Lombard Bank Group has registered a 34 per cent jump in profit before tax in 2024, reaching €19.4 million. 

According to its financial statements, there were several key drivers in the bank’s healthy performance: Higher net interest income; increased non-interest revenues; enhanced operational efficiency; and a release in expected credit losses.

Gross interest revenues increased by 13 per cent to reach €38.1 million (up from 2023 at €33.7 million). This was driven by growth in customer lending. Treasury activities also contributed significantly to the rise in interest income, reflecting higher market interest rates. 

Interest expense increased by 39 per cent to €10.9 million (up from €7.8 million in 2023), mainly due to improved interest rates paid on longer-term fixed deposits. Net interest income at €27.3 million was 5 per cent higher than the previous year. Net fee and commission income increased by 23 per cent to reach €6.4 million driven by higher activity across most business lines. Postal sales and other Revenues increased to €39.2 million mainly attributable to growth in inbound volumes as well as tariff revisions. The mail company attributed this success to furthering total last-mile parcel volume deliveries in order to achieve its results.

Other revenues were generated from document management, bill collection, financial and insurance services. 

Operating income increased by six per cent to €74.3 million from €70.4 million in 2023. Employee compensation and benefits rose by nine per cent to €26.5 million amid a tight labour market and inflationary pressures. Cost increases were mainly attributable to a review in salaries and wages as well as rise in number of employees. Other operating costs declined by ten per cent to €24.4 million compared to €27.2 million in the corresponding period of the previous year, reflecting effective cost management and enhanced operational efficiencies. 

Cost efficiency ratio of the bank was 54.5 per cent from 53.9 per cent in 2023, influenced by higher human resources costs and continued investment in IT systems, countering the positive impact of increased revenues. For the bank, the ratio was 73.5 per cent (down from 77.7 per cent the previous year), reflecting the nature of the postal services industry, which is characterised by high volume, low margins, and significant human resource requirements.

Director's reflection

The bank's directors said the group entered the 2025 with a stronger capital base, allowing it to expand operations and meet the demand for commercial and retail credit along with a broad range of other services. Growth remained consonant with the bank’s strategic priorities, anchored in prudence, sustainability and measured progress, ensuring alignment with its long-term vision and the evolving needs of customers. 

Investment in human resources, technology and operational infrastructure remained a strategic priority. The successful conclusion of a new Collective Agreement introduced improved terms and benefits for staff, reinforcing the bank’s intention to talent retention and development. Besides business needs and enhancement of operational efficiency, technology-related projects continued to be driven by regulatory requirements. The implementation of SEPA Incoming Instant Payments marked a significant step forward in transaction efficiency, while work progresses on the core banking system transformation project. 

Meanwhile, sustainability-related initiatives advanced in line with regulatory expectations. Further investments in other areas such as cybersecurity and infrastructure modernisation continued, reinforcing the Bank’s long-term resilience and ability to navigate an evolving financial environment. 

MaltaPost plc 

Notably, Lombard Bank Group’s subsidiary, MaltaPost plc reported a considerable improvement in profit before tax, reaching €4.7 million, a 102 per cent growth compared to the previous year. This contributes a big contribution to the bank’s performance. 

At MaltaPost plc, its financial year was a successful one with planned objectives mostly achieved. In a rapidly evolving postal and logistics landscape, both locally and globally, MaltaPost plc continued to adapt by making strategic investments, with particular emphasis on enhancing the last-mile delivery network. Additionally, customer service remained a priority, alongside the continued growth of the insurance and document management business. MaltaPost remains an important contributor to the Group’s financial performance. For the financial year ended September 2024, MaltaPost plc realised a pre-tax profit for the year of €4.7 million (a jump from €2.3 million in 2023). 

The board of directors further resolved to recommend that the AGM approves, subject to regulatory approval, the payment of a final gross dividend of 3.40 cent (net dividend of 2.21 cent) per nominal €0.125 share which will be paid on 10th July 2025 to shareholders appearing on the bank’s register of shareholders as at 26 May 2025, the last trading date being 22 May 2025.