“Business activity continues to rise above long-term average…”

Malta

CBM issues May Economic Update

The Bank’s Business Conditions Index indicates that in April, annual growth in business activity rose further above its long-term average, estimated since January 2000.

The European Commission’s confidence surveys show that economic sentiment in Malta rose in April when compared with a month earlier, and stood above its long-term average, which is estimated since November 2002. In month-on-month terms, sentiment increased across all sectors, bar in the services sector.

In March, both industrial production and retail trade rose on a year-on-year basis, though the rate of growth was slower when compared with February. The unemployment rate stood at 2.9% in March, marginally lower than the rate of 3.0% registered in the previous month, and in March 2022.

Commercial building and residential permits decreased in March relative to their year-ago level. In month-on-month terms, commercial permits increased while residential permits declined.

In April, the number of promise-of-sale agreements rose on a year-on-year basis, while the number of final deeds of sales fell. Meanwhile, they both fell on a month-on-month terms.

The annual inflation rate based on the Harmonised Index of Consumer Prices (HICP) stood at 6.4% in April, down from 7.1% in the previous month. On the other hand, inflation based on the Retail Price Index (RPI) edged down to 5.8%, from 7.0% in March.

In March, the deficit on the Consolidated Fund narrowed when compared with a year earlier, as higher government revenue outweighed a smaller rise in government expenditure.

Annual growth in Maltese residents’ deposits expanded at a slower rate of 1.6% in March. Meanwhile, annual growth in credit to Maltese residents moderated to 5.4%

FLOW 23 – Digital transformation event returns for second edition

In an uncertain world of rising costs and ongoing labour shortages, finding new ways to improve performance is ever more critical for businesses of all sizes, across all sectors. In this context, FLOW 23 – the digital transformation event, will provide an opportunity for entrepreneurs and senior managers to explore the latest technologies and strategies that could give them an edge.

Taking place on 1 June 2023, FLOW 23 is being organised by digital transformation specialists 4Sight Group with the support of The Malta Chamber of SMEs. The event will take place at Giardini Lambrosa, limits of Rabat, and will be free of charge, subject to registration. As was the case during the inaugural Flow event in 2022, participants will not only hear from industry experts and thought leaders on key topics like automation and Artificial Intelligence. They will also have opportunities to network and to participate in various interactive workshops where attendees can work on real-world challenges and develop solutions for their own businesses.

Maurizio Mamo, CEO at 4Sight Group, said, “FLOW 22 was a real success which highlighted just how much business leaders in Malta want to explore and understand digital innovation. Encouraged by this, we have been working hard to deliver an even better event this year which will look at how digital transformation can help companies across all aspects of their business from supply chain and human resources to marketing and accounting. The agenda for FLOW 23 is certainly a busy one and we are confident attendees will leave with plenty of new ideas on how they can further optimise their organisations.”

Spaces for the event are limited and available on a first-come, first-served basis. FLOW 23 has also been accredited with 4.25 hours of structured CPE qualifying under Professional Development competency as per the Accountancy Board Accreditation rules.

Market News:

APS Bank Annual General Meeting held

On 16 May 2023 APS Bank plc held its first Annual General Meeting, presided by Chairman Martin Scicluna, to a larger assembly of shareholders, following the listing of its shares on the Malta Stock Exchange last June 2022.

All resolutions on the agenda of the Meeting were approved unanimously, including the distribution of dividend in the form of scrip, giving shareholders the opportunity to choose between cash or new shares. The Bank also welcomed two new Directors to the Board: Noel Mizzi and Marisa Xuereb, taking the seats vacated by Franco Azzopardi and Alfred Demarco who had served the Board since 2008 and 2016 respectively. Mr Mizzi, who has a background in accounting and auditing, will Chair the Bank’s Audit Committee and will sit on the Risk Committee, while Ms Xuereb who has a background in economics and manufacturing, will sit on the Board Credit Committee and Technology and Innovation Committee.

On these appointments, Martin Scicluna highlighted, “Apart from the extensive experience in the financial services, banking, and manufacturing industries, which the new Directors bring to the boardroom, their appointment is another step towards enhancing Board diversity in areas such as age, gender and perspectives. I welcome them aboard.”

Bank of Valletta holds its 49th Annual General Meeting

Bank of Valletta’s Chairman, CEO and Directors met the Bank’s shareholders during the 49^th Annual General Meeting held on Thursday 25^th May. The Bank’s Chairman, Dr Gordon Cordina, and CEO Mr Kenneth Farrugia addressed shareholders and answered queries related to the resolutions proposed for approval.

Dr Cordina gave an in-depth insight into the current economic scenario, providing the context to the financial performance of the BOV Group in 2022 and to the dividend decision. Mr Farrugia highlighted the milestones achieved by the Bank in the past financial year, while giving an overview of the strategic planned initiatives for the current year and beyond.

Dr Cordina delved further into the Bank’s decision to keep interest rates unchanged despite the pressure brought about by back-to-back increases by the European Central Bank. “The higher interest rate scenario brought income-earning opportunities to the Bank from Treasury operations and the Euribor-linked segment of its credit portfolio. For as long as the bank continues to be sustained by a very substantial deposit base, it will not need to pass higher interest rates on to deposits and loans, particularly as the Bank is now saving on the costs of excess liquidity which it used to incur in a negative interest rate scenario.”

Dr Cordina went on to say that “when setting its interest rate and product offering, BOV will remain committed to strike the right balance among all its stakeholders, while ensuring that changes are gradual and well communicated.”

The Bank’s chairman highlighted three important milestones achieved in 2022: closing off the Deiulemar litigation, Malta’s removal from the grey list by the FATF, and the successful issue of the Senior Callable Non-Preferred Notes on the international markets.

Looking forward, the Board is fully committed to maximise shareholder value, balancing between short-term requirements for dividend distribution and long-term aspirations for business growth in an ever more exacting regulatory environment.

Malta Company Announcements:

Plaza Centres p.l.c

The Board of directors are recommending the payment of a final net dividend of €0.0137 per share to all shareholders as at close of trading on 11^h May 2023 subject to shareholders’ approval on 14^th June 2023.

M&Z p.l.c

Shareholders as at close of trading on 12^th May 2023 will be receiving a final net dividend of €0.01986 per share by not later than 23^rd June 2023, subject to approval during the upcoming Annual General Meeting which is scheduled to be held on 15^th June 2023.

Trident Estates p.l.c

On 19 April 2023, Trident Estates plc announced that its Board of Directors is scheduled to meet on Friday 19 May 2023 to consider and approve the financial results for the year ended 31 January 2023. The directors will also consider the declaration of a dividend to be recommended to the Annual General Meeting which is scheduled for 16 June 2023.

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