The Bank of Valletta Group registered a profit before tax of €119.8 million for the period between January and June 2026, compared with €135.1 million for the corresponding period in 2025. The result reflects a resilient first-half performance, supported by continued growth across the Group’s core banking activities, further strengthening of the balance sheet, sustained strategic execution and the successful completion of a landmark international capital markets transaction.

Against a backdrop of evolving market conditions, geopolitical uncertainty and continued investment across strategic, regulatory and technology initiatives, the Group continued to deliver solid underlying performance. Core operating income increased to €251.3 million, while net interest income rose by €18.3 million to €207.0 million, supported by growth in lending and treasury activities and demonstrating the strength of the Group’s earnings profile.

While profit before tax was lower than the exceptionally strong comparative period in 2025, the prior year benefited from favourable market conditions and certain non-recurring income items. The Group’s underlying operating performance remained strong, with the year-on-year decrease in profit before tax primarily reflecting higher impairment charges, less favourable fair value movements and the absence of those one-off benefits.

The Group continued to strengthen its balance sheet during the period, with total assets increasing by €1.1 billion, to exceed €17.6 billion, compared with the €16.5 billion at the end of 2025. Customer lending reached approximately €8.6 billion, while customer deposits increased to approximately €14.5 billion. These developments reflect the continued confidence placed in the Bank by households and businesses, and reinforce its role in supporting customers and the wider Maltese economy.

Reflecting the Group’s strong financial performance, capital position and confidence in its outlook, the Board of Directors approved an interim gross cash dividend of €51.6 million, equivalent to €0.0805 gross per share. This represents a net dividend of €33.6 million and a payout ratio of 42.5% of profit after tax.

Financial Performance

*ROAE is calculated as annualised Profit Before Tax divided by the interim average shareholders’ equity

** The CET1 Ratio percentage does not include the inclusion of H1 2026 profits.

The Group remains firmly on track to achieve its FY2026 Profit Before Tax guidance of between €210 million and €250 million. Based on its performance during the first half of the financial year, management is satisfied that the Group continues to progress in line with expectations, underpinned by resilient earnings, sustained balance sheet growth, strong capital and liquidity positions, and ongoing improvements in asset quality.

Building on Strong Foundations for the Next Phase – Dr Gordon Cordina, Chairperson

“The first half of 2026 demonstrated the resilience of Bank of Valletta’s business model and the strength of the foundations built over recent years. Despite an operating environment characterised by heightened geopolitical uncertainty and evolving market conditions, the Group continued to generate strong results while maintaining the financial strength and flexibility required to support future opportunities.

During the period, we also achieved an important milestone through our second issuance in the international capital markets. The strong response from institutional investors reinforced confidence in the Bank’s financial standing, strategic direction and long-term prospects, while further strengthening our funding profile.

As we continue developing our strategy for the period 2027 to 2029, our focus remains firmly centred on sustainable growth, customer relevance, operational efficiency, risk discipline and long-term value creation. We remain committed to supporting the evolving needs of our customers and the Maltese economy, while delivering sustainable returns for shareholders and maintaining the resilience that has long characterised our organisation.”

Delivering Today, Investing for Tomorrow – Kenneth Farrugia, CEO

“Customer expectations continue to evolve rapidly, and our objective is to ensure that Bank of Valletta evolves with them. Throughout the first half of the year, we continued investing in the capabilities that will define the next generation of banking, with a strong focus on personalisation, simpler customer journeys and deeper, more meaningful relationships.

The continued rollout of our Omnichannel Banking Platform, together with significant progress in our Customer Relationship Management programme, is enabling us to create a more connected banking experience across every customer touchpoint. These investments are helping us move beyond traditional banking models towards a more proactive, relationship-driven approach that better anticipates customer needs and delivers greater value.

At the same time, we remain focused on strengthening the foundations that support long-term success, including operational resilience, cybersecurity, data capabilities and the development of our people. These are critical enablers of the Bank we are building for tomorrow; a Bank that remains firmly rooted in the trust of its customers while continuing to innovate, adapt and grow in a changing environment.”

Dr Sean Mizzi and Dr Julian Andrew Borg have been awarded the BOV Prize in Medicine in recognition of their remarkable academic achievements during the 2024/2025 and 2025/2026 academic years, respectively.

Having achieved the highest marks in their final qualifying examinations in Medicine at the University of Malta, Dr Sean Mizzi and Dr Julian Andrew Borg were awarded this prestigious prize, which has been recognising outstanding academic achievement for the past 20 years.

Established in 2006 through a partnership between Bank of Valletta and the Faculty of Medicine and Surgery at the University of Malta, the BOV Prize in Medicine recognises the highest-performing medical students and celebrates excellence in the medical profession.

The prize was presented by Ernest Agius, Chief Operations Officer at Bank of Valletta, in the presence of Professor Peter Fsadni, Head of the Department of Medicine within the Faculty of Medicine and Surgery.

Congratulating Dr Sean Mizzi and Dr Julian Andrew Borg on their achievement, Mr Agius said that the BOV Prize in Medicine reflects Bank of Valletta’s and the BOV Foundation’s commitment to support education, professional development and community well-being. “Through the BOV Foundation, the Bank supports initiatives that create meaningful and tangible value for society, particularly in areas that contribute to learning, healthy lifestyle, and personal development. This prize is one such example, recognising the dedication of outstanding medical students, while also encouraging future generations of healthcare professionals to pursue excellence in their studies and careers,” he said.

Professor Fsadni thanked Bank of Valletta for its continued support in recognising and rewarding the dedication, hard work and excellence of medical students. He said, “We greatly value this longstanding partnership, which celebrates academic achievement and encourages students to continue contributing to the medical profession with commitment and purpose.” 

We should not have to be pushed out of our homes

We should not have to be pushed out of our homes

We should not have to be pushed out of our homes

This week Lovin’ Malta came up with a new satirical series Miss Understanding Malta in which a reporter interviewed the Mayor of Swieqi, suggesting that this town should be turned into one tourist village, while all the residents should move out.

The concept behind this series is to “explore the country’s biggest talking points through dry humour, deadpan reporting and a deliberately unconventional approach to investigate the issues shaping everyday life on the island.” It is a style reminiscent of Striscia la Notizia and Ali Bubakar’s interviews, but without the disguise.

While I can appreciate the attempt at satire, I’m not sure everyone who lives in Swieqi was exactly thrilled with the joke. When your once tranquil neighbourhood has been turned into Party Central for those who want to be a quick 5 minute walk away from Paceville, the black humour falls a bit flat and leaves a bitter taste.

As houses started being knocked down around 2006, with owners selling out to developers who in turn transformed each plot of land into apartment blocks, the residents who have remained have had to endure nightly disturbances, damage to property, rubbish, indecent behaviour and a complete disregard for their rights to enjoy their own homes in peace. Waking up to your doorstep covered with urine or vomit, and the occasional passed out drunk, is not exactly the best way to start your day.

I cite the year 2006 because I came across an article penned by Karen Zammit Manduca from Flimkien Għal Ambjent Aħjar dated 11 June 2006 entitled “Swieqi: A Demolition Zone” in which she described how it all started: “Triq il-Bramel, in Swieqi, was a quiet cul-de-sac, about 70 metres long, which consisted of eight terraced houses and ten maisonettes. A terraced house in Triq is-Sirk, also in Swieqi, which had a large garden, was demolished and this is being redeveloped into garages and apartments.”

She went on to explain that despite objections, the development was approved and that there were at least another three properties displaying development permits. 20 years ago, Ms Zammit Manduca wrote about the noise and dust from the early morning construction works which prevented residents from sleeping, as well as the various cranes and heavy machinery blocking the roads simultaneously. She pointed out how, aesthetically, the area would be seriously impacted, how the value of their homes would be diminished once apartments replaced terraced houses and how it would become impossible to park.

As we now know, her concerns fell on deaf ears, the development increased at an even faster pace, and those who saw the writing on the wall sold their property, packed up and left, creating a domino effect as rows of once family homes tumbled down to be replaced by flats. Things really came to a head when apartments started being sold not for people to actually live there, but as a rental investment, especially for shorts lets and air b ’n’ b, attracting mostly young, rowdy tourists ….leading to the current chaotic situation.

Of course, Swieqi is not the only town to have been adversely affected by this phenomenon, but the reason it stands out and is so often in the news is precisely because of its location (with Sliema and St Julian’s coming a close second as the mayhem spills into these neighbouring towns too). Teenagers and 20-somethings stumbling home from a night out from Malta’s night life next door, tend to continue their partying by turning, for some inexplicable reason, to the destruction of property. We have all seen the reels of damaged cars and bottles being thrown from balconies. To crank things up a notch we are now being regaled with scenes straight out of the movie Babylon, with people getting their kicks by having sex in full public view while a burlesque dancer (or was it a drag queen?) has been filmed using a handrail in a busy Valletta street for an impromptu erotic dance. At this rate, I’m fully expecting someone to erect a stripper’s pole at Triton fountain, branding it as our next tourist attraction.

What’s wrong with this picture? Well, I guess it’s OK for those who are living in areas which are untouched by all this to downplay it: “Oh ajma, what’s all the fuss? They’re having fun, they’re on holiday, let them be, did you forget what it’s like to be young?” But it’s not so fun when you cannot enjoy being in the tranquility of your own home; the home you bought after so much sacrifice. The tongue-in-cheek suggestion in the Lovin’ Malta report for Swieqi residents to simply move out is not so far removed from the truth because, in fact, many have done just that. Valletta residents have also been driven out, the sacrificial lamb at the altar of boutique hotels, loud bars and packed restaurants.

But why should people have to move? Why should we be pushed out of our own homes just so business owners can make a quick buck? Why should any of our towns and villages be pillaged and shorn of their authentic character in the name of mass tourism? And where will it stop – because once they move out of places like Swieqi, where can Maltese families go to find some peace and quiet on this barren, noise-ridden island where there are more cranes than there are trees? Not everyone is in the position to buy an acre of land in the middle of nowhere in Sicily just to breathe clean air and avoid a mental breakdown.

With so many low cost airlines and the air b ’n’ b market making accommodation very affordable even during the peak season, it has never been cheaper to travel to Malta or anywhere around Europe. In fact, the debilitating impact of mass tourism is being felt everywhere and locals have had enough. Last weekend, 20,000 residents filled the streets of Mallorca, protesting against Spain’s mass tourism industry, saying it is putting a strain on local population and infrastructure. Demonstrators called for limits on tourism and urged for a sustainable economic model, pointing out that mass tourism is worsening the housing crisis, increasing living costs, and putting pressure on the island’s environment.

It sounds all too depressingly familiar.

The air b ’n’ b industry is specifically being blamed as the leading cause which has ruined so many of Europe’s picturesque towns and cities. Budapest has imposed a complete ban on air b ’n’ b in the city centre. Barcelona has pledged to phase out all licences by 2028. Even New York City has cracked down on the industry with strict enforcement. Meanwhile a tiny island in France has passed a law making it harder for owners to rent out their property on air b ’n’ b.

What started out as a way for owners to make some money by renting out a spare room to travellers (or their entire property while they themselves were on holiday) has turned into a multi-million Euro commercialised industry. On the local front, Maltese entrepreneurs were quick to realise that investing in a rental property or ten is a sure way to make money hand over fist with short lets rather than a long let. There will be those who will argue that one can do what one likes with one’s own property – I agree, but up to a point. When your rental investment is infringing on my rights to live peacefully in my own home then that is crossing a very definite line.

In the meantime, the frustration and exasperation being experienced in areas like Swieqi is finally being heeded with new laws which were announced to regulate this market. However, the relief on hearing this news was quickly dampened when it was announced that some of the restrictions (such as room capacity) would only apply to new licenses, which effectively exempts thousands of properties. In a show of force earlier this month, the Malta Tourism Authority and community police went on a two day enforcement drive in Swieqi, carrying out 252 inspections. The result shows just how out of control the market is: 67 properties (26.6%) of those inspected were found to have breached one or more licensing or operational requirements, while six properties were discovered to be operating without any licence or authorisation whatsoever and were shut down.

If so many illegalities were uncovered in just two days, imagine how many more could be found if we really took enforcement of our laws seriously, rather than just being words on a piece of paper. Also, if you are going to implement new regulations, they should apply across the board with immediate effect, and without fear or favour, even for those properties which already have a license.

Unless we take the bull by the horns, the statement by the Tourism Minister that “the quality and reputation of Malta’s tourism industry depend on the seriousness with which we enforce the regulations,” will be just one more example of satire.

HSBC Malta Foundation and Hudson Foundation help expand Inspire’s LinC Therapeutic Playground

HSBC Malta Foundation and Hudson Foundation help expand Inspire’s LinC Therapeutic Playground

HSBC Malta Foundation and Hudson Foundation help expand Inspire’s LinC Therapeutic Playground

Building on the first phase launched last year, the HSBC Malta Foundation and the Hudson Foundation again joined forces to double the size of the facility in response to growing demand. The expansion follows a combined investment of over €50,000 and is already benefiting children attending the Learning in Context (LinC) programme, which supports 45 learners with high and complex support needs, including autism, learning disabilities, communication difficulties, and sensory processing challenges.

The expanded playground features additional sensory-regulatory equipment, including trampolines, a roundabout, swing seats, and specialised proprioceptive and vestibular tools aimed at helping children regulate, reduce anxiety, improve focus, and prepare for learning. Inspire’s educators and therapists report improved regulation, stronger readiness to learn after outdoor sessions, enhanced communication and social interaction, and more opportunities for movement-based therapy in a safer, more inclusive environment. With more space, the playground can support more children at the same time, enabling more structured sessions throughout the school day.

Antonello Gauci, CEO of Inspire Foundation, emphasised the impact of the investment, “This playground has enabled us to create a therapeutic space where our learners can regulate, connect, and thrive. The extension has allowed us to address their sensory needs more effectively, every single day, while ensuring they thoroughly enjoy the experience. We are deeply grateful to the HSBC Malta Foundation and the Hudson Foundation for recognising the importance of sensory and therapeutic play in the lives of children with complex needs.”

Geoffrey Fichte, CEO at HSBC Malta, highlighted the Foundation’s long-standing commitment to inclusion, commenting “Seeing the children benefit from this space first-hand reinforces why this project matters. The playground is giving learners the tools they need to feel calm, confident, and ready to engage. Supporting Inspire Foundation aligns with our mission to promote education, wellbeing, and equal opportunities for all children.”

Alfie Borg, Founder and Chairman of Hudson Group, reflected on the Foundation’s focus on meaningful community impact stating, “The transformation here is remarkable. This extension is an investment in the wellbeing and future of these children. We are proud to support Inspire Foundation in creating environments where every child can experience joy, regulation, and growth through play.”

Since launching in 2019, the LinC programme has tripled in size from 15 learners to 45. The extended playground will help Inspire continue delivering holistic support that integrates learning with sensory and motor development, demonstrating how investment in therapeutic environments can improve outcomes for children with diverse needs.