Updated 1230
Services and Industry Fuel Malta’s 5.1% GDP Growth in Q2 2025: NSO provisional estimates show that Malta’s Gross Domestic Product (GDP) for Q2 2025 reached €6.1 billion, a 5.1% increase (€295.8 million) compared to Q2 2024. In volume terms, GDP grew by 2.7%. Gross national income also saw growth, reaching €5.5 billion in Q2 2025. The Gross Value Added (GVA) for the second quarter grew by 3.8% in volume terms, with positive contributions from Industry (0.4 percentage points) and Services (3.5 percentage points). The major contributors to the increased contribution of the services sector were Information and Communication (8.1%), Accommodation and Food Services (11.5%), and Financial and Insurance activities (5.4%).
Lombard Bank Reports €12.9m Profit Before Tax in First Half of 2025: Lombard Bank Malta reported a Group profit before tax of €12.9m for H1 2025, up from €11.4m last year, boosted by higher operating income, a €2.4m one-off gain, and strong MaltaPost results (€3.2m, +28%). The Bank’s standalone profit dipped to €9.5m from €10.5m. Gross interest income rose 7% to €19.7m on loan growth, but higher deposit costs lifted interest expense 30% to €6.6m, trimming net interest income to €13.1m. Operating income grew 2% to €38.1m, with costs at €26.8m. Loans rose 4% to €903.6m, while deposits fell slightly to €1.1bn, raising the loan-to-deposit ratio to 81.6%. Equity rose 3% to €215.9m. With a strong 19.2% capital ratio, management plans retail, tech, and wealth investments, while maintaining prudent risk controls.
GTA Presents its 2026 Budget Proposals: The Gozo Tourism Association (GTA) has urged for a tourism model that promotes Gozo as a distinct, sustainable destination focused on quality rather than expansion. In its 2026 budget proposals, the GTA called for depoliticised, locally managed, long-term planning to safeguard the island’s appeal, stressing upkeep, cleanliness, and high service standards. While foreign arrivals rose by over 13% in 2024, domestic tourism dipped slightly. The GTA proposed lower VAT (18% to 7%) on cultural events, ringfencing ECO contributions for upgrades, and stronger regional autonomy to enforce Gozo-specific planning rules. It also urged investment in sustainable infrastructure, improved inter-island connectivity, and promotion of niche tourism such as wellness, gastronomy, diving, and digital nomads. Workforce shortages remain critical, with the GTA suggesting tax credits, training, and reforms to attract and retain both local and foreign staff.
Morning Briefing
CrediaBank Responds to EPPO Investigation Claims
CrediaBank clarified that although one of its majority shareholders, Alexandros Exarchou of Thrivest Holdings, is part of a wider European Public Prosecutor’s Office (EPPO) investigation, there is no decision to bring him to trial. The bank’s statement responds to Momentum, which accused CrediaBank of deliberately misleading the public by claiming that no criminal proceedings were pending against Exarchou. Momentum noted that he is among 23 individuals formally indicted by the EPPO. CrediaBank rejected these allegations, insisting it did not misinform shareholders or the public. The EPPO investigation concerns all past managers involved in construction contract 717, a 2014 EU-funded project to upgrade Greece’s railway signalling and control systems. Delays in this project were linked to a 2023 train crash that killed 57 people, forming the basis of the ongoing investigation. (Times of Malta)
Woman Pleads Guilty to Baħar iċ-Ċagħaq Traffic Collision Charges
A 44-year-old woman, Yoana Valentinova Gatt, has pleaded guilty to four of five charges connected to a traffic collision in Baħar iċ-Ċagħaq that seriously injured a motorcyclist. Gatt, an IT manager from St Paul’s Bay, appeared in court on Wednesday before Magistrate Antoine Agius Bonnici. She admitted to causing grievous bodily harm through negligence, driving under the influence of alcohol, damaging third-party property, and drink driving, but pleaded not guilty to reckless or dangerous driving. The court heard that on 17 August, Gatt collided with a stationary motorcycle on the Coast Road near Tony’s Ice-Cream while recording a breathalyser reading of 124.9 μg/100 ml—nearly six times the legal limit. The 53-year-old Belgian victim was initially in critical condition and remains hospitalised. Gatt’s request for bail was temporarily denied due to confusion over her identification documents. (Maltatoday)
Workplace Accidents in Malta: First Half of 2025
The NSO reported a slight drop in workplace accidents in the first half of 2025, with 1,041 non-fatal cases—44 fewer than in the same period in 2024—and four fatal accidents recorded. Manufacturing and Construction sectors accounted for the highest share of incidents, each representing 13.9% of non-fatal accidents, followed by Human Health and Social Work activities (11.7%) and Administrative and Support Services (11.0%). Nearly one-third of workers involved were absent for three days or less, while 17.8% were off work for 21 days or more. Most accidents involved employees in elementary occupations and craft-related trades, with 26.7% affecting those aged 25–34. Almost 67% of those injured were Maltese nationals, highlighting the demographic profile of workplace accidents during this period. (The Malta Independent)
