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9 EDITORIAL BusinessToday is published every Thursday. The newspaper is a MediaToday publication and is distributed to all leading stationers, business and financial institutions and banks. MANAGING EDITOR: SAVIOUR BALZAN EDITOR: PAUL COCKS BusinessToday, MediaToday, Vjal ir-Rihan, San Gwann SGN9016, Malta Newsroom email: bt@mediatoday.com.mt Advertising: afarrugia@mediatoday.com.mt Telephone: 00356 21 382741 B ank of Valletta's third quarter pre- tax profit is positive news because it is indicative of the economy picking up. Third quarter figures released this week show BOV made €20.6 million in pre-tax profits between July and Sep- tember. The full nine months of 2021 show the bank recording €46.5 million in profit before tax, up by €5.9 million when compared to the same period in 2020. Revenues are up by 4%, which the bank attributed to improved volumes in the retail sector, particularly in home lend- ing, cards and payments. BOV said net loans and advances to customers increased by 5% during the first nine months of the year. The size of BOV in the domestic market means that its performance is somewhat of a bellwether for the wider economy, and consumer and business sentiment. The bank recorded a net impairment reversal of €3 million in the third quar- ter, reflecting a more positive economic outlook. On the flipside, the bank saw a reduc- tion in international clients, which it said was in line with its risk appetite. BOV's performance bodes well for the economy and the numbers indicate green shoots are appearing in the wake of the COVID-19 pandemic's impact. But there is another consideration that cannot be ignored from the presenta- tion given by the bank's top officials to journalists when the results were an- nounced. When asked on the impact of Malta's greylisting by the Financial Action Task Force on the wider economy, BOV's chairperson Gordon Cordina, an econ- omist, said so far this has had no nega- tive impact. However, he also warned that this de- pended on how long Malta's residency on the greylist lasted. "If excessively prolonged, it can start having effects on the wider economy," Cordina warned. He added: "The bank augurs, like other operators in Malta, that the situation will be resolved in the quickest possible way." Getting off the greylist should be a priority but any changes should be long-lasting to ensure that Malta's an- ti-money laundering regime is robust and credible. Financial crime is not vic- timless and requires political will to be addressed seriously. Unfortunately, the events of the past few years have eroded the country's moral standing in tackling financial crime and regaining that authority re- quires a concerted effort. Cordina did point out, however, that sectors that don't rely on credit or bank liquidity could be most affected by grey- listing. The truth is that some of these sectors are also the ones with the highest risk of financial crime. Online gambling, crypto currency ex- changes and the array of financial ser- vices offered to equity investors require serious regulation and policing. The laissez affair attitude that was allowed to take root needs to be ditched. A number of efforts on multiple fronts have signalled that Malta means busi- ness and it is encouraging to note that action has led to prosecutions for finan- cial crime. There are still a number of high profile cases that remain untouched – at least from a pub-lic perspective. But within this context, one has to appreciate that financial crime, corrup-tion and tax evasion are not easy crimes to prose- cute successfully and require time, a lot of specialist effort and patience before a case can be filed in court. This leader hopes that the efforts to get Malta off the greylist continue in ear- nest but while focussing on this aspect, we cannot ignore the green shoots that have appeared in the economy. These have to be nurtured even as the interna- tional climate remains one plagued with uncertainty. Bellwether bank reflects economic green shoots 4.11.2021

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