On Wednesday, the shareholders of Lombard Bank Malta p.l.c convened at the Exchange Buildings in Valletta to hold their Annual General Meeting. During the meeting the results of Lombard Bank Group for the financial year ended 31 December 2014 were presented and approved.

The Chairman, Michael C. Bonello, addressed shareholders and explained that the Board and Management of the Bank considered that the performance of the Group was conditioned by the persistence of historically low interest rates combined with subdued credit growth, on the one hand, and by an increasingly restrictive and costly regulatory regime, on the other - which together made for a particularly challenging operating environment.

For the financial year ended 31 December 2014 the group reported a profit before taxation of €6.2 million, a decrease of €0.8 million on that of financial year 2013. Group profit before Net Impairment Losses was down by €0.4 million to €10.9 million, a 3.2% decrease from last year.

The bank’s deposit base continued to expand confirming customer confidence,resulting in a higher amount of interest paid out compared to the previous year. The bank’s operational costs rose during the year largely due to regulation-related expenses and normal salary creep, further impacting margins.

It was considered that the performance stood to reassure all stakeholders that, notwithstanding the difficult regulatory environment, the bank remained committed to the implementation of policies that ensure strong balance sheet fundamentals.

Mr Bonello further explained that the Bank’s financial strength remains a priority for the Board of Directors as reflected in a robust capital position, with a total capital ratio of 16.8% at year end, compared to a regulatory minimum of 8%, and a liquidity ratio of 71.2%, well above the required level of 30%. Shareholders’ funds meanwhile increased further to €81.1 million.

All resolutions presented to the meeting were adopted. These included the payment of a gross dividend for 2014of 4 cents per share and the issue of one bonus share for every twenty shares held as on27 May 2015.

The Board of Directors of the Bank is composed of Michael C. Bonello (Chairman), Graham A. Fairclough, Kimon Palamidis, Joseph Said (Chief Executive Officer), Christos Stylianides and Michael Zammit.