Lombard Bank reports €12.9m profit before tax in first half of 2025

Lombard Bank Malta p.l.c. has announced a profit before tax of €12.9 million for the Group in the first half of 2025, up from €11.4 million in the same period last year. The Bank’s standalone profit before tax, however, edged lower to €9.5 million compared with €10.5 million in 2024.

The improved group results were driven by higher operating income, a release of expected credit losses, and stronger contributions from subsidiary MaltaPost, which recorded a €3.2 million profit before tax — a 28% increase year-on-year. Additionally, the Group benefitted from a one-off €2.4 million gain from the disposal of assets by an associate company.

Gross interest revenues grew 7% to €19.7 million, reflecting growth in customer lending. This was partly offset by weaker treasury returns amid declining market interest rates. Meanwhile, interest expense rose 30% to €6.6 million due to competitive rates on fixed deposits, resulting in a slight 1% dip in net interest income to €13.1 million. Fee and commission income remained stable at €2.8 million, while postal sales and other revenues rose by 5% to €21.4 million, supported by MaltaPost’s “One Delivery” service.

Operating income increased by 2% to €38.1 million, with operating costs contained at €26.8 million. Employee expenses climbed 8% to €14.2 million, reflecting Malta’s competitive labour market, while other operating costs declined marginally due to efficiency gains.

The Group’s financial position remained robust, with loans and advances to customers rising 4% to €903.6 million. Customer deposits dipped slightly to €1.1 billion, pushing the loan-to-deposit ratio to 81.6% from 77.9% at year-end 2024. Equity attributable to shareholders grew 3% to €215.9 million, with net asset value per share standing at €1.40. Earnings per share rose to €0.06 from €0.04 a year earlier.

Lombard’s total capital ratio stood at 19.2%, well above regulatory requirements. Management confirmed that investment in retail expansion, technology upgrades, and wealth management services remains a priority, while the proprietary funds project has been discontinued in favour of strategic alignment.

Looking ahead, the Bank expressed a cautiously optimistic outlook, citing Malta’s solid economic fundamentals, with growth forecast at 4% for 2025. The Group stated it remains well-positioned to pursue opportunities in line with its strategic priorities, while maintaining prudent risk management and a focus on sustainability.