BOV shareholders’ persisting pain
Thousands of Bank of Valletta shareholders are small investors who depend on dividend payments to supplement their income. For a long time, they relied on the bank doing the right things to ensure that their investment gave an adequate return, even if many realised that every investment entails taking risks.
The trust that linked shareholders to the bank’s top management has been shaken in the last few years. Strategic decisions taken over a decade ago have resulted in the depreciation of the bank’s shares and the suspension of dividend payments. BOV’s half-yearly results confirm that the chronic pain suffered by shareholders continues to persist.
Last week, BOV announced half- yearly operating profit of €26 million that was more than wiped off by the final, out-of-court settlement of the Deiulemar trust litigation, which amounted to €182.5 million. The net loss for the first six months was €76.6 million.
The chairperson, Gordon Cordina, described the bank’s mid-year performance as strong, saying the interim results were “a clear indication that the grounds are being set for a bright future for BOV”.
Shareholders are unlikely to be impressed with hubris from the bank’s top...