Lombard announces €11.6m profit

Lombard Bank has announced a profit before tax of €11.61 million for 2009, an increase of 3.5% over 2008.

On a Group consolidation basis, profit before tax was €12.93 million for the year ended 31 December 2009, 8.6% down from €14.14 million of the previous year.

Net Interest Income remained stable at €14.59 million.

Postal sales revenue remained at the same level of 2008 and benefited from growth in the volume of parcel business which offset the expected contraction in letter post volumes.

Group Operating Income was marginally lower at €36.44 million compared to €36.93 million in 2008.

It said that cost containment continued to be well managed within the group resulting in marginally lower operating costs at €22.40 million (2008: €22.76 million) as economies of scale started to take effect.

The bank’s Cost to Income ratio stood at 35.5% (2008: 39.1%) compared to that of the Group at 64.4% (2008: 64.7%). 3

Loans and advances to customers at €327.80 million (2008: €325.03 million) were retained at the same level of the previous year.

"The bank remained selective in its choice of financing of projects more so in the light of exposure of the local market to the international economic meltdown," Lombard said.

Amounts owed to customers at 31 December 2009 stood at €446.21 million (2008: €439.86 million).

The board of directors is proposing a final gross dividend of €0.10 per nominal €0.25 share for approval by the general meeting. The board will also be recommending that shareholders be given the option of receiving their dividend either in cash or by the issue of new shares.

The attribution price (at which the new shares to be issued will be determined) has been established as the lower of closing market price as at 10 March 2010 and the Trade Weighted Average Price of the bank’s shares for the three months up to and including the 10 March 2010. Once approved by the Annual General Meeting, the dividend will be paid to all shareholders who are registered members on 22 March 2010.

The bank said it looked forward to the year ahead with cautious optimism as it firmly believed that its strategy and focus on customers’ needs was the key elements necessary for continued growth.