On 9 November, Lombard Bank Malta plc published its Interim Directors’ Statement covering the period from 1 July 2011 to early November. The Directors explained that the period under review was characterised by turmoil and uncertainty mainly due to the Eurozone debt crisis, the effects of possible contagion and the need for re-capitalising a number of banks across Europe following the decisions taken at the recent EU summit.
During recent months, Lombard Bank confirmed that it maintained its prudent and cautious stance as it continued to focus on maintaining its sound capital base and its prudent Loan to Deposit Ratio. Moreover, the Directors stated that since Lombard has no exposure to countries affected by the sovereign debt problems in the euro zone, the Bank is safeguarded and therefore it can continue to operate through the prevailing crisis whilst maintaining a sound financial position.
Lombard Bank also noted that, in line with market sentiment, demand for credit has remained somewhat subdued whilst the deposit base is at the same levels reported as at the 2010 year-end. Moreover, although profit margins remain under pressure, profitability levels are so far similar to those registered during the corresponding period last year.
During the year ended 31 December 2010, the Lombard Bank Group reported pre-tax profits of €13.9 million (+7.8%) while during the six months ended 30 June 2011, Group profitability edged 3.6% higher to €7 million.