On 15 May, Lombard Bank Malta plc issued its Interim Directors’ Statement covering the period between 1 January and 15 May. The Directors explained how the downward pressure on lending rates and the decision to increase deposits by offering keen rates has tightened the net interest margin. Moreover one-off revenues registered last year were not repeated this year and therefore for 2009 the Directors do not expect to report the same record profits of last year.
The Directors also stated that the Bank still has robust financial ratios which are well above regulatory minimum requirements. Furthermore, given the Bank’s prudent policy of doing business, Lombard neither experienced any significant markdowns in its treasury book nor extraordinary movement in impairments on its loan book. It was also pointed out that the funding of the Balance Sheet remains retail-based with no reliance on the inter-bank or wholesale markets.
In conclusion, the Directors stated that they remain cautiously optimistic with regard to the Bank’s performance in the coming months despite the continued slow-down of economic activity. The Bank confirms that its Balance Sheet remains at strong levels.