On 1 November 2010 Lombard Bank plc issued its Interim Directors’ Statement explaining that during the period commencing on 1 July 2010 the overall economic outlook for the Euro area did not improve resulting in a continued subdued business sentiment. As a result, Lombard Bank maintained a particularly prudent and cautious approach in its activities.
The Bank stated that while administrative costs remained well under control and a marginal decrease in fees and commissions had been anticipated (as a direct result of slower credit activity) Lombard Bank continues to show a very satisfactory net interest margin. The Bank recorded increases in its customer deposit base, while credit activity continued to reflect the current prevailing cautious business environment.
Lombard Bank also explained that its subsidiary, MaltaPost plc, continues to perform positively and the Bank’s balance sheet remains robust with capital adequacy and liquidity ratios still well above regulatory requirements.
In conclusion, the Board stated that it remains confident that Lombard Bank will remain on course towards the attainment of another positive set of financial results for the year ending 31 December 2010.