Lombard and MPC report improvement in underlying profitability

 

The MSE Equity Price Index snapped its recent losing streak as it moved marginally higher to 3,724.455 points reflecting the increase in MPC. Meanwhile, seven other equities closed unchanged. Download today’s Equity Market Summary.

Yesterday, Lombard Bank Malta plc published its interim results for the six-month period ended 30 June 2023. Net interest income increased by 25% to €12.7 million (H1 2022: €10.1 million) as the growth in gross interest income outweighed the higher level of interest expense. Likewise, non-interest income surged by 22% to €22.6 million reflecting the higher contribution from the Bank’s postal subsidiary – MaltaPost plc, which offset the drop in net fee and commission income and trading profits. Lombard’s financial performance was also negatively impacted by a net impairment charge of €1.88 million in contrast to the net impairment reversal of €12.1 million in the first half of 2022. Operating profit amounted to €5.54 million compared to €17.3 million in the same period last year. Excluding the impact of impairment provisions, operating profit surged by 43% to €7.4 million compared to €5.2 million last year. The net profit for the period attributable to shareholders of Lombard amounted to €3.25 million. In the first six months of the year, shareholders’ funds increased by 2.73% (or €3.72 million) to €139.9 million which translates into a net asset value per share of €1.509. The Board explained that Lombard will seek to increase its capital base by circa €50 million in an upcoming Rights Issue

Malta Properties Company plc gained 0.5% to €0.394 on a single trade of 2,800 shares. Today, MPC published its interim results. Revenues surged by 23.1% to €2.40 million while operating costs increased by 5.2% to €0.58 million. As a result, operating profit surged by 30% to €1.82 million compared to €1.40 million in H1 2022. Meanwhile, the financial performance of MPC was impacted by the absence of fair value gains on investment properties, in contrast to the gain of €1.07 million in the first half of 2022. Elsewhere, net finance costs surged by 67.3% to €0.56 million. The net profit for the period amounted to €0.67 million. In the first six months of the year, total equity eased by 1.2% (or €0.64 million) to just under €55 million which translates into a net asset value per share of €0.543.

Meanwhile, Bank of Valletta plc closed unchanged at the €1.26 level across four trades totalling 10,000 shares. BOV recovered from an intra-day low of €1.25 (-0.8%).

Malta International Airport plc traded flat at the €5.70 level over six deals amounting to 2,750 shares.

Also among large companies by market value, GO plc closed unchanged at the €2.94 level on one deal of 2,800 shares.

A single trade of 5,000 shares left the share price of PG plc at the €2.06 level.

AX Real Estate plc and Hili Properties plc held the €0.45 and €0.232 levels respectively on low volumes.

Also in the property sector, VBL plc was today’s most actively traded equity as it held the €0.19 level on a single trade of 223,000 shares.

Loqus Holding plc dropped to the €0.15 level on trivial volumes.

The RF MGS Index decreased by 0.09% to 869.988 points. Data published today showed that Germany’s annual inflation in August decreased to 6.4% which was higher than the forecasted figure of 6.3% as the slowdown in food and services inflation was partly offset by the increase in energy prices. Elsewhere in the US, economic growth during the second quarter of 2023 was revised downwards by 0.3 percentage points to 2.1%.

Today, the Treasury Department established the prices for the two new Malta Government Stocks as follows: (i) 4.00% MGS 2033 (IV) at 100.75% for every €100 nominal giving a yield-to-maturity of 3.9098% per annum; and (ii) 4.30% MGS 2038 (II) at 102.00% for every €100 nominal giving a yield-to-maturity of 4.1210% per annum. The General Public has the possibility of applying for these stocks in multiples of €100 and up to a maximum of €499,900 (nominal) per person. Subscriptions for the General Public open on Friday 1 September 2023 and close on Tuesday 5 September 2023 at 14:30 hrs or earlier at the discretion of the Accountant General.

 

This report contains public information only and is not to be construed as investment advice or an offer to buy or sell any securities. Information contained herein is based on data obtained from sources considered to be reliable, but no representations or guarantees are made with regard to the accuracy of the data. Stock markets are volatile and subject to fluctuations which cannot be reasonably foreseen. Past performance is not necessarily indicative of future results. Rizzo, Farrugia & Co. (Stockbrokers) Limited is a company licensed to undertake investment services in Malta by the MFSA under the Investment Services Act, Cap. 370 of the Laws of Malta and a member of the Malta Stock Exchange.