Lombard Bank's profits increase by 18.1 per cent

The Malta Stock Exchange Index shed 0.2 per cent to close a few points lower on a week-on-week basis at 4,659.12. The three local large caps, HSBC Bank Malta (HSBC), Bank of Valletta (BOV) and Go, all closed in negative territory together with FIMBank's and 6PM's shares. Gains in the shares of Lombard Bank (Lombard), Maltapost, Malta International Airport (MIA) and Simonds Farsons Cisk however limited the losses suffered by the local bourse.

A total of 268 deals were registered on the stock exchange for a turnover above €19.5 million. In the equity market 204 deals were executed for a traded value of nearly €7.02 million, while 55 transactions were performed in local corporate bonds and government stocks for a turnover just above €9.71 million. In addition, nine deals were executed in Treasury bills for €2.8 million.

In the banking sector, Lombard was the top performer gaining 1.5 per cent or €0.20 to close at €13.20. Activity was high in the equity as 462,260 shares changed hands across 28 deals. Following the closure of Thursday's trading session the board of directors of Lombard issued the preliminary statement of annual results for the financial year ended December 31, 2007. The profits before tax registered for the year increased by 18.1 per cent to Lm3.87 million (€9.01 million) over the previous year. It was also noted in the statements that net interest income rose by 26.7 per cent driven by growth of 23.9 per cent in credit activity. Net fees and commissions also increased by 5.3 per cent following growth in general volumes of business, while total operating income rose by 34.1 per cent.

Lombard's board is also proposing a final gross dividend of €0.40 (Lm0.1717) per nominal €0.582343 (Lm0.25), this representing a 37 per cent increase over last year's dividend. Alternatively, shareholders are being given the option to receive the dividend by either cash or by the issue of new shares at an attribution price of €12.60.

Within the same sector, HSBC had 24,820 shares swap hands across 21 deals to shed 0.3 per cent and close at €4.39, while BOV traded nearly 58,000 over 49 transactions to edge 0.2 per cent lower and close at €5.74. Moreover, FIMBank declined by 15 per cent and ended the week at US$1.73. However, this was a result of the shares falling ex-dividend and due to the one for five bonus share issue to be allotted to shareholders who were on the MSE register as at March 13.

Go had over 41,000 shares transacted across 17 deals to close at its weekly lowest price of €3 after having been also traded at €3.145, this representing a 4.5 per cent drop. 6PM's shares also closed in negative terrain, having declined by four per cent to £0.70 on a volume of 9,114 shares which were negotiated over four deals.

On the other hand, Maltapost had 78,755 shares traded across 19 transactions to advance 1.6 per cent and close at €0.711, while Crimsonwing gained two per cent to reach the €0.55 level on a volume of 38,145 shares. MIA was among the positive equity performers of the week, rising by one per cent to €3.325 as 10,375 shares changed hands across 11 deals. Moreover, Simonds Farsons Cisk's shares added two per cent to reach €2.50, even though this was attained on a single deal of 2,000 shares. In addition, International Hotel Investments edged 0.4 per cent higher to close the week at €1.039 on a volume of 17,000 shares.

A marginal increase of 0.06 per cent was also registered in Plaza Centres' shares which closed at €1.70 on a volume of 10,230 shares. Meanwhile, the board of directors announced that it is scheduled to meet on March 28 to consider and approve the financial statements as at 31.12.07 and to recommend to the shareholders the payment of a final dividend.The two remaining active equities both closed unchanged: Datatrak had a single deal executed at €0.305, while Grand Harbour Marina traded 28,346 across seven deals to close at €1.73.

This article, which was compiled by Jesmond Mizzi Financial Services Limited (JMFS), does not intend to give investment advice and the contents therein should not be construed as such. JMFS is licensed to conduct investment services by the MFSA. The directors or related parties, including the company and their clients, are likely to have an interest in securities mentioned in this article. For further information please contact JFMS at 67/3, South Street, Valletta, or on tel: 2122 4410 or e-mail jmizzi@jmfs.net