Lombard Bank has reported a record pre-tax profit of Lm4.57 million (€10.64 million) for the financial year ended December 31, 2007, representing an increase of 18 per cent over the previous year.

Speaking at the bank's annual general meeting, held at the Chamber of Commerce in Valletta on Thursday, Lombard chairman Christian Lemmerich said that total operating income for the group rose by 34.1 per cent while the net interest margin remained strong at 52.8 per cent.

He highlighted the bank's robust balance sheet as a result of consistent annual record annual profits.

Earnings per share increased by 19.7 per cent and reached 35.3 cents (€0.822) per share.

In October 2007, Marfin Popular Bank of Cyprus agreed to acquire from BSI SA and from other overseas shareholders a stake of 43 per cent in Lombard. The transaction was completed this February following receipt of regulatory approval.

The bank looks upon this as a significant milestone given that the alliance with Marfin stands to benefit all stakeholders, the chairman said. Marfin is present in 13 countries with a branch network of 415 offices and over 8,000 staff.

Mr Lemmerich also informed shareholders that Lombard had increased its stake in MaltaPost plc from 35 per cent to 60 per cent. This strategic investment augured well for both MaltaPost and the bank, he said.

At the meeting, shareholders approved a resolution to declare a final gross dividend of €0.40 per share, representing a final gross payment by the bank to shareholders of €3,451,491 (net €2,243,469) either in cash or by the issue of new shares. The attribution price for the purpose of determining the new share allocation had already been announced to be €12.60.

The meeting further approved a renominalisation of the bank's share capital and a share split on a four-to-one basis.

Other resolutions approved by shareholders related to the reappointment of KPMG as the bank's auditors and the establishment of the maximum annual aggregate directors' remuneration.