MaltaPost boosts Lombard profits

Lombard Bank Malta has reported a 60 per cent increase in pre-tax profits in the first half of the year.

The bank said in a company statement that it had a pre-tax profit of €7.76 million for the six months ended June 30.

The results, for the first time, include MaltaPost, which became a subsidiary of the bank in September 2007. The banking services sector of the group alone made a pre-tax profit of €5.113 million compared to €4.656 million during the same period last year.

The bank said profit after tax attributable to shareholders increased by 35.6 per cent to reach €4.35 million when compared to €3.21 million in the corresponding period last year. The banking services part of the group made a profit after tax of €3.305 million compared to €2.995 million in the same period last year.

Net interest income reached €6.76 million, an increase of 9.8 per cent mainly from growth in credit activity and effective treasury management. Total operating income reached €18.89 million which included €10.41 million from postal sales and service revenues.

Loans and advances to customers at €284.53 million were up 9.3 per cent over December 31, 2007.

As at June 30, customer deposits stood at €404.22 million while total assets were €492.97 million.

The bank said that during the six months it comfortably met new requirements and challenges including Sepa, Basel II and the adoption of the euro.

"More importantly the bank weathered the turmoil that has hit global financial markets and remains well above the required regulatory level in terms of capital requirements. Prudent treasury management remains a top priority of the bank," it said.

It said MaltaPost plc had provided the group with new horizons and further resilience, while the introduction of the single-largest shareholder, Marfin Popular Bank, stood to benefit Lombard Bank by way of new business opportunities as well as growth potential.