BOV says assets larger than HSBC
by Franco Aloisio
Bank of Valletta's assets have for the first time in these last years surpassed those of HSBC Malta, according to BOV officials. Statistics published for the financial year ending 30 September 1999 show that BOV's total assets amount to Lm1.39bn.
This is Lm50m more than the total value of the assets of HSBC Malta and the former Mid Med Group. By the end of the financial year, HSBC's assets amounted to Lm1.34bn.
Asked to comment on these figures, BOV chairman Joseph F.X Zahra said that for the first time in these last years, BOV's assets are larger than those of its main rival bank, HSBC Malta.
"This truly shows that BOV has taken an edge over the other bank and became Malta's largest bank," Mr Zahra told The Malta Business Weekly.
He added that the statistics indicate clearly that BOV is growing at a much faster rate. Moreover the bank is becoming more competitive and professional, while retaining its identity as a community bank.
The popularity of the bank, said Mr Zahra, was reflected by the overwhelming response to the bond issue.
In fact applications for this bond issue surpassed the originally planned Lm10m in the first day only. A further Lm10m was also made available and even this amount was also oversubscribed.
Regarding the privatisation of BOV, Mr Zahra said the bank will still remain a Maltese bank. The government owns 25 per cent of BOV, while the rest of the shareholding lies in the hands of private investors.
Mr Zahra said that the strategy of equity privatisation will not be sought in a similar fashion to the sale of the Mid Med Bank shares to HSBC.
Foreign strategic partners will be identified to participate in the bank's specific programmes, products or technology.
Moreover foreign banking operators could even enter into a partnership with the bank's management, without necessarily buying out shares and equity, he said.
At present, BOV is studying all possibilities and discussions are already underway with several foreign banking organisations.
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