Lombard has most successful year to date
Lombard Bank has announced profits before tax of Lm2.54 million for the financial year ended 31 December 2004 - an increase of 18 per cent over 2003.
The Board of Directors noted that the strong performance, which is the most successful so far, continues to prove the solid foundations of the Bank’s business. With the commitment of its staff, the loyalty of its customers and continued support of its shareholders the Bank is well positioned to meet future challenges.
The Bank increased its Net Interest Income to Lm3.67 million while Administration Expenses, at Lm1.93 million, were mainly due to anticipated staff costs. The Bank’s Cost/Income ratio, at an efficient level of 43.2 per cent, compares favourably with last year’s 49.3 per cent. The result was achieved despite the challenges of economies of scale faced by the Bank.
Loans and Advances to customers are up by 20 per cent at Lm69.1 million, denoting an appreciable increase in credit activity. Continual monitoring of the quality of the Bank’s lending led to an improvement in net impairment losses on loans and advances.
Based on a post-tax profit of Lm1.56 million for the financial year (2003: Lm1.39 million), earnings per share (EPS) work out at 38 cents (2003: 34.7 cents). Shareholders’ Funds increased by 14 per cent to Lm13.3 million. Return on average shareholders funds (ROE) pre-tax, increased from 19.8 per cent to 20.4 per cent, while Total Assets stood at Lm183 million.
The Board of Directors is proposing a final gross dividend of 15 cents per share for approval by the Annual General Meeting. As in previous years, the Board will recommend that shareholders be given the option of receiving the dividend either in cash or by the issue of new shares. Consistent with the Bank’s policy, the attribution price (at which the new shares to be issued will be determined) has been established as the trade weighted average price of the Bank’s shares for the three months up to and including 17 February 2005. If approved by the Annual General Meeting, the dividend will be paid to all registered shareholders on 28 February 2005.