Bank of Valletta has reported a notable decline in profitability for 2025 following a record-breaking performance in 2024, as lower interest rates and rising costs weigh on earnings despite continued growth in lending and investment activity. The bank posted a record of pre-tax profit of €302.4 million in 2024, up from €251.6 million in 2023 — a 20.2% increase and the strongest result in its history.
According to its annual report of 2025, BOV has announced a €215 million to €250 million pre-tax profit, implying a potential decline of between 17% and 29% compared to 2024. The stock price has remained flat on the announced results at €2.1. Net Asset Value (NAV) per share increased from approximately €2.19 at end-2024 to around €2.25–€2.30 in 2025, underpinning that the stock price is still potentially underpriced in the open market.
The bank’s credit portfolio has expanded to around €7.4 billion in 2025, growing by roughly 10–12% year-on-year, with strong demand across both retail and commercial lending. Total operating income increased modestly by 2.3%, rising from approximately €483 million in 2024 to €494 million in 2025, an uplift of around €11.1 million. However, this growth was significantly outpaced by costs, with operating expenses rising by 13.9% to €246.8 million, reflecting a sharp increase in expenditure despite only marginal income gains. The bank recorded a slight 0.4% increase in net interest income with a total of €387.4 million.
Bank of Valletta is up to 26% owned by the government and is Malta’s largest bank with more than €16 billion of assets under management. The bank also has up to €6 billion in government bonds which rake in a passive income for the bank. Up to €2.2 billion of these bonds are by the Maltese government, another €3.3 billion of European member states, and another €1.3 billion of mostly US treasuries.
The bank currently has a CET1 ratio of around 20.9% and is well capitalised and highly liquid as per European Central Bank regulations.
The Bank of Valletta annual report can be found here.
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