NEWS | Wednesday, 30 April 2008

Lombard Bank posts record €10.6 million profit

Charlot Zahra

Lombard Bank p.l.c. registered another record profit before tax of Lm4.566 million (€10.636 million) for 2007, representing an increase of 18% over the previous year.
The bank held its Annual General Meeting (AGM) last Thursday at The Chamber of Commerce in Valletta.
In his review of operations, Chairman C. Lemmerich pointed out that total operating income for the group increased by 34.1 per cent, while net interest margin remained strong at 52.8 per cent.
He also highlighted the bank’s robust balance sheet as a result of it consistently returning record annual profits. Earnings per share also increased by 19.7 per cent last year and reached 35.3 cents (€0.822) per share.
Another highlight for the bank in October 2007 was that Marfin Popular Bank of Cyprus had agreed to acquire from BSI SA as well as from other overseas shareholders a stake of around 43 per cent in Lombard.
The transaction was completed in February this year following receipt of regulatory approval.
Lemmerich said Lombard looked upon this as “a significant milestone” given that the alliance with Marfin stood to benefit all stakeholders. Marfin is present in 13 countries with a branch network of 415 offices and more than 8,000 staff.
He also informed shareholders that Lombard had increased its stake in postal operator Maltapost p.l.c. from 35 per cent to 60 per cent. This strategic investment also augured well for both Maltapost as well as the bank.
During the meeting, Lombard shareholders approved the bank’s Annual Report for the financial year ended 31 December 2007.
Shareholders also approved a resolution to declare a final gross dividend of €0.40 per share representing a final gross payment by the bank to shareholders of €3,451,491 (net €2,243,469), either in cash or by the issue of new shares.
The attribution price for the purpose of determining the new share allocation had already been set at €12.60.
Shareholders also approved a re-nominalisation of the bank’s share capital as well as a share split on a four to one basis.
Other resolutions that were approved by shareholders related to the reappointment of KPMG as the bank’s auditors and the establishment of the maximum annual aggregate directors’ remuneration.
The Board of Directors of the bank consists of C. Lemmerich as Chairman, and J.M. Demajo, G.A. Fairclough, J. Said, D. Spanodimos, C.J. Stylianides and M. Zammit as Directors.

[email protected]