BOV estimates that pandemic has caused it a forfeit of about €25 million in profits

The Bank of Valletta has estimated that the COVID pandemic has caused it the loss of about €25 million in profits during the first six months of this year, causing a 75% decrease.

While announcing the financial results for the first six months of this year, BOV CEO Rick Hunkin said that between January and June the bank had registered a profit of €13.8 million but this was a decrease of €41 million when compared to the same period last year. He reported an increase in deposits and loans.

Presenting the results through virtual means, Hunkin said the pandemic has affected the all of the local economic sector and its negative impact on BOV was and is inevitable.

The bank reported that its income from interests, the main source of the bank’s income, amounted to €72.3 million, that is, €5.3 million less than the registered interest income during the same period in 2019.

Profits from income from commissions and commerce amounted to €37 million, that is, 19% less than the same period last year.

Operational expenses during the first six months increased by €8.2 million and were registered at €89.5 million.

The BOV Interim Chairperson, Alfred Lupi, said that while looking at the future with cautious optimism, minds can be assured that the levels of liquidity and capital holdings are still strong.

It was explained that since the start of the financial year, deposits by clients have increased by more than €500 million and reached €11.1 billion by the end of June, while loans increased by €91 million from last December and now stand at €4.7 billion.