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Following hot on the heels of HSBC Bank Malta’s announcement of a 56.5 per cent increase in its half year profits, two other Malta Stock Exchange listed financial services companies – Lombard Bank and The Global Group – this week posted positive interim results.
The Global Financial Services Group on Friday announced a whopping 49.3 per cent pre tax profit net for the first six months of the year of Lm306,782.
Commenting on the results Global Group Chairman Christopher J. Pace looks forward to the future. “The results achieved are very encouraging and should stand us in good stead for the second half of the year. The diversified revenue streams/business underline the inherent strength of the Global Group and we believe we are on track to delivering good year end results to our shareholders. Our strong Balance Sheet and Malta’s EU membership allow us to pursue international markets with a greater degree of strength and confidence.”
The six months trading figures were characterised by improved turnover levels across the Group with an increase of 12.7 per cent totalling Lm2,672,354 compared to Lm2,369,733 during the same period in 2003.
The Group also reports solid growth in sales in a competitive market, combined with on-going cost control initiatives and re-structuring of various operations have all contributed to the improvement in the Group’s results.
Over the first half of the year, the Group successfully launched Capital Guaranteed and Single Premium products through its subsidiary companies - Globe Financial Management Ltd and British American Insurance Co. (Malta) Ltd. The Group also formalised its property division through the creation of Quadrant Ltd – a property consultancy and management company.
In a statement released with its financial statements, The Global Group explains it is “constantly evaluating a number of business opportunities both locally and overseas in a bid to strengthen further its net asset base and diversify revenue streams”.
The Group’s net assets as at 30 June 2004 stood at over Lm9 million – a significant improvement over 2002, when the Group’s net asset base was of Lm2.5 million.
The Global Group employs just over 110 employees and is made up of Globe Financial Management Ltd, British American Insurance Co. (Malta) Ltd, BUPA Agencies Ltd, Globe Fund Advisors Ltd, and MY Insurance Brokers Ltd, all of which are licensed by the Malta Financial Services Authority. The Group also includes Quadrant Ltd, which is a property management and consultancy company.
Lombard announces Lm1.1million interim pre tax profits
Earlier this week Lombard Bank Malta announced pre tax profits of Lm1.094 million for the first half of the year. The Bank reports that Net Interest Income for the period increased by 14 per cent to Lm1.65 million and, in spite of strong competitive pressures and generally prevailing low interest rates, the Bank increased its Net Interest Margin from 34 per cent in 2003 to 40 per cent.
An increase in fee and commission income of 22 per cent for the period was complemented by a 34 per cent increase in foreign exchange trading profits. As a result, Operating Income is up from Lm1.82 million in 2003 to Lm2.15 million, an increase of 18 per cent. Administrative expenses are up nine per cent, in large part due to increases in staff costs as well as overheads necessitated by upgrading of systems and operations.
The charge for Net Impairment Losses of Lm43,000 is down from 2003’s Lm86,000. Based on a post tax profit of Lm708,000 for the period (2003 – Lm468,000), earnings per share work out at 17.5 cents (2003 – 11.7 cents). Customer Deposits are marginally down on December 2003 to Lm162 million. Loans and Advances to Customers are up by seven per cent at Lm61.3 million denoting an appreciable increase in credit activity for the period under review.
The Bank’s own liquidity holdings continue to remain high. Shareholders’ Funds increased to Lm12.4 million, resulting in a solvency (risk-asset) ratio of about 20 per cent, comfortably above the regulatory minimum of 8 per cent.
Aggregate Memorandum Items of Lm25.6 million reflect the Bank’s diversity of business, which includes forward exchange contracts, fiduciary transactions and guarantees on behalf of third parties. As at 30 June 2004 Total Assets stood at Lm182 million.
The Board of Directors noted how the Bank’s strong performance continues to be driven by robust operating fundamentals, prudent management and a high quality customer base.
The Bank is in the course of a significant upgrade in its technology and the Board is optimistic that this will feature as a main business driver in the coming years.
For the second part of the current financial year the Board is confident that the emphasis on a selective business approach will sustain the delivery of a strong earnings performance and increased shareholder value.
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