Lombard Bank Malta plc - Interim Directors’ Statement

On 20 May, Lombard Bank Malta plc issued its Interim Directors’ Statement to update the market on its performance since the start of the 2013 financial year.

The announcement explained that the favourable variance in interest expense as well as the growth in fee and commission income led to an operating profit which is higher than that recorded in the same period last year. On the other hand, the Bank may incur higher loan provisioning levels in the current financial year in view of the prevailing challenging economic environment.

With respect to balance sheet movements, the level of loans and advances were practically unchanged from the levels at the end of 2012 whilst the loan to deposit ratio remained within expected parameters. Both the liquidity and capital adequacy ratios stood well in excess of regulatory requirements. Lombard Bank again re-iterated its policy of not holding exposures to financial instruments issued by non-Maltese sovereign or corporate entities.