Lombard posts €11.3 million pre-tax profit

At a time of subdued business sentiment and reduced interest margins, the Lombard Group has performed reasonably well with profits before tax of €11.3 million, presented in their 2011 financials yesterday at their AGM at the Exchange Buildings in Valletta.

Chairman Christian Lemmerich said that considering the challenging market conditions, the board felt that earnings per share of 18.3 cents and post tax return on equity of 9.3 per cent indicated an overall positive performance.

"The bank retained its cautious and sensible approach both in its lending activity as well as in its treasury operations. Given the poor visibility in the economic and financial world brought about by the sovereign debt crisis the bank preferred to invest in lower yielding yet secure investments," Lemmerich said.

Shareholders' funds increased by 4% while total assets of the group stood at €568 million.

The robust financial fundamentals of the group were evidenced by the bank's capital adequacy ratio of 20%, well above the required 8% as per Basel II.

The loan to deposit ratio was managed within prudential limits and at the end of the financial year stood at 67%.

A final gross dividend of €0.115 per share amounting to a total distribution of €4.151 million, was declared.

All other ordinary resolutions presented to the meeting were adopted. The Board of Directors of the Bank is composed of Christian Lemmerich (Chairman), Graham A. Fairclough, Kimon Palamidis, Joseph Said, Dimitris Spanodimos, Christos Stylianides and Michael Zammit.