A creditor’s obligation to assess the creditworthiness of a consumer
by Ganado Advocates
23rd April 2024
by Bank of Valletta
29th September 2023
Standard and Poor’s (S&P) has just assigned Bank of Valletta a BBB-/A-3′ rating, upgrading the previous rating to a stable outlook. S&P also highlighted the fact that in future evaluation, they would consider a further rating upgrade by one notch, once the Bank registers an additional loss-absorbing capacity buffer that comfortably exceeds their 4% risk-adjusted capital ratio threshold.
In their evaluation of the local economy, S&P commented on the fact that the sound economic fundamentals in Malta are easing the risks of a sharp real estate price correction for local banks. They anticipate Malta’s economy to continue growing in the coming quarters, and that slowdown in 2023 will be milder than its peers and its rebound more robust in 2024. S&P also expects real GDP growth of over 3% in both 2023 and 2024, versus an average below 1% in the euro area, largely due to tourism and gaming industry resiliency. High household savings of 37% will ease the impact of inflation and tighter credit conditions on real income. S&P commented on the fact that high house prices appear well supported by fundamentals, benefiting from Maltese citizens’ preference for owning homes, interest from residents of other countries, as well as government incentives.
On top of that, the regulator has put in place policy measures to reduce the risk of imbalances, including increasing risk weights for residential mortgage loans and stricter lending requirements at origination, in the form of limits on loan-to-value and debt service.
In such a context, Standard and Poor’s expect BOV to maintain strong capitalization and resilient asset quality metrics, in which the Bank’s risk-adjusted capital (RAC) ratio will be 14.3%-14.8% over the next couple of years, supported by improving net profits and a prudent dividend policy. They also anticipate that benefits from higher interest rates and margins will likely offset the impact on profitability from rising credit losses and expenses, as inflation adds to already soaring operating costs, thanks to the Bank’s efforts to strengthen its risk management and controls. Also, S&P highlighted the fact that their projection with regards to BOV’s credit losses, despite moderately increasing, will remain manageable at about 50 basis points (bps) in 2023-2024. S&P also expects BOV to benefit from diminishing reputational risks in the banking sector, thanks to the Maltese authorities’ progress in strengthening supervisory and enforcement effectiveness which ultimately was a key factor for BOV to enter a new U.S. correspondent banking agreement with an international bank.
Commenting on Standard and Poor’s rating, Dr Gordon Cordina, BOV Chairman, stated that BOV’s upgrade is a clear indication that the Bank continues to head in the right direction to maintain its leading role within the local financial and economic sectors. “The projected outlook of the local economy offers the Bank great opportunities to enhance its market position, whilst providing added value to our customers with strong risk management and regulatory controls. The rating given to BOV by Standard and Poor’s is a clear indication that the Bank’s strategy is achieving expected results, which will ultimately further enhance BOV’s reputation as the Bank of Choice within the local community.”
Mr. Kenneth Farrugia, BOV Group Chief Executive Officer, noted that Standard and Poor’s assigned stable rating was underpinned by Bank of Valletta’s strong performance in operating revenues, resilient profitability, contained credit losses and a strong solvency position. The CEO stated that, “2022 was an extremely positive and productive year for the BOV Group, and the hard work put in by all employees has resulted in increased custom from our customers. This rating is yet another recognition of the Bank’s efforts to continue supporting the growth and development of Malta’s economy, while maintaining our commitment to responsible and sustainable banking practices. Our key focus remains centred on the optimisation of our business and operational service model, as we create and deliver value to our customers and other key stakeholders. I am confident that all our stakeholders will welcome this improved rating, given from such a major rating agency despite unprecedent circumstances which have affected both the local and international markets, such as the increase in inflation and the high-interest rates.”
by Ganado Advocates
23rd April 2024
by Ganado Advocates
5th April 2024
by CSB Group
5th April 2024
by Bank of Valletta
21st March 2024
by Bank of Valletta
18th March 2024
by Ganado Advocates
4th March 2024
by Ganado Advocates
23rd February 2024
by HSBC Bank Malta p.l.c.
19th February 2024
by Bank of Valletta
29th January 2024
by Bank of Valletta
17th January 2024
by CSB Group
12th January 2024
by Ganado Advocates
3rd January 2024
by Ganado Advocates
3rd January 2024
by Ganado Advocates
3rd January 2024
by Bank of Valletta
28th November 2023
by Bank of Valletta
23rd November 2023
by Bank of Valletta
3rd November 2023
by Ganado Advocates
1st November 2023
by Ganado Advocates
1st November 2023
by Ganado Advocates
1st November 2023
by Griffiths + Associates Ltd
31st October 2023
by Ganado Advocates
16th October 2023
by Bank of Valletta
31st August 2023
by Bank of Valletta
28th August 2023
by Ganado Advocates
16th August 2023
by Ganado Advocates
16th August 2023
by Ganado Advocates
11th August 2023
by APS Bank plc
31st July 2023
by Ganado Advocates
28th June 2023
by Ganado Advocates
28th June 2023
by Ganado Advocates
28th June 2023
by Ganado Advocates
26th May 2023
by Bank of Valletta
7th May 2023
by Infocredit Group Limited
3rd May 2023
by Bank of Valletta
14th April 2023
by Ganado Advocates
10th April 2023
by CSB Group
14th March 2023
by Ganado Advocates
24th February 2023
by CSB Group
21st February 2023
by Griffiths + Associates Ltd
20th February 2023
by FinanceMalta
14th February 2023
by Bank of Valletta
31st January 2023
by CSB Group
19th January 2023
by Ganado Advocates
13th January 2023
by Ganado Advocates
13th January 2023
by Bank of Valletta
27th December 2022
by Bank of Valletta
21st November 2022
by BNF Bank plc
18th November 2022
by Bank of Valletta
3rd November 2022
by FinanceMalta
28th October 2022
by BNF Bank plc
6th October 2022
by Bank of Valletta
16th September 2022
by Bank of Valletta
2nd September 2022
by CSB Group
31st August 2022
by Bank of Valletta
11th August 2022
by BNF Bank plc
10th August 2022
by Griffiths + Associates Ltd
29th July 2022
by Griffiths + Associates Ltd
25th July 2022
by BNF Bank plc
14th July 2022
by Bank of Valletta
3rd June 2022
by Infocredit Group Limited
19th May 2022
by The Malta Institute of Accountants
13th May 2022
by Griffiths + Associates Ltd
9th May 2022
by Griffiths + Associates Ltd
3rd May 2022
by Infocredit Group Limited
28th April 2022
by Infocredit Group Limited
8th April 2022
by Infocredit Group Limited
8th April 2022
by Ganado Advocates
24th February 2022
by Bank of Valletta
16th February 2022
by BNF Bank plc
12th January 2022
by BNF Bank plc
3rd December 2021
by Western Union Business Solutions
1st November 2021
by FinanceMalta
8th July 2021
by FinanceMalta
8th July 2021
by FinanceMalta
8th July 2021
by Bank of Valletta
28th June 2021
by FinanceMalta
18th June 2021
by Bank of Valletta
1st June 2021
by Bank of Valletta
26th May 2021
by Bank of Valletta
25th May 2021
by Bank of Valletta
18th May 2021
by Bank of Valletta
17th May 2021
by Bank of Valletta
7th May 2021
by FinanceMalta
29th April 2021
by Bank of Valletta
13th April 2021
by Bank of Valletta
18th February 2021
by Western Union Business Solutions
5th February 2021
by FinanceMalta
14th January 2021
by Bank of Valletta
4th January 2021
by Bank of Valletta
21st December 2020
by Bank of Valletta
18th December 2020
by Bank of Valletta
18th December 2020
by Bank of Valletta
30th November 2020
by Bank of Valletta
29th September 2020
by Infocredit Group Limited
23rd September 2020
by Bank of Valletta
14th September 2020
by Bank of Valletta
14th September 2020
by Bank of Valletta
2nd September 2020
by Bank of Valletta
19th August 2020
by APS Bank plc
3rd August 2020
by Bank of Valletta
31st July 2020
by Bank of Valletta
31st July 2020
by Ganado Advocates
17th July 2020
by FinanceMalta
10th June 2020