BOV Shareholders' Link Issue 34

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ħarġa 34 mejju 2013 | issue 34 may 2013

Il-BOV jIftaħ ċentrI

tal-InVestIment

BOV Opens Investment Centres

CHIef OffICers

ġOdda għall-BOV

New Chief Officers For BOV

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IdentItÀ VIżwalI ġdIda

għall-Brand BOV

A New Visual Identity For The BOV Brand

l-Impatt tal-BOnus sHares

The Impact Of Bonus Shares

T h e m a k i n g o f & d o c u m e n Ta r y

36153 Shareholders Link 34.indd 1 08/05/2013 12:49

EDITORIAL TEAM

EditorDr. Catherine Formosa

Editorial CoordinatorsJes Sciberras and Stefan Kottmann-Soler

EDITORIAL OFFICEBank of Valletta p.l.c.Office of the Company Secretary58, Zachary Street, Valletta VLT 1130 - MaltaTel: (+356) 22753556 | Fax: (+356) 22753711e-mail: [email protected] | www.bov.com

Cover Photo: BOV Calendar 2013 featuring Maltese Street Games from one generation to another. Photographer Joe P Smith.

Għeżież AzzjonistiFlimkien ma’ din il-pubblikazzjoni, se tirċievi ukoll kopja tar-riżultati tal-Bank għall-ewwel sitt xhur ta’ din is-sena finanzjarja. Dawn ir-riżultati u dividend ta €0.06 għal kull sehem kienu mħabbra fil-25 ta’ April 2013 waqt preżentazzjonijiet lill-media u l-istockbrokers miċ-Chairman il-ġdid john Cassar White, il-Kap eżekuttiv Charles Borg u ċ-Chief officer Finance elvia George.

it-tnedija taċ-Ċentri tal-investiment hija żvilupp eċitanti fl-iżvilupp tan-negozju tal-private banking. Peter Perotti, Chief officer Personal Banking jispjega kif iċ-Ċentri għandhom l-iskop li jnaqqsu d-differenza bejn is-servizzi ta’ pariri dwar l-investimenti li s’issa kienu jiġu offruti mill-fergħat u s-servizzi offruti mill-BoV Wealth Management.

iċ-Chief officer operations Michael Galea iddeskriva l-brand image il-ġdida – verżjoni kontemporanja tal-logo

Catherine FormosaCompany Secretary

Book showcases masterpieces of mattia preti

BOV Home loans - an improved customer experience

DIscLAIMER

Bank of Valletta p.l.c. is licenced to conduct investment services business and to provide trustee services by the Malta Financial services Authority (MFsA).

Bank of Valletta p.l.c. is an enrolled tied insurance intermediary of MsV Life p.l.c. (MsV). MsV is licenced by the Malta Financial services Authority to carry on long-term business under the insurance Business Act, Cap. 403 of the Laws of Malta.

nothing contained in this issue should be construed as a solicitation or offer, or recommendation, to acquire or dispose of any investment, product or service or to engage in any other transaction, or to provide any investment advice or service. You should obtain relevant professional advice before making any investment decision.

Although we have taken all reasonable care to ensure that the information provided in this issue is accurate, we give no warranties of any kind, expressed or implied, with regard to the accuracy, timeliness or completeness of any such information.opinions and any contents of this issue are provided by us for information purposes only and are subject to change without notice.

BoV shareholders’ Package terms and conditions apply and are contained in the relevant Product information Guide available from all BoV Branches and the Bank’s website www.bov.com

u l-identità viżiva filwaqt li Marisa Abdilla, Head Financial Control tispjega l-effett ta’ ħruġ ta’ ishma bonus fuq il-prezz tal-ishma u d-dividends, tagħti eżempji, u tagħmel referenza ukoll għal xi punti dwar it-taxxa.

nisperaw li tieħdu pjaċir taqraw din il-pubblikazzjoni u nistennew bil-ħerqa l-kummenti u s-suġġerimenti tagħkom.

DeAr sHAreHoLDersTogether with this publication, you will also receive a copy of the Bank’s results for the first half year of this financial year. The results and a dividend of €0.06 per share were announced on the 25 April 2013 during separate presentations to the media and to the stockbroking community by the Bank’s newly appointed Chairman John Cassar White, the Chief Executive Officer Charles Borg and the Chief Officer Finance Elvia George.

The launch of the Bank’s Investment Centres is an exciting new development in the Bank’s private banking business. Peter Perotti, Chief Office Personal Banking explains how the centres aim to bridge the gap between the advisory service

offered by our retail branch network and BOV Wealth Management.

Chief Officer Operations Michael Galea describes the launch of the Bank’s updated brand image - a contemporary version of the Bank’s recognizable logo and visual identity whilst Marisa Abdilla, Head Financial Control explains the effects of bonus issues on the share price and dividends, provides examples and also touches upon the subject of taxation.

We hope that you enjoy reading this publication and look forward to your valued comments and suggestions.

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BOV initiatives

Book showcases masterpieces of mattia preti

restoration of priceless paintings at ghajnsielem

BOV Home loans - an improved customer experience

BOV mobile Banking hits 10,000th subscribers.

BOV presents €210,000 donation during l-Istrina

BOV mobile wins Best mobile application award in the 2012 mCa eBusiness awards.

BOV zooms on street games for its 2013 Calendar

BOV sponsors the pod dedicated to australia at the migration museum

jeremIe access to finance for smes: successful Implementation in malta and poland

fondazzjoni wirt artna purchases replica carronades

BOV wins financial Innovation award with BOV mobile

Otra Vez wins BOV round the Islands

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Matul l-ewwel kwart tas-sena finanzjarja kurrenti l-Bank of Valletta ħa l-inizjattiVa amBizzjuża li jwaqqaf sitt Ċentri tal-inVestiment madwar malta u Għawdex Biex jaqdi lil dawk il-klijenti tal-Bank li jkunu jeħtieġu serVizz ta’ pariri fuq l-inVestimenti.

Fil-mument il-klijenti tagħna qed jinqdew mill-fergħat tal-Bank imferxin madwar Malta u Għawdex u ġaladarba jkunu nfetħu s-sitt ċentri kollha sa nofs l-2013, is-servizz ta’ pariri mill-Bank jibda jingħata b’mod esklussiv minn dawn iċ-ċentri speċjalizzati filwaqt li l-fergħat jibqgħu jaqdu l-ħtiġijiet bankarji l-oħrajn kollha tal-klijentela kbira li għandu l-Bank.

iċ-Ċentri tal-investiment qed jiġu introdotti bħala ċentri ta’ eċċellenza u se jagħtu l-opportunità lill-Bank li tonqos id-differenza bejn is-servizzi ta’ pariri dwar l-investimenti li s’issa kienu jiġu offruti mill-fergħat u s-servizzi offruti mill-BoV Wealth Management. L-għan tal-Bank of Valletta hu li joffri lill-klijenti tiegħu servizz saħansitra aktar effiċjenti fl-istess waqt li jkun qed jikber id-daqs tal-portafoll. Dan ifisser li meta portafoll ta’ klijent ta’ Ċentru tal-investiment jilħaq ċertu livell, ikun aktar xieraq li jibda jkun amministrat mill-uffiċjali tal-BoV Wealth Management. Dan hu konformi mal-Brand Promise tal-Bank li ssostni l-importanza ta’ approċċ li jiffoka fuq il-ħtiġijiet tal-klijent u li jkun ibbażat fuq relazzjoni fit-tul.

iċ-Ċentri tal-investiment qed jinfetħu f’diversi reġjuni madwar Malta u Għawdex u kull ċentru se jkun qed jaqdi l-ħtiġijiet tal-klijenti tal-Bank minn xi sitta jew seba’ fergħat li jkunu jinsabu f’dik iż-żona partikulari. tlieta minn dawn iċ-ċentri nfetħu fl-aħħar xahrejn; dawk ta’ Birkirkara, Għawdex u l-Belt. Fil-jiem li ġejjin se jinfetħu tlieta oħra f’Bir-id-Deheb, ħal-Qormi u l-Gżira.

Wieħed jista’ jgħid li l-kunċett taċ-Ċentri tal-investiment kien effett naturali tal-kategorizazzjoni mill-ġdid tal-prodotti tal-investiment tal-Grupp tal-BoV, fejn ġew klassifikati b’mod pragmatiku skont ir-riskju u l-volatilità tagħhom. ir-Relationship Officers fil-fergħat tal-Bank se jkomplu jippromwovu u jbigħu numru ta’ prodotti interni li jinkludu fondi offruti mill-Valletta Fund Management u prodotti tal-bancassurance mill-MsV Life. Barra dan, ir-Relationship Officers fil-fergħat huma wkoll awtorizzati li jbigħu ishma u bonds lokali, inklużi stocks tal-gvern, fuq talba tal-klijenti biss u mingħajr ma jkun hemm talba għall-parir (Execution Only) filwaqt li dawk il-klijenti li jitolbu servizz ta’ pariri dwar l-investimenti jew li jkunu interessati fi

iL-BoV jiFtAħ Ċentri tAL-inVestiMent

Peter PerottiChief Officer Personal Banking

prodotti aktar komplessi jiġu riferuti lil wieħed miċ-Ċentri tal-investiment.Kull ċentru huwa mmexxi minn madwar seba’ Advisors Finanzjarji u kull wieħed minnhom huwa responsabbli minn portafoll ta’ klijenti. Huma jkollhom laqgħat ta’ spiss mal-klijenti tagħhom sabiex jirrevedu flimkien magħhom il-portafolli individwali tagħhom u jekk ikun hemm il-ħtieġa, jagħmlu bdil fl-investimenti skont il-kondizzjonijiet tas-swieq dejjem jinbidlu u skont il-ħtiġijiet u l-preferenzi ukoll dejjem jinbidlu tal-klijenti.

L-Advisors Finanzjarji kollha li għandhom il-kwalifiki kollha meħtieġa biex jagħtu pariri dwar investimenti u li huma liċenzjati mill-MFsA, jiġu mitluba jattendu programmi ta’ taħriġ regolari organizzati miċ-Ċentru tat-taħriġ tal-Bank u minn speċjalisti esterni fuq l-investimenti. Dan it-taħriġ kontinwu huwa bżonnjuż sabiex ikun żgurat li l-Advisors Finanzjarji tagħna jifhmu sewwa mhux biss il-firxa vasta tal-prodotti li jridu jbigħu, imma biex jifhmu ukoll l-ambjent makroekonomiku

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BoV oPens inVestMent Centres

li jaf ikollu impatt fuq l-andament ta’ dawn il-prodotti ta’ investiment. Kemm il-Valletta Fund Management kif ukoll l-MsV Life jagħtu preżentazzjonijiet u aġġornamenti dwar il-prodotti b’mod regolari lill-Advisors Finanzjarji tal-Bank filwaqt li hemm ukoll ippjanat li tibda ssir video conference kull ġimagħtejn mal-ispeċjalisti mill-BoV Wealth Management u mill-BoV Financial Markets & investments bil-għan li l-Advisors jkunu aġġornati dwar l-aħħar żviluppi fis-swieq u l-indikazzjonijiet fl-industrija.

Matul l-aħħar għaxar snin il-prodotti finanzjarji saru dejjem aktar kumplessi u llum qegħdin nitkellmu fuq dik li tissejjah inġinerija finanzjarja – li kompliet tikkomplika ruħha bl-instabbiltà kkaġunata mill-kollass globali. Dan ħalla impatt negattiv fuq l-andament tal-prodotti ta’ investiment li ukoll wassal għall-falliment ta’ uħud minn dawn il-prodotti. Barra dan, istituzzjonijiet sħaħ, ħafna minnhom magħrufin sew mad-dinja kollha, jew fallew jew kellhom il-credit rating tagħhom imnaqqas mill-aġenziji ta' klassifikazzjoni tal-kreditu u allura dan kien ifisser li l-kunċett kollu tar-riskju kellu jerġa’ jiġi evalwat mill-ġdid. il-kategorizzazzjoni mill-ġdid tal-portafoll tal-Bank f’ħames kategoriji, li jibdew minn riskju baxx ħafna u jibqghu telgħin sa riskju għoli, jagħmilha ħafna aktar faċli għall-klijenti tagħna biex jistgħu jqabblu l-prodotti ta’ investiment disponibbli skont il-ħtiġijiet tagħhom.

il-fatt ukoll li issa l-advisors finanzjarji qed jaħdmu f’sinerġija flimkien, Għamilha aktar faĊli Għalihom li jaqsmu Bejniethom l-esperjenzi u li jiddiskutu Bejniethom l-iżViluppi li dejjem qed iseħħu fis-swieq.

Barra minn hekk, l-Advisors Finanzjarji joħolqu portafoll varjat sabiex ir-riskju jkun mifrux u jgħinu lill-klijenti sabiex jibqgħu dejjem kawti fuq l-istrateġiji finanzjarji tagħhom. Fid-dinja finanzjarja kumplessa tal-lum u fi żmien ta’ swieq instabbli huwa essenzjali li l-investituri joqogħdu fuq is-servizzi ta’ professjonist fl-investimenti finanzjarji sabiex jingħataw pariri fuq kif l-aħjar li jfaddlu, jinvestu u jkabbru l-ġid tagħhom. Dan kollu jrid isir b’konformità ma’ kemm l-individwu lest li jidħol għal riskju u skont il-kriterji ta’ likwidità tiegħu. il-Bank of Valletta waqqaf iċ-Ċentri tal-investimenti sabiex jindirizza b’mod speċifiku din il-ħtieġa u l-Advisors Finanzjarji tal-Bank huma mħejjija tajjeb ħafna sabiex iħejju pjan dettaljat u bilanċjat li jkun jista’ jgħin lill-klijenti tagħna jilħqu l-għanijiet finanzjarji u l-prijoritajiet tagħhom fil-ħajja fil-kuntest

tar-riżorsi tagħhom, il-profil tar-riskju tagħhom, l-istil ta’ ħajja kurrenti tagħhom u l-għanijiet tagħhom għal tul ta’ żmien.

il-fatt li s-servizz ta’ pariri dwar l-investimenti tal-Bank issa qed jiġi ċentralizzat u l-fatt ukoll li issa l-Advisors Finanzjarji qed jaħdmu f’sinerġija flimkien, għamilha aktar faċli għalihom li jaqsmu bejniethom l-esperjenzi u li jiddiskutu bejniethom l-iżviluppi li dejjem qed iseħħu fis-swieq. Dan ukoll ifisser li l-portafolli tal-klijenti se jkunu jistgħu jiġu amministrati b’mod aħjar, peress illi l-Manager ta’ kull Ċentru tal-investiment jkun f’qagħda fejn hu ukoll jirrevedi l-files tal-klijenti u hekk ikun hemm iktar monitoraġġ – dan minbarra li jsiru verifiki kemm fuq il-post kemm permezz tas-sistemi mill-Compliance Unit tal-Bank sabiex ikun żgurat li ebda dettal ma jitħalla barra.

jien bħala Chief officer-Personal Banking, qiegħed insegwi mill-viċin l-andament taċ-Ċentri tal-investiment, u huwa l-pjaċir tiegħi ninnota li dawk il-klijenti li nqdew minn wieħed miċ-Ċentri tal-investiment tagħna kellhom reazzjoni pożittiva ħafna u apprezzaw ħafna dan is-servizz. ipprovdejna lill-klijenti l-privatezza, ambjent mibdul, attenzjoni personali u servizz professjonali li kienu qed jistennew mill-Bank of Valletta u mill-Advisors Finanzjarji tiegħu.

During the first quarter of this financial year Bank of Valletta has embarked on an ambitious initiative to set up six investment centres across Malta and Gozo to service the Bank’s clients requiring an investment advisory service. our clients are currently being serviced through the Bank’s branches across Malta and Gozo and once the six centres will all be opened by mid-2013, the Bank’s advisory service to retail clients will be provided exclusively from

these specialised centres while branches will continue to service all other banking requirements of the Bank’s large client base.

investment Centres are being introduced as centres of excellence and represent an opportunity for the Bank to bridge the gap between the investment advisory services offered at branches and those services offered at BoV Wealth Management. Bank of Valletta’s aim is to

offer an even more seamless flow for its clients as the portfolio size grows. this means that when an investment Centre client’s portfolio reaches a certain threshold, it will be more appropriate for it to be managed by our staff at BoV Wealth Management. this is in line with the Bank’s Brand Promise which endorses a firm belief in a customer-centric approach based on a life-long relationship.

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the investment Centres are being opened regionally across Malta and Gozo and each centre will cater for the needs of our clients from around six or seven Bank of Valletta branches in that particular area. three such centres have been opened over the last couple of months; namely, Birkirkara, Gozo and Valletta. three others in Bir-id-Deheb, Qormi and Gzira will be opened over the next days.

the concept of the investment Centres emerged as a natural complement to a recategorisation of the BoV Group’s investment products, which ranks them in a very pragmatic manner according to their risk and volatility. our relationship officers within the Bank’s branches will continue to promote and sell a number of in-house products including funds offered by Valletta Fund Management and MsV Life bancassurance products. Moreover, the branch relationship officers are also authorised to sell local equities and bonds, including government stock issues, on an execution only basis - but those clients requesting an investment advisory service or looking for more complex products will be referred to an investment Centre.

each centre is manned by approximately seven Financial Advisors who are each responsible for a portfolio of clients. they hold regular meetings with their clients with a view of reviewing the individual portfolios and if necessary, to re-position the holdings in line with the changing market conditions and changing client needs and preferences.

All Financial Advisors, who are fully qualified to provide investment advice and are licensed by the MFsA, attend regular training programmes which are organised by both the Bank’s training Centre and external investment specialists. this on-going training is necessary to ensure that our Financial Advisors fully understand not only the vast range of products they sell, but also the macroeconomic environment, which could have a major

impact on the performance of these investment products. Both Valletta Fund Management and MsV Life hold regular presentations and product updates for the Bank’s Financial Advisors while it is also planned to hold a fortnightly video conference with specialists from the BoV Wealth Management and the Financial Markets & investments Unit to update advisors on the latest market developments and industry trends.

we haVe proVided clients with the priVacy, muted atmosphere, personal attention and professional serVice they haVe Been expectinG from Bank of Valletta

in the past decade, financial products grew increasingly complex and we now talk in terms of financial engineering – further complicated by the volatility of the global meltdown. this has negatively impacted the performance of investment products and also resulted in the failure of a number of such products. Moreover entire institutions, many of them world-class household names either failed or were severely downgraded by the credit rating agencies and this meant that the whole concept of risk had to be re-evaluated. the recategorisation of the Bank’s portfolio into five categories, from very low risk to high risk, makes it much easier for our clients to match the available investment products to their requirements. Moreover, the Financial Advisors create a diversified portfolio to spread risk and help their clients to remain disciplined about their financial strategies. in today’s complex financial world and at a time where markets continue to be volatile it is essential for investors to rely on the services of a financial planner to seek advice on how best to save, invest and make one’s money grow. All this needs to be done in

line with the individual’s risk appetite and his liquidity objectives. Bank of Valletta has set up the investment Centres to specifically address this requirement and the Bank’s Financial Advisors are well prepared to detail a balanced and realistic plan to help our clients meet their financial goals and priorities in life within the context of their resources, risk profile, current lifestyle and longer term objectives.

the centralisation of the Bank’s investment advisory service and the fact that the Financial Advisors are now working together has made it easier for them to share experiences and to discuss the on-going market developments. it also means that the client portfolios will be easier to administer, with the Managers of each investment Centre reviewing client files and therefore applying the four-eye principle while additional on-site and remote checks are carried out by the Bank’s Compliance Unit to ensure that no details are overlooked.

As Chief officer for Personal Banking, i am closely following the performance of our investment Centres, and note with pleasure that those clients who approached one of our operative investment Centres have reacted very positively towards this service. We have provided clients with the privacy, muted atmosphere, personal attention and professional service they have been expecting from Bank of Valletta and its Financial Advisors.

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in the face of the ever increasing varied risks challenging the financial services world generally, all stakeholders are seeking greater assurance in the BoV Group’s ability to have sound internal controls. i am cognizant that each shareholder values internal audit’s ability to identify risks and to recommend process and control improvements to manage and mitigate these risks. i also acknowledge that the shareholder looks upon both the external and the internal auditor as having a mutually important role in the monitoring of our Group’s top risks. Ultimately, i strongly believe that internal audit remains vital to any successful operation and adds value through an objective scrutiny of the various facets of the Group’s business.

Fid-dawl tad-diversi riskji li dejjem qed jiżdiedu u li qed jippreżentaw sfida lis-servizzi finanzjarji madwar id-dinja, il-partijiet kollha interessati qed ifittxu aktar ċertezza fil-kapaċità tal-Grupp BoV li jkollu kontrolli interni tajbin. jien nagħraf li kull azzjonist għandu opinjoni tajba tal-kapaċità tal-internal audit tal-Bank li jidentifika r-riskji u li jirrakkomanda titjib fil-proċessi u fil-kontrolli sabiex jimmaniġġja u jimmitiga dawn ir-riskji. jien nirrikonoxxi ukoll li l-azzjonist jagħraf li kemm l-awditur estern kif ukoll dak intern flimkien għandhom rwol importanti fil-monitoraġġ tal-ogħla riskji tal-Grupp tagħna. Fl-aħħarnett, jien nemmen ħafna li l-funzjoni tal-internal audit tibqa’ kruċjali sabiex kwalunkwe operazzjoni jkollha suċċess u anki sabiex iżżid il-valur permezz ta’ skrutinju oġġettiv tad-diversi aspetti tan-negozju tal-Grupp.

A Chief officer Human resources is today much more involved in shaping the business strategy as opposed to only supporting and implementing it. the role can be described as multidimensional - dedicating time to meeting employees and trade union representatives, liaising with executive management to resolve issues, and designing and implementing Hr strategies in line with the Bank’s vision. the Group employs just over 1,600 employees and i am pleased that one of the Bank’s aims is to serve as a model employer. i see my role as that of custodian of the Bank’s largest and most important investment. For this reason within the executive Committee, my role is to ensure that all aspects of Hr are taken into consideration whilst shaping the Bank’s strategy, together with my colleagues.

Fid-dinja tal-lum ir-rwol ta’ Chief officer Human resources huwa li jinvolvi ruħu aktar fit-tfassil tal-istrateġija kummerċjali milli biss li jappoġġjaha u jimplimentaha. Dan ir-rwol jista’ jissejjaħ wieħed multidimensjonali li fih trid tiddedika l-ħin biex tkun tista’ tiltaqa’ mal-impjegati u mar-rappreżentanti tat-trade unions, taħdem flimkien mal-executive management tal-Bank biex jiġu solvuti kwistjonijiet, u tfassal u timplimenta l-istrateġiji tar-riżorsi Umani b’konformità mal-viżjoni tal-Bank. il-Grupp iħaddem ftit aktar minn 1,600 impjegat u jien kuntent li wieħed mill-għanijiet tal-Bank huwa li jkun employer eżemplari. ir-rwol tiegħi nqisu bħala dak ta’ kustodju tal-akbar u l-aktar investiment importanti tal-Bank. Għal din ir-raġuni l-funzjoni tiegħi fi ħdan il-Kumitat eżekuttiv hija li niżgura li waqt li tkun qed titfassal l-istrateġija tal-Bank flimkien mal-kollegi tiegħi, jiġu kkunsidrati ukoll l-aspetti kollha li jirrigwardaw ir-riżorsi Umani.

CHieF oFFiCers ġoDDA GħALL-BoV New Chief Officers for BOV

JosePh m Camilleri Chief officer human resources

anthony sCiClunaChief Officer Group Internal Audit

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Identità viżwali ġdida għall-Brand BOVil-Bidu tal-2013 kien karatterizzat Bit-tnedija tal-identità Viżwali ġdida tal-brand BoV.

L-identità viżwali ġdida tibbilanċja b’attenzjoni dak kollu li jirrappeżenta l-Bank of Valletta – l-istorja u t-tradizzjoni għonja tiegħu – filwaqt li turi li l-BoV hija organizzazzjoni li tħaddan l-innovazzjoni u tagħraf l-isfidi ppreżentati mit-teknoloġiji l-ġodda u mid-dinamika li dejjem qed tinbidel tas-swieq li fihom noperaw.

il-Bank huwa konxju li llum il-klijenti tiegħu għandhom ħtiġijiet differenti u aktar komplessi. ix-xenarju globali li fih noperaw qiegħed dejjem jinbidel u aħna bħala organizzazzjoni dinamika u innovattiva nagħrfu li din il-bidla hija opportunità u għalhekk inħaddnuha.

il-BoV bena s-suċċess tiegħu fuq żewġ pilastri – l-iffukar fuq il-klijent u l-innovazzjoni.

il-Bank iqiegħed kontinwament lill-klijenti tiegħu fiċ-ċentru tal-attenzjoni billi jkompli jipprovdihom bl-aħjar servizz possibbli konformi mal-Brand Promise tal-Bank li hija msejsa fuq dak li jifforma l-esperjenza għall-klijent - dawn huma s-sostenn, ir-reċiproċità, il-valur miżjud, ir-relazzjonijiet fuq medda twila ta’ żmien u s-servizz effiċjenti. ilum il-Brand Promise hija l-kriterju li bih inkejlu l-attivitajiet u l-inizjattivi kollha li jirrigwardaw il-klijenti tagħna.

L-innovazzjoni hija l-pilastru l-ieħor li jsostni s-suċċess tal-BoV. L-innovazzjoni hija fil-fatt parti mill-mod ta’ kif nagħmlu l-affarijiet. illum il-BoV qabad ċiklu ġdid ta’ innovazzjoni – programm ġdid u eċitanti li kellu l-bidu tiegħu fit-tnedija tal-BoV Mobile. il-pjan huwa li dan il-programm ikompli fix-xhur u s-snin li ġejjin permezz ta’ diversi inizjattivi li jkomplu jkabbru u jsaħħu s-servizzi li noffru lill-klijenti mill-punti ta’ kuntatt tagħna kollha, b’mod li dejjem inżommuhom rilevanti għall-attitudnijiet u x-xewqat tal-klijenti tagħna. Aħna nemmnu b’qawwa li l-innovazzjoni hija essenzjali għas-sostenibbiltà fit-tul tal-organizzazzjoni.

Huwa fil-kuntest ta’ din il-viżjoni li issa ħadna l-pass ’il quddiem li nibdlu u naġġornaw l-identità viżwali tal-brand tal-BoV – identità viżwali aġġornata, u li kapaci tilqa’ l-isfidi u sservi fit-tul, filwaqt li fl-istess hin hi identità li tibqa’ tirrispetta l-karattru veru tagħna u żżomm bilanċ bejn l-oriġini tagħna u fejn irridu naslu.

miChael GaleaChief Officer Operations

and Multi-Channel Banking

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may 2013


A new visual identity for the BOV brandtHe BeGinninG oF 2013 WAs CHArACteriseD BY tHe LAUnCH oF A neW VisUAL iDentitY For tHe BoV BrAnD.

the new visual identity carefully balances all that Bank of Valletta stands for - its rich history and tradition - whilst showing that BoV is an organisation that embraces innovation and recognises the challenges presented by new technologies and by the ever changing dynamics of the markets in which we operate.

We do understand that customers today have different needs and more complex requirements. the overall landscape in which we are operating continues

to change and we, as a dyncamic and innovative organisation, recognise this change as an opportunity and embrace it.

BoV has built its success on two pillars – customer centricity and innovation. Customer centricity is kept in focus every day as the Bank continues to deliver a consistent customer experience that is aligned to its Brand Promise built on the customer experience drivers of supportiveness, mutuality, added value, long term relationships and a straightforward and efficient service. the Brand Promise is today the yardstick against which we measure all our customer facing activities and initiatives.

innovation is the other pillar undepinning BoV’s success. innovation is part of the way we know how to do things. today,

BoV has embarked on a new cycle of innovation – an exciting new programme that has kicked off with the launch of BoV Mobile. it is planned that this will continue over the coming months and years through various initiatives that will enhance the customer experience we offer at all our touchpoints, keeping it relevant to the changing attitudes and preferences of our customers. it is our firm belief that innovation is fundamental to the long term sustainability of the organisation.

it is within this vision that we have now taken the step forward to refresh and update the visual identity of the BoV brand – a visual identity that is fresh, bold and will last whilst remaining true to who we really are and carefully balancing where we are coming from and where we want to go.

9


L-iMPAtt tAL- BonUs sHAresMArISA ABdIllA Head Finance

F’Marzu 2013 l-ishma ordinarji maħruġa tal-Bank of Valletta kienu jammontaw għal 300,000,000 sehem li 60% minnhom huma f’idejn il-pubbliku. L-ishma tal-BoV kienu ġew ikkwotati fil-Borża ta’ Malta fis-26 ta’ Awwissu 1992 u n-negozju fihom beda fit-2 ta’ settembru 1992. Għalhekk, billi l-ishma tal-Bank huma kkwotati, id-dettalji kollha tal-azzjonisti jinżammu mis-Central Securities Depository tal-Borża ta’ Malta. in-numru ta’ ishma li jinħarġu jista’ jiżdied b’numru ta’ metodi, li huma:

• injezzjoni ta’ kapital ġdid minn azzjonisti eżistenti permezz ta’ rights issue jew ħruġ ta’ ishma ġodda għal azzjonisti eżistenti u ġodda;

• Share split, fejn ishma eżistenti jinqasmu f’diversi ishma oħra: għalkemm in-numru ta’ ishma jiżdied b’multiplu speċifiku, il-valur globali tal-ishma jibqa’ l-istess meta mqabbel mal-ammont ta’ qabel is-share split;

• ħruġ ta’ ishma bonus, li huwa offerta ta’ ishma addizzjonali b’xejn lill-azzjonisti eżistenti. Din hija magħrufa wkoll bħala Scrip issue jew Capitalisation issue. Xi kultant, l-azzjonisti huma mogħtija l-opportunità li jagħżlu jekk jixtiequx jirċievu dividend jew ishma addizzjonali – u dan jissejjaħ Scrip Dividend.

Ishma Bonus

Kif jista’ ħruġ ta’ ishma bonus jaffettwa l-parteċipazzjoni azzjonarja u l-prezz tal-ishma fis-suq?

Kif jidher fit-tabella nru 1 f'paġna 12, il-Bank kien qed jalloka riżervi lejn il-kapital azzjonarju . Permezz ta’ dawn l-iskemi, azzjonisti eżistenti jirċievu numru ta’ ishma ġodda (skont kemm għandhom ishma) bla ħlas. Mill-aspett tal-karta tal-bilanċ tal-Bank, offerta ta’ ishma bonus hija trasferiment mir-riżervi lejn il-kapital azzjonarju. Għalhekk in-numru ta’ ishma li kumpanija jkollha jiżdied, u fl-istess waqt jiżdied is-sehem ta’ kull azzjonist, bir-riżultat li kull azzjonist iżomm il-persentaġġ tiegħu/tagħha tas-sehem kapitali skont kemm kellu qabel il-ħruġ ta’ ishma bonus. Għaldaqstant, fuq terminu qasir, l-azzjonisti jibqgħu fuq l-istess qagħda finanzjarja bħal qabel. Madankollu, li wieħed ikollu numru akbar ta’ ishma għandu l-vantaġġi tiegħu kif se jkun spjegat aktar ’il quddiem.

tħassib komuni kondiviż mill-azzjonisti huwa jekk l-ishma bonus jirrappreżentawx verament bonus (rigal) speċjalment peress li

skemi bħal dawn iwasslu għal prezz aktar baxx tal-ishma fis-suq. Dan iseħħ għaliex l-istess valur jinqasam fuq numru akbar ta’ ishma u b’hekk jonqos il-prezz ta’ kull sehem.

illustrazzjoni nru 1- ebda effett fuq il-persentaġġ tal-parteċipazzjoni azzjonarja wara ħruġ ta’ ishma bonus:

F’settembru 2012, il-Bank of Valletta kellu 270,000,000 sehem maħruġ. ħruġ ta’ ishma bonus ekwivalenti għal sehem wieħed għal kull 9 ishma kien approvat fil-Laqgħa ġenerali Annwali li saret f’Diċembru li għadda. il-ħruġ ta’ ishma bonus sar effettiv fil-15 ta’ jannar 2013 meta l-Bank ħareġ it-30,000,000 sehem addizzjonali biex b’hekk it-total issa tela’ għal 300,000,000 sehem. Mill-aspett tal-azzjonisti individwali, ejja ngħidu bħala eżempju li azzjonist A kellu 100,000 sehem qabel il-ħruġ u dan kien jirrappreżenta 0.03% tal-ishma kollha. Wara li tkun saret l-allokazzjoni, dan l-azzjonist issa jkollu 11,111 sehem addizzjonali għal total ta’ 111,111 sehem, u l-flus investiti fil-Bank xorta jkunu jammontaw għal 0.03%. Konklużjoni – il-parteċipazzjoni azzjonarja l-ġdida tal-azzjonist A tirrappreżenta l-istess proporzjon ta’ ishma maħruġa bħal qabel u għalhekk l-ishma żejda tiegħu ma jirrappreżentaw ebda allokazzjoni żejda jew żieda fil-valur miżmum. Kif muri fit-tabella nru 1 f'paġna 12, il-BoV alloka tmien ħarġiet ta’ ishma bonus, u b’riżultat ta’ dan azzjonist li kellu ħames ishma fl-2002 (qabel l-ewwel ħruġ bonus) issa għandu 31 sehem b’kollox. jekk din tinħadem b’mod proporzjonali, sehem wieħed ikun żdied għal sitt ishma. Huwa importanti ħafna li meta jkunu kkwotati prezzijiet ta’ ishma u dividends tal-passat, jiġu kkunsidrati l-ħarġiet ta’ ishma bonus sabiex ikun jista’ jsir paragun xieraq mal-prezzijiet u dividends kurrenti, inkella ma jkunx qed isir paragun xieraq.

illustrazzjoni nru 2 - restatement tal-prezz tal-ishma:

il-prezz tal-ishma tal-Bank fl-2002 kien ta’ Lm3.10. sabiex nittraduċu dan il-prezz fi prezzijiet tal-lum, l-ewwel irridu naqilbuh għall-ewro li jiġi €7.22, u mbagħad isir l-aġġustament tal-ishma bonus, biex b’hekk joħroġ il-prezz ta’ €1.20. Dan il-prezz aġġustat huwa dak li jrid jitqabbel mal-medja tal-prezz kurrenti tal-ishma ta’ €2.28.

il-vantaġġi marbutin ma’ ħruġ ta’ ishma bonus huma:1. żieda fil-likwidità li jfisser li kull azzjonist issa għandu numru

akbar ta’ ishma, il-provvista ta’ ishma żdiedet u għalhekk

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may 2013


huwa aktar faċli li wieħed isib jixtri l-ishma.2. Bit-tnaqqis li jirriżulta fil-prezz, huwa aktar faċli li l-ishma

jiġu akkwistati.3. Bażi kapitali aktar b’saħħitha. Meta jinħargu ishma bonus,

il-Bank jikkonverti ammont mir-riżervi f’kapital azzjonarju, bir-riżultat li l-kapital (u l-pożizzjoni finanzjarja) tal-Bank tissaħħah.

Dividends

L-azzjonisti huma intitolati li jirċievu dividends, li effettivament huma tqassim mill-qligħ ta’ kumpanija.

il-Bank of Valletta ħallas dividend kull sena minn mindu twaqqaf fl-1974. it-tabella nru 2 f'paġna 13 turi d-dettalji tal-ammonti tad-dividends mis-sena finanzjarja 2000 ’l hawn. id-dividend li jkun se jitħallas jitħabbar permezz ta’ avviż tal-kumpanija kif ukoll fil-gazzetti lokali. id-dividend jitħallas dejjem bit-taxxa mnaqqsa.

ir-restatement għall-ħruġ ta’ ishma bonus sabiex ikun jista’ jsir tqabbil bejn prezzijiet tas-suq tapplika wkoll għall-pagamenti tad-dividends. it-total tad-dividend għal kull sehem imħallas fl-2002 kien ta’ €0.37, li meta jkun rikalkolat minħabba l-ħruġ ta’ bonus mill-2003 ’l hawn, huwa ekwivalenti għal €0.057 kull sehem (l -ammont ta’ €0.057 huwa l-ammont ta’ €0.37 mħallas fuq 46,180,218 sehem f’ħarġiet fl-2002 restated biex jirrifletti t-300,000,000 sehem li hemm maħruġ illum). Dan tal-aħħar irid jitqabbel mal-ammont ta’ €0.19 kull sehem mħallas fl-aħħar sena finanzjarja. Għalhekk, anki jekk mal-ewwel daqqa t’għajn id-dividends jidhru li naqsu b’mod sinifikanti matul iż-żmien, fil-fatt żdiedu skont il-prestazzjoni tal-Bank.

Taxxa u rifużjonijiet

Mistoqsija li spiss issirilna mill-azzjonisti tirrigwarda t-taxxa mnaqqsa mid-dividends. L-ewwelnett, f’Malta t-taxxa fuq id-dividends tinqata’ mill-ewwel, u għal din ir-raġuni ma teżistix l-għażla li wieħed jirċievi l-pagament tad-dividend fuq l-ishma tal-BoV mingħajr tnaqqis tat-taxxa. it-tieni nett, ir-rata tat-taxxa mħallsa fuq id-dividend tiddependi mit-tip ta’ dħul li minnu jitħallsu d-dividends. B’mod ġenerali, id-dħul tal-Bank jiġi kategorizzat f’dawk li jissejħu “tax accounts” (kontijiet tat-taxxa jew riżervi) skont it-tip ta’ attivitajiet li minnhom ikun ġie ġenerat l-istess dħul. Kull kont huwa suġġett għal rata specifika ta’ taxxa, u għalhekk id-dividend huwa taxxabbli skont is-sors tal-profitti. jekk dividend jitħallas minn profitti li huma suġġetti għal rata ta’ taxxa ta’ 35%, allura d-dividend jitħallas net wara taxxa ta’ 35% (u din it-taxxa titħallas direttament mill-Bank lid-Dipartiment tat-taxxi interni).

Għalkemm ir-rata ta’ 35% hija l-aktar rata komuni applikabbli fuq id-dħul tal-Bank u konsegwentement fuq il-pagamenti relatati, jistgħu jiġu applikati rati ta’ taxxa oħrajn. L-Att Dwar it-taxxa Fuq L-Income (Kap. 123 tal-Liġijiet ta’ Malta) jirrikjedi

li ċerti profitti jkunu allokati lill-Kont tat-taxxa Finali (Final Tax Account jew FtA). L-aktar sorsi komuni applikabbli għal istituzzjoni finanzjarja huma dawn: 1. dividends li l-Bank jirċievi u li jkunu tħallsu minn profitti

allokati lill-FtA ta’ kumpaniji oħra li jkunu qassmu d-dividends, u

2. il-qligħ tal-Bank li jkun ġej minn trasferiment ta’ proprjetà u li jkun suġġett għal taxxa finali ta’ 12%.

Kif jimplika l-isem tal-kont, it-taxxa fuq il-profitti allokati lill-FtA u sussegwentement mqassma bħala dividends hija “finali” u għalhekk ma tistax tkun mitluba lura mill-azzjonisti. Dan huwa stipulat fl-Artiklu 68(c) tal-Att Dwar it-taxxa Fuq L-Income: ‘Kull dividend imħallas minn profitti allokati lill-kont tat-taxxa finali...m'għandux jifforma parti mid-dħul taxxabbli ta’ xi persuna u l-ebda persuna ma tista’ titlob kreditu jew rifużjoni dwar xi taxxa diretta jew indiretta li tkun tħallset fuq dawn il-profitti...’.

Fit-teorija, ħarġiet ta’ ishma bonus huma wkoll tqassim tad-dħul, fejn minflok isiru pagamenti ta’ flus, it-tqassim jieħu l-forma ta’ kapitalizzazzjoni tal-qligħ. it-trattament fiskali fuq dividends għalhekk japplika ukoll għal ħruġ ta’ ishma bonus. Meta l-Bank jalloka dawn l-ishma, jibgħat avviż tat-taxxa (ċertifikat) lill-azzjonisti bid-dettalji tal-ammont qabel it-tnaqqis tat-taxxa, l-ammont tat-taxxa u l-ammont wara t-tnaqqis tat-taxxa. Dan iċ-ċertifikat skont l-artiklu 59(5) tal-Att Dwar it-taxxa Fuq L-Income huwa avviż ta’ dividend u jista’ jintuża għal kull talba għal rifużjoni (refund) ta’ taxxa bl-istess mod li jistgħu jkunu mitluba lura pagamenti ta’ taxxa relatati mad-dividends.

irreferi għall-illustrazzjoni fil-verżjoni bl-ingliż f'paġna 14

skont l-illustrazzjoni f'paġna 14, jekk azzjonist jirċievi ċ-ċertifikat msemmi hawn fuq u ma jkunx soġġett għal rata ta’ taxxa ta’ 35%, l-azzjonist ikun intitolat jitlob rifużjoni wara l-mili tal-formola tat-taxxa, sa l-ammont massimu ta’ €294.86, li hija t-taxxa miżmuma bir-rata ta’ 35% applikabbli fuq tqassim mill-Immovable Property Account. Min-naħa l-oħra l-ammont ta’ €18.05, li hija t-taxxa fuq tqassim mill-FtA, ma jistax jintalab lura. Fi kliem oħra, l-ebda claims oħra ma jistgħu isiru fuq dan l-ammont.

11


the impact of Bonus sharesMarisa Abdilla, Head Finance

As at March 2013, Bank of Valletta’s ordinary shares in issue amount to 300,000,000 shares, 60% of which are in the hands of the public in general. BoV shares were listed on the Malta stock exchange (Mse) on the 26th August 1992 and trading commenced on the 2nd september 1992. Being listed, all details regarding shareholders are held at the Central securities Depository of the Mse. the number of issued shares can be increased in a number of ways, namely:

· An injection of new capital by existing shareholders through a rights issue or through a new issue which attracts both existing and new shareholders;

· A share split, where existing shares are sub-divided into multiple shares: although the number of shares outstanding increases by a specific multiple, the total value of the shares remains the same compared to the pre-split amount;

· A bonus share issue, which involves an offer of free additional shares to existing shareholders. this is also known as a scrip issue or a Capitalisation issue. sometimes, shareholders are also given the opportunity to choose whether to receive a cash dividend or additional shares – this is referred to as scrip Dividend.Bonus shares

table 1 – BoV bonus schemes

Year 2003 2006 2008 2009 2010 2011 2012 2013

shares shares shares shares shares shares shares shares

B/f 46,180,218 55,416,262 110,832,523 133,332,888 160,000,000 200,000,000 240,000,000 270,000,000

ratio* 1 : 5 1 : 1 1 : 4.92581 1 : 5 1 : 4 1 : 5 1 : 8 1 : 9

Bonus 9,236,044 55,416,262 22,500,365 26,667,112 40,000,000 40,000,000 30,000,000 30,000,000

C/f 55,416,262 110,832,523 133,332,888 160,000,000 200,000,000 240,000,000 270,000,000 300,000,000

*ratio refers to the number of shares offered in relation to the number of shares held.

How does a bonus share issue affect an existing shareholding and the share’s market price?

As shown in table 1 above, the Bank has been allocating reserves to share capital under bonus share schemes. such schemes involve existing shareholders receiving a number of new shares, (in proportion to their holding), free of charge. From the Bank’s balance sheet’s point of view, a bonus share offer is a transfer from reserves to share capital. thus the number of shares of a company increases and each shareholder’s portion increases simultaneously, in a way that each holder retains his/her percentage shareholding of share capital as held prior to the issue. Hence, in the short term, shareholders remain in the same financial position as before. However having a larger number of shares has its advantages, as will be highlighted later. A common concern shared by equity holders is whether bonus shares really represent a bonus especially because such schemes lead to a lower market share price. the latter occurs because the same value is split over a larger number of shares hence pushing down the price per share.

Illustration 1 - No effect on percentage holding following a bonus issue

As at september 2012, Bank of Valletta had 270,000,000 shares in issue. A bonus issue, of 1 share for every 9 shares held, was approved last December during the Annual General Meeting. the bonus issue became effective on the 15 january

2013 when the Bank issued the additional 30,000,000 shares bringing the new total to 300,000,000 shares. From the point of view of the individual shareholders, let’s say that for example shareholder A holds 100,000 shares before the issue representing 0.03% of the total shares. After the allocation, the shareholder will now have an additional 11,111 shares for a total of 111,111 shares and will still hold a 0.03% stake in the Bank. Conclusion – shareholder A’s new shareholding represents the same proportion of shares in issue as before and so the shareholder’s extra shares do not represent any extra allocation or increase in value held. As illustrated in table 1 above, BoV has allocated eight bonus issues, as a result of which a shareholder with five shares in 2002 (prior to the first bonus) would now have 31 shares in all. if this is worked out proportionately on 1 share this would result in 6 new shares. it is crucial, when quoting past share prices and dividends, to re-state for bonus issues in order to enable comparability with current prices and dividends, otherwise one would not be comparing like with like.

Illustration 2 - Restatement of share price

the Bank’s share price in 2002 was worth Lm3.10. the latter, translated to today’s pricing, has first to be converted to its euro equivalent being €7.22, and then adjusted for the bonus shares, to arrive at a price of €1.20. the adjusted price is the one to be compared with the €2.28 average current share price.

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the advantages linked to a bonus issue are:

1. increased liquidity, meaning each shareholder has now a larger number of shares, supply has increased and hence it is easier to find shares.

2. shares are more affordable, that is the decrease in price which follows makes them more affordable.

3. A stronger capital base. When issuing bonus shares, the Bank converts some of its reserves into share capital, which strengthens the capital (and financial position) of the Bank.

Dividendstable 2 – Payouts since Financial year 2000

Dividend Date Paid Dividend rate/share €

2000* 21-Dec-00 0.209644

2001* 20-Dec-01 0.256231

2002* 19-Dec-02 0.3727

2003* 19-Dec-03 0.256231

2004 interim 28-May-04 0.139762

2004 Final 18-Dec-04 0.232937

2005 interim 30-May-05 0.174703

2005 Final 17-Dec-05 0.349406

2006 interim 30-May-06 0.128116

2006 Final 21-Dec-06 0.2565231

2007 interim 30-May-07 0.157233

2007 Final 20-Dec-07 0.314465

2008 interim 28-May-08 0.135

2008 Final 18-Dec-08 0.0675

2009 interim 28-May-09 0.035

2009 Final 17-Dec-09 0.215

2010 interim 28-May-10 0.075

2010 Final 17-Dec-10 0.16

2011 interim 26-May-11 0.0625

2011 Final 17-Dec-11 0.08

2012 interim 24-May-12 0.06

2012 Final 20-Dec-12 0.13

*no interim dividend was paid in these financial years.

shareholders are entitled to receive dividends, which effectively are distributions out of a company’s earnings.

Bank of Valletta has paid a dividend every year since its inception in 1974. table 2 above shows details of dividend amounts since financial year 2000. the dividend to be distributed is announced by means of a company announcement. the dividend is always paid net of tax.

the re-statement for bonus issues to enable comparability among market prices applies to dividend pay outs as well. total dividend per share paid in 2002 was €0.37, which when restated for the bonus issues since 2003 is equivalent to €0.057

per share (€0.057 being the €0.37 paid on 46,180,218 shares in issues in 2002 restated to the 300,000,000 shares in issue as at today). the latter is comparable with the €0.19 per share paid in respect of the last financial year. so, although prima facie, dividends appear to have significantly decreased over time, they have in fact increased in line with the performance of the Bank.

Tax withheld and refundsA frequent query raised by shareholders relates to the tax withheld on dividends. First and foremost, tax on dividends is paid at source in Malta and thus there is no option to receive a dividend gross of tax. secondly, the rate of tax on the dividend depends on the source of revenue from which dividends are being distributed. in broad terms, banks’ revenues are categorised into what are called “tax accounts” (or reserves) according to the type of activity from which the revenue is derived. each account is subject to a specific rate of tax and so the dividend is taxable according to the source of the profits. For instance, if a dividend is paid out of profits subject to 35%, this dividend is paid net of the 35% tax (which in turn is paid by the Bank to the inland revenue at source).

Although 35% is the most common rate for the Bank’s revenues and hence distributions thereof, other rates of tax may apply. the income tax Act (Cap. 123 of the Laws of Malta) requires certain profits to be allocated to the Final tax Account (FtA). the most common sources applicable to a financial institution are:

1. dividends received by the Bank which were paid out of profits allocated to the FtA of other companies distributing the dividends, and

2. the profit derived from the transfer of property chargeable to tax at 12% final tax.

As the name implies, tax on profits allocated to the FtA and subsequently distributed as dividend is “final” and therefore cannot be claimed by shareholders. this is stipulated in article 68 (c) of the income tax Act: Any dividends paid out of profits allocated to the final tax account...shall not form part of the chargeable income of any person, and no person may claim a credit or refund in respect of any tax directly or indirectly paid on such profits...'.

in theory, bonus issues are also distributions, where, instead of cash payments, distribution is in the form of capitalisation of past earnings. the tax treatment on cash dividends therefore also applies to bonus issues. Upon allocating such shares, the Bank sends a tax advice to the shareholder which gives details of the gross, tax and net amounts involved. this certificate in terms of article 59(5) of the income tax Act constitutes a dividend advice and can be deemed to be a supporting document for any tax claims similar to the way dividend payments may be claimed.

13


FroM YoUr inVestor reLAtions oFFiCerIl-BOV Shareholders’ Package – rebates ta’ tariffi tal-kards ta’ kredituNixtieq niġbed l-attenzjoni dwar il-benefiċċju tat-tariffi tal-kards ta’

kreditu li jifforma parti mill-BOV Shareholders’ Package u li jikkonsisti

f’rebate ta’ 50% fuq it-tariffa annwali tal-kard ta’ kreditu.

Fl-aħħar paġna qed nuru n-numru minimu ta’ ishma li wieħed irid ikollu

biex igawdi minn dal-benefiċċju għal kull tip ta’ kard ta’ kreditu. Meta

azzjonist ikollu dan l-ammont minimu ta’ ishma, ma jkunx meħtieġ

li joqgħod japplika għal dan il-benefiċċju, peress li s-sistemi tagħna

tal-IT jagħrfu awtomatikament li l-cardholder huwa wkoll azzjonist u

għalhekk awtomatikament il-kont li jkun ġie ddebitat bit-tariffa, fi żmien

tletin jum jiġi kkreditat b’ammont ekwivalenti għal 50% tat-tariffa.

Nixtieq nenfasizza li dal-benefiċċju jitgawda kull sena għaliex huwa

intiż biex jipprovdi valur addizzjonali lill-azzjonisti tal-Bank u dan billi

jiġi applikat kull darba li l-kard ta’ kreditu tkun waslet biex tiġġedded u

mhux fl-ewwel sena biss. Tant hu hekk li mijiet ta’ azzjonisti tal-Bank

gawdew minn dal-benefiċċju għal ħafna snin.

Il-BOV Shareholders’ Package – skontijiet minn Terzi Persuni It-termini u l-kundizzjonijiet jistipulaw li Terzi Persuni (sptarijiet u kliniċi

parteċipanti) iridu jiġu murija prova li dak li jkun huwa azzjonist tal-

Bank sabiex il-benefiċċju jkun jista’ jiġi applikat. Xi azzjonisti qalulna li

ma jixtiqux jipproduċu r-rendikont tal-ishma tagħhom li jinħareġ mill-

Borża ta’ Malta jew l-avviż ta’ dividend, u għalhekk min jitlobni nista’

nibagħtlu ittra li tkun prova li dak li jkun għandu ishma mal-Bank, u

din ikun jista’ juriha lill-isptar jew lill-klinika. Huwa importanti li tinforma

lit-Terza Persuna (l-isptar jew klinika) bl-eżistenza ta’ kwalunkwe

benefiċċju qabel ma tagħmel użu mis-servizzi tagħhom u tħallashom.

Tapprezzaw il-fatt li l-Bank mhuwiex f’pożizzjoni li jilqa’ talbiet għal

refunds mingħand Terzi Persuni wara li jkun sar il-pagament.

BOV Investor Education Programme 2013Iż-żewġ korsijiet tal-BOV Investor Education Programme (IEP) li saru

f’Villa Arrigo, in-Naxxar u fl-Ajruport Internazzjonali ta’ Malta kienu

kollha bbukkjati, u diġà bdew żewġ korsijiet oħrajn fil-BOV Centre,

Santa Venera u l-Lukanda Preluna f’Tas-Sliema. Wieħed jista’ jara

d-dettalji dwar dawn il-korsijiet fit-taqsima tal-Investor Relations fuq

il-website tal-BOV.

Protezzjoni tad-dataNixtieq niġbed l-attenzjoni tagħkom dwar id-Data Protection

Declaration li tapplika għall-ipproċessar tad-dettalji personali tagħkom.

Ta’ min ifakkar li fl-aħħar tad-dikjarazzjoni, l-azzjonisti għandhom

id-dritt li joġġezzjonaw jekk ma jixtiequx li l-Bank jipproċessa

l-informazzjoni tagħhom għal skopijiet ta’ direct marketing. Bħas-

soltu nappellawlkom biex ma toqogħdux lura milli tikkuntattjawna jekk

ikollkom xi mistoqsijiet.

Illustration 3: Extract from tax advice

Accordingly, on your shareholding of 5,063 ordinary shares, you have been allotted 563 fully paid up bonus shares of a nominal value of €1.00 each. The amounts transferred out of the Retained Earnings Account in respect of the bonus share issue are set out hereunder:

Capitalisation on Bonus Share Issue – Bonus Shares:

Tax Rate Gross € Tax at Source € Net €

tax Account / Profits earned in Year of Assessment:

immovable Property Account / 2011 35% 198.37 69.431 128.94

immovable Property Account / 2012 35% 644.08 225.431 418.65

842.45 294.861 547.59

Final tax Account / 2012 33.46

Less Final tax 18.05 15.41

total net 563.001this amount of tax at source is the maximum tax refund, if applicable, that you may claim in respect of this bonus issue.

if a shareholder in receipt of the above advice is not taxable at the rate of 35%, the shareholder would be able to claim, upon filing the income tax return, the maximum amount of €294.86, being tax withheld at 35% upon distributions from

the immovable Property Account. on the other hand, the €18.05 being tax on distributions made out of the Final tax Account, cannot be claimed. in other words, no further claims on this amount may be submitted.

14

may 2013


BOV Shareholders’ Package – credit card fee rebatesI would like to highlight the credit card fee benefit forming part of the

BOV Shareholders’ Package and which consists of a yearly 50%

rebate on the card fee.

The minimum number of shares to avail of this benefit for each type

of card is displayed on the back page of this publication. Once a

shareholder holds this minimum number of shares, there is no need

to apply for this benefit, as our IT systems will detect that a cardholder

is also a shareholder and will automatically credit an amount that is

equal to 50% of the card fee within thirty days of the card fee being

debited from the account. I would like to emphasize that this benefit is

a yearly benefit designed to provide added value to BOV Shareholders

by applying the benefit every time the card fee falls due, and not only

in the first year. In fact, hundreds of BOV shareholders have benefited

from this benefit for years.

BOV Shareholders’ Package – discounts by Third PartiesThe terms and conditions of the Package state that Third Parties

(participating hospitals and clinics) are to be shown proof of

shareholding to claim a benefit. Some shareholders have informed us

that they do not wish to produce the Malta Stock Exchange statement

of holding or a dividend advice, and thus, upon request, I can offer to

send you a letter as proof of shareholding, which you can then present

to the hospital or clinic. It is important to confirm the existence of

any benefit with the hospital or clinic before availing yourself of their

services and effecting payment to the Third Party. You will appreciate

that the Bank is not in a position to handle requests for refunds from

third parties after payment is made.

BOV Investor Education Programme 2013The first two courses of the BOV Investor Education Programme (IEP)

at Villa Arrigo, Naxxar and the Malta International Airport were fully

booked, and we have already launched two further courses at the

BOV Centre, St Venera and the Preluna Hotel in Sliema. Details about

these courses can be found in the Investor Relations section of the

BOV website.

Data ProtectionI wish to bring to your attention the Data Protection declaration

applicable in relation to the processing by the Bank of your personal

details which are held in relation to your capacity as shareholders. At

the end of the declaration, may we highlight your right to object if you

do not wish the Bank to process your data in connection with direct

marketing. As usual, feel free to contact us if you have any queries.

Data Protection DeclarationYour personal details, and any information you may provide the Bank

– whether orally or in writing – constitutes personal data within the

meaning of the Data Protection Act.

You consent to the processing of such data for the following purposes,

namely, for the Bank to give you information about the Shareholders’

Package, for assessment and analysis (including credit and/or

behaviour scoring, market and product analysis), and to develop and

improve the Bank’s products and services.

You also consent to the use and processing of your personal data for

purposes concerning direct marketing, such as to inform you, by mail

or otherwise, about other products and services supplied by the Bank,

its subsidiaries, associates, agents and by other carefully selected

third parties, and for research purposes.

Please inform us in writing if you oppose the processing of your

personal data for purposes concerning direct marketing or if you

otherwise do not wish to be contacted about the Shareholders’

Package. You have the right to request access to, and rectification of,

the personal data concerning you which is held by the Bank.

steFan Kottmann-solerinvestor relations officer

Dikjarazzjoni dwar il-protezzjoni u l-privatezza tad-dataId-dettalji personali tiegħek, u kwlaunkwe informazzjoni li tista’ tipprovdi lill-Bank – kemm bil-

fomm kif ukoll bil-kitba – jikkostitwixxu informazzjoni personali skont l-Att dwar il-Protezzjoni u

l-Privatezza tad-Data.

Inti tagħti l-kunsens tiegħek għall-ipproċessar ta’ din l-informazzjoni għar-raġunijiet li ġejjin:-

sabiex il-Bank ikun jista’ jgħaddilek informazzjoni dwar ix-Shareholders’ Package, għal skopijiet

ta’ analiżi u valutazzjoni (inkluż sistemi ta’ evalwazzjoni ta’ kreditu u/jew ta’ behaviour scoring,

analiżi tas-suq u tal-prodott), u sabiex ikunu żviluppati u mtejba l-prodotti u s-servizzi tal-Bank.

Inti tagħti l-kunsens tiegħek ukoll għall-użu u l-ipproċessar tal-informazzjoni personali tiegħek

għal skopijiet ta’ direct marketing, bħal meta nkunu nixtiequ ninfurmawk, bil-posta jew mod

ieħor, dwar prodotti u servizzi oħrajn ipprovduti mill-Bank, mis-sussidjarji, mill-kumpaniji

assoċjati, mill-aġenti u minn terzi persuni oħrajn magħżulin b’attenzjoni, kif ukoll għal skopijiet

ta’ riċerka.

Jekk jogħġbok avżana bil-miktub jekk ma taqbilx mal-ipproċessar tal-informazzjoni personali

tiegħek għal skopijiet li jikkonċernaw direct marketing jew inkella jekk ma tixtieqx li tkun

ikkuntattjat dwar ix-Shareholders’ Package. Inti għandek id-dritt li titlob li jkollok aċċess għal

informazzjoni personali miżmuma mill-Bank li tikkonċernak, jew li tikkoreġiha.

15


Number of shares

1 -2,399

2,400 -14,599

14,600 -38,899

38,900+

Automatic interest rate premium of between 0.125% and 0.225% on 1-5 year BOV Term Deposit Accounts denominated in Euro

0.125% 0.175% 0.225%

50% rebate on BOV Classic Credit Cards annual fees • • •

Increase in the credit limit on BOV Classic Credit Cards, and the BOV Visa Flypass Business Card

• • •

No processing fees on BOV Homeloans • • •

Reduced policy fees as well as a reduction in exit charges on the MSV Life Investment Bond denominated in Euro, US$ or GBP when purchased through BOV

• • •

50% rebate on BOV Safe Custody charges • • •

Discounts on BOV Stockbroking fees charged on deals in securities listed on the Malta Stock Exchange

10% 15% 20% 25%

50% rebate on BOV VISA Gold Card annual fees • •

An increase in the credit limit of the BOV VISA Gold Card • •

50% discount on BOV VISA Platinum Card annual fees •

An increase in the credit limit on the BOV VISA Platinum Card •

Estetika is offering these reductions on its price list:• €300 reduction on liposculpture• €50 reduction on the Estetika Laser Card which is valid for 1 year• €100 reduction on cellulite treatments• €102 reduction on lip dermal fillers• Free dental consultation with Estetika's Dentist• 25% Off the price list for Whitening Procedures

Website: www.estetika.com.mt

• • •

Discounts on the Laferla Insurance Agency Ltd Health Scheme.

Website: www.laferla.com.mt• • • •

Discounts on all symptomatic imaging examinations at The Radiology Clinic, Ta’ Xbiex, including Chest X-Rays, Ultrasound, Mammography and Bone Density Screening.

Website: www.theradiologyclinic.com.mt

• • •

Special Prices on IPL hair reduction treatments and IPL pigmentation treatments at Skin Express.

Website: www.skinexpress.eu

• • •

10% discount on St. James Hospital Group hospital/clinic fees (e.g. on hospital accomodation fees, operating theatre fees and Transforma cosmetic services excluding doctors' fees) at all Saint James Hospital Group's hospitals and clinics.

Website: www.stjameshospital.com

• • •

termini u kundizzjonijiet japplikaw. Azzjonisti huma ġentilment mitluba jaqraw il-Benefits information Guide tal-BoV shareholders' Package li jinsab fis-sezzjoni tal-Investor Relations tal-website tal-Bank www.bov.com u jista’ ukoll jinġabar minn kull fergħa tal-Bank.

terms and conditions apply. shareholders are kindly asked to read the Benefits information Guide of the BoV shareholders' Package which can be found in the investor relations section of the BoV website www.bov.com and can be collected from any BoV branch.

BoV sHAreHoLDers’ PACKAGe


Documents

BOV Shareholders' Link Issue 34