Lombard Bank reports 'strong performance'

Lombard Bank has registered a pre-tax profit of Lm1.56 million for the first six months of this year, a 43 per cent increase over the same period last year.

The half-yearly unaudited financial statements of Lombard Bank and its subsidiaries, which were examined and approved by the board of directors yesterday, showed improved results over 2004, Lombard Bank said.

"Net interest income grew by 27 per cent over the comparable period. 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," the bank said.

"Improved credit controls and the high quality customer base contributed towards allowing a net release of Lm136,000 in impairment provisions on the bank's loan and advances portfolio, compared with a net impairment charge of Lm43,000 effected in 2004."

The strong performance was achieved in spite of an ever competitive environment and generally low interest rates, the bank said.

Bank chairman Christian Lemmerich said the results demonstrated the effectiveness of the financial institution's business strategy, which remained focused on selective business targetting and personalised service.

"The market positioning which the bank has achieved will continue to generate sustainable earnings contributing to increased stakeholder value," he said.

Chief executive officer Joseph Said noted: "The bank's operating fundamentals remain strong, supported by the healthy income streams and cost efficiencies across all facets of the operations".