Lombard Bank Malta plc - Interim Directors’ Statement

On 14 November, Lombard Bank Malta plc issued an interim directors’ statement covering the period from 1 July to 14 November.

Against a backdrop of narrowing interest rate margins and sluggish economic growth, the interest income streams for Lombard remained under pressure. Nonetheless, the Bank managed to increase its revenue from commission-based business. A review being conducted on the Bank’s credit portfolio could lead to a technical downgrading of some facilities in order to satisfy new regulatory requirements, despite the fact that in substance, the quality of the facilities is sound.

Lombard Bank’s loan portfolio remains relatively unchanged. However, the Directors reported an increase in the deposit base, albeit the Bank being rather selective on its deposit-taking activities.

Despite the increase in regulatory and compliance costs, operating costs were contained, and the overall financial position of the Group is expected to remain stable.

The Bank’s subsidiary MaltaPost plc, is expected to register an improved performances the Directors had explained in the interim report.

During the period under review the Bank remained adequately liquid and capitalised.