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Lombard Bank Malta plc – Full-Year Results

Jonathan Falzon

April 24, 2026

Market News
24 April, 2026
7 min read
Market News
24 April, 2026
7 min read

Following last week's article detailing the performance of the S&P 500 index in 2025, it is worth devoting time to review the developments across the European equity markers in my last article of the year.

Financial Performance

On 24 April 2026, Lombard Bank Malta plc published its Annual Report and Financial Statements for the year ended 31 December 2025.

Net interest income fell by 4.2% to €26.1 million (2024: €27.3 million) as the increase in gross interest income (+€1.9 million to €40.0 million) was offset by the rise in interest expense (+€3.0 million to €13.9 million). Lombard explained that the improvement in interest income reflected growth in customer lending, notwithstanding lower income from treasury activities due to declining market interest rates. Meanwhile, interest expenses surged due to more competitive rates being paid on longer-term fixed rate deposits.

Lombard also reported a 7.1% increase in non-interest income to €50.4 million (2024: €47.0 million) driven primarily by the increase in postal sales and other revenues (+8.8% to €42.6 million), while net fee and commission income remained stable at €6.4 million.

As a result, operating income climbed by 3.0% to €76.5 million compared to €74.3 million in the previous year.

On the expenditure side, total operating costs rose by 3.5% to €56.5 million, driven by a 6.7% increase in employee compensation and benefits to €28.3 million, while other operating costs remained stable at around €24.6 million.

The financial performance was further supported by a release in expected credit losses of €0.96 million, in line with a net release of €0.93 million in the previous year. The release was primarily attributable to the full recovery of customer exposures previously classified as Stage 3, reflecting the Bank’s effective credit risk management.

The Group also recorded a share of profits from associates of €3.3 million, primarily attributable to the gain on disposal of key assets by Gozo Hotels Company Limited.

Overall, profit before tax rose by 22.4% to €23.8 million compared to €19.4 million in 2024. After accounting for a tax expense of €7.2 million and the profit attributable to minority interests of €1.2 million, the net profit attributable to shareholders of Lombard amounted to €15.4 million which translates into a return on average equity of 7.1%.

The Statement of Financial Position as at 31 December 2025 shows that total assets grew by 7.9% to €1.50 billion with an increase in customer loans of 6.5% (or €56 million) to €929 million and an 18% (or €28 million) growth in balances with the Central Bank, treasury bills, and cash.

Total liabilities rose by 8.1% to €1.26 billion, reflecting the 7.8% (or €87 million) increase in customer deposits to €1.21 billion. The loans-to-deposits ratio eased marginally to 79.6% compared to 79.7% as at the end of 2024. Meanwhile, shareholders’ funds increased by 6.8% (or €14 million) to €223.7 million, which translates into a net asset value per share of €1.447 compared to €1.355 as at the end of 2024. The Bank’s Total Capital Ratio remained virtually unchanged at 19.9% (31 December 2024: 20.0%), which exceeds the minimum regulatory requirements.

Dividend

The Directors of Lombard are recommending a final net dividend per share of €0.0222 in line with that of the previous year and translating into a payout ratio of 22.3% (2024: 30.2%). The Dividend is payable on 9 July 2026 to all shareholders as at Thursday 21 May 2026, subject to approval during the upcoming Annual General Meeting scheduled to be held on 24 June 2026.

Outlook

The Directors explained that  the strategic priorities for the planning cycle commencing in 2026 are focused on positioning the Bank for sustainable growth and consolidation by building on its proven strengths and leveraging its time-tested prudent approach to the business of banking. The growth agenda is centred on seeking market opportunities, not least by making full and effective use of the Group’s branch network and physical presence, while continuing to actively manage and calibrate assets to optimise capital resources. Central to these efforts is a comprehensive digital transformation programme, including the implementation of a new core banking system, a wealth management system and the enhancement of digital channels, to improve efficiency and customer experience.

The Board remarked that the Group is well placed to capitalise on emerging opportunities while remaining steadfast in its responsibilities as a trusted and respected economic contributor.

The article contains public information only and is published solely for informational purposes. It should not be construed as a solicitation or an offer to buy or sell any securities or related financial instruments. No representation or warranty, either expressed or implied, is provided in relation to the accuracy, completeness or reliability of the information contained herein, nor is it intended to be a complete statement or summary of the securities, markets or developments referred to in this article. Rizzo, Farrugia & Co. (Stockbrokers) Ltd (“Rizzo Farrugia”) is under no obligation to update or keep current the information contained herein. Since the buying and selling of securities by any person is dependent on that person’s financial situation and an assessment of the suitability and appropriateness of the proposed transaction, no person should act upon any recommendation in this article without first obtaining investment advice. Rizzo Farrugia, its directors, the author of this article, other employees or clients may have or have had interests in the securities referred to herein and may at any time make purchases and/or sales in them as principal or agent. Furthermore, Rizzo Farrugia may have or have had a relationship with or may provide or has provided other services of a corporate nature to companies herein mentioned. Stock markets are volatile and subject to fluctuations which cannot be reasonably foreseen. Past performance is not necessarily indicative of future results. Foreign currency rates of exchange may adversely affect the value, price or income of any security mentioned in this article. Neither Rizzo Farrugia, nor any of its directors or employees accepts any liability for any loss or damage arising out of the use of all or any part of this article. Additional information can be made available upon request from Rizzo, Farrugia & Co. (Stockbrokers) Ltd., Airways House, Fourth Floor, High Street, Sliema SLM 1551. Telephone: +356 2258 3000; Email: info@rizzofarrugia.com; Website: www.rizzofarrugia.com © 2021 Rizzo, Farrugia & Co. (Stockbrokers) Ltd. All rights reserved. This article may not be reproduced or redistributed, in whole or in part, without the written permission of Rizzo Farrugia. Moreover, Rizzo Farrugia accepts no liability whatsoever for the actions of third parties in this respect.

This article was produced by Edward Rizzo, Director at Rizzo Farrugia, which 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. The company’s registered address is at Airways House, Fourth Floor, High Street, Sliema SLM 1551, Malta.

The article contains public information only and is published solely for informational purposes. It should not be construed as a solicitation or an offer to buy or sell any securities or related financial instruments. No representation or warranty, either expressed or implied, is provided in relation to the accuracy, completeness or reliability of the information contained herein, nor is it intended to be a complete statement or summary of the securities, markets or developments referred to in this article. Rizzo, Farrugia & Co. (Stockbrokers) Ltd (“Rizzo Farrugia”) is under no obligation to update or keep current the information contained herein. Since the buying and selling of securities by any person is dependent on that person’s financial situation and an assessment of the suitability and appropriateness of the proposed transaction, no person should act upon any recommendation in this article without first obtaining investment advice. Rizzo Farrugia, its directors, the author of this article, other employees or clients may have or have had interests in the securities referred to herein and may at any time make purchases and/or sales in them as principal or agent. Furthermore, Rizzo Farrugia may have or have had a relationship with or may provide or has provided other services of a corporate nature to companies herein mentioned. Stock markets are volatile and subject to fluctuations which cannot be reasonably foreseen. Past performance is not necessarily indicative of future results. Foreign currency rates of exchange may adversely affect the value, price or income of any security mentioned in this article. Neither Rizzo Farrugia, nor any of its directors or employees accepts any liability for any loss or damage arising out of the use of all or any part of this article. Additional information can be made available upon request from Rizzo, Farrugia & Co. (Stockbrokers) Ltd., Airways House, Fourth Floor, High Street, Sliema SLM 1551. Telephone: +356 2258 3000; Email: info@rizzofarrugia.com; Website: www.rizzofarrugia.com © 2021 Rizzo, Farrugia & Co. (Stockbrokers) Ltd. All rights reserved. This article may not be reproduced or redistributed, in whole or in part, without the written permission of Rizzo Farrugia. Moreover, Rizzo Farrugia accepts no liability whatsoever for the actions of third parties in this respect.

This article was produced by Edward Rizzo, Director at Rizzo Farrugia, which 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. The company’s registered address is at Airways House, Fourth Floor, High Street, Sliema SLM 1551, Malta.

On 24 April 2026, Lombard Bank Malta plc published its Annual Report and Financial Statements for the year ended 31 December 2025.

Net interest income fell by 4.2% to €26.1 million (2024: €27.3 million) as the increase in gross interest income (+€1.9 million to €40.0 million) was offset by the rise in interest expense (+€3.0 million to €13.9 million). Lombard explained that the improvement in interest income reflected growth in customer lending, notwithstanding lower income from treasury activities due to declining market interest rates. Meanwhile, interest expenses surged due to more competitive rates being paid on longer-term fixed rate deposits.

Lombard also reported a 7.1% increase in non-interest income to €50.4 million (2024: €47.0 million) driven primarily by the increase in postal sales and other revenues (+8.8% to €42.6 million), while net fee and commission income remained stable at €6.4 million.

As a result, operating income climbed by 3.0% to €76.5 million compared to €74.3 million in the previous year.

On the expenditure side, total operating costs rose by 3.5% to €56.5 million, driven by a 6.7% increase in employee compensation and benefits to €28.3 million, while other operating costs remained stable at around €24.6 million.

The financial performance was further supported by a release in expected credit losses of €0.96 million, in line with a net release of €0.93 million in the previous year. The release was primarily attributable to the full recovery of customer exposures previously classified as Stage 3, reflecting the Bank’s effective credit risk management.

The Group also recorded a share of profits from associates of €3.3 million, primarily attributable to the gain on disposal of key assets by Gozo Hotels Company Limited.

Overall, profit before tax rose by 22.4% to €23.8 million compared to €19.4 million in 2024. After accounting for a tax expense of €7.2 million and the profit attributable to minority interests of €1.2 million, the net profit attributable to shareholders of Lombard amounted to €15.4 million which translates into a return on average equity of 7.1%.

The Statement of Financial Position as at 31 December 2025 shows that total assets grew by 7.9% to €1.50 billion with an increase in customer loans of 6.5% (or €56 million) to €929 million and an 18% (or €28 million) growth in balances with the Central Bank, treasury bills, and cash.

Total liabilities rose by 8.1% to €1.26 billion, reflecting the 7.8% (or €87 million) increase in customer deposits to €1.21 billion. The loans-to-deposits ratio eased marginally to 79.6% compared to 79.7% as at the end of 2024. Meanwhile, shareholders’ funds increased by 6.8% (or €14 million) to €223.7 million, which translates into a net asset value per share of €1.447 compared to €1.355 as at the end of 2024. The Bank’s Total Capital Ratio remained virtually unchanged at 19.9% (31 December 2024: 20.0%), which exceeds the minimum regulatory requirements.

Dividend

The Directors of Lombard are recommending a final net dividend per share of €0.0222 in line with that of the previous year and translating into a payout ratio of 22.3% (2024: 30.2%). The Dividend is payable on 9 July 2026 to all shareholders as at Thursday 21 May 2026, subject to approval during the upcoming Annual General Meeting scheduled to be held on 24 June 2026.

Outlook

The Directors explained that  the strategic priorities for the planning cycle commencing in 2026 are focused on positioning the Bank for sustainable growth and consolidation by building on its proven strengths and leveraging its time-tested prudent approach to the business of banking. The growth agenda is centred on seeking market opportunities, not least by making full and effective use of the Group’s branch network and physical presence, while continuing to actively manage and calibrate assets to optimise capital resources. Central to these efforts is a comprehensive digital transformation programme, including the implementation of a new core banking system, a wealth management system and the enhancement of digital channels, to improve efficiency and customer experience.

The Board remarked that the Group is well placed to capitalise on emerging opportunities while remaining steadfast in its responsibilities as a trusted and respected economic contributor.