Lombard Bank Malta plc – Interim Directors Statement
Lombard Bank Malta p.l.c. announced that during the period commencing 1 July 2014 up to 19 November 2014, no material events and/or transactions have taken place, other than mentioned in this and other Announcements, that would have an impact on the financial position of the Bank or the Group, such that would require special mention, disclosure or announcement pursuant to the applicable Listing Rules.
The prevailing difficult market environment continues to condition banking sector performance. According to the European Central Bank, geopolitical tensions remain severe and growth drivers appear weak, with macroeconomic adjustments, high unemployment and sluggish investment acting as a drag on economic activity. Though the Maltese economy nevertheless remains resilient, a number of factors are exerting pressure on domestic bank profitability.
These include narrowing interest margins, reflecting record low investment yields and high levels of liquidity, and slow loan growth. On the expenditure side, the effect of these factors is compounded by the growing burden of compliance and regulatory costs. Apart from its direct impact on profitability, the new EU regulatory regime is also likely to result in more cautious bank lending policies and perceptions of risk, with inevitable consequences for the economy.
This prospect is largely attributable to the regime’s relative inflexibility, which overlooks the internationally-recognised track record and the on-going resilience of Malta’s banks and their lending practices.
The prevailing difficult market environment continues to condition banking sector performance. According to the European Central Bank, geopolitical tensions remain severe and growth drivers appear weak, with macroeconomic adjustments, high unemployment and sluggish investment acting as a drag on economic activity. Though the Maltese economy nevertheless remains resilient, a number of factors are exerting pressure on domestic bank profitability.
These include narrowing interest margins, reflecting record low investment yields and high levels of liquidity, and slow loan growth. On the expenditure side, the effect of these factors is compounded by the growing burden of compliance and regulatory costs. Apart from its direct impact on profitability, the new EU regulatory regime is also likely to result in more cautious bank lending policies and perceptions of risk, with inevitable consequences for the economy.
This prospect is largely attributable to the regime’s relative inflexibility, which overlooks the internationally-recognised track record and the on-going resilience of Malta’s banks and their lending practices.
Throughout the period covered by this Announcement, Lombard Bank Malta p.l.c. continued to register high Liquidity and Capital Adequacy Ratios that comfortably exceed regulatory and prudential thresholds, while adhering to its traditionally cautious provisioning policy.
The Directors believe that the Bank remains well placed to meet customer needs while providing satisfactory returns to investors for this year.
To view the official company announcement, click here.