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3 NEWS 4.11.2021 BOV Group registered €20.6 million in profit be- fore tax during the third quarter of 2021. Covering the first nine months of the year, the bank delivered a €46.5 million profit before tax. is is up by €5.9 million compared to the same period in 2020. Revenues is also up by 4% compared to 2020, with €172.1 million registered. e bank attrib- uted this to improved volumes in the retain sec- tor, particularly in home lending, cards, and pay- ments. Net loans and advances to customers increased by 5% during the first nine months of the year. e bank noted growth in both business and home loans, with the latter being the biggest driver. At the press conference announcing the results, chief executive officer Rick Hunkin said card and payment transaction levels have continued to rise. People are moving to more electronic banking means, and there has been a reduction in cheque usage. Izabela Banas, the bank's chief financial officer, noted a decline in the BOV MDB COVID-19 As- sist loans. Meanwhile, the bank's clients are in- vesting in construction and transportation. e bank recorded a net impairment reversal of €3 million in the third quarter, reflecting a more positive economic outlook that in turn affected the expected performance of specific sectors as well as individually significant exposures. However, the bank still factored in an impair- ment charge of €1.8 million with respect to long outstanding non-performing loans. While interest rates remain low, Banas said that increases are on the horizon. However, there have been no changes within the Eurozone. e bank also saw a reduction in international clients, which Banas said is in line with BOV's risk appetite. Fraud refunds cost bank €1.2 million Operating costs were 1% higher in the first nine months of the year compared to 2020. Part of the 1% increase in operating costs was driven by refunds to customers targeted in fraud scams. In fact, the entire cost of these refunds amount- ed to €1.2 million. Police issued several warnings over the year on fraudulent phone calls and text messages. In just 24 hours in June, scammers were able to rob over €50,000 from 40 victims. In these scams, criminals use domestic entities, such as the postal service or banks, to send fake warnings that redirect victims to a fraudulent link. Here, the victim is asked to provide their credit card details. e data provided is then used by scammers to withdraw cash amounts from per- sonal bank accounts. At the start of the COVID-19 pandemic, the Financial Action Task Force (FATF) had warned that criminals are taking advantage of the pan- demic to carry out financial fraud and exploita- tion scams. Malta's financial greylisting has left no major impact on the real economy, BOV Chairman Gordon Cordina said on Tuesday. During a company press conference, Cordina explained that the recent greylisting has not had major impacts on the real economy. Having said that, he remarked that the greylisting has been a short-lived experience. "If excessively prolonged, it can start having effects on the wider economy," he warned. However, sectors that don't currently rely on credit or bank liquidity could be most affected by such shocks, Cordina said. "The bank augurs, like other operators in Malta, that the situation will be resolved in the quickest possible way." Similarly, BOV operations have been left unscathed by the greylisting, according to CEO Rick Hunkin. At the same conference, Hunkin explained that BOV works closely with correspondent banks and bank partners, the majority of which have already factored in the possibility of greylisting. He admitted that some banks have expressed reservations in processing payments from Malta. However, these are banks that BOV are not in direct partnership with. "This doesn't mean that there has been no impact. All international banks have their own risk appetite," he said. The greylisting comes with its bureaucratic downsides. According to Hunkin, there has been an increase in paperwork and in the justification of international payments. There were also isolated cases where payments had to be returned back to the customer. At present, there is no direct indication of any concerns. But Hunkin warned that a prolonged greylisting would force international banks to reevaluate their positions on Malta. "We're hopeful that Malta will make good progress," he said. In June, Malta became the first EU member state to be greylisted by the international Financial Action Task Force. This spurred worry among the business community, who feared that the greylisting will leave a negative impact on the Maltese economy. BOV registers €20.6 million in Q3 pre-tax profit IHI p.l.c. offers €80m bond issue, will fund Hal-Ferh project and hotel restructuring 'Greylisting left no impact on real economy' - BOV chairman FROM PAGE 1 Circa €9,000,000 will be used by IHI p.l.c. to finance CHL's obligations aris- ing under the preliminary lease agree- ment pertaining to the Corinthia Hotel Rome. €8,000,000 will be used by the Issuer to part-finance a premium payable by CHL under the management contract for the Corinthia Hotel New York. Circa €14,000,000 will be used by IHI p.l.c. to part-finance Corinthia Oasis' preparatory works at the Hal-Ferh Site, which amount will be utilized to fi- nance: (i) the excavation of the site; (ii) the demolition works, clearance of the site and carting and dumping of materi- als from the said site; (iii) the erection of a boundary wall around the site; and (iv) the development of a car park adjacent to the site. All works at the Hal-Ferh Site are preparatory in nature. €20,000,000 will be used by the Issuer as a loan of €5 million to IHI Malta Ho- tel Limited (C 84130) and €15 million to Five Star Hotels Limited (C 4848), two wholly owned subsidiaries of IHI p.l.c., to finance the soft refurbishment of the Corinthia Palace Hotel & Spa and the Corinthia Hotel St. George's Bay, re- spectively. e remaining €8,150,000 will be used by the company for general corporate funding purposes of the Group. e Bond Issue is subject to a minimum subscription amount of €50,000,000. Corinthia Oasis e National Audit Office Accounts Committee determined this year that Corinthia must pay €10.3 million to change the land ownership agreement in order to accommodate plans for res- idential development. Corinthia Group triggered this clause in 2020, to allow for a mixed-use development that includes residences. e development, which has been branded as Corinthia Oasis, will com- prises a 5-star hotel with 162 rooms and 25 hotel-serviced residences. e pro- posed resort and residences will rise to one and two storeys. e company said the design "will pay homage to traditional Maltese archi- tecture interpreted in a contemporary style". "We are very excited about this new re- sort. We will create a world class prod- uct that matches all that we are doing as a brand globally in the luxury sector," Corinthia Chairman Alfred Pisani said. "We are aiming at setting a new bench- mark for the island. As we emerge from the most challenging period ever faced by our industry worldwide, our invest- ment reaffirms Corinthia's strong com- mitment and belief in Malta, our home country." e proposed plans include a 125-space underground carpark. e company is also financing a 320-space public carpark on an adjacent tract of disturbed land operated by the Malta Scouts Association. e company said that on completion, the project is envisaged to create over 200 new full-time jobs. Corinthia Group chairman Alfred Pisani

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