Lombard reports profit of €9.4 million
Lombard Bank reported a profit before tax of €9.4 million, a decrease of 15% from last year due to the effect of non-recurring transactions, as well as negative movement in international postal tariffs.
In a meeting held yesterday between the Board of Directors the result was deemed positive particularly when taking into consideration the current status of global markets. Lombard reiterated its aim of cultivating long-term and robust relationships with its network of customers, a strong capital base and a high level of liquidity. The bank still offers realistic rates of interest, with deposits remaining stable at €462 million.
While loans to customers increased by 3%, property project finance remained at the core of the Bank’s portfolio ensuring careful management of risk. Key strengths of the balance sheet included a Loan to Deposit ratio of 69%, and a capital adequacy ratio of 18.5%. During the meeting it was stated that the Bank held no exposure to corporate debt.
The Lombard directors proposed that at the next AGM, a gross dividend of €0.12 per share will be approved which will be paid to shareholders as on March 25, 2013 as well as a Bonus Share Issue of one share for every ten held as on May 27, 2013.
Lombard CEO Joseph Said claimed that the Bank has remained on a very stable path providing excellent return to shareholders. He also stated that customer needs will be put at the forefront and such needs must be tackled in a cost efficient manner.