The Lombard Bank Group make a pre-tax profit of €6.24 million for the year ended December 31, 2014, 11.3 per cent lower compared to €7.03 million in 2013.

The group consists of Lombard Bank Malta and Redbox, via which shares in Maltapost are held.

The board is proposing the payment of a final gross dividend of four cent (net dividend of 2.6 cent) per nominal €0.25 share, as well as a bonus share issue of one share for every 20 shares held, to be funded by a capitalisation of reserves amounting to €0.5 million.

Net loans and advances to customers were €318.74 million (2013: €314.77 million), with over half of the lending portfolio concentrated on property project finance. Customer deposits stood at €573.95 million, 16.2 per cent more than at the end of 2013.

The specific impairment charge for 2014 amounted to four million euros, representing an increase of one million euros over 2013, while the collective impairment allowance charge for the year was €0.5 million lower when compared to the previous year.

The bank’s capital ratio fell from 19 per cent in 2013 to 16.7 per cent, while Common Equity Tier 1 ratio was 15.8 per cent compared to 17.4 per cent in 2013.

Lombard Bank was not one of the banks identified by the European Central Bank to undergo a mandatory Asset Quality Review.

“Nevertheless, the board chose to submit the bank to such a review so as to ascertain that it was in line with the standards and levels established by the European and local regulators.

“It was reassuring to note that on the basis of the methodology applicable to the voluntary Asset Quality Review the bank had a CET 1 ratio of 15.9 per cent as at June 30, 2014,” it said.

Under the three-year transitory rules for Banking Rule 09, the bank set aside €1 million in 2013, which represents 40 per cent of the required reserve. For 2014, the second tranche of 30 per cent amounting to €0.8 million was transferred to the reserve. The remaining €0.8 million will be set aside next year.