Lombard Bank Profit up by 26 per cent at mid-year

Malta Independent Sunday, 12 August 2007, 00:00 Last update: about 20 years ago

Lombard Bank Malta and its subsidiaries registered a pre-tax profit of Lm2.09 million for the six months ended 30 June. This represents an increase of 26 per cent over the same period in 2006.

Earnings per share also continued to rise during the first six months of 2007 to 16.1 cents from 12.7 cents in 2006.

• Profit after tax attributable to shareholders increased by 28.7 per cent to reach Lm1.38 million when compared to Lm1.07 million in the corresponding 2006 period.

• New business opportunities contributed to higher net interest income of Lm2.64 million, an increase of 8.8 per cent over the same period last year.

• Operating income increased by 8.3 per cent over prior year, reaching Lm3.08 million.

• The group’s cost-to-income ratio stood at 40.96 per cent compared to last year’s 38.40 per cent. Administrative expenses at Lm1.20 million increased by 16 per cent from last year’s Lm1.04 million. This mainly arose from an increase in compliance and staff costs.

• A net release of Lm176,000 from impairment allowances was also registered.

• Loans and advances to customers at Lm102.24 million were up 13.3 per cent over 31 December.

• As at 30 June customer deposits stood at Lm176.16 million while total assets were Lm204.79 million, reflecting a policy to optimise return on assets under management.

• Equity attributable to shareholders rose by Lm1.16 million to Lm20.25 million during the six-month period.

On 30 July, the bank issued a company announcement informing the public that its wholly-owned subsidiary Redbox Limited entered into an agreement with the Government of Malta for the acquisition of a further 25 per cent of the issued and paid-up share capital of Maltapost subject to Cabinet approval.

The Board of Directors is satisfied that the bank remains on track to meet its full 2007 projections. It is confident that continued investment in infrastructure and staff would be rewarded by further growth. The bank feels well positioned to meet all its compliance obligations, including those arising from SEPA; Basel II; MIFID, as well as adoption of the euro in January.

The bank will continue with its policy of commitment to the business needs of the Maltese public and commercial sector and looks to the second half of 2007 with confidence.