On 24 August, Lombard Bank Malta plc published its financial statements for the first six months of 2010. The results show a 6.6% increase in profits attributable to shareholders of €3.9 million which translates into an earnings per share of €0.11 (H1 2009: €0.104). The increase in profitability was mainly due to the 18.6% growth in net interest income to €8.2 million as deposits re-priced in line with the current low interest rate environment. The Group’s total income was also boosted from the consolidation of the MaltaPost financial results. Postal sales and other revenue from MaltaPost grew from €10 million in the first half of 2009 to €10.2 million during the period under review. Furthermore the Lombard Group is reaping the benefits of increased efficiencies both at the Bank and at the postal subsidiary which resulted in a reduction of the Group’s cost to income ratio from 65.3% as at June 2009 to 62% as at June 2010. At the Bank level the cost to income ratio improved to 33%.
On the other hand, the Group was impacted by a €645,000 impairment allowance charge. However this charge only accounts for 1.8% of total loans.
On the Balance Sheet side, loans and advances remained stable at €330.29 million which according to the Directors reflects the lack of opportunities available and the prudent approach to lending of the Bank. On the contrary, despite the increased competitive pressures, deposits increased by 6% to €473 million.
In the interim report, the Directors stated that the Bank remained financially resilient and continued to perform well despite the challenging business and economic environment and despite the challenges that may lie ahead, the Directors are confident that Bank is well placed to continue operating successfully.
Similarly to the previous year, the Directors did not declare an interim dividend.
Download a copy of the 2010 Half-Year Report of Lombard Bank Malta plc.