Lombard Bank increases profits

Pre-tax profit by Lombard Bank Malta in the first six months of the year reached €5.41 million, an increase of 5.7 percent over the same period last year.

But on a Group basis, the pretax profit figure is down by 17 percent when compared to the record profits registered for the same period last year. This is due to one-time transactions at MaltaPost in 2008 which were not repeated in 2009.

The pre-tax profit of Lombard Bank Group for the first half of 2009 amounted to €6.44 million.

The bank had a profit after tax of €3.69 million, 11.6 percent more than in the previous year. Net Interest income rose by two percent to €6.73 million and total operating income increased by nine percent to €8.45 million. The bank’s cost-to-income ratio improved to 37.1 percent from 41 percent as a result of higher income streams and effective cost containment.

A net release of €104,000 in Impairment Allowances was made in respect of the bank’s loan assets.

Loans and advances to customers stood at €325.57 millionm while customer deposits increased by 9 percent to reach €483.46 million.

The group's profit after tax decreased by 18.9 percent compared and total operating income by 2.7 percent to €18.38 million, mainly due to lower turnover at MaltaPost p.l.c.

Increased group cost-to-income ratio of 65.3 percent from 62.5 percent was mainly from lower turnover and higher costs experienced by MaltaPost p.l.c.

Total Assets under management stood at €570.44 million, an increase of 8.8 percent while total equity increased by 4.7 percent to €63.93 million.

Notwithstanding subdued business sentiment amid global recession the bank’s loans and advances remained stable,

Customer deposits grew satisfactorily despite record low interest rates in financial markets.