The Lombard Bank said its group profit before tax in H1 2026 amounted to €11.5 million (H1 2025 - €12.9 million), while for the Bank, profit before tax was €10.1 million (H1 2025 - €9.5 million).

During the first half of this year the financial performance of the Group reflected higher core Bank Operating Income and improved operational efficiency, the bank said in a statement on the Stock Exchange.

MaltaPost p.l.c., the Bank's main subsidiary, also contributed to this positive result with a 12% increase in Profit Before Tax, reaching €3.6 million (H1 2025: €3.2 million).

During this period a one-off share of profit recorded in 2025 from the disposal of assets by an associate company was not repeated. Earnings per Share for the period, now stand at €0.04. Gross Interest Revenues rose by 11% to €21.8 million (H1 2025: €19.7 million), primarily driven by growth in customer lending, the bank said.

Treasury activities also contributed to the increase in interest income through continued optimisation of the Bank's balance sheet with excess liquidity being employed in Treasury Bills and higher-yielding investment-grade debt securities. Interest Expense increased by 16% to €7.7 million (H1 2025: €6.6 million), driven by both higher volumes of customer deposits and higher interest rates paid on longer-term deposits.

Net Interest Income increased by 8% to €14.2 million (H1 2025: €13.1 million). Net Fee and Commission Income rose by 31% to €3.7 million (H1 2025: €2.8 million), supported by higher business volumes, particularly across commercial and retail lending and wealth management activities. Postal Sales and other Revenues were up by 8% to €23.1 million (H1 2025: €21.4 million), driven by a steady performance across key business areas, particularly parcel and logistics-related activities.

The continued shift from traditional Letter Mail to digital communication channels persisted during the reporting period, while e-commerce and parcel-related services continued as important contributors to revenue growth, the bank said.

Operating Income improved by 9% to €41.5 million from €38.1 million in H1 2025. Employee Compensation and Benefits increased by 7% to €15.2 million (H1 2025: €14.2 million), reflecting a tight and competitive labour market.

Other Operating Costs rose by 3% to €12.9 million (H1 2025: €12.6 million), reflecting continued investment in the business, while remaining well contained through ongoing operational improvements and cost management. Cost Efficiency Ratio of the Bank improved to 49.1% (H1 2025: 54.4%), reflecting stronger income growth and continued cost discipline. At Group level, the cost efficiency ratio also improved to 72.1% (H1 2025: 74.9%).

The higher ratio, when compared with that of the Bank reflects the nature of the postal services industry, which is typically characterised by high volumes, low margins and a labourintensive operating model. Expected Credit Losses (ECL), as set by International Financial Reporting Standard 9 (IFRS 9), resulted in a lower net release of €0.04 million during the first half of the year, compared with a release of €1.0 million in H1 2025.

Financial Position and Capital Loans and Advances to Customers rose by 8% to €1,002.7 million from €929.1 million at FYE 2025. Amounts Owed to Customers increased by 3% to €1,242.4 million from €1,207.3 million at FYE 2025, the bank said.

Bank Loan-to-Deposit ratio increased to 82.9% (FYE 2025: 79.6%). The Bank continued to rely on a diversified funding base, which over the years has proven to be stable. The Bank's liquidity ratios remained well in excess of minimum regulatory requirements. Group Total Assets rose to €1,555.0 million (FYE 2025: €1,497.6 million).

Equity Attributable to Equity Holders of the Bank increased by 2% to €227.7 million (FYE 2025: €223.7 million). Group Net Asset Value (NAV) per share stood at €1.47 (FYE 2025: €1.45). Group Earnings per Share (EPS) stood at €0.04 (H1 2025: €0.06). Group Return on Assets (ROA) was 1.0% (H1 2025: 1.1%) while Group Post Tax Return on Average Equity (ROAE) was 5.9% (H1 2025: 6.9%). Total Capital Ratio at 18.0% (FYE 2025: 19.9%) exceeded the minimum regulatory requirements. During the first half of 2026, the Group continued to focus on its strategic priorities, including investment in digital transformation, operational efficiency and customer service, the bank said.

The Bank's planned replacement of legacy systems with a modern core banking platform and enhanced digital channels forms part of a wider programme aimed at improving service delivery, strengthening operational capacity in the areas of regulatory compliance and wealth management services, and enhancing the overall customer experience.

The Bank continued to strengthen its physical distribution channels, complemented by sustained investment in human resources and compliance. These initiatives are expected to contribute to the Bank's long-term competitiveness while preserving the prudent and conservative business model that has historically underpinned its performance. At MaltaPost p.l.c., the traditional postal environment is expected to remain challenging, while the potential impact of Customs tariff measures on cross-border postal and logistics activities continues to unfold.

That said, MaltaPost remains on the lookout for new and diverse business opportunities. Looking ahead, the Group will continue to pursue measured growth, supported by a strong capital base, sound liquidity, and ongoing investment in technology, operational resilience and customer-facing capabilities. It anticipates sustained stability throughout the latter half of 2026, driven primarily by the continuation of its cautious business strategy, the bank said.