The half yearly unaudited financial statements of Lombard Bank and its subsidiaries were examined and approved by the Board of Directors during a meeting held last week at the bank’s head office in Valletta.

These statements show improved results in relation to the comparable figures of 2004. The pre tax profit of Lm1.56 million for the six months ended 30 June 2005, represents an increase of 43 per cent on the Lm1.09 million of last year.

Net interest income grew by 27 per cent over the comparable period while Operating Income increased by 15 per cent over the prior year, to reach Lm2.48 million.

Administrative costs increased by three per cent to Lm1.01 million from last year’s Lm0.98 million, reflecting in part cost efficiencies reaped from upgrades in systems and operations.

The group’s Cost-to-Income ratio now stands at 40.7 per cent compared to last year’s 45.6 per cent.

A net release of Lm136,000 in impairment provisions on the bank’s loan and advances portfolio was registered , compared to a net impairment charge of Lm43,000 effected in 2004.

The bank’s Board of Directors, a statement by the bank said, is satisfied with the results achieved at mid- year and is confident that this performance will be maintained throughout the rest of the financial year.