Lombard Bank Malta plc - Full-Year Results

On 15 March, Lombard Bank Malta plc published its results for the year ended 31 December 2011.

The Group reported a drop of 11.7% in net interest income to €14.18 million (2010: €16.07 million) due to the continued pressure on interest margins. Net fee and commission income for the Group declined by 10.6% to €1.992 million when compared to the same period of last year (2010: €2.229 million). MaltaPost plc contributed positively with revenue from the postal operator edging 3% higher to €20.394 million. During 2011, Lombard reported a profit of €2 million from the disposal of non-trading financial instruments.

Group Operating Income edged marginally higher to €39 million during 2011 but after deducting expenses and an impairment charge of €2.231 million (2010: €0.186 million), the pre-tax profit for the Group declined by 18.8% to €11.3 million for 2011. After accounting for an income tax expense of €4.098 million, the Group reported a 20% drop in profit after tax to €7.23 million.

The balance sheet as at 31 December 2011 shows a decline of 7% in loans and advances to customers to €310.4 million (2010: €333.7 million) while customer deposits dropped by 2.2% to €462.3 million (2010: €472.7 million). In the preliminary report, Lombard once again re-iterated that the bank has no exposure to any form of non-Maltese sovereign or corporate securities. Due to the recent uncertainties regarding European sovereign debt, Lombard stated that it will maintain its prudent investment policy even if this will result in lower interest rates earned. The Group’s Capital Adequacy ratio stood at 19.8% as at the year-end, which is well above the minimum regulatory requirement of 8%. Lombard further stated that its loan to deposit ratio for 2011 was of 67% (2010: 70%).

The Board of Directors have proposed a gross dividend of €0.115 per share, which is unchanged over last year. Those shareholders as at close of trading on 20 March will be entitled to the dividend which will be paid on 27 April subject to shareholders’ approval at the upcoming Annual General Meeting taking place on 24 April.

Download a copy of the Preliminary Lombard Bank Malta 2011 Full-Year Results.