Lombard Bank has announced a pre-tax profit of €14.14 million for the year which ended December 31, an increase of 32.9 per cent on its performance the previous year.

Net interest income dropped by 6.2 per cent as interest margins came under pressure.

Still, the profits buck the trend in the banking sector, which has seen profits sliding significantly for both Bank of Valletta and HSBC. The bank said its investment in Maltapost last year had contributed to the result. Administrative expenses reached €23.8 million, in line with expectations. "This record performance will not lead us into believing that we are immune to the adverse economic climate that is prevailing throughout the world. We shall continue to be cautious, vigilant and sensitive to developments in world markets ensuring that we act and react accordingly and always within the policies and practices that we have embraced over the years," the bank said.

The directors have approved a final gross dividend of €0.10 per nominal €0.25 share.