Bank of Valletta’s market cap is still relatively undervalued according to its net-asset value (NAV) which should be above 2 per share according to estimates by various sources. The stock popped 6.7% after the bank released its half yearly results, yet, despite the very good results and pop in price, there are still too many desperate sellers trying to unload their shares at every positive price action.
The 2 mark may need some buybacks.
Website Editor
Historian and Publisher
After the BOV treated its shareholders like shit for many years what do you expect? If it wants to be loved it should treat its shareholders better and give them a decent regular and frequent dividend. There is nothing that major investors such pension funds like better than a regular dividend. Many international banks have a dividend yield of 8% or more and have a payout ratio of around 50% of net profit. Transaction costs in Malta are very high, there is little liquidity in the market which means that a bank share in Malta has to offer better returns than big international banks such as ING, ABNAMRO, Lloyds and many many others.
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