Lombard Bank announces strong H1 2024 results

Lombard Bank Malta plc announced its results for the first half of the financial year 2024. Profit before Tax reached €11.4m, up from €5.4m in the same period last year.Across key financial metrics, the Group registered a strong performance

By: independent.com.mt

Sep 03 2024
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Lombard Bank announces strong

Lombard Bank Malta plc announced its results for the first half of the financial year 2024. Profit before Tax reached €11.4m, up from €5.4m in the same period last year.

Across key financial metrics, the Group registered a strong performance in line with its growth and performance strategy. The results reflect the Group's commitment to deliver consistent value to all stakeholders.

Financial Highlights

• Net interest income increased by 5% to reach €13.3 million (H1 2023: €12.7 million).

• Net fee and commission income rose to €2.8 million (H1 2023: €2.6 million), an increase of 8% driven by higher activity across most business lines.

• Employee compensation and benefits rose by 8% to €13.2 million (H1 2023: €12.2 million), amid a tight labour market and inflationary pressures.

• Other operating costs amounted to €12.8 million compared to €14.0 million in the same period in 2023, reflecting the implementation of efficiency measures.

• Cost efficiency ratio of the Bank was 51.5% (H1 2023: 51.3%). For the Group, the ratio was 73.8% (H1 2023: 78.9%), reflecting the nature of the postal services industry, which is characterised by high volume, low margins, and significant human resource requirements.

• Expected Credit Losses (ECL) as defined and determined by International Financial Reporting Standard 9 (IFRS 9) resulted in a release of €1.6 million in the first half of this year, compared to a net charge of €1.9 million in the corresponding period of the previous year. This release mainly resulted from lower charges taken on customer loans and advances classified in Stages 1 and 2 and was spread across the Bank's lending portfolio.

• Loans and advances to customers increased by 6% to €804.0 million from €758.3 million in FYE 2023.

• Amounts owed to customers increased by €31.9 million to €1,051.0 million from €1,019.1 million in FYE 2023.

• Group Net Asset Value (NAV) per share stood at €1.28 (FYE 2023: €1.23).

Joseph Said, Lombard Bank CEO commented: "We are encouraged by this performance which highlights the resilience of our business model, our prudent risk management and operational efficiency. We strengthened our commercial lending business and made encouraging inroads in the home loan sector. While our liquidity stays strong and well above the regulatory minimum, we remain committed to supporting the Maltese community, while driving sustainable growth."

Looking ahead "We are cautiously optimistic also in respect of the rest of this year. As the Maltese economy is forecast to continue performing well, so is our loan book, as we identify new business opportunities that allow us to deliver on our overall strategic objectives. Though challenges never lack, the Bank is well-positioned to navigate these and to grasp opportunities presented by the evolving economic landscape, always with a focus on growth, while also ensuring continued resilience ...."

The full report and presentation are available at https://www.lombardmalta.com/en/financial-results and https://www.lombardmalta.com/en/financial-results-presentations.