Lombard 'on course' to good result for FY09

Lombard Bank Malta plc is confident it will continue on course towards achieving a positive result for the financial year ending next month despite uncertainty in the eurozone and the crisis' effect on the local ecomomy.

In an interim directors' statement on the Malta Stock Exchange, bank directors said that despite the continued downward pressure in pricing for loans and advances, as well as for deposits, the bank's relative net interest margin had remained similar to that for the same period last year.

Lending levels had remained stable when compared to last year, reflecting a subdued business climate and the prudent stance the bank has applied all along. To date, no substantial additional impairment allowances have been considered necessary, the bank said.

Costs have remained under control with 68 per cent of total administrative expenses being attributed to staff costs.

Balance sheet figures continue to grow resulting in financial ratios, among which capital adequacy (Basle II), liquidity and loans to deposits, remaining solid and well in excess of statutory minimum requirements.

Although the economic outlook for the euro area remains largely uncertain and the local economy continues to be affected by adverse international economic developments, the directors were confident the bank was on track to achieve positive results for the year.