• Group Profit Before Tax rose by 55.3% to €13.77 million compared to €8.87 million in 2017.
• Profit Attributable to Equity Holders of the Bank was €8.45 million, or 64.7% above that in the previous year.
• Bank Cost Efficiency Ratio improved to 47.4% (Group: 77.8%) from 51.4% (Group: 79.6%) in 2017.

 Net Loans & Advances to Customers increased by 19.3% to €511.12 million from €428.61 million in 2017.

• Customer Deposits rose by 7.5%, reaching €788.04 million, an increase of €54.89 million over the previous year.
• Group Post Tax Return on Equity for 2018 was 8.3%, up from 5.4%.
• Group Total Assets rose to €950.07 million (€882.75 million in 2017).
• Total Capital Ratio at 14.7% was over the minimum regulatory requirements.

Group Profit after Tax increased by 56.7% to €8.94 million as the Group experienced positive trends in most of its business lines especially in its lending activity.

Pressure from low interest rates persisted as did increased costs from higher regulatory and compliance requirements.

Net Interest Income at €17.51 million rose by 13.5% mostly as a result of increased customer lending, transaction banking and prudent treasury management.

Net Fee and Commission Income at €4.72 million increased by 14.1% as a result of a higher volume of business and as new initiatives gained traction.

Postal Sales and Other Revenues rose by 5.0% despite a continuation of the decline in Letter Mail volumes, which however was offset by growth in ecommerce and other services.

Group Employee Compensation and Benefits increased by 4.1% to €20.77 million while Other Operating Costs rose by 7.2% to €26.48 million. The latter includes costs directly associated with increased Postal Sales and Other Revenues as well as higher compliance and regulation costs.

The Group is heavily reliant on IT and automated services and invests substantially in respect of security, resilience and integrity of data.

The Bank's Cost Efficiency Ratio improved to 47.4% (FY 2017: 51.4%). That of the Group stood at 77.8% (FY 2017: 79.6%) reflecting the characteristics of the postal services industry where business is high volume yet low margin and human resource intensive.

As from January 1, 2018, Impairment Allowances are based on the new Expected Credit Loss methodology prescribed by the new accounting standard IFRS 9. On this basis, the charge in Expected Credit Losses amounted to €0.23 million, compared to a charge of €2.83 million in 2017. This reflects the high quality of the bank's financial assets as well as adequate levels of collateral cover.

During the year the bank remained focused on resolving those situations where repayments by borrowing customers were in arrears by 90 days or more, referred to as "NonPerforming Exposures".

The level of customer deposits at €788.04 million was €54.89 million above the previous year.

The bank remained judicious in managing its liquidity mindful of the adverse impact of negative interest rates.

Loans & Advances to Customers increased by 19.3% to €511.12 million from €428.61 million in 2017.

The bank continued to register increased business based on its understanding of the needs of the local business community.

Group Total Assets as at 31 December 2018 rose to €950.07 million (2017: €882.75 million), while Equity Attributable to Equity Holders of the bank grew by an additional 12.7% to €108.31 million.

Group Net Asset Value (NAV) per share stood at €2.45 (2017: €2.18).

Group Earnings per Share (EPS) increased by 7.5 cents to 19.1 cents.

Group Return on Assets (ROA) rose to 0.9% (2017: 0.6%) while Group Post Tax Return on Equity (ROE) was 8.3% (2017: 5.4%).

Total Capital Ratio stood at 14.7%. Advances to Deposits Ratio stood at 64.9% compared to 58.5% at the start of the year reflecting the bank's strong liquidity and prudent management of its credit exposures.

Excess funds continued to be placed only with reputable counterparty banks and in Malta Government securities. The bank held no exposure to foreign sovereign or corporate bonds.

These results continue to strengthen the Lombard Bank Group's position and its ability to meet the challenges posed by a rapidly changing environment. The Group is committed to remain focused on meeting the needs and expectations of the Maltese economic operators and the community at large, while also remaining prudent in its approach to risk, thus providing consistent added value to all its stakeholders.