaluations by the International Monetary Fund, which highlighted Malta’s strong economic momentum. The Prime Minister specifically pointed to the IMF recommendation to move to a 24-month consultation cycle as a formal recognition of the country’s responsible economic management and a reminder to remain disciplined and resilient.

Addressing the bank’s international role, the Prime Minister noted that the financial and insurance sectors sent a clear message that capital continues to choose Malta because the country offers certainty. This sentiment was echoed by the Bank of Valletta leadership, who viewed the opening as a milestone in the bank’s evolution toward more client-centric and sustainable operations.

Bank of Valletta CEO Kenneth Farrugia explained the vision behind the modern centre, noting that commercial services have evolved at a rapid pace. He stated that the bank felt the need to consolidate its services under one roof to provide business clients with a more integrated and efficient experience. The new hub offers central access, specialised banking services, and a dedicated commercial branch.

Farrugia also highlighted that the facility is located within a LEED Platinum-certified building, which represents the highest global standard for sustainable construction and reflects the bank’s commitment to green financing.

BOV chairperson Gordon Cordina added that the investment reflects a commitment to quality, offering better services for clients and a superior environment for employees. He remarked that the project complements ongoing investments in information technology and digital transformation.

Cordina concluded by stating that focusing on client needs, human resources, and sustainability is the core recipe for long-term development, aligning with the objectives set out in the Malta 2050 Vision.

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The Malta Financial Services Authority (MFSA) and the Malta Tax and Customs Administration (MTCA) have signed a Memorandum of Understanding (MoU) to strengthen supervisory oversight in Malta’s financial services and taxation.

The agreement, signed on 24 February, reinforces the commitment of both authorities to enhance supervision, improve information sharing, and support national compliance efforts.

The MoU establishes a structured framework for collaboration, enabling the MFSA and MTCA to better fulfil their statutory responsibilities. This includes the more effective identification of non‑compliant entities operating in Malta, as well as coordinated action in line with each authority’s legal mandate.

Through this agreement, the MFSA and MTCA will expand their cooperation across several key areas, including:

• Enhanced information exchange to support supervisory and enforcement functions
• Joint training and education initiatives to strengthen regulatory and operational expertise
• Opportunities for staff secondments between the two authorities, facilitating knowledge transfer and capacity building

This collaboration underscores the shared commitment of Malta’s financial and tax authorities to safeguard the integrity of the jurisdiction, promote compliance, and support a well‑regulated financial services sector.

The post MFSA and MTCA strengthen inter-authority collaboration through new MoU first appeared on The Malta Business Weekly.

In 2025, the local group achieved a profit before tax of €109 million demonstrating resilience and consistent performance across all business units despite operating in a lower interest rate environment.

HSBC Bank Malta plc confirmed its commitment to delivering sustainable shareholder returns, recommending a final gross dividend of 8.4 cents per share, following another period of resilient financial performance and disciplined capital management.

This represents the highest dividend payout ratio in recent years, which together with the interim dividend paid in September 2025, represents a 60% dividend payout ratio. The final proposed dividend will be paid on 6 May to shareholders who are on the bank’s register of shareholders on 30 March, subject to approval at the Annual General Meeting scheduled for 29 April.

Key Highlights

• Positive outlook on Malta’s economy, which continues to outperform Europe. Malta’s high Gross Domestic Product (GDP) growth and diversification and low unemployment, provide economic resilience despite global uncertainties. Property sector remains strong.
• Reported profit before tax of €109 million for the year ended 31 December 2025, a decrease of €45.4 million or 29% over 2024. The decrease in profit reflects the impact of lower interest rates and lower releases of expected credit losses. The bank achieved solid underlying revenue growth, driven by increased customer activity. Operating costs increased reflecting continued strategic investment in talent and accelerated amortisation of software.
• Strong customer growth and confidence led to deposit growth of €370 million during the year, reaching a record high of €6.5 billion at year-end. Deposit market share increased by over 1%. Additionally, there was growth of 28% in client wealth management and investment balances to €1.1 billion. Life insurance sales increased by 21%.
• Reported profit after tax attributable to shareholders amounted to €71.6 million for the year ended 31 December 2025, resulting in earnings per share of 19.9 cents, compared with 27.8 cents in the same period in 2024.
• The board has recommended a final gross dividend of 8.4 cents per share (5.46 cents per share net of tax), bringing the total dividend for 2025 to 18.4 cents (11.96 cents net of tax). This represents a payout ratio of 60%.
• The bank’s total capital ratio grew to over 27% and the liquidity coverage ratio remained over 500%, making HSBC Bank Malta plc one of the most capitalised and liquid banks in Malta and among the highest in Europe, well above regulatory requirements

Geoffrey Fichte, CEO at HSBC Bank Malta plc, said he was proud to report another year of successful results, marking the third consecutive year of pre-tax profit exceeding €100 million – a first in the history of HSBC in Malta.

“This performance, delivered despite lower interest rates and reduced recoveries, underscores the strength and resilience of our diversified business model, disciplined execution and the continued trust of our customers,” he said.

“We continue to serve our customers with the same high standards of service and banking, insurance and investments. Throughout the year, we continued to invest in the future of the bank – enhancing our digital capabilities through the implementation of SEPA Instant payments, upgrading our IT infrastructure, and completing the replacement of our ATM fleet across Malta and Gozo.”

Testament to this, Fichte said, is the bank’s recognition as 2025 Bank of the Year Malta by The Banker, the Financial Times’ internationally-renowned publication covering global banking and financial affairs.

HSBC Bank Malta’s recognition reflects the bank’s significant progress across key performance metrics, including earnings growth, capital strength, operational efficiency, and continued investment in digital and technological capabilities.

The post HSBC Malta announces pre-tax profit exceeding €100m for third consecutive year first appeared on The Malta Business Weekly.