Lidion Bank reported a sharp increase in profitability during the first six months of 2026, with profit after tax rising by nearly 70 per cent as the bank continued to grow its balance sheet and strengthen its capital position.
The bank posted a profit before tax of €2.1 million for the six months ended 30th June 2026, up from €1.3 million in the corresponding period last year. Profit after tax increased to €2.04 million from €1.2 million, while net operating income rose to €5.9 million from €4.8 million.
Interest income increased to €8.78 million from €7.58 million a year earlier. However, higher interest expenses, which rose to €3.44 million from €2.30 million, meant net interest income remained broadly stable at €5.34 million. Net fee and commission income also edged higher to €797,271.
The improvement in earnings was supported by significantly lower impairment losses, which declined to €199,847 compared with €1.3 million during the first half of 2025. Employee costs increased to €1.9 million from €1.64 million, while total operating expenses rose to €3.79 million.
Lidion Bank's total assets grew to €412 million as at 30th June 2026, up from €391 million at the end of December 2025. Customer loans increased by more than €12 million to €70.5 million, while balances held with the Central Bank of Malta and cash equivalents rose to €226.4 million. Customer deposits also increased, reaching €378.2 million from €355.6 million six months earlier.
The bank said its liquidity and capital position remained strong. The Liquidity Coverage Ratio stood at 160 per cent and the Net Stable Funding Ratio at 166 per cent, while the total Capital Adequacy Ratio improved to 22.88 per cent from 21.61 per cent at the end of 2025. The Tier 1 Capital Ratio also increased to 18.93 per cent from 17.75 per cent.
The board resolved to declare a gross interim dividend of €0.1388 per share, equivalent to a total gross dividend payout of €964,339 and representing a 45 per cent payout ratio from profit after tax. The dividend remains subject to the necessary regulatory non-objections and prudential requirements.
During the period, the bank generated €11.6 million in net cash from operating activities and ended June with cash and cash equivalents of €226.4 million.
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Nicole Zammit
When she’s not writing articles at work or poetry at home, you’ll find her taking long walks in the countryside, pumping iron at the gym, caring for her farm animals, or spending quality time with family and friends. In short, she’s always on the go, drawing inspiration from the little things around her, and constantly striving to make the ordinary extraordinary.
