After many years of work, most people desire to retire in comfort, trying to retain their same standards of living prior to retirement. The session by BOV promises to offer information on this topic to senior customers.

According to BOV’s calculations, a person will need at least two-thirds of their pre-retirement income in order to maintain the same level of lifestyle upon retirement as before. Nevertheless, BOV says that not everyone will be eligible to receive the two- thirds of their current income, chiefly due to the fact that the state pension is capped.

The main speakers of the session in Gozo will be David Spiteri Gingell, Management Consultant and Mario Farrugia from BOV and the minister of Gozo will also attend the event with the president of the Gozo Business Chamber.

The seminar is free of charge and participation is available on a first come, first served basis, therefore, interested individuals are recommended to apply in an email.

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For the comparative period of the previous year, the Group registered a pre-tax profit of €13.5 million, which included a litigation loss provision of €75 million, the press statement adds.

Group operating income, which has remained at last year’s level, amounted to €127 million. Recurrent costs grew by 27% to €81m as compared to the same period a year earlier. BOV attributes the increasing costs chiefly to fees and expenses related to the ongoing transformation programme and on the substantial recruitment of resources in the group’s control functions. The impairment charge for the period is just under €1m, compared to reversals of €20 million booked for the corresponding period, the press statement adds.

Customer deposits grew by €223m to €10.6b by the end of the first half of the year as compared to December 2018. Net advances at amortised cost increased by €126m to €4.5b over the same period. Shareholders’ funds, comprising capital reserves, has topped the €1 billion mark for the first time in the Group’s history.

‘Full transformation mode’

BOV Chairman Deo Scerri underscored that the group is in a “full transformation mode” as BOV embarked on a two-year transformation programme, in agreement with its supervisors, with the assistance of two international consultancy firms.

“The aim is to ensure the long-term sustainability of the institution, by reducing the risk profile of the business model, strengthening capital buffers and enhancing the anti-financial crime framework. The increased costs reported in these results primarily reflect the costs of this programme. We do not see these costs as recurring overheads, but as a solid investment in the future,” Mr Scerri said.

“We are in the process of exiting a number of businesses and closing down a large number of higher-risk relationships, all of which naturally result in a loss of income. The situation is further impacted by heightened competition from non-traditional players and by the persisting low interest rate environment. Despite all this, the Group has managed to maintain the same income levels as last year. This shows the resilience of our core operations,” Mr Scerri added.

S&P’s rating comes expected

Standard & Poor’s has lowered the long term credit rating for the bank BBB with a negative outlook, to BBB- with a stable outlook. Short term rating was revised from A-2 to A-3. S&P justified its decision by stating perceived weaknesses in BOV’s internal control frameworks and to the potential impact of ongoing litigation cases. S&P named BOV’s sound franchise, customer confidence and ample liquidity as being among its major strengths.

Chairman Scerri said S&P’s decision had not come unexpected, in view that the rating outlook had already been set as “negative” last year. The chairman said that the underlying factors for the lowered rating — the need for strengthening internal controls, government and oversight — are being addressed in the transformation programme.

In reference to BOV’s USD clearing situation, Mr Scerri announced that Raiffeisen Bank International had recently opened accounts denominated in US dollars for BOV. He added that BOV’s short term objective is to put into place the necessary mechanism to enable it to offer full USD services, assuring that the bank is on the verge of achieving this objective. The longer-term objective is that the bank will have access to a wider network of USD correspondents.

“The Board has chosen to retain its prudent stance and has resolved not to declare an interim dividend, with the aim of further strengthening the Bank’s capital buffers, especially in the context of its status as a systemically important institution. This is in line with our strategy of foregoing short term benefits in the interest of long term stability. The situation will be re-assessed at the year-end, in consultation with supervisory authorities,” Mr Scerri said.

Mr Scerri expressed his full confidence in BOV’s future as a strong, secure and profitable institution. “The ongoing transformation programme will result in a stronger and safer bank, that will continue to play a leading role in tomorrow’s economy while delivering fair and sustainable returns to its shareholders,” the chairman added.

The post BOV records €54.3m pretax profit in H1 first appeared on The Malta Business Weekly.

The initiative was held in collaboration with the Malta Insititute of Management and it was aimed at raising awareness about career options within the financial services industry and promoting financial education for the youths.

“The most important thing is to make sure that you pursue a career that is in line with your interests. It is more rewarding to aim at doing a job that you know you will enjoy. Once you have determined your goal, you need to plan and then work hard to achieve that goal,” said Tania Camilleri from Ethics and Employee Development at Bank of Valletta.

In addition, Karen Mifsud from the bank’s human resources spoke about the team spirit, staff activities and job opportunities available at the bank. While Tonia Naudi from Multi-Channel Banking explained the mechanisms behind payment systems and the different channels available.

The students participated in interactive sessions on smart ways of payments, trying their hands at Internet Banking, ATMs and Electronic Point of Sale (EPOS) terminals.

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Chief Business Development Officer Kenneth Farrugia and Chief Officer Investment Services Romeo Cutajar attended the official event at the Malta Stock Exchange to formally commemorate the first day of trading in the presence of the MSE Chairman Joseph Portelli and CEO Simon Zammit.

“Here at the Malta Stock Exchange, we consider Bank of Valletta as an esteemed major issuer. The ringing of the MSE bell has become a rite of passage on the first day of trading and we are glad to add BOV’s latest Bond Issue on the Main Market,” said Mr Portelli.

“We are very pleased to have yet another financial instrument listed on the Malta Stock Exchange. We are very proud to be able to say that Bank of Valletta has consolidated itself as a solid and rewarding investment over the years, and the prompt take up of the offer confirms that the investing public firmly believes in the strength and success of the BOV Group,” Mr Farrugia added.

The post BOV lists €50m 3.75% bond on stock exchange first appeared on The Malta Business Weekly.

During the session, Christian Vella Masini from the Ministry for Gozo said that the 5% growth of the economy of Gozo per annum per capita can be predominantly attributed to small-scale but high value-added manufacturing and services activities. 

In addition, Mr Vella Masini underlined the interest by the Ministry for Gozo in welcoming incentives that provide easier access to finance. In fact, these are necessary to further enhance investment and job creation within Gozo, giving life and energy to such businesses. 

Furthermore, MDB chief officers Joseph Darmanin and Maria Xuereb explained that the MDB performs a promotional role, supporting productive and viable operations where the market is unable to accommodate due to higher credit risks. Therefore, their bank works on complementing commercial banks in bridging financial gaps in bankable investments. It provides guarantee schemes intermediated through commercial banks to enhance small and medium-sized enterprises (SME) access to finance and to facilitate more attractive terms for bank lending to SMEs.

Moreover, Executive SME Finance of BOV Alfred Buhagiar illustrated how these guarantees assist SMEs to tap into financing through the BOV Family Business Success and BOV SME Invest loan products. 

As a matter of fact, the BOV Family Business Success facilitates the transfer of ownership between family members within a Family Business certified with the Family Business Office, while the BOV SME Invest offers a financial solution to SMEs including startups, seeking finance to grow and reach their full potential through reduced collateral requirements and financing costs, the press release says. 

“Businesses in Gozo never operate on a level playing field as those on the mainland, and the Malta Development Bank can be the bridge or link that can help our enterprises prosper.  With this in mind, we will be asking the Malta Development Bank to study regional financial packages, which acknowledge the specificities of our Island,” concluded the President of the Gozo Business Chamber Joseph Borg. 

The post BOV, MDB offer support for Gozitan businesses first appeared on The Malta Business Weekly.

Focusing on Fort Rinella, FWA Chairman Mario Farrugia welcomed the Executive PR & Marketing at BOV Charles Azzopardi to Fort Rinella, with the aim of explaining the latest developments made at this site.

Fort Rinella was built in 1878 and represents a unique remnant of Malta’s British colonial past. It also houses one of the only two remaining 100-ton guns in the world. The fort was entrusted to the FWA and was transformed in a historic and touristic attraction for Malta, as the press release says.

“Our plan is to continue to regenerate this site to attract local and international visitors to a unique experience in a one-of-a-kind monument. The latest acquisition through the Bank’s collaboration is a flail mower that enables us to keep the extensive cultivated area of the Fort in immaculate condition for the enjoyment of the visitors,” said Mr Farrugia.

“While the need to preserve cultural heritage is widely recognized, the availability of the financial resources to do so is often not so widely available. Bank of Valletta, through its extensive Community Programme, supports numerous heritage projects that we are convinced enrich the individual lives of citizens while playing a role in enhancing Malta’s image internationally,” said Mr Azzopardi.

“We understand that Fondazzjoni Wirt Artna has further projects in the pipeline, and are eagerly looking forward to seeing these projects come into fruition,” Mr Azzopardi added.

The post BOV pledges further support for Malta’s cultural heritage first appeared on The Malta Business Weekly.

BOV believes that small and medium-sized enterprises (SMEs) are the heart of the Maltese economy and a major source of entrepreneurial skills, innovation and employment, they need easy and affordable access to financing in order to grow and reach their full potential.

As such, during the information session, attendees will learn information and insight on how Gozitan SMEs can take advantage of newly launched financing schemes to grow their business, BOV says.

Malta Development Bank’s Chief Business Development Officer Joseph Darmanin and Chief Credit Business Officer Maria Xuereb will discuss the role of the Malta Development Bank in the economy and the operations of the Malta Development Guarantee Schemes.

In addition, BOV Executive SME Finance Alfred Buhagiar will provide a practical example of how such guarantees ease access to finance for SMEs via the BOV SME Invest and BOV Family Business Success initiatives.

Bank Of Valletta Small Medium Enterprise Invest includes startups, venturing into new business sectors and traditional SMEs wanting to invest in revamping or strengthening their current business model. BOV Family Business Success assists family businesses to transfer ownership/shareholding from parents to children or amongst siblings.

The post BOV, Malta Development Bank to hold SME info session in Gozo first appeared on The Malta Business Weekly.

The BOV Family Business Success is for family businesses registered with Family Business Office and that would like to transfer part or full share of capital or capital ownership from parents to their children or among siblings through a takeover of the relevant family business, a reduction in the issued share capital, the payment and distribution of a dividend and the repayment  of any shareholder loans due by the relevant family business, according to the press statement.

The maximum loan amount is €750,000 at a competitive variable interest rate and can be taken for a period of between one and ten years, according to the press release says  

The Malta Development Bank will partially guarantee each loan transaction under an allocated fund of €10m in order to enhance the access to finance through a highly reduced level of collateral requirement.   

“Succession and transfer of ownership are crucial milestones for any family business, and tailored financing products are essential for a smooth transition and growth of the enterprise,” said Albert Frendo, BOV Chief Business Development Officer. “Bank of Valletta has always been at the forefront in assisting local businesses to flourish through the provision of financing solutions to suit their specific needs and through expertise drawn from years of partnering with SMEs and Family Businesses. We are proud to be the first bank in Malta to launch this innovative product, offering affordable finance to family businesses planning their future.”

The post BOV introduces new product for family businesses first appeared on The Malta Business Weekly.

“We are delighted to be corporate sponsors of KSJC. At Bank of Valletta, we believe strongly in the importance of youths in our community and through such agreements, we strengthen our relationships with students throughout their different life stages,” said Vanessa Borg from BOV PR & Marketing Departments.

“We look forward to working hand in hand with this student body, assisting them to familiarise themselves with the world of financial services and supporting them throughout their education journey. Our first project together was, in fact, the participation of these students in this year’s BOV Club campaign, which will be launched in the coming weeks,” Ms Borg added.

KSJC is an independent organisation that represents Junior College students on a national and international level. Moreover, it is interested in the students’ opinion safeguarding their rights. It also promotes educational and cultural activities amongst them.

“We are extremely happy that we signed this agreement with Malta’s leading Bank, through which we can guarantee interesting initiatives and opportunities for all Junior College students to benefit from”, Mr Dimech commented.

In addition, Ms Gauci thanked BOV for its support and said that KSJC is eager to collaborate with them and is already looking into different possibilities to take this partnership further.

The post BOV supports the Kunsill Studenti Junior College first appeared on The Malta Business Weekly.

“Traditionally, a recession results from a hit on exports, that is already being witnessed while we luckily are not yet experiencing tightened domestic financial conditions,” said Christopher Dembik, Head of Macroeconomic Analysis at Saxo Bank. “A possible trade war with the United States, and current political uncertainties, particularly the looming Brexit, are all contributors to a potential bleak economic environment,” Mr Dembik said according to the press statement.

After the introductive speech Steve Ellul, Head BOV Asset Management and Giovanni Cachia, Head Portfolio Management Services within BOV’s Wealth Management Arm, held presentations, respectively, according to the BOV press release.

“The size of our economy allows us to be nimble and flexible in the face of external economic shocks and this has been proven in the past,” Mr Ellul said. He noted that Malta has a resilient economy, which has always fared well in times of crisis. “We have to promote and highlight the value proposition offered by Malta as a jurisdiction which is at the forefront in the financial sector, e-gaming and other innovation-oriented sectors,” he added.

“High-quality bonds have traditionally performed well in a low-interest environment and we should seek investments that historically have been more resilient during an economic slowdown or a recession,” said Mr Cachia.

“Sector rotation is critical during these times; discretionary spending, such as leisure, cars and luxury products are the first to experience decreased spending in troubled times so investment should be channelled more towards essential items such as food and beverages, and hygiene products that traditionally have performed relatively better, with gold being a good consideration as a safe haven asset,” Mr Cachia added.

The post BOV and Saxo Bank meeting discusses risks of a possible European recession first appeared on The Malta Business Weekly.