BOV reports 72% increase in profit

Bank of Valletta has reported a profit before taxation of €110.7 million for the financial year ended September 30. This represents a 72% increase over the corresponding figure of €64.4 million pre-tax profit reported in the previous financial period. BOV said that continued growth in the balance sheet and the non-recurrence of two exceptional items, namely the reversal in fair value movements on financial instruments and the impact of the compensation on the Property Fund and other securities, that were recorded last year were the main drivers underlying this result. The bank said that the core operating profit of €100.3 million for this financial year was very much in line with that of the previous year (FY 2011: €100.2 million). The results were boosted by growth in net interest and non-interest income. Non-Interest expenses also increased but at a slower rate. The bank incurred €4.6 million in compensation to the Property Fund investors and other clients against the €15 million incurred in the previous financial year. Impairment allowances increased to €22.8 million but the share of profits from associate insurance companies continued to improve to €6.3 million. A total...