Lombard Bank posted a pre-tax profit of €5.41 million for the first half of the year, a 5.7 per cent increase over the same period in 2008.

In contrast, Lombard Group saw its profits drop 17 per cent to €6.44 million.

Lombard said that one-time transactions at Maltapost plc last year, which were not repeated in 2009, impacted Group results.

Total assets rose by 8.8 per cent to €570.44 million and total equity increased by 4.7 per cent to €63.93 million.

The bank reported an increase of 11.6 per cent in profit after tax from €3.31 million in 2008 to €3.69 million in 2009, with net interest income reaching €6.73 million, representing an increase of two per cent over 2008. Total operating income increased by nine per cent to €8.45 million.

The bank also recorded higher income streams which, together with effective cost containment, cut the cost-to-income ratio to 37.1 per cent.

Balance sheet fundamentals continued to strengthen with a nine per cent increase in customer deposits that reached €483.46 million.

The board of directors noted that, notwithstanding subdued business sentiment amid a global recession, loans and advances remained stable and customer deposits grew satisfactorily despite record low interest rates.

The bank said it continued to adopt a philosophy of developing stable business relationships while remaining sensitive to the specific characteristics and requirements of the Maltese market.

Lombard reported that as a significant contributor to Group performance, Maltapost continued to perform well even though profits were lower than the record levels reached in 2008.