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8 maltatoday | WEDNESDAY • 30 APRIL 2025 NEWS BANK of Valletta announced a strong profit before tax of €67.1 million for the first quarter of 2025, an increase of 5.3% over the same period in 2024. These results for the BOV Group were the outcome of a positive performance on both the revenue side and operational costs. It reflects the Bank's focus on strengthening income from its key lines of business, increasing net fee and commission income, its strategic push to reallocate funds from liquid cash assets to the Bank's investment portfolio, as well as the strategic balance sheet repositioning effected by the Bank since 2022. During this period the Bank continued its efforts on increas- ing shareholder value, enhancing its capital structure and market position through the initiatives announced earlier this year, in- cluding a proposed bonus issue, a share buyback, and a bond is- suance planned for the coming months. The Group remains on track to sustain its performance and de- liver a profit before tax for 2025 in a range between €200 million and €250 million. Financial performance Bank of Valletta registered a total operating income of €118.0 million for this period, which is marginally higher than that of 2024 (€117.4 million). Total costs for the first quar- ter amounted to €52.8 million, which was 7.5% above the same period in 2024, with personnel costs remaining the primary cost driver, followed by higher regula- tory costs due to increases in the Bank's deposit base and contin- ued investment in technology-re- lated expenses supporting the Bank's drive for digitalisation. The Group's commitment to en- hance the credit quality of its loan portfolio has led to a reduction in the non-performing loans ratio, closing at 2.5% at the end of the first quarter of 2025 compared to 2.7% at the end of December 2024. The Group's total assets in- creased by €549.2 million from year end 2024 to €15.6 billion as at end March 2025. Deposits experienced a slight increase of €2.9 million and the Bank's Treasury Portfolio has seen significant growth, with a 9.5% uplift in investments during the period under review to reach €6.9 billion. The Group's total equity closed at €1.5 billion, with capital ratios remaining strong and above reg- ulatory requirements. Embedding the values of sustainability in decision- making During this period under review the Bank continued to make pro- gress in its sustainability journey, building on its foundation for long-term sustainability and fi- nancial resilience by embarking on various initiatives aimed at the reduction of carbon emissions. The bank has set ambitious scope 1 and scope 2 emission re- duction targets, with the ultimate aim of leaving a positive impact on the environment and on soci- ety at large. In addition to the internal oper- ational initiatives, the Bank is ac- tively promoting green financing and investment products. CEO Kenneth Farrugia said that "over the last few years we have launched several initiatives aimed at encouraging sustainable practices among our clients, in- cluding offering preferential loan rates for environmentally-friend- ly projects and investments in renewable energy. By embedding the values of sustainability in our decision-making processes, the Bank is not only supporting the green economy but also ensuring that our growth strategy aligns with global efforts to combat cli- mate change. These initiatives reflect Bank of Valletta's com- mitment to drive positive envi- ronmental impact while fostering long-term economic stability and growth". CEO Kenneth Farrugia BOV announces profit before tax of €67.1 million for first quarter of 2025 COMMERCIAL real estate in- vestment company Hili Proper- ties has announced its financial results for the year ended De- cember 31, 2024. The company delivered a stable performance during a year shaped by portfo- lio developments and enhanced operational efficiency across its property assets in Estonia, Lat- via, Lithuania, Malta, and Roma- nia. Revenue for the year reached €15.8 million, a marginal in- crease when compared to 2023, with EBITDA equating to €13.1 million. This performance is the result of focused execution, particularly in asset optimi- sation and tenant-driven im- provements across all markets. The year was marked by sev- eral strategic portfolio devel- opments, including the full acquisition of MIRO, the com- pany's flagship Class A office building in Bucharest, Roma- nia. Hili Properties acquired the remaining 25% equity stake in the property from developer Speedwell, securing complete ownership. MIRO also reached full occupancy, following suc- cessful fit-outs and the arriv- al of new tenants including French pharmaceutical compa- ny Biocodex, global ventilation specialists Soler & Palau, and Romanian media brand Radio Zu. The company also completed the sale of Dzelzavas Shopping Centre in Latvia, acquired in 2015 and redeveloped into a modern retail destination. Several asset upgrades pro- gressed across the wider port- folio. In Latvia, the medical centre at DOLE Shopping Cen- tre completed its first full year of operation, contributing to increased footfall. Expansion plans are now underway at both DOLE and Stirnu Shop- ping Centre, with 5,000 square metres of additional leasable space in the pipeline. As of December 31, 2024, the company's portfolio was 99% occupied, with a weighted av- erage lease term of 7.8 years - reflecting the strength of its tenant relationships and long- term leasing strategy. At year-end, Hili Properties' investment portfolio was val- ued at €229 million, comprising 22 properties across five coun- tries. In view of the Company's obligation to redeem its €37 million 4.5% unsecured bonds later this year, the Board of Di- rectors recommended that no dividends be distributed for the reporting period. "Although interest rates have had a significant impact on the sector, influencing both borrowing costs and property valuations, we have effective- ly navigated these conditions through a strategy focused on portfolio optimisation, ac- tive asset management, and sustainable growth. Looking ahead, our focus remains on financial prudence, operation- al efficiency, and reinforcing our relationships with tenants, partners, and neighbouring communities," said Hili Prop- erties chairman Pier Luca De- majo. Managing Director George Kakouras added: "We will continue to build on the mo- mentum achieved this year, pursuing select investment opportunities aligned with our long-term growth strategy. Our approach remains grounded in sustainable development, ten- ant satisfaction and operation- al discipline. We are confident in the resilience of our portfo- lio and our ability to adapt to evolving market dynamics." Hili Properties plc reports revenues of €15.8 million in 2024 The MIRO office and retail building in Romania