Lombard Bank Malta plc reported a profit of €12.93 million before tax last year.

The bank said it remained well capitalised with a capital adequacy ratio of 17 per cent, well above the regulatory minimum of eight per cent.

Addressing the annual general meeting, chairman Christian Lemmerich said the bank continued to ensure that deposits entrusted to the bank were employed safely while assisting borrowing clients to carry on their business even in difficult economic circumstances.

He said the loan to deposit ratio was maintained at a solid level below 75 per cent so the bank was in a position to fund its lending activities without needing to rely on the interbank market.

Pre-tax return on capital employed was maintained at 20 per cent while net asset value increased from €1.65 to €1.81per share.

The chairman also informed shareholders that the investment made by the bank in Maltapost was continuing to benefit both institutions. Despite subdued economic conditions worldwide, Maltapost achieved increased profitability to a record €1.97 million as reflected in the group's consolidated accounts.

During the meeting, shareholders considered and approved an extraordinary resolution to amend the bank's Memorandum and Articles of Association mainly to reflect recent changes in regulatory requirements and to enhance shareholder rights.

Shareholders also adopted a resolution declaring a final gross dividend of €0.10 per share to be received either in cash or in new shares. The attribution price for the purpose of determining the new share allocation had been set at €3.04.