Lombard Bank Malta p.l.c.
Annual Report and Financial Statements 2024
1
CONTENTS
Chairman’s Statement to the Members 2
Chief Executive Officer’s Review 4
Directors’ Report 8
Statement of Compliance with the Principles of Good Corporate Governance 69
Remuneration Report 79
Company Information 84
Financial Statements:
Statements of Financial Position 86
Income Statements 88
Statements of Comprehensive Income 89
Statements of Changes in Equity 90
Statements of Cash Flows 94
Notes to the Financial Statements 95
Additional Regulatory Disclosures 221
Five Year Summaries 253
Independent Auditor’s Report to the Shareholders of Lombard Bank Malta p.l.c.
Lombard Bank Malta p.l.c.
Annual Report and Financial Statements 2024
2
Chairman’s Statement to the Members
I am pleased to report that the Lombard Bank Group turned in another solid performance in 2024. Both members
of the Group, Lombard Bank Malta p.l.c (‘the Bank’) and MaltaPost p.l.c, made increased profits in the context of
a favourable operating and macroeconomic environment, which contributed to the achievement of the respective
business plan targets. The Group’s pre-tax profit amounted to €19.4 million compared with €14.5 million in 2023.
At the Bank the determined but prudent pursuit of sustainable growth remained the Board’s guiding principle. As
I had anticipated last year, the increase in capital resulting from the successful Rights Issue at the end of 2023
permitted the Bank to apply its healthy levels of liquidity to satisfy the demand for credit while remaining
compliant with regulatory capital requirements. The Bank’s lending operations, as shareholders are aware, are
traditionally the largest single source of revenue. Last year was no exception. Interest income from this activity
reflected the record increase of €114.4 million in the loan book as average interest rates were broadly unchanged.
This was supplemented by inflows from the Bank’s money market operations, which benefitted from the prevailing
positive interest rates, and by higher net fees and commission income.
These inflows were partly offset by interest paid out on deposits, which increased strongly by €100.6 million in a
further demonstration of customer trust. No less than €50 million of this amount were fixed deposits with a five-
to-eight-year term which carry more attractive rates, and are therefore more costly for the Bank, but are less
volatile and therefore represent a more stable source of funds.
These balance sheet movements gave rise to an 8% increase in the Bank’s total operating income to €35.6 million.
The Bank’s running costs absorbed just over 54% of this income, much the same as in the previous year. In line
with past trends, employee compensation and benefits accounted for about half of total expenditure. While the
staff complement was virtually unchanged, the recruitment and retention of qualified employees in a competitive
labour market necessarily entailed a higher cost. Compliance with regulatory requirements, and the maintenance
and upgrading of card services and IT systems also absorbed considerable human and financial resources.
These income and expenditure movements resulted in a profit before tax of €16.1 million, compared with €13.9
million in 2023, which took the Bank’s total equity to a new high of €202.8 million. On the basis of this performance
and in line with the proposal made at the time of the Rights Issue to distribute about one-third of annual profits,
the Board has decided to recommend an increased gross dividend of 3.40 cent per share.
The growth achieved in 2024 was supported by the Bank’s prudent and cautious management culture. This is
governed by our structured risk management framework and Risk Appetite Statement and again last year
contributed to the maintenance of strong fundamentals. These are reflected primarily in the Total Capital Ratio
and the Liquidity Coverage Ratio, which stood at 20.0% and 231.8%, respectively at year end. Both these ratios are
well above the minimum regulatory requirements, thus leaving room for further balance sheet growth. The
Leverage Ratio, another key indicator of exposure to risk, meanwhile stood at 13.9%, more than four times the
required level. Two other risk-mitigating factors were the further progress achieved in credit diversification,
particularly the increase in retail lending, mainly home loans, which now accounts for 33% of the loan book; and
high levels of collateral, on average equivalent to three times the amount of total lending.
Apart from being characterised by low-risk banking practices, the Bank’s business model places equal importance
on ensuring long-term sustainability. This for two reasons: first, to meet shareholder and customer expectations;
and second, to remain competitive in a fast-changing financial market. To this end, work continued during the year
on several initiatives designed to deliver more modern and cost-effective banking services. Most of these projects
involve investment in advanced technologies and operational systems. These included a round-the-clock instant
payments system, which allows the almost instantaneous transfer of funds between accounts; the replacement
of our core banking system, for which agreements are being reviewed and further updating of our KYC Platform
and transaction monitoring system, and of our cybersecurity infrastructure. Another aspect of the Bank’s efforts
to improve the customer banking experience was the further improvement of the facilities at our eleven branches.
We are also close to creating new investment opportunities with the launching of bond and equity funds.
Lombard Bank Malta p.l.c.
Annual Report and Financial Statements 2024
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Chairman’s Statement to the Members (continued)
Other projects are related to the Bank’s regulatory responsibilities, such as the updating of reporting systems; the
alignment of our policies with emerging regulations such as DORA; and implementation of the Action Plan to
achieve compliance with ESG obligations. The ongoing initiatives I have mentioned together constitute an integral
part of the gradual transformation of the Bank in accordance with the objectives of the Business Plan 2023 – 2025.
As I remarked in my introduction, MaltaPost p.l.c. also contributed to the Group’s positive performance in 2024.
Our subsidiary in fact registered a pre-tax profit of €4.7 million, compared with €2.3 million the previous year. The
continued evolution of the company into a tech-driven postal services provider is clearly producing the desired
results. Greater operational efficiencies were derived from strategic investments in logistics and e-commerce
services, in the company’s digital infrastructure and in making more services available online. The approval of
some tariff increases by the regulator also impacted the profit figure positively. Meanwhile, MaltaPost’s focus on
green technologies and on meeting its ESG obligations continued apace. Among developments in this area were
further additions to the company’s fleet of electrically-operated vehicles and improvements in the existing
photovoltaic system. We believe that MaltaPost is well positioned to exploit new opportunities for innovation and
growth while meeting its sustainability objectives and offering efficient postal services, and increasingly also
financial and insurance products.
You will recall that I have often spoken about the heavy burden of regulation. For a small bank like ours, the
growing cost of compliance is exacerbated by the insufficient application of the principle of proportionality to take
account of the Bank’s small size and conservative business model. It now seems that regulators have finally
acknowledged that regulation has become excessively onerous and is stifling innovation at the expense of
competitiveness. Earlier this year the ECB and the EC announced the imminent introduction of a significant easing
of regulation, including a far-reaching simplification of legislation on sustainable finance reporting and due
diligence. In Malta similar thinking seems to be developing within the national regulator. This was embodied in
the recent floating of a proposal whereby supervision of less complex banks in the EU would be scaled according
to each bank's size and risk profile, avoiding a repressive one-size-fits-all approach. The implied radical change in
banking regulation is welcome. It now remains for the new thinking to be translated into meaningful action.
On this occasion last year I said that the Board would continue to give close attention to the long-outstanding
matter of the disposal by the Qualifying Shareholder of its shares in the Bank. We have in fact stepped up our
efforts in this regard while reaffirming our belief that this is in the best interest of all stakeholders of the Group.
Apart from providing clarity to prospective investors, such a development is particularly desirable in the context
of the structural changes that are likely to materialise in the Maltese banking industry in the near term.
Looking back on another successful year during which all our key objectives were achieved, the Board believes
that we can face the future with confidence. We shall continue to apply the Bank’s time-tested business model to
the generation of sustainable growth for the benefit of our shareholders, customers and staff. Apart from our
belief that the Bank’s strategy is well suited to the evolving characteristics of the domestic financial market and
the expectations of the Maltese community we serve, our measured optimism is also comforted by the positive
outlook for the domestic economy, even though we do not discount the possibility of unexpected challenges
arising from geo-political events abroad.
In conclusion, on behalf of the Board I would like to express my gratitude to the Bank’s staff and management
team, ably led by the Chief Executive Officer, Joseph Said, for their decisive role in delivering the past year’s
encouraging results and in holding high the reputation of the Lombard brand. I would also like to thank my fellow
directors and all our stakeholders for their loyalty and support.
Signed on behalf of the Bank's Board of Directors on 16 April 2025 by Michael C. Bonello (Chairman) as per the
Directors' Declaration on ESEF Annual Financial Report submitted in conjunction with the Annual Report and
Financial Statements 2024.
Lombard Bank Malta p.l.c.
Annual Report and Financial Statements 2024
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Chief Executive Officer’s Review
The results for the financial year ended 31 December 2024 combine the financial performance of Lombard Bank
Malta p.l.c. and Redbox Limited which is the company holding the Bank’s shares in MaltaPost p.l.c.
Summary Overview - 2024
The year 2024 was generally a positive one in that besides an overall improved financial performance, the targets
set in the 2023 Rights Issue Prospectus were all achieved.
Our larger capital base and the widening of our market presence brought a higher number of relationships and
business across the main income lines of commercial, retail and transaction banking as well as wealth
management. Growth was always aligned with our approach to business and strategic priorities, which are
underscored by prudence and measured progress.
While higher interest rates from the prevailing monetary policies of the ECB in 2024 were a positive influence on
the profitability of banks, particularly those benefitting from high liquidity, we applied our liquidity to the granting
of credit always within the limits of our appetite. Benefit from these higher rates on residual liquidity was passed
on to our customers via longer-term deposits. This higher deposit cost, together with maintaining keen rates on
our commercial and retail lending, kept our net interest margins in check.
The Maltese economy continued to perform well, maintaining growth rates among the highest in Europe primarily
driven by services, exports and domestic demand. This positive macro-economic environment was a catalyst for
resilient performance on both sides of our balance sheet. The NPL ratio, strictly calculated in terms of Banking
Rules, rose over that of last year. That said we are confident that we have a healthy credit portfolio and remain
focused on maintaining a sound loan book, never compromising on our lending principles while also securing
conservative collateral positions, as appropriate.
Engagements with the regulator were several, particularly in areas concerning the adoption of CRR3, DORA and
CSRD. In this regard, considerable resources, time and effort continued to be directed towards meeting deadlines.
ESG-related initiatives remained consistent with the general regulatory mandates and internal sustainable finance
targets.
MaltaPost remains an important contributor to the Group’s financial performance. The transformative process of
our subsidiary proceeded as planned. Following months of discussions, the Malta Communications Authority
approved an Automated Tariff Revision Mechanism, which allows MaltaPost to carry out tariff revisions for those
services falling under the Universal Service Obligation allowing better financial planning at MaltaPost. E-commerce
business continued to underpin the strategy for growth, where further investment in the last-mile parcel delivery
activity was made. For the financial year ended September 2024, MaltaPost realised a pre-tax profit of €4.7million
(2023: €2.3million).
Review of Financial Performance
The Lombard Bank Group (‘the Group’) registered a strong performance for FYE2024 with Group Profit before Tax
reaching €19.42 million, an increase of 34% over the previous year.
Loans and Advances to Customers rose to €872.68 million generating a 13% increase in gross interest revenues of
€38.14 million. Higher money market interest rates also contributed to the growth in interest income. Interest
Expense was up by 39% reflecting both a higher volume of customer deposits, which exceeded €1,120 million, and
the impact of higher rates offered on customer deposits. Net Interest Income rose by 5% to €27.26 million over
the previous year.
Net Fee and Commission Income increased by 23% to reach €6.37 million, driven by higher activity across most
business lines.
Lombard Bank Malta p.l.c.
Annual Report and Financial Statements 2024
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Chief Executive Officer’s Review (continued)
Group Employee Compensation and Benefits rose by 9% to €26.53 million, while Group operating costs were
reduced by 10% to €24.43 million - a reflection of effective cost management and enhanced operational
efficiencies. The Bank’s Cost Efficiency Ratio was 54.5% (FYE2023: 53.9%), influenced by higher cost of human
resources and continued investment in IT systems. For the Group, the ratio was 73.5% (FYE2023: 77.7%), reflecting
the nature of the postal services industry, which is characterised by high volume, low margins, and significant
human resources requirement.
Impairment Allowances, as determined by International Financial Reporting Standard 9 (IFRS 9), stood at €9.03
million. The change in ‘expected credit losses’ (ECL) resulted in a net release of €0.93 million compared to a net
charge of €1.26 million in the previous year. This release mainly resulted from lower charges on customer loans
and advances classified in Stages 1 and 2 and was spread across the lending portfolio.
Liquidity and Own Funds
The Bank relies on a diversified liquidity funding base which has proven to be relatively stable, largely from local
retail deposits, with emphasis placed on long-term tenors.
Total Assets stood at €1,388.42 million (2023: €1,265.13 million), while Equity Attributable to the Shareholders of
the Bank stood at €209.45 million. Net Asset Value (NAV) per share stood at €1.36 (2023: €1.23). Return on Assets
Treasury Management
While positive interest rates provided opportunities to apply liquidity in interest-earning instruments, our main
objective remained capital protection. We engaged mostly in short-term interbank transactions and only with
reputable counterparties and local government, where our positions consisted mainly of Government of Malta
Treasury Bills and Stocks. We continued to cultivate healthy counterparty relationships, which are important for
our access to international currency and money markets via our network of correspondent banks.
Risk Management
Managing risk remains the primary goal of our risk management processes. To this end we enhanced our
comprehensive Risk Management Framework that provides a structured approach to identifying, monitoring, and
measuring potential risks, as well as implementing necessary measures based on our Risk Appetite.
Our independent Risk Management function forms part of the Second Line in our Three Lines of Defence model.
It directly reports to the Audit & Risk Committee and the Board of Directors, providing regular updates on various
risk areas and overseeing key metrics related to the tolerance limits defined in our Risk Appetite Statement. This
Statement is a dynamic document that is reviewed and updated as necessary, adapting to changes in policy and
prevailing macroeconomic conditions. Established limits ensure that the Bank can operate effectively, while
protecting its assets and depositors’ funds, while remaining compliant with statutory obligations.
At the end of 2024, the Bank’s Total Capital Ratio (‘TCR’) stood at 20.00%, exceeding regulatory requirements. This
robust capital position supports the Bank's growth strategy and caters for potential increases in further regulatory
capital requirements.
The Leverage Ratio, which is regularly monitored, indicates the Bank’s exposure to excessive leverage. This ratio
stood at 13.89% at the end of 2024, well above the minimum regulatory requirement of 3%.
Our internal policies mandate that the Bank always holds adequate liquidity to meet obligations as they arise. Key
liquidity metrics are closely monitored, with the Liquidity Coverage Ratio (‘LCR’) and the Net Stable Funding Ratio
(‘NSFR’) standing at 231.82% and 147.00% respectively at the end of 2024, both significantly above minimum
regulatory requirements and within our Risk Appetite. Also, our Loan-to-Deposit Ratio at 77.8%, reflects the Bank's
prudent approach to liquidity management.
Lombard Bank Malta p.l.c.
Annual Report and Financial Statements 2024
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Chief Executive Officer’s Review (continued)
The Internal Capital and Liquidity Adequacy Assessment Processes (ICAAP/ILAAP) are critical components of our
Capital and Liquidity planning. These processes are reviewed annually to ensure that our funding needs align with
the scale, nature and complexity of our operations. In line with our stress-testing framework, both capital and
liquidity positions are assessed under stress scenarios to ensure the Bank remains resilient to extreme, though
plausible shocks.
Human Resources
We concluded with the Malta Union of Bank Employees a Collective Agreement for the period 2025 – 2028. This
latest Agreement includes improved terms and benefits for staff and new benefits such as a workplace pension
plan, further reductions in weekly working hours and improved remuneration. We are sensitive to the importance
of offering attractive compensation and reward packages, not only to ensure staff retention but also to attract
others considering embarking on a banking career and choosing Lombard. We remain committed to offering a
work environment that meets with the priorities and aspirations of staff, whether these be career progression or
work-life balance goals.
The local labour market continues putting pressure on our recruitment efforts, besides presenting challenges to
retain staff. Whereas, of itself, this is a positive indication, the services sector in particular, remained very
competitive both for roles in specialised areas as well as for general staff.
The investment in the skills and development of our staff by way of internal and external training and development
opportunities coupled with on-the-job training, was ongoing. Our staff remain key in the achievement of results
and the success of the Group.
The FTE staff complement at the Bank stood at 206 as at end of 2024, while that of the Group reached 964.
Projects
Technology-driven projects were predominant in 2024, some to implement functionality to meet regulatory
mandates while others to satisfy business needs and enhance operational efficiency.
We made a significant investment to implement the SEPA Incoming Instant Payments, allowing for the transfer of
euro funds between accounts almost immediately. Instant payments are available on a 24/7 basis. This enhanced
service stands to benefit customers by way of more efficient and reliable payments.
Following an agreement with VISA, we embarked on a project to become VISA exclusive issuers. For many years
we issued both MasterCard and VISA cards. However, our volumes coupled with increasing costs did not justify
issuing cards on both brands. Once fully implemented, we should benefit from cost savings, without weakening
our cards offering.
Work on our core banking system project continued in earnest. The project is targeted to transform our core
transaction processing systems as well as customer engagement interfaces. The underlying technology will also be
modernised, using cloud technologies.
Investment in other areas such as cybersecurity and infrastructure modernisation was ongoing.
We issued the 2024 Melita gold bullion coins in conjunction with the Central Bank of Malta. Melita coins have
become sought-after also internationally.
MaltaPost proceeded with investment in mail-sorting hubs that accommodate larger mail items. Also, its electric
delivery vehicles now exceed 160 in number, probably the largest corporate zero-emission fleet on the Islands.
Lombard Bank Malta p.l.c.
Annual Report and Financial Statements 2024
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Chief Executive Officer’s Review (continued)
Corporate Social Responsibility
The Group maintained its community involvement by supporting various initiatives and entities among them the
Malta Community Chest Fund, Id-Dar tal-Providenza, Volserv and others. We also sponsored a water-conservation
project at a Heritage Malta site. This support programme also aligns with our ESG initiatives. We also continue
curating our buildings of architectural value, which also serve as offices. MaltaPost maintained its commitment to
run the Malta Postal Museum which has now become firmly established as part of Malta’s heritage destinations.
Outlook
Indicators in early 2025 suggest that we are well-placed to continue along the growth trajectory established in
2024 and in line with our targets. We have focused on sustainable growth, ensuring that our operations align not
to just financial goals but also responsibly to the communities we serve and to the rightful expectations of our
shareholders.
We remain fully committed to uphold our prudent and selective approach to business; to preserve a robust
financial position; to invest in advanced technology; to prioritise customer-centric solutions and to foster a
healthy, rewarding and pleasant work environment for our staff.
While poised to embrace the evolving banking environment with confidence, we will continue to explore new
avenues for growth, leveraging data analytics and digital transformation to enhance our services. We shall
continue to be guided by our commitment to responsible banking to steer away from short-term gains as we aim
to innovate while maintaining the trust placed in us.
We therefore look ahead with cautious optimism on the prospects for our business, especially in the light of the
expected positive performance of the Maltese economy, even though international developments may yet
present unexpected challenges. With this in mind, we shall always err on the side of caution and in the best
interests of all stakeholders.
Signed on behalf of the Bank's Board of Directors on 16 April 2025 by Joseph Said (Chief Executive Officer) as per
the Directors' Declaration on ESEF Annual Financial Report submitted in conjunction with the Annual Report and
Financial Statements 2024.
Lombard Bank Malta p.l.c.
Annual Report and Financial Statements 2024
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Directors’ Report
The Group
The Lombard Bank Group (‘the Group’) consists of Lombard Bank Malta p.l.c. (‘the Bank’), Redbox Limited, Lombard
Select SICAV p.l.c. and the MaltaPost p.l.c. Group.
Review of Performance
An overview of the development in the Bank’s business and that of its subsidiaries during the year under review
together with an indication of likely future developments may be found in the ‘Chief Executive Officer’s Review’ of
this Annual Report.
Group profit before tax for the financial year ended 31 December 2024 amounted to €19.4 million (2023: €14.5
million). Profit attributable to equity holders of the Bank was €11.3 million (2023: €9.1 million).
Net interest income at €27.3 million was 5.4% higher than the previous year. Growth in the lending portfolio,
combined with higher interest earned on money market deposits contributed to this increase. Net fee and
commission income increased by 23.0% driven by higher activity across most business lines.
Net loans and advances to customers increased by 15.1% to €872.7 million. Customer deposits increased by 9.9%
to €1,120.0 million. Group post tax return on equity for 2024 remained steady at 5.6% compared with 2023. Group
total assets increased to €1,388.4 million (2023: €1,265.1 million). Total capital ratio at 20.0% (2023: 21.0%)
exceeded the minimum regulatory requirements.
Bank cost efficiency ratio was 54.5% (2023: 53.9%), influenced by higher human resources costs and other operating
costs countering the positive impact of increased revenues.
Lombard Bank Malta p.l.c.
Annual Report and Financial Statements 2024
9
Directors’ Report (continued)
Expected Credit Losses (‘ECL’) as defined and determined by International Financial Reporting Standard 9 (IFRS 9)
resulted in a release of €0.9 million compared to a net charge of €1.3 million taken in the previous year. This release
mainly resulted from lower charges taken on customer loans and advances classified in Stages 1 and 2 and was
spread across the Bank’s lending portfolio.
For MaltaPost p.l.c, FY 2024 was a successful year when planned objectives were in the main achieved. In a rapidly
evolving postal and logistics landscape, both locally and globally, MaltaPost continued to adapt by making strategic
investments, with particular emphasis on enhancing the last-mile delivery network in the logistics field. Additionally,
customer service remained a priority, alongside the continued growth of the insurance and document management
business. MaltaPost continues to be an important contributor to the Group’s financial performance, registering a
pre-tax profit of €4.7million for FY 2024 (2023: €2.3 million).
Equity attributable to equity holders of the Bank stood at €209.4 million (2023: €190.4 million). Group net asset
value (NAV) per share stood at €1.36 (2023: €1.23). Group earnings per share (EPS) worked out at €0.07.
Profits after taxation of €12.2 million and €10.2 million for the Group and the Bank respectively, were registered for
the twelve months ended 31 December 2024.
Based on the above, a gross dividend of 3.40 cent per nominal €0.125 share (net dividend of 2.21 cent for a total
amount of €3,416,000) for the twelve months ended 31 December 2024 is being proposed for approval by
shareholders at the 2025 Annual General Meeting, subject to regulatory approval.
Board of Directors and Senior Management
The composition of the Bank’s Board of Directors and Senior Management is shown in the section on ‘Company
Information’ on page 84 of this Annual Report and further information is given in the ‘Statement of Compliance with
the Principles of Good Corporate Governance’.
Risk Management
The Financial Risk Management note to the Financial Statements (note 2), illustrates the process of how the Group
identifies and manages its risks and uncertainties. The main categories of risk described in this note are credit risk,
market risk, liquidity risk and operational risk. The same note includes extensive detail of the processes undertaken by
the Bank to manage these risks.
The Directors are required by the Companies Act, 1995 to prepare financial statements which give a true and fair
view of the state of affairs of the Group and the parent company as at the end of each reporting period and of the
profit or loss for that period.
Statement of Directors’ Responsibilities for the Financial Statements
In preparing the financial statements, the Directors are responsible for:
•
ensuring that the financial statements have been drawn up in accordance with International Financial Reporting
Standards as adopted by the EU;
•
selecting and applying appropriate accounting policies;
•
making accounting estimates that are reasonable in the circumstances; and
•
ensuring that the financial statements are prepared on the going concern basis unless it is inappropriate to
presume that the Group and the parent company will continue in business as a going concern.
Lombard Bank Malta p.l.c.
Annual Report and Financial Statements 2024
10
The Directors are also responsible for designing, implementing and maintaining such internal controls as they deem
necessary to enable the preparation of financial statements that are free from material misstatement, whether due
to fraud or error, and that comply with the Companies Act, 1995 and the Banking Act, 1994. They are also responsible
for safeguarding the assets of the Group and the parent company and hence for taking reasonable steps for the
prevention and detection of fraud and other irregularities.
The financial statements of the Bank for the year ended 31 December 2024 are included in this Annual Report and
are available on the Bank’s website and on the website of the Malta Stock Exchange (the Officially Appointed
Mechanism). The Directors are responsible for the maintenance and integrity of the Annual Report on the website
in view of their responsibility for the controls over, and the security of, the website. Access to information published
on the Bank’s website is available in other countries and jurisdictions where legislation governing the preparation
and dissemination of financial statements may differ from requirements or practice in Malta.
Statement of the Directors pursuant to Capital Markets Rule 5.68
The Directors confirm that, to the best of their knowledge:
•
the financial statements give a true and fair view of the financial position of the Bank as at 31 December 2024,
and of its financial performance and its cash flows for the year then ended in accordance with International
Financial Reporting Standards as adopted by the EU; and
•
the Annual Report includes a fair review of the development and performance of the business and the position
of the Bank, together with a description of the principal risks and uncertainties that they faced.
Investment Services Rules for Investment Service Providers
In accordance with R1-2.2.3 of the Investment Services Rules for Investment Service Providers regulated by the Malta
Financial Services Authority, licence holders are required to disclose any regulatory breaches of the Rules or other
regulatory requirements in this Annual Report. The Directors confirm that during the reporting period, there were
no breaches of the Investment Services Rules or other regulatory requirements, which were subject to an
administrative penalty or other regulatory sanction other than those in the public domain.
Information provided in accordance with Capital Markets Rule 5.70.1
There were no material contracts to which the Bank, or any of its subsidiaries were a party, and in which any one of
the Bank’s Directors was directly or indirectly interested, except for transactions disclosed in the notes to the
financial statements.
Capital Markets Rules – Disclosures
In terms of Capital Markets Rule 5.64, the Directors are required to disclose the following information.
As at the Annual General Meeting held on 27 June 2024, the authorised share capital of the Bank was €37,500,000
divided into 300,000,000 Ordinary Shares of a nominal value of €0.125 each. As at that date the issued and fully
paid-up share capital of the Bank was €19,321,532.88 divided into 154,572,263 ordinary shares of a nominal value of
€0.125 each, all of one class. As at 31 December 2024, the authorised and issued share capital remained unchanged.
Lombard Bank Malta p.l.c.
Annual Report and Financial Statements 2024
11
Directors’ Report (continued)
Amendments to the Memorandum and Articles of Association of the Bank are effected in conformity with the
provisions in the Companies Act, 1995. Furthermore, in terms of the Articles of Association:
•
Directors may be authorised by the Bank to issue shares subject to the provisions of the Memorandum and
Articles of Association and the Companies Act;
•
Directors may decline to register the transfer of a share (not being a fully paid share) to a person of whom they
do not approve;
•
Directors may decline to recognise any instrument of transfer, unless accompanied by the necessary evidence;
•
no registration of transfers of shares shall be made and no new particulars shall be entered in the register of
members when the register is closed for inspection; and
•
the Bank may, from time to time, by extraordinary resolution reduce the share capital, any Capital Reserve Fund,
or any Share Premium Account in any manner.
Currently there are no matters that require disclosures in relation to:
•
holders of any securities with special rights;
•
employee share schemes;
•
restrictions on voting rights or relevant agreements thereto; or
•
significant agreements to which the Bank is a party, and which take effect, alter or terminate upon a change of
control of the Bank.
The Remuneration Report on page 79 refers to the financial contributions towards retirement gratuities that the
Board of Directors approves from time to time. The same Board had previously resolved that a retirement gratuity be
eventually paid on an ex-gratia basis to the Chief Executive Officer on his retirement.
The rules governing the changes in Board membership are contained in the ‘Statement of Compliance with the
Principles of Good Corporate Governance’.
Shareholders holding five per cent (5%) or more of the share capital of the Bank:
Shares in Lombard Bank Malta p.l.c.
31 December 2024
31 March 2025
National Development & Social Fund (NDSF)
49.01%
49.01%
Virtu Holdings Ltd
9.89%
9.89%
First Gemini p.l.c.
5.31%
5.31%
Lombard Bank Malta p.l.c.
Annual Report and Financial Statements 2024
12
Directors’ Report (continued)
Directors’ Interest in Group Companies
Joseph Said, who is a Director of the Bank, is also a Director of the following companies that have a shareholding
in the Group as follows:
Shares in Lombard
Bank Malta p.l.c.
at 31 December 2024
Shares in MaltaPost
p.l.c.
at 31 December 2024
Safaco Ltd
147,611
96,991
First Gemini p.l.c.
8,201,836
78,775
Shares in Lombard
Bank Malta p.l.c.
at 31 March 2025
Shares in MaltaPost
p.l.c.
at 31 March 2025
Safaco Ltd
147,611
96,991
First Gemini p.l.c.
8,201,836
78,775
In addition, Joseph Said holds preference shares in Safaco Ltd.
Audit & Risk Committee
The Audit & Risk Committee is composed of non-executive Directors and is intended to ensure effective internal
controls, compliance and accountability. The Committee also acts to ensure that high ethical standards are
maintained, as explained in the ‘Statement of Compliance with the Principles of Good Corporate Governance’ in
another section of this Annual Report.
Auditors
PricewaterhouseCoopers have expressed their willingness to continue in office as auditors of the Bank and a
resolution proposing their reappointment will be put at the forthcoming Annual General Meeting.
Events occurring after the end of the accounting period
There were no significant events affecting the Bank or any of its subsidiary undertakings which have occurred after 31
December 2024.
Other Information
Non-Financial Statement
The Companies Act requires that a non-financial statement be included in this report containing information on the
Group’s development, performance, position and impact of its activity, relating to, as a minimum, environmental,
social and employee matters, respect for human rights, anti-corruption and bribery matters and this in the form of
particular disclosures on certain aspects.
Lombard Bank Malta p.l.c.
Annual Report and Financial Statements 2024
13
Directors’ Report (continued)
1.
Business Model
The Bank is a Malta-based bank and for financial stability purposes is considered by the Central Bank of Malta as a core
domestic bank, catering mostly for the local economy, and therefore actively supporting economic sectors in their
activities. The lending activity of the Bank consists mainly of Commercial and Retail Lending. Commercial Lending is
largely characterised by loan facilities to the commercial sector with short-to-medium-term maturities. Retail Lending
consists mainly of home loan facilities with medium-to-long-term maturities. Asset diversification strategy is intended
to increase the resilience of the Bank’s loan book and its lending capacity. The Bank is a Tied Insurance Intermediary for
long-term insurance business and can therefore provide its Home Loan customers a comprehensive service offering.
Lending is funded by a diversified deposit base and underpinned by solid financial fundamentals and stakeholder value.
The Bank has never relied, and does not intend to rely, on the interbank market for its funding requirements. In line with
strategic priorities the Bank seeks further prudent growth, while continuing to adhere to the highest standards of
professional conduct, as evidenced by the quality of its assets and relationships. The Bank undertakes risk review
processes to ensure that business is in line with its risk appetite frameworks and its compliance standards, which
themselves are also reviewed periodically in light of regulatory developments and emerging risks. The Bank firmly
believes that physical presence remains an important element of its delivery channels, more so in respect of customers
who demand a personalised service, being the service delivery ethos of the Bank. In this manner the Bank seeks to foster
new relationships across a wider demographic spectrum. Presently the Bank operates 11 branches. A further 2 Bank
owned properties are earmarked to open as branches at the opportune time.
The Bank’s business model seeks to build stakeholder value by delivering financial services and solutions in a
prudent manner and by setting the highest standards in professional behaviour and implementing the highest
standards of compliance. The Bank’s competitive strengths are in its unique business operating model, its
conservative outlook towards risk and its robust fundamentals. The characteristics of its business model give the
Bank a competitive advantage, enabling it to continue to deliver value to all its stakeholders in a challenging
environment which remains highly competitive and increasingly regulated. The Bank’s brand, which stands for
the provision of personalised and tailored financial services, remains strong.
The Bank’s subsidiary, MaltaPost p.l.c. (‘MaltaPost’) is Malta’s leading postal services company, being the sole
licensed Universal Service Provider of postal services on the Maltese Islands in terms of the Postal Services Act
(Chapter 254 Laws of Malta) and under the auspices of the Universal Postal Union on behalf of the Government
of Malta. MaltaPost is regulated by the Communications Authority. The Company operates a network of 6 Postal
Hubs, 41 Post Offices and 20 Sub-Post Offices around Malta and Gozo providing an extensive range of postal and
financial services.
Postal services remain characterised by a decline in Letter Mail volumes and in the corresponding income, and on
an opposing trajectory, increasing costs. MaltaPost continues to pursue its diversification into logistics, document
management, insurance and financial services. In insurance, MaltaPost has a 25% shareholding in IVALIFE
Insurance Limited, a company licensed to conduct long-term business of insurance and a 49% shareholding in
PostaInsure Agency Limited, an insurance agency for MAPFRE Middlesea p.l.c.
Document management services are offered through a fully owned subsidiary, Tanseana Limited. While
MaltaPost remains committed to be the trusted postal and logistics operator offering a comprehensive product
portfolio, these investments in non-postal sectors are intended to supplement income streams from the core
activity.
As evident from the above disclosures, there were no notable changes to the core business strategies and
business models of Group entities.
Lombard Bank Malta p.l.c.
Annual Report and Financial Statements 2024
14
Directors’ Report (continued)
2.
Anti-Corruption and Bribery Matters
The Group remains committed to a zero-tolerance policy to bribery and corruption, financial crime and breaches
of the relative laws and regulations. The Group developed and maintains robust policies designed to prevent and
detect potential bribery and corruption in the form of an Anti-Bribery and Corruption (‘ABC’) Policy and
Whistleblowing Policy.
The implementation of these policies is by means of processes, procedures and respective controls, which are
embedded in the Group’s structures and manuals in order to ensure that staff members act responsibly within
the workplace and outside. Guidelines and instructions regarding ABC and Whistleblowing are applicable and
available to all staff members. All staff members, including Directors and, where relevant, associated persons are
required to comply with the principles outlined. The Group supports a ‘speak-up attitude’ to encourage reporting
of concerns relating to what might appear to be suspected illegal, unethical or otherwise improper acts or their
concealment. The same standards are expected from any third parties providing services for or on behalf of the
Group. Staff members who fail to comply with the Group’s policies and standards may face disciplinary action,
up to and including dismissal or termination of employment. Training sessions keep staff members abreast of
their respective obligations at all times.
The Risk Management and Compliance functions exercise oversight of the implementation of respective Policies,
the former by including ABC in risk assessments and the latter by ensuring constant standards of compliance.
The Risk and Compliance functions also work together to ensure the proper functioning of these policies, while
the Internal Audit reviews results. Matters arising, if any, out of the adoption of these policies are reported by
the Compliance function in its reports to the Audit & Risk Committee and Board of Directors. Policies are
reviewed annually, or more often as required, by the relative business and internal control functions with suitable
recommendations, as is necessary, made to the Board of Directors. During the year under review, there were no
reported cases on the basis of the abovementioned policies and therefore no necessary investigations.
3.
Social and Employee-related Matters
Social and employee matters are given full attention by the Group. The Group’s human capital is a key resource
for the carrying out of business, having an average of 1,000 employees throughout the year. The ability to attract
and retain human resources of the right skill-mix and experience condition to a large extent the Group’s
performance. The risk of not attracting or retaining the appropriate quality staff in line with the Group’s business
needs is mitigated generally by the approach to managing this resource. In this regard the Group remains
committed to fostering a culture that values common interest, inclusivity and both social and mental well-being,
enabled by a number of supporting measures. MaltaPost has over 31% of its employees being non-Maltese
speakers hailing from 18 different countries.
Collective Agreements are in place at the Bank and MaltaPost p.l.c., which between them account for the larger
part of the staff complement of the Group. They set the conditions of work and generally regulate the
employer/employee relationship. The prevailing Agreements contain a number of measures of assistance to staff
members including days of special paid leave additional to those stipulated at law, such as Birthday Leave, Study
Leave, Special Circumstances Leave and extended Bereavement Leave. Agreements improve on the conditions
of employment set at law, underlining the Group’s dedication to continually improving working conditions and
ensuring a fair and equitable work environment. The Group enjoys harmonious industrial relations with the full
co-operation of respective trade unions, staff members and their representatives.
Lombard Bank Malta p.l.c.
Annual Report and Financial Statements 2024
15
Directors’ Report (continued)
Oversight of key indicators, by which human resource performance is evaluated is maintained by the Human
Resources function and reported to senior management and the Risk Management function as appropriate for
suitable action if and as required. Performance management takes into consideration leadership and other
competencies required by particular positions as well as the Group’s corporate values. The Group does not place
quotas on the number of staff members whose personal circumstances require them to work on reduced hours or
need to absent themselves from work for an extended period of time on Child Care Leave or other absences
related to immediate family matters. In this regard, the Group is committed to supporting and developing work-
life balance measures further.
The Bank also extends a number of products and services to Group staff members on favourable terms including,
among others, advantageous terms on home loans and other personal borrowing. The Group keeps an active
line of communication with staff members through circulars, branch/department staff meetings and one-to-one
meetings among others and is committed to maintaining a working environment where staff is valued, respected
and supported to fulfil potential.
All members of staff are treated on equal terms with regard to career development and appointments and the
Group supports and practices gender equality and diversity. The Group, however, does not set specific targets in
this regard, as it firmly believes that progress is dependent largely on skill, competencies, attributes and
performance, rather than gender and/or other diversity factors. Being the largest employer in the Group,
MaltaPost p.l.c. holds the Equality Certification Mark following certification by local authorities in recognition of
its non-discriminatory values and as a provider of equal opportunities to its staff.
The Group abides by all applicable laws, rules and regulations relating to employment. While conscious of the
fact that the legal obligations are the minimum acceptable standard, the Group strives to surpass standards in
this area and continues to increase awareness among staff. The Group, for example, with circa 9.7%, of the total
staff complement composed of persons with disabilities, showcases the strong commitment to inclusivity and its
commitment to create a positive impact in society, surpassing both national averages and legal benchmarks.
Remuneration levels are regularly reviewed to ensure that they encourage retention and are in line with the
Group’s Remuneration Policy.
Investment in human capital was and still remains a fundamental pillar of sustainability and to this effect the
Group has committed to invest in developing the skills of its workforce through both internal and external
training.
As in previous years, during 2024, Group staff members participated in several training sessions and on-the- job
training programmes. Training is driven by the requirement to meet identified training needs rather than by the
pursuit of specific numerical targets, which are therefore not set.
The Group remains committed towards extending its support to a number of charitable, social and cultural
organisations.
Regarding consumer relations and protection, the Group adheres to all respective regulatory requirements such
as, inter alia, those arising from Markets in Financial Instruments Directive II (MiFID II), as also reflected in the
MFSA Conduct of Business Rulebook, the Cross Border Payments Regulation II (CBPR II), Payment Services
Directive II (PSD II), Payment Accounts Directive (PAD) and Banking Rule BR/22 Complaints Handling Procedures
for Credit Institutions Authorised Under the Banking Act, 1994.
The Group Complaints Management policies and relevant details on respective web sites provide the information
required for a consumer to submit complaints. During 2024 the Bank had two complaints brought in front of the
Arbiter for Financial Services. Both cases were resolved before/at mediation stage. In the case of MaltaPost p.l.c.,
customer complaints accounted for 0.002% of all mail items handled.
Lombard Bank Malta p.l.c.
Annual Report and Financial Statements 2024
16
Directors’ Report (continued)
Group customers are free to select and use the preferred delivery channel and there are no incentives to move
customers away from physical delivery channels. Maintaining a presence in core community areas is given
importance so as to facilitate accessibility and delivery of important services to the community.
4.
Health and Safety
Maintaining the highest levels of health and safety and physical security of staff is of paramount importance.
Measures for the management of health and safety are adopted by way of standards set in Collective Agreements,
policies, appointment of Health & Safety Officers and appointment of local first aiders and fire wardens. Regular
checks of related processes and systems are carried out with outcomes reported to the Health & Safety Officers,
who will take action as and if required. Furthermore, health and safety risk assessments are carried out to ensure
that situations that may pose risks to the health and safety of staff and others on Group premises are identified and
mitigated. Occupational health awareness training is also provided. No Health and Safety incidents were reported
at the Bank, while MaltaPost Group registered a decrease in the ‘Lost Time Incident Rate’
1
when compared to
previous years. Enhancement of safety measures across the Group continue to be implemented. Some Group staff
benefit from personal accident insurance cover and others benefit from private health care insurance, as well as
death in service cover.
5.
Human Rights
The Group is aware of the importance of ensuring that human rights are upheld across its operations. In this
respect the Group carries out its business without discrimination, respecting the standards set by national law or
higher standards as applicable, such as effective information and consultation processes, particularly where these
affect the place and conditions of work. Business conduct policies are in place to support this stance, which
extend also to counterparties. The Group avoids business with counterparties operating in economic sectors
that may be linked to or present a significant risk to violation of human rights or to social vices. Additionally, the
Bank’s AML/CFT processes, inter alia, assist in the identification of the proceeds of potential human rights abuses.
Any suspicions resulting from these processes are reported to law enforcement as per current legislative
requirements. Services that promote financial inclusion have been introduced also by way of the PostaPay&Save
account which serves as a basic payment account. With circa 14,000 active accounts, this account was introduced
to encourage financial inclusion well before this was required by regulation. The account allows persons who
may have been unable to open bank accounts to enjoy the facilities of basic payment accounts with relative
services.
The Group did not encounter any issues, claims or reports on any human rights related matters and/or violations.
A grievance procedure is in place to provide effective remedies as and when needed. The Group is committed
to investigating any reports of human rights violations. As previously stated, the Bank has in place a
Whistleblowing Policy which covers among others, related issues. In accordance with this Policy reports are
submitted to Risk Management and Internal Audit. During the year ending 2024, no reports in accordance with
this Policy were submitted.
Premises, including self service areas and ATMs, meet all accessibility regulations, apart from where physical
restrictions make this impossible, in which case discussions with the relevant regulatory bodies are held.
__________________________
1
The Lost Time Incident Rate (LTIR) is calculated as the number of work-related incidents resulting in lost time per two million hours worked. This
multiplier reflects standard practice within MaltaPost to ensure comparability within the postal and logistics sector.
Lombard Bank Malta p.l.c.
Annual Report and Financial Statements 2024
17
Directors’ Report (continued)
6.
Environmental Matters
The Group is mindful of the important role it has to play to contribute towards reducing the impact of its
operations on the environment as much as is possible. On matters linked to sustainable finance, the Bank
adopted sustainable finance preferences in its investment advisory services and shall in 2025 launch ‘green’
financing solutions.
Besides assisting in the reduction of direct costs, being environmentally friendly and taking measures to reduce
the Group’s carbon footprint termed as Scope 2 emissions, fits within the overall corporate social responsibility
initiatives of the Group. The Group continues with its programme of investment aimed at reducing reliance on
fossil fuel power and demand on the national power grid, as far as practical and opportune.
The Group makes use of 426 PV panels which in 2024 contributed to circa 13% (Bank) and 7% (MaltaPost) of the
electricity usage generated from renewable sources. The investment in energy efficient systems, such as
installations of modern Heating Ventilation Air Conditioning (HVAC) systems and Light Emitting Diodes (LED) light
fittings continues. Cards issued as part of the Bank’s credit and debit card programmes are manufactured from
fully recycled materials. Improvements in waste separation facilities and recycling processes have also been
implemented, supported by improved data collection processes that enables better monitoring of the Group’s
waste management performance.
MaltaPost increased the number of electric vehicles to over 160, which together with the adoption of revised
work practices led to the elimination of 90 internal combustion engine vehicles on the road thus reducing over
200 tonnes of CO
2
emissions on a yearly basis. The Bank complemented this initiative with the replacement of
its small number of carbon fuel operated vehicles with battery operated models.
The Group continues with its efforts to preserve buildings of architectural importance now serving as modern
and functional branches/offices. ‘Restoration with respect’ continues to be the Group’s motto when acquiring
and renovating buildings of architectural heritage value, delivering them back to society in their original
splendour.
Preservation and reuse of such property reduces resources and material consumption, generates less waste and
consumes less energy than developing greenfield and / or brownfield sites.
MaltaPost p.l.c. runs a postal museum also in a restored building in Valletta housing a collection of artefacts
related to Malta’s postal history. Additions to the collection of artefacts are made as opportunities arise, thereby
enriching further the country’s postal heritage.
The Group’s business is mostly carried out in Malta. The Malta climate-related risks are not expected to have a
consequence on the impairment or fair value of assets nor to give rise to credit losses and / or potential provisions
or contingent liabilities. Therefore, the impact of climate change on the financial performance is not expected to
be material. That said, like any other business the Group is however not shielded from the economic risks of
climate change, which in turn can have an impact on the financial performance.
Lombard Bank Malta p.l.c.
Annual Report and Financial Statements 2024
18
Directors’ Report (continued)
The Bank is mindful of the increasing requirements emanating from the Environmental, Social & Governance
(ESG) regulatory framework. It continues following developments closely, improve understanding so as to further
determine how ESG considerations influence the manner in which it carries out its business and the extent to
which such considerations are incorporated within its risk management framework. ESG initiatives geared
towards the Bank meeting with regulatory expectations remain on-going. The ESG Working Group continues to
coordinate, advise and provide recommendations and related actions on ESG matters. This Working Group is also
responsible for ensuring compliance with regulatory expectations and liaising with Senior Management, the
Board-appointed Committees and the Board of Directors in this regard. The Group continues to seek further
enhancement in its data collection efforts so as to further widen the scope for the purposes of ESG credentials.
7.
Risk Reporting
The Group has established an enterprise-wide risk management framework that serves as the foundation for the
risk management reporting process. This framework is continuously evaluated to ensure it meets the demands
of the markets where the Group operates, including regulatory standards and industry best practices.
It is reinforced by clearly defined procedures and is subject to ongoing reviews, which include transparent
organizational structures and reporting lines.
The Group's straightforward organizational structure ensures that roles and responsibilities are clearly defined,
managed, and communicated. There are established processes for identifying, monitoring, managing, and
reporting risks, along with effective internal control mechanisms that support management in safeguarding
resources and ensuring compliance with relevant procedures in the first line of defence.
To support these efforts, a formal Risk Management Policy which is reviewed periodically, is in place. This
comprehensive Policy enforces strict internal controls and discretionary limits, optimizing returns in alignment
with the Bank's Risk Appetite, thereby enhancing stakeholder value and successfully executing its strategy. This
Appetite defines the maximum risk the Bank is willing to accept to achieve its business objectives. It is reviewed
on an ongoing basis and updated accordingly, following a thorough assessment of the current risk profile, in light
of strategic direction, macroeconomic developments, and regulatory changes.
The primary risk categories the Group faces include:
Capital Risk – This arises from the inability to maintain sufficient capital to operate as a going concern, provide
appropriate returns to shareholders, support business development, comply with regulatory requirements, and
withstand unexpected shocks. The Bank's capital positions are continuously monitored against regulatory and
management limits defined in the Bank’s Risk Appetite Statement. When necessary, this monitoring is
complemented by a robust capital planning process tailored to the Bank's risk profile and regulatory needs. Risk-
based capital measures are reinforced by a volume-based leverage ratio to prevent excessive balance sheet
growth (see Notes to the Financial Statements note 2.7; Additional Regulatory Disclosures notes 6 and 7).
Credit Risk – This arises from negative changes in credit quality should any of our customers or counterparties
fail to meet their contractual obligations. Given the Group's significant lending and securities portfolio, credit risk
represents the largest risk. It primarily stems from customer loans and advances, while risks related to exposures
to credit institutions and investments are considered low. A thorough assessment of a customer's repayment
capacity is conducted before granting facilities, which are generally secured by tangible assets. These securities
are periodically reviewed to ensure compliance with the terms outlined in the sanction letter and to verify that
the collateral adequately covers the facilities (see Notes to the Financial Statements note 2.3; Additional
Regulatory Disclosures note 2).
Lombard Bank Malta p.l.c.
Annual Report and Financial Statements 2024
19
Directors’ Report (continued)
Liquidity Risk – This occurs when the Bank is unable to meet current or anticipated payment obligations as they
come due. Liquidity management involves ongoing monitoring of liquidity positions against established
regulatory and internal limits defined in the Risk Appetite Statement. The Bank’s liquidity profile is managed by
its Assets & Liabilities Committee, ensuring that cash flows and obligations are met promptly. The Bank maintains
robust liquidity buffers and stable funding, keeping the Liquidity Coverage Ratio (LCR) and Net Stable Funding
Ratio (NSFR) significantly above regulatory minimums (see Notes to the Financial Statements note 2.5; Additional
Regulatory Disclosures note 4).
Market Risk – This arises from adverse fluctuations in fair value or future cash flows due to changes in market
prices or rates, such as interest rates, credit spreads, and foreign exchange rates. If these risks materialize, the
Group may face significant losses in its investment portfolio, declines in interest income, and adverse movements
in asset and liability values. The Bank does not maintain a Trading Book, so market risk is primarily limited to
Interest Rate Risk, Currency Risk, and Equity Price Risk. The Bank manages market risk by implementing measures
to mitigate the negative effects of market fluctuations. Currency risk is minimized through a natural hedge
strategy, matching customer deposits in one currency with corresponding assets in the same currency. Equity
Price risk is considered low, as the Group’s equity assets constitute less than 1% of total assets (see Notes to the
Financial Statements note 2.4; Additional Regulatory Disclosures note 3).
Macroeconomic and Market Conditions Risk – This refers to risks linked to a decline in the economic and business
climate, both domestically and globally. Prolonged adverse conditions may materially impact the Group’s
financial performance and asset quality.
Non-Financial Risks – These arise from inadequate or failed internal processes, personnel, or systems. Non-
financial risks encompass a wide range of issues, including financial crime, regulatory compliance, fraud,
personnel, systems, and processes, all of which could affect income and capital. These risks are thoroughly
detailed in the Risk Appetite Statement and Risk Management Policy, which are fundamental components of the
Risk Management Framework. The risks are benchmarked against established parameters, periodically reviewed
and set by the Board. Operational policies and procedures ensure the Bank remains compliant with its Risk
Appetite limits.
Since the occurrence of non-financial risks is unpredictable, the Bank has adequate insurance coverage for
operational failures. Additionally, as part of its Capital Risk management, a capital charge for unforeseen losses
from these risks is maintained (see Notes to the Financial Statements note 2.6; Additional Regulatory Disclosures
note 5).
Regulatory Compliance Risk – This arises from potential legal or regulatory penalties, material financial losses, or
reputational damage resulting from non-compliance with regulations, codes of conduct, laws, and best practice
standards. This risk is managed by the Regulatory Compliance Function, which serves as a second line of defence
and operates independently of day-to-day operations. The Bank fosters a culture that emphasizes compliance
risk mitigation across all levels of the organization. The function also acts as the central point for all interactions
with regulatory and enforcement bodies.
Financial Crime Compliance Risk – This relates to offences such as money laundering, terrorist financing, fraud,
bribery, corruption, market abuse, insider trading, and sanctions. The Bank is committed to combating financial
crime and ensuring that its products and services are not exploited for money laundering, terrorism financing, or
fraud. Various policies and procedures are in place that outline the Bank’s risk appetite regarding customer
onboarding, acceptable economic sectors, and jurisdictions.
Lombard Bank Malta p.l.c.
Annual Report and Financial Statements 2024
20
Directors’ Report (continued)
Information Security Risk – This involves the risk of data and financial loss due to deliberate or accidental
breaches, alterations, falsifications, leaks, destruction, disruptions, errors, or misuse of information systems. The
Bank is aware of potential threats from both internal and external sources and has implemented Data Protection,
Information Security Policies and other Policies to enhance operational resilience to mitigate these risks. These
Policies ensure the protection of corporate information and systems against data breaches and cyber threats.
Procedures supporting these Policies guarantee that sufficient internal controls and measures are consistently
maintained to mitigate such threats.
ESG risks – These arise from environmental, social, and governance (ESG) issues, including climate change,
impacts on society and nature, and human rights violations. Climate and environmental risks present broader
challenges through market, credit, reputational, and regulatory channels that could affect the Group's business
and reputation. The Group is also vulnerable to governance risks stemming from inadequate management and
control, potentially impacting income and capital. To meet ESG-related disclosure requirements, the Bank utilises
various data sources, as available.
Key Performance Indicators (KPIs)
The Group has in place a set of financial and non-financial key performance indicators (KPIs) that are set by the
Board of Directors in its Risk Appetite Statement, monitored by the Risk Management Function and submitted
to the Audit & Risk Committee for continuous assessment. These are a set of quantifiable metrics that ensure
that material risks faced are kept within set parameters as detailed in the Risk Appetite Statement. A selection
of key metrics as at 31 December 2024 are presented hereunder.
Solvency
TCR
20.0%
Leverage
13.9%
Liquidity
LCR
231.8%
NSFR
147.0%
Profitability
Asset Quality
ROAE*
NPL
5.6%
5.6%
*
After tax
The KPIs are reported in the form of a risk scorecard by using the “traffic light” approach and comparing the
actual metric to the limits set in the Risk Appetite Statement.
Lombard Bank Malta p.l.c.
Annual Report and Financial Statements 2024
21
Directors’ Report (continued)
Consolidated disclosures pursuant to Article 8 of the EU Taxonomy Regulation
Introduction
In order to achieve the targets established by the European Union (‘EU’) of reaching net zero greenhouse gas (‘GHG’)
emissions by 2050, with an interim target of reducing GHG emissions by 55% by 2030, compared to 1990 levels, the
EU has developed the EU Taxonomy Regulation
1
(‘the EU Taxonomy’). This is a classification system which establishes
the criteria for determining whether an economic activity qualifies as environmentally sustainable, in terms of six
environmental objectives against which entities assess whether economic activities qualify as environmentally
sustainable.
In order to qualify as such, an economic activity must be assessed to substantially contribute to at least one of these
environmental objectives, whilst doing no significant harm to the remaining objectives. This is achieved by reference
to technical screening criteria established in delegated acts to the EU Taxonomy. The economic activity is also
required to meet minimum safeguards established in the EU Taxonomy.
The six environmental objectives established by the EU Taxonomy are the following, where climate-related
environmental objectives (1-2 below) are established in the Climate Delegated Act
2
(‘CDA’), whilst non-climate
environmental objectives (3-6 below) are established in the Environmental Delegated Act
3
(‘EDA’).
1. Climate change mitigation;
2. Climate change adaptation;
3. Sustainable use and protection of water and marine resources;
4. Transition to a circular economy;
5. Pollution prevention and control; and
6. Protection and restoration of biodiversity and ecosystems.
The Bank reports Taxonomy information in line with the Disclosures Delegated Act supplementing article 8 of the
Taxonomy Regulation, which establishes relevant disclosure requirements of entities within reporting scope of the
Taxonomy. This currently comprises entities, hereon referred to as ‘NFRD/CSRD entities’, obliged to publish non-
financial information pursuant to the Non-Financial Reporting Directive (‘NFRD’)
4
, or sustainability information
pursuant to the Corporate Sustainability Reporting Directive (‘CSRD’)
5
, whichever is currently applicable.
The Bank reported its initial Taxonomy alignment of economic activities in the required disclosure templates in the
prior period, and continues to do so in the current period, in respect of climate-related environmental objectives.
Initial comparative templates in line with Annex VI of the Disclosures Delegated Act are therefore also disclosed in
the current period. Initial Taxonomy eligibility information in respect of non-climate objectives is also published in
the current period.
1
EU Regulation 2020/852
2
Commission Delegated Regulation 2021/2139
3
Commission Delegated Regulation 2023/2486
4
EU Directive 2014/95/EU
5
EU Directive 2022/2464
Lombard Bank Malta p.l.c.
Annual Report and Financial Statements 2024
22
Directors’ Report (continued)
Scope of consolidation
In line with its prior period Taxonomy reporting, the Bank, as a parent undertaking of a mixed group, consolidates
the activities of its financial subsidiaries, and separately consolidates the activities of its non-financial subsidiaries,
reporting relevant Taxonomy KPIs as relevant in both cases. Accordingly, the Bank reports relevant Taxonomy KPIs
applicable to credit institutions in respect of the Bank, and relevant Taxonomy KPIs applicable to non-financial
undertakings in respect of the Bank’s non-financial subsidiaries within the contextual information. This is with
reference towards FAQ 10 of the third Commission Notice
6
, which contemplates Taxonomy disclosures of mixed
groups in which the activities of subsidiaries may differ in risks or impacts from those of the Group.
EU Taxonomy KPIs disclosed
The following KPIs related to the Bank are reported in the templates disclosed.
- The Green Asset Ratio (‘GAR’) is a ratio calculated as the percentage of EU Taxonomy aligned assets as a
proportion of total covered assets.
- The numerator of the GAR includes loans and advances, debt securities, equities and repossessed
collateral financing Taxonomy aligned economic activities based on turnover KPI and CapEx KPI of
underlying assets.
- The denominator of the GAR includes total loans and advances, total debt securities, total equities,
total repossessed collateral and other covered on-balance sheet assets outlined in the section ‘Assets
excluded from the numerator for GAR calculation (covered in the denominator)’.
- The calculation of the KPI for off-balance sheet exposures relates to Lombard Bank Malta plc’s assets under
management, reported in Template 1 relating to GAR as off-balance sheet items and also in Template 5 as
off-balance sheet items in their own right. Other off-balance sheet exposures such as commitments are
excluded from the off-balance sheet KPI.
- The Green Ratio for Assets under Management (‘AuM KPI’) is calculated as the percentage of assets
under management from undertakings financing Taxonomy aligned economic activities as a
proportion of the total assets under management of the Bank.
- The Green Ratio for Financial Guarantees to financial and non-financial undertakings (‘FinGuar KPI’)
is not calculated since it relates to guarantees supporting loans and advances and debt securities. The
Bank did not issue guarantees in respect of loans and advances and debt securities throughout the
financial year.
The following KPIs related to the Bank’s non-financial subsidiaries are reported in the contextual disclosures to the
templates disclosed.
- The turnover KPI is a ratio calculated as the percentage of EU Taxonomy aligned turnover as a proportion of
total revenue.
- The CapEx KPI is a ratio calculated as the percentage of EU Taxonomy aligned CapEx as a proportion of total
CapEx.
- The OpEx KPI is a ratio calculated as the percentage of EU Taxonomy aligned OpEx as a proportion of total
OpEx.
6
C/2024/6691 Commission Notice on the interpretation and implementation of certain legal provisions of the Disclosures Delegated Act under
Article 8 of the EU Taxonomy Regulation on the reporting of Taxonomy-eligible and Taxonomy-aligned economic activities and assets (third
Commission Notice).
Lombard Bank Malta p.l.c.
Annual Report and Financial Statements 2024
23
Directors’ Report (continued)
Furthermore, a contextual consolidated group-level KPI is disclosed in the section ‘Consolidated group-level KPI on
Taxonomy aligned activities in the form of a weighted average KPI’ of the Bank’s Taxonomy disclosure, in line with
FAQ 9 of the third Commission Notice.
Green Asset Ratio
Covered assets
Covered assets comprise all on-balance sheet assets other than those excluded altogether from the GAR, where such
exclusions relate to exposures to central governments, central banks and supranational issuers. Lending towards, or
financing of, local governments where the use of proceeds is unknown (i.e. general purpose lending) is also excluded
from the GAR.
These assets are all excluded from both the numerator and denominator of the GAR.
Assets excluded from the numerator for GAR calculation (covered in the denominator)
Exposures to undertakings that are not in scope of NFRD/CSRD, derivatives, on-demand interbank loans, cash and
cash-related assets, as well as other assets including tangible and intangible assets are excluded from the assessment
of Taxonomy eligible economic activities. Similarly, retail exposures, except for the mortgage lending portfolio,
building renovations loans, and credit consumption loans for cars, are also excluded from the EU Taxonomy
framework, and not assessed for Taxonomy eligibility. These assets are therefore all excluded from the numerator of
the GAR but included in the denominator. The Bank’s cheques in course of collection from NFRD/CSRD banks as at
reporting date are allocated towards row 47 of Template 1 ‘Other categories of assets’ since these are not considered
to be loans and advances to banks in nature.
Taxonomy eligible and aligned economic activities
Taxonomy eligible economic activities are those activities which can be assessed as environmentally sustainable and
are therefore included in annexes to the EU Taxonomy with relevant technical screening criteria available.
Taxonomy aligned economic activities are those activities which have been assessed as environmentally sustainable,
and therefore also comply with the applicable technical screening criteria. Throughout all templates disclosed,
‘Environmentally sustainable assets’ therefore refers to Taxonomy aligned assets.
Taxonomy eligibility and alignment of general purpose lending (where the use of proceeds is unknown), have been
assessed using the turnover and CapEx eligibility and alignment ratios published in the most recently available annual
reports by the Bank’s in-scope counterparties.
Taxonomy eligibility and alignment of specific purpose lending (where the use of proceeds is known), have been
assessed in line with the technical screening criteria established in the EU Taxonomy, comprising ‘substantial
contribution’ and ‘do no significant harm’ criteria. Compliance with minimum safeguards is required further to this,
which is an integral part of assessing EU Taxonomy alignment. This is applicable both in the case of exposures towards
NFRD/CSRD entities, and in the case of retail exposures such as loans to households collateralised by residential
property and loans to households for building renovations, where in the latter case, minimum safeguards compliance
is to be ascertained by the Bank by reference to adequate documentary evidence provided by such counterparties,
or by reference to data obtained from public authorities, as clarified by FAQ 36 in the third Commission Notice.
Lombard Bank Malta p.l.c.
Annual Report and Financial Statements 2024
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Directors’ Report (continued)
Taxonomy non-eligible economic activities
Taxonomy non-eligible economic activities are those activities which cannot be assessed as environmentally
sustainable. This relates to exposures towards activities which are not covered by the EU Taxonomy framework.
Data limitations
In the case of the Bank's exposures where the use of proceeds is not known, in the case of NFRD/CSRD entity
counterparties, the Bank relies on published counterparty eligibility and alignment ratios to assess eligibility and
alignment of exposures. In this respect, the Bank determines whether counterparties are subject to NFRD/CSRD
through the use of both research and a financial data terminal. Upon identification of relevant counterparties, the
Bank researches annual reports of such entities in order to obtain relevant EU Taxonomy KPIs.
However, in certain cases, the Bank is unable to obtain the required information from counterparties, particularly
due to:
- Data availability: Counterparties which did not report Taxonomy information, or reported in an incomplete
manner. By way of example, certain counterparties reported Taxonomy alignment balances which exceeded
Taxonomy eligibility balances. In this case, the Bank only considered alignment up to the eligible amount.
- Data accuracy: The precision of data may vary among counterparties, each reporting subject to various
assumptions and data limitations, affecting the reliability of Taxonomy information. By way of example,
certain counterparties’ Taxonomy balances do not cast when summed at an environmental objective level
and compared to reporting in the counterparty’s ‘total column’, most often due to rounding differences. In
this case, the Bank considers the lower of the sum of parts and the total for the purposes of its reporting.
- Methodological differences: Variations in the methodologies and assumptions employed by various
counterparties can lead to discrepancies in Taxonomy information.
Where Taxonomy information by environmental objective is not available, Taxonomy eligibility and alignment
information reported by counterparties is considered to be eligible, or aligned, to CCM, except in the case of
counterparties which are insurance undertakings, where it is considered eligible or aligned in terms of CCA.
FAQ13 of the third Commission Notice clarifies that in the case that the Bank has an exposure to a counterparty
which does not disclose Taxonomy information, but is the subsidiary of a parent which does disclose Taxonomy
information, the Taxonomy KPI disclosed by the counterparty's closest parent undertaking should be assumed.
In addition, the Bank’s car loan and renovation loan exposures are allocated towards row 24 ‘Households’ of Template
1 of Annex VI of the Disclosures Delegated Act without further allocation. This is given insufficient data available to
fully assess any of these exposures for alignment against the technical screening criteria and in particular, the Do No
Significant Harm criteria.
As data becomes more available and improvements in data quality take place over time, differences in the data
reported in future financial years, when compared to the current financial year, are expected, as more counterparties
adopt the EU Taxonomy requirements for their own disclosures, and enhance their relevant processes relating to EU
Taxonomy reporting.
Lombard Bank Malta p.l.c.
Annual Report and Financial Statements 2024
25
Directors’ Report (continued)
Financial counterparty eligibility and alignment data
In accordance with the requirements of the EU Taxonomy, insurance undertakings, investment firms and financial
conglomerates are required to disclose weighted average KPIs which should be used by the Bank in assessing the
Taxonomy eligibility and alignment of exposures to relevant counterparties.
Where the disclosure of weighted average KPIs by such financial counterparties was not available or where
counterparties report more than one set of KPIs, the approach towards which data was considered by the Bank is set
out below.
- In the case of financial conglomerates, the Bank considers the Green Asset Ratio; if not available, non-life
underwriting KPIs; if not available, the Green Investment Ratio is considered;
- In the case of credit institutions, the Green Asset Ratio is considered;
- In the case of insurance undertakings, the Bank considers non-life underwriting KPIs; if not available, the
Green Investment Ratio is considered;
- In the case of investment companies, the Bank considers the Green Asset Ratio related to investment
services dealt on own account;
- In the case of asset managers, the Bank considers the Green Investment Ratio.
Business Strategy
The process around EU Taxonomy reporting within the Bank is led by an ESG working group comprising a number of
the Bank’s senior officials, who are tasked with such process and the strategy related to the Bank’s disclosures. The
ESG working group expects the Bank’s business strategy to develop in line with the EU Taxonomy, where engagement
with clients and counterparties related to the Taxonomy eligibility and alignment of exposures will develop
accordingly.
EU Taxonomy templates – Annex VI
This section outlines the templates to be disclosed by credit institutions, such requirement emanating from Annex
VI of the Disclosures Delegated Act.
Each template is duplicated in order to disclose Turnover-based and CapEx-based information, except for Template
0, which is adjusted to also include CapEx-based information.
The Bank is also required to disclose the Taxonomy eligibility and Taxonomy alignment of its relevant exposures by
climate-related environmental objective, and Taxonomy eligibility by non-climate objective.
The Bank does not currently extend loans and advances to counterparties in scope of NFRD/CSRD, except for money
market placements with counterparty banks.
Lombard Bank Malta p.l.c.
Annual Report and Financial Statements 2024
26
Directors’ Report (continued)
Template 0: Summary of KPIs to be disclosed by credit institutions under Article 8 Taxonomy Regulation (T)
Template 0 summarises the KPIs required to be disclosed by the Bank as a credit institution.
The Fees and Commissions KPI is required to be disclosed from 1 January 2026, whilst in respect of the Trading Book KPI, also applicable from the same date, the Bank does not
operate a trading book. Therefore, the applicable rows for these KPIs are not populated.
0. Summary of KPIs to be disclosed by credit institutions under Article 8 Taxonomy Regulation as at 31 December 2024
Total environmentally
sustainable assets
(Turnover)
€ million
KPI
(Turnover)****
%
Total environmentally
sustainable assets
(CapEx)
€ million
KPI
(CapEx)*****
%
% coverage
(over total assets)***
%
% of assets excluded from
the numerator of the GAR
(Article 7(2) and (3) and
Section 1.1.2. of Annex V)
%
% of assets excluded from the
denominator of the GAR
(Article 7(1) and Section 1.2.4
of Annex V)
%
Main KPI
Green asset ratio (GAR) stock
0.52
0.04%
0.48
0.04%
79.86%
55.70%
20.14%
Total environmentally
sustainable assets
(Turnover)
€ million
KPI (Turnover)
%
Total environmentally
sustainable assets (CapEx)
€ million
KPI (CapEx)
%
% coverage (over total assets)
%
% of assets excluded from
the numerator of the GAR
(Article 7(2) and (3) and
Section 1.1.2. of Annex V)
%
% of assets excluded from the
denominator of the GAR
(Article 7(1) and Section 1.2.4
of Annex V)
%
Additional KPIs
GAR (flow)
0.00
0.00%
0.00
0.00%
96.12%
65.30%
3.88%
Trading book *
Financial guarantees
0.00
0.00
0.00
0.00%
Assets under management
0.56
5.54%
1.55
15.45%
Fees and commissions income **
* For credit institutions that do not meet the conditions of Article 94(1) of the CRR or the conditions set out in Article 325a(1) of the CRR
** Fees and commissions income from services other than lending and AuM Institutions shall disclose forward looking information for this KPIs, including information in terms of targets, together with relevant explanations
on the methodology applied.
*** % of assets covered by the KPI over banks´ total assets
**** based on the Turnover KPI of the counterparty
***** on the CapEx KPI of the counterparty, except for lending activities where for general lending Turnover KPI is used
Lombard Bank Malta p.l.c.
Annual Report and Financial Statements 2024
27
Directors’ Report (continued)
Template 0: Summary of KPIs to be disclosed by credit institutions under Article 8 Taxonomy Regulation (T-1)
Template 0 summarises the KPIs disclosed by the Bank for its banking activities, based on the Bank’s prior reporting period.
0. Summary of KPIs to be disclosed by credit institutions under Article 8 Taxonomy Regulation as at 31 December 2023
Total environmentally
sustainable assets
(Turnover)
€ million
KPI
(Turnover) ****
%
Total environmentally
sustainable assets
(CapEx)
€ million
KPI
(CapEx)*****
%
% coverage
(over total assets)***
%
% of assets excluded from the
numerator of the GAR (Article
7(2) and (3) and Section 1.1.2.
of Annex V)
%
% of assets excluded from the
denominator of the GAR
(Article 7(1) and Section 1.2.4
of Annex V)
%
Main KPI
Green asset ratio (GAR) stock
0.65
0.07%
0.76
0.06%
75.42%
50.04%
24.58%
Total environmentally
sustainable assets
(Turnover)
€ million
KPI (Turnover)
%
Total environmentally
sustainable assets (CapEx)
€ million
KPI (CapEx)
%
% coverage (over total assets)
%
% of assets excluded from the
numerator of the GAR (Article
7(2) and (3) and Section 1.1.2.
of Annex V)
%
% of assets excluded from the
denominator of the GAR
(Article 7(1) and Section 1.2.4
of Annex V)
%
Additional KPIs
GAR (flow)
0.00
0.00%
0.00
0.00%
91.52%
63.48%
8.48%
Trading book*
Financial guarantees
-
-
-
-
Assets under management
2.16
4.84%
0.27
2.50%
Fees and commissions income **
* For credit institutions that do not meet the conditions of Article 94(1) of the CRR or the conditions set out in Article 325a(1) of the CRR
** Fees and commissions income from services other than lending and AuM Institutions shall disclose forward looking information for this KPIs, including information in terms of targets, together with relevant explanations
on the methodology applied.
*** % of assets covered by the KPI over banks´ total assets
**** based on the Turnover KPI of the counterparty
***** on the CapEx KPI of the counterparty, except for lending activities where for general lending Turnover KPI is used
Lombard Bank Malta p.l.c.
Annual Report and Financial Statements 2024
28
Directors’ Report (continued)
Template 1: Assets for the calculation of GAR
Template 1 discloses assets used in the calculation of the GAR disaggregated by counterparty type and asset class. Total assets are further categorised between the following.
- Covered assets in both numerator and denominator;
- Assets excluded from the numerator for GAR calculation (covered in the denominator); and
- Assets not covered for GAR calculation
This template has been duplicated to disclose turnover-based and CapEx-based information, where in both cases, the Bank’s ‘Main KPI’ Green Asset Ratio can be calculated with
reference to amounts reported in Row 48 of Template 1 ‘Total GAR assets’, where Column ‘ac’ ‘Of which environmentally sustainable (Taxonomy-aligned)’ relates to the numerator,
and Column ‘a’ ‘Total gross carrying amount’ relates to the denominator.
The gross carrying amount column excludes impairment allowances for all banking exposures. As a result, total assets reported in this template is not equal to total assets reported
in the Bank’s balance sheet, with the difference amounting to impairment allowances on banking exposures.
Row 34 'SMEs and NFCs (other than SMEs) not subject to NFRD disclosure obligations' also includes non-NFRD/CSRD financial undertakings in the EU, in the absence of a more
appropriate row for such financial undertakings.
In the case of off-balance sheet exposures, the Bank does not issue any financial guarantees supporting loans and advances or debt securities.
The gross carrying amount disclosed for assets under management forms the denominator of the respective KPIs and includes exposures to both NFRD/CSRD and non-NFRD/CSRD
counterparties while excluding exposures to central governments, central banks and supranational issuers. In the case of assets under management which are funds, these are
treated as non-NFRD entities since the Bank does not look through to underlying investees regarding their status as NFRD/CSRD entities, given data limitations.
Lombard Bank Malta p.l.c.
Annual Report and Financial Statements 2024
29
Directors’ Report (continued)
1.Assets for the calculation of GAR (Turnover) as at 31 December 2024
a b c d e f g h i j k l m n o p q r s t u v w x z aa ab ac ad ae af
Of which Use
of Proceeds
Of which
transitional
Of which
enabling
Of which Use
of Proceeds
Of which
enabling
Of which Use
of Proceeds
Of which
enabling
Of which Use
of Proceeds
Of which
enabling
Of which Use
of Proceeds
Of which
enabling
Of which Use
of Proceeds
Of which
enabling
Of which Use
of Proceeds
Of which
transitional
Of which
enabling
GAR - Covered assets in both numerator and denominator
1
Loans and advances, debt securities and equity instruments not
HfT eligible for GAR calculation
370.83 324.19 0.52 0.01 0.01 0.04 0.08 - - - - - - - - - - - - - - - 0.43 - - - 324.70 0.52 0.01 0.01 0.04
2 Financial undertakings 33.48 7.00 0.15 0.01 0.01 0.04 0.07 - - - - - - - - - - - - - - - - - - - 7.07 0.15 0.01 0.01 0.04
3 Credit institutions 31.43 6.99 0.13 0.01 0.01 0.03 0.07 - - - - - - - - - - - - - - - - - - - 7.05 0.14 0.01 0.01 0.03
4 Loans and advances 13.86 3.80 0.07 - - 0.02 0.03 - - - - - - - - - - - - - - - - - - - 3.83 0.07 - - 0.02
5 Debt securities, including UoP 14.99 2.77 0.07 0.01 - - 0.03 - - - - - - - - - - - - - - - - - - - 2.80 0.07 0.01 - -
6 Equity instruments 2.59 0.41 - 0.00 - - 0.01 - 0.00 - - - 0.00 - - - 0.00 - - - 0.00 - - - 0.00 - 0.42 - 0.00 - -
7 Other financial corporations 2.04 0.02 0.02 - - 0.01 - - - - - - - - - - - - - - - - - - - - 0.02 0.02 - - 0.01
8 of which investment firms - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
9 Loans and advances - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
10 Debt securities, including UoP - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
11 Equity instruments - - - 0.00 - - - - 0.00 - - - 0.00 - - - 0.00 - - - 0.00 - - - 0.00 - - - 0.00 - -
12 of which management companies - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
13 Loans and advances - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
14 Debt securities, including UoP - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
15 Equity instruments - - - 0.00 - - - - 0.00 - - - 0.00 - - - 0.00 - - - 0.00 - - - 0.00 - - - 0.00 - -
16 of which insurance undertakings 2.04 0.02 0.02 - - 0.01 - - - - - - - - - - - - - - - - - - - - 0.02 0.02 - - 0.01
17 Loans and advances - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
18 Debt securities, including UoP 2.04 0.02 0.02 - - 0.01 - - - - - - - - - - - - - - - - - - - - 0.02 0.02 - - 0.01
19 Equity instruments - - - 0.00 - - - - 0.00 - - - 0.00 - - - 0.00 - - - 0.00 - - - 0.00 - - - 0.00 - -
20 Non-financial undertakings 21.68 1.51 0.37 - - - 0.02 - - - - - - - - - - - - - - - 0.43 - - - 1.96 0.37 - - -
21 Loans and advances - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
22 Debt securities, including UoP 3.50 1.51 0.37 - - - 0.02 - - - - - - - - - - - - - - - 0.43 - - - 1.96 0.37 - - -
23 Equity instruments 18.17 - - 0.00 - - - 0.00 - - - 0.00 - - - 0.00 - - - 0.00 - - - 0.00 - - - 0.00 - -
24 Households 314.97 314.97 - - - - - - - - 0.00 0.00 0.00 0.00 - - - - 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 314.97 - - - -
25
of which loans collateralised by residential immovable
property
278.83 278.83 - - - - - - - - 0.00 0.00 0.00 0.00 - - - - 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 278.83 - - - -
26 of which building renovation loans - - - - - - - - - - 0.00 0.00 0.00 0.00 - - - - 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 - - - - -
27 of which motor vehicle loans - - - - - - - - 0.00 - - - 0.00 - - - 0.00 - - - 0.00 - - - 0.00 - - - - - -
28 Local governments financing - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
29 Housing financing - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
30 Other local government financing - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
31
Collateral obtained by taking possession: residential and
commercial immovable properties
0.70 0.70 - - - - - - - - - - - - - - - - - - - - - - - - 0.70 - - - -
32
Assets excluded from the numerator for GAR calculation (covered
in the denominator)
854.84 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
33 Financial and Non-financial undertakings 604.23
34
SMEs and NFCs (other than SMEs) not subject to NFRD
disclosure obligations
583.35
35 Loans and advances 568.12
36
of which loans collateralised by commercial immovable
property
-
37 of which building renovation loans -
38 Debt securities 9.57
39 Equity instruments 5.65
40
Non-EU country counterparties not subject to NFRD
disclosure obligations
20.88
41 Loans and advances 10.89
42 Debt securities 8.66
43 Equity instruments 1.34
44 Derivatives -
45 On demand interbank loans 15.75
46 Cash and cash-related assets 6.49
47 Other categories of assets (e.g. Goodwill, commodities etc.) 228.38
48 Total GAR assets 1,225.68 324.19 0.52 0.01 0.01 0.04 0.08 0.00 - - - - - - - - - - - - - - 0.43 - - - 324.70 0.52 0.01 0.01 0.04
49 Assets not covered for GAR calculation 309.09
50 Central governments and Supranational issuers 160.05
51 Central banks exposure 149.04
52 Trading book -
53 Total assets 1,534.77 324.19 0.52 0.01 0.01 0.04 0.08 0.00 - - - - - - - - - - - - - - 0.43 - - - 324.70 0.52 0.01 0.01 0.04
54 Financial guarantees - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
55 Assets under management 10.06 2.43 0.56 0.01 0.05 0.27 - - - - - - - - 0.04 - - - 0.04 - - - - - - - 2.51 0.56 0.01 0.05 0.27
56 Of which debt securities 7.41 1.93 0.44 0.01 0.05 0.19 - - - - - - - - 0.01 - - - - - - - - - - - 1.94 0.44 0.01 0.05 0.19
57 Of which equity instruments 2.66 0.51 0.12 - - 0.09 - - - - - - - - 0.03 - - - 0.04 - - - - - - - 0.58 0.12 - - 0.09
Disclosure reference date T
Total [gross]
carrying
amount
Climate Change Mitigation (CCM)
Climate Change Adaptation (CCA)
Water and marine resources (WTR)
Circular economy (CE)
Pollution (PPC)
Biodiversity and Ecosystems (BIO)
TOTAL (CCM + CCA + WTR + CE + PPC + BIO)
Off-balance sheet exposures - Undertakings subject to NFRD disclosure obligations
Of which towards taxonomy relevant sectors (Taxonomy-eligible)
Of which environmentally sustainable (Taxonomy-
aligned)
Of which environmentally sustainable
(Taxonomy-aligned)
Of which environmentally sustainable
(Taxonomy-aligned)
Of which environmentally sustainable
(Taxonomy-aligned)
Of which environmentally sustainable
(Taxonomy-aligned)
Of which environmentally sustainable
(Taxonomy-aligned)
Of which environmentally sustainable (Taxonomy-
aligned)
Of which towards taxonomy relevant sectors (Taxonomy-eligible)
Of which towards taxonomy relevant sectors (Taxonomy-
eligible)
Of which towards taxonomy relevant sectors (Taxonomy-
eligible)
Of which towards taxonomy relevant sectors (Taxonomy-
eligible)
Of which towards taxonomy relevant sectors (Taxonomy-
eligible)
Of which towards taxonomy relevant sectors (Taxonomy-
eligible)
Million EUR
Lombard Bank Malta p.l.c.
Annual Report and Financial Statements 2024
30
Directors’ Report (continued)
1.Assets for the calculation of GAR (CapEx) as at 31 December 2024
a b c d e f g h i j k l m n o p q r s t u v w x z aa ab ac ad ae af
Of which Use
of Proceeds
Of which
transitional
Of which
enabling
Of which Use
of Proceeds
Of which
enabling
Of which Use
of Proceeds
Of which
enabling
Of which Use
of Proceeds
Of which
enabling
Of which Use
of Proceeds
Of which
enabling
Of which Use
of Proceeds
Of which
enabling
Of which Use
of Proceeds
Of which
transitional
Of which
enabling
GAR - Covered assets in both numerator and denominator
1
Loans and advances, debt securities and equity instruments not
HfT eligible for GAR calculation
370.83 325.13 0.47 0.01 0.01 0.06 0.04 - - - - - - - - - - - - - - - 0.01 - - - 325.19 0.48 0.01 0.01 0.06
2 Financial undertakings 33.48 7.04 0.20 0.01 0.01 0.06 0.04 - - - - - - - - - - - - - - - - - - - 7.08 0.21 0.01 0.01 0.06
3 Credit institutions 31.43 7.02 0.18 0.01 0.01 0.05 0.03 - - - - - - - - - - - - - - - - - - - 7.05 0.18 0.01 0.01 0.05
4 Loans and advances 13.86 3.83 0.11 - - 0.04 0.03 - - - - - - - - - - - - - - - - - - - 3.86 0.11 - - 0.04
5 Debt securities, including UoP 14.99 2.77 0.07 0.01 - - - - - - - - - - - - - - - - - - - - - - 2.77 0.07 0.01 - -
6 Equity instruments 2.59 0.42 - 0.00 - - - - - - - - - - - - - - - - - 0.42 - 0.00 - -
7 Other financial corporations 2.04 0.03 0.03 - - 0.01 - - - - - - - - - - - - - - - - - - - - 0.03 0.03 - - 0.01
8 of which investment firms - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
9 Loans and advances - - - - - - - - - - - - - - -
10 Debt securities, including UoP - - - - - - - - - - - - - - -
11 Equity instruments - - - 0.00 - - - - - - - 0.00 - -
12 of which management companies - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
13 Loans and advances - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
14 Debt securities, including UoP - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
15 Equity instruments - - - 0.00 - - - - - - - - - - - - - - - - - - - 0.00 - -
16 of which insurance undertakings 2.04 0.03 0.03 - - 0.01 - - - - - - - - - - - - - - - - - - - - 0.03 0.03 - - 0.01
17 Loans and advances - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
18 Debt securities, including UoP 2.04 0.03 0.03 - - 0.01 - - - - - - - - - - - - - - - - - - - - 0.03 0.03 - - 0.01
19 Equity instruments - - - 0.00 - - - - - - - - - - - - - - - - - - - 0.00 - -
20 Non-financial undertakings 21.68 2.41 0.27 - - - 0.01 - - - - - - - - - - - - - - - 0.01 - - - 2.43 0.27 - - -
21 Loans and advances - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
22 Debt securities, including UoP 3.50 2.32 0.27 - - - 0.01 - - - - - - - - - - - - - - - 0.01 - - - 2.34 0.27 - - -
23 Equity instruments 18.17 0.09 - 0.00 - - - - - - - - - - - - - - - - - 0.09 - 0.00 - -
24 Households 314.97 314.97 - - - - - - - - - - - - 314.97 - - - -
25
of which loans collateralised by residential immovable
property
278.83 - - - - - - - - - - - - - - - - - -
26 of which building renovation loans - - - - - - - - - - - - - - - - - - -
27 of which motor vehicle loans - - - - - - - - - - -
28 Local governments financing - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
29 Housing financing - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
30 Other local government financing - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
31
Collateral obtained by taking possession: residential and
commercial immovable properties
0.70 0.70 - - - - - - - - - - - - - - - - - - - - - - - - 0.70 - - - -
32
Assets excluded from the numerator for GAR calculation (covered
in the denominator)
854.84 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
33 Financial and Non-financial undertakings 604.23
34
SMEs and NFCs (other than SMEs) not subject to NFRD
disclosure obligations
583.35
35 Loans and advances 568.12
36
of which loans collateralised by commercial immovable
property
-
37 of which building renovation loans -
38 Debt securities 9.57
39 Equity instruments 5.65
40
Non-EU country counterparties not subject to NFRD
disclosure obligations
20.88
41 Loans and advances 10.89
42 Debt securities 8.66
43 Equity instruments 1.34
44 Derivatives -
45 On demand interbank loans 15.75
46 Cash and cash-related assets 6.49
47 Other categories of assets (e.g. Goodwill, commodities etc.) 228.38
48 Total GAR assets 1,225.68 325.13 0.47 0.01 0.01 0.06 0.04 0.00 - - - - - - - - - - - - - - 0.01 - - - 325.19 0.48 0.01 0.01 0.06
49 Assets not covered for GAR calculation 309.09
50 Central governments and Supranational issuers 160.05
51 Central banks exposure 149.04
52 Trading book -
53 Total assets 1,534.77 325.13 0.47 0.01 0.01 0.06 0.04 - - - - - - - - - - - - - - - 0.01 - - - 325.19 0.48 0.01 0.01 0.06
54 Financial guarantees - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
55 Assets under management 10.06 3.21 1.55 0.01 0.13 0.88 0.02 - - - - - - - 0.05 - - - 0.07 - - - - - - - 3.34 1.55 0.01 0.13 0.88
56 Of which debt securities 7.41 2.76 1.36 0.01 0.12 0.77 - - - - - - - - - - - - - - - - - - - - 2.76 1.36 0.01 0.12 0.77
57 Of which equity instruments 2.66 0.44 0.19 - - 0.12 0.02 - - - - - - - 0.05 - - - 0.07 - - - - - - - 0.58 0.19 - - 0.12
Off-balance sheet exposures - Undertakings subject to NFRD disclosure obligations
Of which towards taxonomy relevant sectors (Taxonomy-eligible)
Of which environmentally sustainable (Taxonomy-
aligned)
Of which environmentally sustainable
(Taxonomy-aligned)
Of which environmentally sustainable
(Taxonomy-aligned)
Of which environmentally sustainable
(Taxonomy-aligned)
Of which environmentally sustainable
(Taxonomy-aligned)
Of which environmentally sustainable
(Taxonomy-aligned)
Of which environmentally sustainable (Taxonomy-
aligned)
Of which towards taxonomy relevant sectors (Taxonomy-eligible)
Of which towards taxonomy relevant sectors (Taxonomy-
eligible)
Of which towards taxonomy relevant sectors (Taxonomy-
eligible)
Of which towards taxonomy relevant sectors (Taxonomy-
eligible)
Of which towards taxonomy relevant sectors (Taxonomy-
eligible)
Of which towards taxonomy relevant sectors (Taxonomy-
eligible)
Million EUR
Disclosure reference date T
Total [gross]
carrying
amount
Climate Change Mitigation (CCM)
Climate Change Adaptation (CCA)
Water and marine resources (WTR)
Circular economy (CE)
Pollution (PPC)
Biodiversity and Ecosystems (BIO)
TOTAL (CCM + CCA + WTR + CE + PPC + BIO)
Lombard Bank Malta p.l.c.
Annual Report and Financial Statements 2024
31
Directors’ Report (continued)
Template 1: Assets for the calculation of GAR (T-1)
This template discloses assets for the calculation of GAR based on the Bank’s prior period reporting. Considering data availability, this comparative Template 1 could not be
restated to be entirely comparable with the current period Template 1.
1.Assets for the calculation of GAR (Turnover) as at 31 December 2023
a
b
c
d
e
f
g
h
i
j
ab
ac
ad
ae
af
Million EUR
Disclosure reference date 2023
Total [gross]
carrying amount
Climate Change Mitigation (CCM)
Climate Change Adaptation (CCA)
TOTAL (CCM + CCA)
Of which towards taxonomy relevant sectors (Taxonomy-eligible)
Of which towards taxonomy relevant
sectors (Taxonomy-eligible)
Of which towards taxonomy relevant sectors (Taxonomy-eligible)
Of which environmentally sustainable (Taxonomy-aligned)
Of which environmentally
sustainable (Taxonomy-aligned)
Of which environmentally sustainable (Taxonomy-
aligned)
Of which
Use of
Proceeds
Of which
transitional
Of which
enabling
Of which Use
of Proceeds
Of which
enabling
Of which
Use of
Proceeds
Of which
transitional
Of which
enabling
GAR - Covered assets in both numerator and
denominator
1
Loans and advances, debt securities and equity
instruments not HfT eligible for GAR calculation
316.67
-
-
-
-
-
-
-
-
-
290.37
0.65
0.02
0.01
0.02
2
Financial undertakings
30.00
-
-
-
-
-
-
-
-
-
9.44
0.19
0.02
0.01
0.02
3
Credit institutions
27.62
-
-
-
-
-
-
-
-
-
9.09
0.18
0.02
0.01
0.02
4
Loans and advances
9.04
-
-
-
-
-
-
-
-
-
2.50
0.05
-
0.02
5
Debt securities, including UoP
16.36
-
-
-
-
-
-
-
-
-
5.73
0.13
0.02
-
0.0033
6
Equity instruments
2.22
-
-
-
-
-
-
-
0.86
0.00
-
0.0003
7
Other financial corporations
2.38
-
-
-
-
-
-
-
-
-
0.35
0.01
-
-
-
8
of which investment firms
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
9
Loans and advances
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
10
Debt securities, including UoP
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
11
Equity instruments
-
-
-
-
-
-
-
-
-
-
-
-
12
of which management companies
0.33
-
-
-
-
-
-
-
-
-
0.07
-
-
-
-
13
Loans and advances
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
14
Debt securities, including UoP
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
15
Equity instruments
0.33
-
-
-
-
-
-
-
0.07
-
-
-
16
of which insurance undertakings
2.05
-
-
-
-
-
-
-
-
-
0.28
0.01
-
-
-
17
Loans and advances
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
18
Debt securities, including UoP
2.05
-
-
-
-
-
-
-
-
-
0.28
0.01
-
-
-
19
Equity instruments
-
-
-
-
-
-
-
-
-
-
-
-
20
Non-financial undertakings
20.53
-
-
-
-
-
-
-
-
-
15.50
0.46
-
-
-
21
Loans and advances
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
22
Debt securities, including UoP
3.45
-
-
-
-
-
-
-
-
-
1.55
0.46
-
-
-
23
Equity instruments
17.08
-
-
-
-
-
-
-
13.95
-
-
-
24
Households
265.43
-
-
-
-
-
-
-
-
-
265.43
-
-
-
-
25
of which loans collateralised by residential
immovable property
231.20
-
-
-
-
-
-
-
-
-
231.20
-
-
-
-
26
of which building renovation loans
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
27
of which motor vehicle loans
-
-
-
-
-
-
-
-
-
-
-
28
Local governments financing
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
29
Housing financing
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
30
Other local government financing
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Lombard Bank Malta p.l.c.
Annual Report and Financial Statements 2024
32
Directors’ Report (continued)
a
b
c
d
e
f
g
h
i
j
ab
ac
ad
ae
af
Million EUR
Disclosure reference date 2023
Total [gross]
carrying amount
Climate Change Mitigation (CCM)
Climate Change Adaptation (CCA)
TOTAL (CCM + CCA)
Of which towards taxonomy relevant sectors (Taxonomy-eligible)
Of which towards taxonomy relevant
sectors (Taxonomy-eligible)
Of which towards taxonomy relevant sectors (Taxonomy-eligible)
Of which environmentally sustainable (Taxonomy-aligned)
Of which environmentally
sustainable (Taxonomy-aligned)
Of which environmentally sustainable (Taxonomy-
aligned)
Of which
Use of
Proceeds
Of which
transitional
Of which
enabling
Of which Use
of Proceeds
Of which
enabling
Of which
Use of
Proceeds
Of which
transitional
Of which
enabling
31
Collateral obtained by taking possession:
residential and commercial immovable properties
0.70
-
-
-
-
-
-
-
-
-
-
-
-
-
-
32
Assets excluded from the numerator for GAR
calculation (covered in the denominator)
624.44
-
-
-
-
-
-
-
-
-
-
-
-
-
-
33
Financial and Non-financial undertakings
537.67
34
SMEs and NFCs (other than SMEs) not
subject to NFRD disclosure obligations
529.42
35
Loans and advances
513.31
36
of which loans collateralised by
commercial immovable property
-
37
of which building renovation loans
-
38
Debt securities
9.33
39
Equity instruments
6.78
40
Non-EU country counterparties not
subject to NFRD disclosure obligations
8.25
41
Loans and advances
-
42
Debt securities
7.35
43
Equity instruments
0.89
44
Derivatives
-
45
On demand interbank loans
16.86
46
Cash and cash-related assets
8.15
47
Other categories of assets (e.g. Goodwill,
commodities etc.)
61.76
48
Total GAR assets
941.11
-
-
-
-
-
-
-
-
-
290.37
0.65
0.02
0.01
0.02
49
Assets not covered for GAR calculation
306.73
50
Central governments and Supranational
issuers
180.44
51
Central banks exposure
126.29
52
Trading book
-
53
Total assets
1,247.84
-
-
-
-
-
-
-
-
-
290.37
0.65
0.02
0.01
0.02
Off-balance sheet exposures - Undertakings subject to NFRD disclosure obligations
54
Financial guarantees
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
55
Assets under management
44.54
-
-
-
-
-
-
-
-
-
2.34
2.16
0.17
0.01
0.20
56
Of which debt securities
20.16
-
-
-
-
-
-
-
-
-
0.32
0.32
0.17
0.01
0.17
57
Of which equity instruments
4.17
-
-
-
-
-
-
-
-
-
0.46
0.05
-
0.004
0.03
Lombard Bank Malta p.l.c.
Annual Report and Financial Statements 2024
33
Directors’ Report (continued)
1. Assets for the calculation of GAR (CapEx) as at 31 December 2023
a
b
c
d
e
f
g
h
i
j
ab
ac
ad
ae
af
Million EUR
Disclosure reference date 2023
Total [gross]
carrying
amount
Climate Change Mitigation (CCM)
Climate Change Adaptation (CCA)
TOTAL (CCM + CCA)
Of which towards taxonomy relevant sectors (Taxonomy-eligible)
Of which towards taxonomy relevant
sectors (Taxonomy-eligible)
Of which towards taxonomy relevant sectors (Taxonomy-eligible)
Of which environmentally sustainable (Taxonomy-aligned)
Of which environmentally
sustainable (Taxonomy-aligned)
Of which environmentally sustainable (Taxonomy-
aligned)
Of which
Use of
Proceeds
Of which
transitional
Of which
enabling
Of which
Use of
Proceeds
Of which
enabling
Of which
Use of
Proceeds
Of which
transitional
Of which
enabling
GAR - Covered assets in both numerator and denominator
1
Loans and advances, debt securities and equity
instruments not HfT eligible for GAR calculation
316.67
-
-
-
-
-
-
-
-
-
283.81
0.76
0.02
0.01
0.50
2
Financial undertakings
30.00
-
-
-
-
-
-
-
-
-
8.91
0.22
0.02
0.01
0.03
3
Credit institutions
27.62
-
-
-
-
-
-
-
-
-
8.80
0.21
0.02
0.01
0.03
4
Loans and advances
9.04
-
-
-
-
-
-
-
-
-
2.52
0.07
-
0.003
0.03
5
Debt securities, including UoP
16.36
-
-
-
-
-
-
-
-
-
5.43
0.14
0.02
0.004
0.01
6
Equity instruments
2.22
-
-
-
-
-
-
-
0.85
0.001
-
0.001
7
Other financial corporations
2.38
-
-
-
-
-
-
-
-
-
0.11
0.01
-
-
-
8
of which investment firms
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
9
Loans and advances
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
10
Debt securities, including UoP
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
11
Equity instruments
-
-
-
-
-
-
-
-
-
-
-
-
12
of which management companies
0.33
-
-
-
-
-
-
-
-
-
-
-
-
-
-
13
Loans and advances
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
14
Debt securities, including UoP
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
15
Equity instruments
0.33
-
-
-
-
-
-
-
-
-
-
-
16
of which insurance undertakings
2.05
-
-
-
-
-
-
-
-
-
0.11
0.01
-
-
-
17
Loans and advances
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
18
Debt securities, including UoP
2.05
-
-
-
-
-
-
-
-
-
0.11
0.01
-
-
-
19
Equity instruments
-
-
-
-
-
-
-
-
-
-
-
-
20
Non-financial undertakings
20.53
-
-
-
-
-
-
-
-
-
9.47
0.54
-
-
0.47
21
Loans and advances
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
22
Debt securities, including UoP
3.45
-
-
-
-
-
-
-
-
-
2.07
0.54
-
-
0.47
23
Equity instruments
17.08
-
-
-
-
-
-
-
7.40
-
-
-
24
Households
265.43
-
-
-
-
-
-
-
-
-
265.43
-
-
-
-
25
of which loans collateralised by residential
immovable property
231.20
-
-
-
-
-
-
-
-
-
231.20
-
-
-
-
26
of which building renovation loans
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
27
of which motor vehicle loans
-
-
-
-
-
-
-
-
-
-
-
28
Local governments financing
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
29
Housing financing
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
30
Other local government financing
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
31
Collateral obtained by taking possession:
residential and commercial immovable
properties
0.70
-
-
-
-
-
-
-
-
-
-
-
-
-
-
32
Assets excluded from the numerator for GAR calculation
(covered in the denominator)
624.44
-
-
-
-
-
-
-
-
-
-
-
-
-
-
33
Financial and Non-financial undertakings
537.67
Lombard Bank Malta p.l.c.
Annual Report and Financial Statements 2024
34
Directors’ Report (continued)
a
b
c
d
e
f
g
h
i
j
ab
ac
ad
ae
af
Million EUR
Disclosure reference date 2023
Total [gross]
carrying
amount
Climate Change Mitigation (CCM)
Climate Change Adaptation (CCA)
TOTAL (CCM + CCA)
Of which towards taxonomy relevant sectors (Taxonomy-eligible)
Of which towards taxonomy relevant
sectors (Taxonomy-eligible)
Of which towards taxonomy relevant sectors (Taxonomy-eligible)
Of which environmentally sustainable (Taxonomy-aligned)
Of which environmentally
sustainable (Taxonomy-aligned)
Of which environmentally sustainable (Taxonomy-
aligned)
Of which
Use of
Proceeds
Of which
transitional
Of which
enabling
Of which
Use of
Proceeds
Of which
enabling
Of which
Use of
Proceeds
Of which
transitional
Of which
enabling
34
SMEs and NFCs (other than SMEs) not
subject to NFRD disclosure obligations
529.42
35
Loans and advances
513.31
36
of which loans collateralised by
commercial immovable property
-
37
of which building renovation loans
-
38
Debt securities
9.33
39
Equity instruments
6.78
40
Non-EU country counterparties not
subject to NFRD disclosure obligations
8.25
41
Loans and advances
-
42
Debt securities
7.35
43
Equity instruments
0.89
44
Derivatives
-
45
On demand interbank loans
16.86
46
Cash and cash-related assets
8.15
47
Other categories of assets (e.g. Goodwill,
commodities etc.)
61.76
48
Total GAR assets
941.11
-
-
-
-
-
-
-
-
-
283.81
0.76
0.02
0.01
0.50
49
Assets not covered for GAR calculation
306.73
50
Central governments and Supranational
issuers
180.44
51
Central banks exposure
126.29
52
Trading book
-
53
Total assets
1,247.84
-
-
-
-
-
-
-
-
-
283.81
0.76
0.02
0.01
0.50
Off-balance sheet exposures - Undertakings subject to NFRD disclosure obligations
54
Financial guarantees
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
55
Assets under management
44.54
-
-
-
-
-
-
-
-
-
2.78
1.12
0.52
0.05
0.58
56
Of which debt securities
20.16
-
-
-
-
-
-
-
-
-
2.43
1.06
0.52
-
-
57
Of which equity instruments
4.17
-
-
-
-
-
-
-
-
-
0.35
0.06
-
-
-
Lombard Bank Malta p.l.c.
Annual Report and Financial Statements 2024
35
Directors’ Report (continued)
Template 2: GAR Sector information
Template 2 presents eligible and aligned exposures in the banking book to non-financial counterparties subject to NFRD, broken down by sector of economic activities based on
the NACE code of the principal activity of the immediate counterparty.
2. GAR sector information (Turnover) as at 31 December 2024
2. GAR sector information (CapEx) as at 31 December 2024
a b c
d e f g h i j k l m n o p q r s t u v w x y z aa ab
NFRD
Mn EUR
Of which
environment
ally
sustainable
(CCM)
Mn EUR
Of which
environment
ally
sustainable
(CCM)
Mn EUR
Of which
environment
ally
sustainable
(CCA)
Mn EUR
Of which
environment
ally
sustainable
(CCA)
Mn EUR
Of which
environment
ally
sustainable
(WTR)
Mn EUR
Of which
environment
ally
sustainable
(WTR)
Mn EUR
Of which
environment
ally
sustainable
(CE)
Mn EUR
Of which
environment
ally
sustainable
(CE)
Mn EUR
Of which
environment
ally
sustainable
(PPC)
Mn EUR
Of which
environment
ally
sustainable
(PPC)
Mn EUR
Of which
environment
ally
sustainable
(BIO)
Mn EUR
Of which
environment
ally
sustainable
(BIO)
Mn EUR
Of which
environment
ally
sustainable
(CCM + CCA +
WTR + CE +
PPC + BIO)
Mn EUR
Of which
environment
ally
sustainable
(CCM + CCA +
WTR + CE +
PPC + BIO)
1 K6420 - Activities of holding companies
0.35 - 0.35 - 0.35 - 0.35 - 0.35 - 0.35 - 0.35 -
2 J61.1.0 - Wired telecommunications activities
0.78 - 0.78 - 0.78 - 0.78 - 0.78 - 0.78 - 0.78 -
3 I55.1 - Hotels and similar accommodation
0.80 0.37 0.80 - 0.46 - 0.46 - 0.46 - 0.46 - 0.80 0.37
4 M70.1.0 - Activities of head offices
0.42 - 0.42 - 0.30 - 0.30 - 0.30 - 0.30 - 0.42 -
5 H49.12 - Other passenger rail transport
0.27 - 0.27 - 0.73 - 0.73 - 0.73 - 0.73 - 0.27 -
6 C11.0.5 - Manufacture of beer
0.09 - 0.09 - 0.09 - 0.09 - 0.09 - 0.09 - 0.09 -
7 C2910 - Manufacture of motor vehicles
0.82 - 0.82 - 0.82 - 0.82 - 0.82 - 0.82 - 0.82 -
8
K63.10 - Computing infrastructure, data processing, hosting and related activities
- - - - - - - - - - - - - -
9 H5310 - Postal activities under universal service obligation
17.93 - 17.93 - 17.93 - 17.93 - 17.93 - 17.93 - 17.93 -
10 H52.10 - Warehousing and storage
- - - - 0.00 - - - - - - - - -
11 C11.05 - Manufacture of beer
0.22 - 0.22 - 0.22 - 0.22 - 0.22 - 0.22 - 0.22 -
[Gross] carrying amount
[Gross] carrying amount
[Gross] carrying amount
[Gross] carrying amount
[Gross] carrying amount
[Gross] carrying amount
Non-Financial corporates
(Subject to NFRD)
SMEs and other NFC not
subject to NFRD
Non-Financial corporates
(Subject to NFRD)
SMEs and other NFC not
subject to NFRD
Biodiversity and Ecosystems (BIO)
TOTAL (CCM + CCA + WTR + CE + PPC + BIO)
Non-Financial corporates
(Subject to NFRD)
SMEs and other NFC not
subject to NFRD
Non-Financial corporates
(Subject to NFRD)
SMEs and other NFC not
subject to NFRD
Non-Financial corporates
(Subject to NFRD)
SMEs and other NFC not
subject to NFRD
Non-Financial corporates
(Subject to NFRD)
SMEs and other NFC not
subject to NFRD
Pollution (PPC)
Non-Financial corporates
(Subject to NFRD)
SMEs and other NFC not
subject to NFRD
Breakdown by sector - NACE 4 digits level (code and label)
Climate Change Mitigation (CCM)
Climate Change Adaptation (CCA)
Water and marine resources (WTR)
Circular economy (CE)
[Gross] carrying amount
[Gross] carrying amount
[Gross] carrying amount
[Gross] carrying amount
[Gross] carrying amount
[Gross] carrying amount
[Gross] carrying amount
[Gross] carrying amount
a b c
d e f g h i j k l m n o p q r s t u v w x y z aa ab
NFRD
Mn EUR
Of which
environmentally
sustainable (CCM)
Mn EUR
Of which
environmentally
sustainable (CCM)
Mn EUR
Of which
environmentally
sustainable (CCA)
Mn EUR
Of which
environmentally
sustainable (CCA)
Mn EUR
Of which
environmentally
sustainable (WTR)
Mn EUR
Of which
environmentally
sustainable (WTR)
Mn EUR
Of which
environmentally
sustainable (CE)
Mn EUR
Of which
environmentally
sustainable (CE)
Mn EUR
Of which
environmentally
sustainable (PPC)
Mn EUR
Of which
environmentally
sustainable (PPC)
Mn EUR
Of which
environmentally
sustainable (BIO)
Mn EUR
Of which
environmentally
sustainable (BIO)
Mn EUR
Of which
environmentally
sustainable (CCM
+ CCA + WTR + CE
+ PPC + BIO)
Mn EUR
Of which
environmentally
sustainable (CCM
+ CCA + WTR + CE
+ PPC + BIO)
1 K6420 - Activities of holding companies
0.35 - 0.35 - 0.35 - 0.35 - 0.35 - 0.35 - 0.35 -
2 J61.1.0 - Wired telecommunications activities
0.78 - 0.78 - 0.78 - 0.78 - 0.78 - 0.78 - 0.78 -
3 I55.1 - Hotels and similar accommodation
0.80 0.27 0.80 - 0.46 - 0.46 - 0.46 - 0.46 - 0.80 0.27
4 M70.1.0 - Activities of head offices
0.42 - 0.42 - 0.30 - 0.30 - 0.30 - 0.30 - 0.42 -
5 H49.12 - Other passenger rail transport
0.27 - 0.27 - 0.73 - 0.73 - 0.73 - 0.73 - 0.27 -
6 C11.0.5 - Manufacture of beer
0.09 - 0.09 - 0.09 - 0.09 - 0.09 - 0.09 - 0.09 -
7 C2910 - Manufacture of motor vehicles
0.82 - 0.82 - 0.82 - 0.82 - 0.82 - 0.82 - 0.82 -
8
K63.10 - Computing infrastructure, data processing, hosting and related activities
- - - - - - - - - - - - - -
9 H5310 - Postal activities under universal service obligation
17.93 - 17.93 - 17.93 - 17.93 - 17.93 - 17.93 - 17.93 -
10 H52.10 - Warehousing and storage
- - 0.00 - 0.00 - 0.00 - - - - - - -
11 C11.05 - Manufacture of beer
0.22 - 0.22 - 0.22 - 0.22 - 0.22 - 0.22 - 0.22 -
[Gross] carrying amount
[Gross] carrying amount
[Gross] carrying amount
[Gross] carrying amount
[Gross] carrying amount
[Gross] carrying amount
Non-Financial corporates (Subject
SMEs and other NFC not subject
Non-Financial corporates (Subject
SMEs and other NFC not subject
Biodiversity and Ecosystems (BIO)
TOTAL (CCM + CCA + WTR + CE + PPC + BIO)
Non-Financial corporates (Subject to NFRD)
SMEs and other NFC not subject
Non-Financial corporates (Subject
SMEs and other NFC not subject
Non-Financial corporates (Subject
SMEs and other NFC not subject
Non-Financial corporates (Subject
SMEs and other NFC not subject
Pollution (PPC)
Non-Financial corporates (Subject
SMEs and other NFC not subject
Breakdown by sector - NACE 4 digits level (code and label)
Climate Change Mitigation (CCM)
Climate Change Adaptation (CCA)
Water and marine resources (WTR)
Circular economy (CE)
[Gross] carrying amount
[Gross] carrying amount
[Gross] carrying amount
[Gross] carrying amount
[Gross] carrying amount
[Gross] carrying amount
[Gross] carrying amount
[Gross] carrying amount
Lombard Bank Malta p.l.c.
Annual Report and Financial Statements 2024
36
Directors’ Report (continued)
Template 3: GAR KPI Stock
Template 3 discloses the proportion of total covered assets funding Taxonomy relevant sectors in respect of both Taxonomy eligibility and Taxonomy alignment on a stock basis.
The Bank’s approach towards disclosing GAR KPI (stock) ratios in this template is based on the amounts of assets disclosed in Template 1, whereby each ratio’s denominator is
equal to the respective gross carrying amount of the particular counterparty type and asset class. This is in line with guidance provided in the respective sub-sections of section
1.2.1 of the Disclosures Delegated Act.
Template 3 also discloses the particular counterparty type and asset class captured in each relevant row as a proportion of the Bank’s total assets.
3. GAR KPI stock (Turnover) as at 31 December 2024
a b c d e f g h i j k l m n o p q r s t u v w x z aa ab ac ad ae af
Of which Use
of Proceeds
Of which
transitional
Of which
enabling
Of which Use
of Proceeds
Of which
enabling
Of which Use
of Proceeds
Of which
enabling
Of which Use
of Proceeds
Of which
enabling
Of which Use
of Proceeds
Of which
enabling
Of which Use
of Proceeds
Of which
enabling
Of which Use
of Proceeds
Of which
transitional
Of which
enabling
GAR - Covered assets in both numerator and denominator #NAME?
1
Loans and advances, debt securities and equity instruments not
HfT eligible for GAR calculation
87.42% 0.14% - - 0.01% 0.02% - - - - - - - - - - - - - - - 0.12% - - - 87.56% 0.14% - - 0.01% 24.16%
2 Financial undertakings 20.92% 0.45% 0.04% 0.02% 0.11% 0.20% - - - - - - - - - - - - - - - - - - - 21.12% 0.45% 0.04% 0.02% 0.11% 2.18%
3 Credit institutions 22.22% 0.42% 0.04% 0.02% 0.09% 0.22% - - - - - - - - - - - - - - - - - - - 22.44% 0.42% 0.04% 0.02% 0.09% 2.05%
4 Loans and advances 27.42% 0.49% - - 0.18% 0.24% - - - - - - - - - - - - - - - - - - - 27.66% 0.49% - - 0.18% 0.90%
5 Debt securities, including UoP 18.48% 0.44% 0.09% - - 0.20% - - - - - - - - - - - - - - - - - - - 18.68% 0.44% 0.09% - - 0.98%
6 Equity instruments 16.05% - - - - 0.21% - - - - - - - - - - - - - - - - - - - 16.26% - - - - 0.17%
7 Other financial corporations 0.80% 0.80% - - 0.40% - - - - - - - - - - - - - - - - - - - - 0.80% 0.80% - - 0.40% 0.13%
8 of which investment firms - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
9 Loans and advances - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
10 Debt securities, including UoP - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
11 Equity instruments - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
12 of which management companies - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
13 Loans and advances - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
14 Debt securities, including UoP - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
15 Equity instruments - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
16 of which insurance undertakings 0.80% 0.80% - 0.01% 0.40% - - - - - - - - - - - - - - - - - - - - 0.80% 0.80% - 0.01% 0.40% 0.13%
17 Loans and advances - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
18 Debt securities, including UoP 0.80% 0.80% - - 0.40% - - - - - - - - - - - - - - - - - - - - 0.80% 0.80% - - 0.40% 0.13%
19 Equity instruments - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
20 Non-financial undertakings 6.97% 1.69% - - - 0.07% - - - - - - - - - - - - - - - 1.98% - - - 9.02% 1.69% - - - 1.41%
21 Loans and advances - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
22 Debt securities, including UoP 43.13% 10.47% - - - 0.44% - - - - - - - - - - - - - - - 12.25% - - - 55.81% 10.47% - - - 0.23%
23 Equity instruments - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 1.18%
24 Households 100.00% - - - - - - - - - - - - - - - - - - - - - - - - 100.00% - - - - 20.52%
25
of which loans collateralised by residential immovable
property
100.00% - - - - - - - - - - - - - - - - - - - - - - - - 100.00% - - - - 18.17%
26 of which building renovation loans - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
27 of which motor vehicle loans - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
28 Local governments financing - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
29 Housing financing - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
30 Other local government financing - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
31
Collateral obtained by taking possession: residential and
commercial immovable properties
100.00% - - - - - - - - - - - - - - - - - - - - - - - - 100.00% - - - - 0.05%
32 Total GAR assets 26.45% 0.04% - - - 0.01% - - - - - - - - - - - - - - - 0.04% - - - 26.49% 0.04% 0.00% - - 79.86%
Proportion of total covered assets funding
taxonomy relevant sectors (Taxonomy-
aligned)
Proportion of total covered assets funding taxonomy
relevant sectors (Taxonomy-aligned)
Proportion of total covered assets funding taxonomy
relevant sectors (Taxonomy-eligible)
Proportion of total covered assets funding taxonomy
relevant sectors (Taxonomy-eligible)
Proportion of total covered assets funding taxonomy
relevant sectors (Taxonomy-eligible)
Proportion of total covered assets funding taxonomy
relevant sectors (Taxonomy-eligible)
Proportion of total covered assets funding taxonomy
relevant sectors (Taxonomy-eligible)
Proportion of total covered assets funding taxonomy relevant sectors
(Taxonomy-eligible)
% (compared to total covered assets in the denominator)
Disclosure reference date T
Climate Change Mitigation (CCM)
Climate Change Adaptation (CCA)
Water and marine resources (WTR)
Circular economy (CE)
Pollution (PPC)
Biodiversity and Ecosystems (BIO)
TOTAL (CCM + CCA + WTR + CE + PPC + BIO)
Proportion of total covered assets funding taxonomy relevant sectors
(Taxonomy-eligible)
Proportion of
total assets
covered
Proportion of total covered assets funding taxonomy
relevant sectors (Taxonomy-aligned)
Proportion of total covered assets funding
taxonomy relevant sectors (Taxonomy-
aligned)
Proportion of total covered assets funding
taxonomy relevant sectors (Taxonomy-
aligned)
Proportion of total covered assets funding
taxonomy relevant sectors (Taxonomy-
aligned)
Proportion of total covered assets funding
taxonomy relevant sectors (Taxonomy-
aligned)
Lombard Bank Malta p.l.c.
Annual Report and Financial Statements 2024
37
Directors’ Report (continued)
3. GAR KPI stock (CapEx) as at 31 December 2024
a b c d e f g h i j k l m n o p q r s t u v w x z aa ab ac ad ae af
Of which Use
of Proceeds
Of which
transitional
Of which
enabling
Of which Use
of Proceeds
Of which
enabling
Of which Use
of Proceeds
Of which
enabling
Of which Use
of Proceeds
Of which
enabling
Of which Use
of Proceeds
Of which
enabling
Of which Use
of Proceeds
Of which
enabling
Of which Use
of Proceeds
Of which
transitional
Of which
enabling
GAR - Covered assets in both numerator and denominator #NAME?
1
Loans and advances, debt securities and equity instruments not
HfT eligible for GAR calculation
87.42% 0.14% - - 0.01% 0.02% - - - - - - - - - - - - - - - 0.12% - - - 87.56% 0.14% - - 0.01% 24.16%
2 Financial undertakings 20.92% 0.45% 0.04% 0.02% 0.11% 0.20% - - - - - - - - - - - - - - - - - - - 21.12% 0.45% 0.04% 0.02% 0.11% 2.18%
3 Credit institutions 22.22% 0.42% 0.04% 0.02% 0.09% 0.22% - - - - - - - - - - - - - - - - - - - 22.44% 0.42% 0.04% 0.02% 0.09% 2.05%
4 Loans and advances 27.42% 0.49% - - 0.18% 0.24% - - - - - - - - - - - - - - - - - - - 27.66% 0.49% - - 0.18% 0.90%
5 Debt securities, including UoP 18.48% 0.44% 0.09% - - 0.20% - - - - - - - - - - - - - - - - - - - 18.68% 0.44% 0.09% - - 0.98%
6 Equity instruments 16.05% - - - - 0.21% - - - - - - - - - - - - - - - - - - - 16.26% - - - - 0.17%
7 Other financial corporations 0.80% 0.80% - - 0.40% - - - - - - - - - - - - - - - - - - - - 0.80% 0.80% - - 0.40% 0.13%
8 of which investment firms - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
9 Loans and advances - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
10 Debt securities, including UoP - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
11 Equity instruments - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
12 of which management companies - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
13 Loans and advances - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
14 Debt securities, including UoP - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
15 Equity instruments - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
16 of which insurance undertakings 0.80% 0.80% - 0.01% 0.40% - - - - - - - - - - - - - - - - - - - - 0.80% 0.80% - 0.01% 0.40% 0.13%
17 Loans and advances - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
18 Debt securities, including UoP 0.80% 0.80% - - 0.40% - - - - - - - - - - - - - - - - - - - - 0.80% 0.80% - - 0.40% 0.13%
19 Equity instruments - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
20 Non-financial undertakings 6.97% 1.69% - - - 0.07% - - - - - - - - - - - - - - - 1.98% - - - 9.02% 1.69% - - - 1.41%
21 Loans and advances - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
22 Debt securities, including UoP 43.13% 10.47% - - - 0.44% - - - - - - - - - - - - - - - 12.25% - - - 55.81% 10.47% - - - 0.23%
23 Equity instruments - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 1.18%
24 Households 100.00% - - - - - - - - - - - - - - - - - - - - - - - - 100.00% - - - - 20.52%
25
of which loans collateralised by residential immovable
property
100.00% - - - - - - - - - - - - - - - - - - - - - - - - 100.00% - - - - 18.17%
26 of which building renovation loans - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
27 of which motor vehicle loans - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
28 Local governments financing - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
29 Housing financing - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
30 Other local government financing - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
31
Collateral obtained by taking possession: residential and
commercial immovable properties
100.00% - - - - - - - - - - - - - - - - - - - - - - - - 100.00% - - - - 0.05%
32 Total GAR assets 26.45% 0.04% - - - 0.01% - - - - - - - - - - - - - - - 0.04% - - - 26.49% 0.04% 0.00% - - 79.86%
Proportion of total covered assets funding
taxonomy relevant sectors (Taxonomy-
aligned)
Proportion of total covered assets funding taxonomy
relevant sectors (Taxonomy-aligned)
Proportion of total covered assets funding taxonomy
relevant sectors (Taxonomy-eligible)
Proportion of total covered assets funding taxonomy
relevant sectors (Taxonomy-eligible)
Proportion of total covered assets funding taxonomy
relevant sectors (Taxonomy-eligible)
Proportion of total covered assets funding taxonomy
relevant sectors (Taxonomy-eligible)
Proportion of total covered assets funding taxonomy
relevant sectors (Taxonomy-eligible)
Proportion of total covered assets funding taxonomy relevant sectors
(Taxonomy-eligible)
% (compared to total covered assets in the denominator)
Climate Change Mitigation (CCM)
Climate Change Adaptation (CCA)
Water and marine resources (WTR)
Circular economy (CE)
Pollution (PPC)
Biodiversity and Ecosystems (BIO)
TOTAL (CCM + CCA + WTR + CE + PPC + BIO)
Proportion of total covered assets funding taxonomy relevant sectors
(Taxonomy-eligible)
Proportion of
total assets
covered
Proportion of total covered assets funding taxonomy
relevant sectors (Taxonomy-aligned)
Proportion of total covered assets funding
taxonomy relevant sectors (Taxonomy-
aligned)
Proportion of total covered assets funding
taxonomy relevant sectors (Taxonomy-
aligned)
Proportion of total covered assets funding
taxonomy relevant sectors (Taxonomy-
aligned)
Proportion of total covered assets funding
taxonomy relevant sectors (Taxonomy-
aligned)
Lombard Bank Malta p.l.c.
Annual Report and Financial Statements 2024
38
Directors’ Report (continued)
3. GAR KPI stock (Turnover) as at 31 December 2023
a
b
c
d
e
f
g
h
i
aa
ab
ac
ad
ae
af
% (compared to total covered assets in the denominator)
Disclosure reference date 2023
Climate Change Mitigation (CCM)
Climate Change Adaptation (CCA)
TOTAL (CCM + CCA)
Proportion of total covered assets funding taxonomy relevant sectors
(Taxonomy-eligible)
Proportion of total covered assets funding
taxonomy relevant sectors (Taxonomy-
eligible)
Proportion of total covered assets funding taxonomy relevant sectors
(Taxonomy-eligible)
Proportion
of total
assets
covered
Proportion of total covered assets funding taxonomy
relevant sectors (Taxonomy-aligned)
Proportion of total covered
assets funding taxonomy
relevant sectors (Taxonomy-
aligned)
Proportion of total covered assets funding taxonomy
relevant sectors (Taxonomy-aligned)
Of which
Use of
Proceeds
Of which
transitional
Of which
enabling
Of which
Use of
Proceeds
Of which
enabling
Of which
Use of
Proceeds
Of which
transitional
Of which
enabling
GAR - Covered assets in both numerator and denominator
1
Loans and advances, debt securities and equity
instruments not HfT eligible for GAR calculation
-
-
-
-
-
-
-
-
-
91.70%
0.20%
0.01%
0.002%
0.01%
25.38%
2
Financial undertakings
-
-
-
-
-
-
-
-
-
31.47%
0.63%
0.06%
0.02%
0.07%
2.40%
3
Credit institutions
-
-
-
-
-
-
-
-
-
32.91%
0.65%
0.07%
0.02%
0.07%
2.21%
4
Loans and advances
-
-
-
-
-
-
-
-
-
27.66%
0.52%
-
0.03%
0.18%
0.72%
5
Debt securities, including UoP
-
-
-
-
-
-
-
-
-
35.04%
0.80%
0.11%
0.02%
0.02%
1.31%
6
Equity instruments
-
-
-
-
-
-
-
38.57%
0.02%
-
-
0.18%
7
Other financial corporations
-
-
-
-
-
-
-
-
-
14.77%
0.39%
-
-
-
0.19%
8
of which investment firms
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
9
Loans and advances
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
10
Debt securities, including UoP
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
11
Equity instruments
-
-
-
-
-
-
-
-
-
-
-
-
12
of which management companies
-
-
-
-
-
-
-
-
-
21.50%
-
-
-
-
0.03%
13
Loans and advances
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
14
Debt securities, including UoP
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
15
Equity instruments
-
-
-
-
-
-
-
21.50%
-
-
-
0.03%
16
of which insurance undertakings
-
-
-
-
-
-
-
-
-
13.70%
0.45%
-
-
-
0.16%
17
Loans and advances
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
18
Debt securities, including UoP
-
-
-
-
-
-
-
-
-
13.70%
0.45%
-
-
-
0.16%
19
Equity instruments
-
-
-
-
-
-
-
-
-
-
-
-
20
Non-financial undertakings
-
-
-
-
-
-
-
-
-
75.49%
2.23%
-
-
-
1.65%
21
Loans and advances
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
22
Debt securities, including UoP
-
-
-
-
-
-
-
-
-
44.85%
13.28%
-
-
-
0.28%
23
Equity instruments
-
-
-
-
-
-
-
81.68%
-
-
-
1.37%
24
Households
-
-
-
-
-
-
-
-
-
100.00%
-
-
-
-
21.27%
Lombard Bank Malta p.l.c.
Annual Report and Financial Statements 2024
39
Directors’ Report (continued)
a
b
c
d
e
f
g
h
i
aa
ab
ac
ad
ae
af
% (compared to total covered assets in the denominator)
Disclosure reference date 2023
Climate Change Mitigation (CCM)
Climate Change Adaptation (CCA)
TOTAL (CCM + CCA)
Proportion of total covered assets funding taxonomy relevant sectors
(Taxonomy-eligible)
Proportion of total covered assets funding
taxonomy relevant sectors (Taxonomy-
eligible)
Proportion of total covered assets funding taxonomy relevant sectors
(Taxonomy-eligible)
Proportion
of total
assets
covered
Proportion of total covered assets funding taxonomy
relevant sectors (Taxonomy-aligned)
Proportion of total covered
assets funding taxonomy
relevant sectors (Taxonomy-
aligned)
Proportion of total covered assets funding taxonomy
relevant sectors (Taxonomy-aligned)
Of which
Use of
Proceeds
Of which
transitional
Of which
enabling
Of which
Use of
Proceeds
Of which
enabling
Of which
Use of
Proceeds
Of which
transitional
Of which
enabling
25
of which loans collateralised by residential
immovable property
-
-
-
-
-
-
-
-
-
100.00%
-
-
-
-
18.53%
26
of which building renovation loans
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
27
of which motor vehicle loans
-
-
-
-
-
28
Local governments financing
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
29
Housing financing
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
30
Other local government financing
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
31
Collateral obtained by taking possession:
residential and commercial immovable
properties
-
-
-
-
-
-
-
-
-
-
-
-
-
-
0.06%
32
Total GAR assets
-
-
-
-
-
-
-
-
-
30.85%
0.07%
0.002%
0.001%
0.002%
75.42%
Lombard Bank Malta p.l.c.
Annual Report and Financial Statements 2024
40
Directors’ Report (continued)
3. GAR KPI stock (CapEx) as at 31 December 2023
a
b
c
d
e
f
g
h
i
aa
ab
ac
ad
ae
af
% (compared to total covered assets in the denominator)
Disclosure reference date 2023
Climate Change Mitigation (CCM)
Climate Change Adaptation (CCA)
TOTAL (CCM + CCA)
Proportion of total covered assets funding taxonomy relevant sectors
(Taxonomy-eligible)
Proportion of total covered assets funding
taxonomy relevant sectors (Taxonomy-eligible)
Proportion of total covered assets funding taxonomy relevant
sectors (Taxonomy-eligible)
Proportion
of total
assets
covered
Proportion of total covered assets funding taxonomy
relevant sectors (Taxonomy-aligned)
Proportion of total covered
assets funding taxonomy
relevant sectors (Taxonomy-
aligned)
Proportion of total covered assets funding taxonomy
relevant sectors (Taxonomy-aligned)
Of which
Use of
Proceeds
Of which
transitional
Of which
enabling
Of which
Use of
Proceeds
Of which
enabling
Of which
Use of
Proceeds
Of which
transitional
Of which
enabling
GAR - Covered assets in both numerator and denominator
1
Loans and advances, debt securities and equity
instruments not HfT eligible for GAR calculation
-
-
-
-
-
-
-
-
-
89.62%
0.24%
0.01%
0.00%
0.16%
25.38%
2
Financial undertakings
-
-
-
-
-
-
-
-
-
29.70%
0.75%
0.06%
0.02%
0.12%
2.40%
3
Credit institutions
-
-
-
-
-
-
-
-
-
31.86%
0.77%
0.07%
0.02%
0.13%
2.21%
4
Loans and advances
-
-
-
-
-
-
-
-
-
27.87%
0.80%
-
0.03%
0.31%
0.72%
5
Debt securities, including UoP
-
-
-
-
-
-
-
-
-
33.18%
0.85%
0.11%
0.02%
0.04%
1.31%
6
Equity instruments
-
-
-
-
-
-
-
38.39%
0.04%
-
0.03%
0.18%
7
Other financial corporations
-
-
-
-
-
-
-
-
-
4.59%
0.53%
-
-
-
0.19%
8
of which investment firms
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
9
Loans and advances
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
10
Debt securities, including UoP
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
11
Equity instruments
-
-
-
-
-
-
-
-
-
-
-
-
12
of which management companies
-
-
-
-
-
-
-
-
-
-
-
-
-
-
0.03%
13
Loans and advances
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
14
Debt securities, including UoP
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
15
Equity instruments
-
-
-
-
-
-
-
-
-
-
-
0.03%
16
of which insurance undertakings
-
-
-
-
-
-
-
-
-
5.32%
0.61%
-
-
-
0.16%
17
Loans and advances
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
18
Debt securities, including UoP
-
-
-
-
-
-
-
-
-
5.32%
0.61%
-
-
-
0.16%
19
Equity instruments
-
-
-
-
-
-
-
-
-
-
-
-
20
Non-financial undertakings
-
-
-
-
-
-
-
-
-
46.12%
2.62%
-
-
2.27%
1.65%
21
Loans and advances
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
22
Debt securities, including UoP
-
-
-
-
-
-
-
-
-
60.09%
15.61%
-
-
13.49%
0.28%
23
Equity instruments
-
-
-
-
-
-
-
43.30%
-
-
-
1.37%
24
Households
-
-
-
-
-
-
-
-
-
100.00%
-
-
-
-
21.27%
25
of which loans collateralised by residential
immovable property
-
-
-
-
-
-
-
-
-
100.00%
-
-
-
-
18.53%
26
of which building renovation loans
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
27
of which motor vehicle loans
-
-
-
-
-
28
Local governments financing
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
29
Housing financing
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
30
Other local government financing
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
31
Collateral obtained by taking possession:
residential and commercial immovable
properties
-
-
-
-
-
-
-
-
-
-
-
-
-
-
0.06%
32
Total GAR assets
-
-
-
-
-
-
-
-
-
22.74%
0.06%
0.001%
0.001%
0.04%
75.42%
Lombard Bank Malta p.l.c.
Annual Report and Financial Statements 2024
41
Directors’ Report (continued)
Template 4: GAR KPI Flow
Template 4 discloses the proportion of total covered assets funding Taxonomy relevant sectors in respect of both Taxonomy eligibility and Taxonomy alignment on a flow basis.
The Bank’s approach towards disclosing GAR (flow) KPI ratios in this template is based on the amounts of new covered assets throughout the financial year, whereby each ratio's
denominator is equal to the respective gross carrying amount of the particular counterparty type and asset class. This is in line with guidance provided in the respective sub-
sections of section 1.2.1 of the Disclosures Delegated Act. Taxonomy guidance requires that the Bank does not compute the numerator and denominator of the flow KPI as
exposures on the disclosure reference date (T) less exposures on the prior period disclosure reference date (T-1), but requires newly incurred exposures to be considered without
deducting the amounts of loan repayments or security disposals. Given this, in the case of row 32 ‘Total GAR assets’, only assets Taxonomy eligible assets are considered in the
GAR denominator, as per the header to the template which asks for % (compared to flow of total eligible assets). This is also since including non-eligible assets (referred to in
Template 1 rows 44-47) would not necessarily result in a more accurate representation of financial flows throughout the reporting period.
4. GAR KPI flow (Turnover) as at 31 December 2024
a b c d e f g h i j k l m n o p q r s t u v w x z aa ab ac ad ae af
Of which Use
of Proceeds
Of which
transitional
Of which
enabling
Of which Use
of Proceeds
Of which
enabling
Of which Use
of Proceeds
Of which
enabling
Of which Use
of Proceeds
Of which
enabling
Of which Use
of Proceeds
Of which
enabling
Of which Use
of Proceeds
Of which
enabling
Of which Use
of Proceeds
Of which
transitional
Of which
enabling
GAR - Covered assets in both numerator and denominator
1
Loans and advances, debt securities and equity instruments not
HfT eligible for GAR calculation
99.56% - - - - - - - - - - - - - - - - - - - - - - - - 99.56% - - - - 33.35%
2 Financial undertakings - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
3 Credit institutions - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
4 Loans and advances - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
5 Debt securities, including UoP - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
6 Equity instruments - - - - - - - - - - - - - - - - - - - - - - - -
7 Other financial corporations - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
8 of which investment firms - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
9 Loans and advances - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
10 Debt securities, including UoP - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
11 Equity instruments - - - - - - - - - - - - - - - - - - - - - - - -
12 of which management companies - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
13 Loans and advances - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
14 Debt securities, including UoP - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
15 Equity instruments - - - - - - - - - - - - - - - - - - - - - - - -
16 of which insurance undertakings - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
17 Loans and advances - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
18 Debt securities, including UoP - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
19 Equity instruments - - - - - - - - - - - - - - - - - - - - - - - -
20 Non-financial undertakings 1.66% - - - - - - - - - - - - - - - - - - - - - - - - 1.66% - - - - 0.15%
21 Loans and advances - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
22 Debt securities, including UoP 1.66% - - - - - - - - - - - - - - - - - - - - - - - - 1.66% - - - - 0.15%
23 Equity instruments - - - - - - - - - - - - - - - - - - - - - - - -
24 Households 100.00% - - - - - - - - - - - - - - - - - - - - - - - - 100.00% - - - - 33.20%
25
of which loans collateralised by residential immovable
property
100.00% - - - - - - - - - - - - - - - - - - - - - - - - 100.00% - - - - 27.93%
26 of which building renovation loans 100.00% - - - - - - - - - - - - - - - - - - - - - - - - 100.00% - - - - -
27 of which motor vehicle loans - - - - - - - - - - -
28 Local governments financing - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
29 Housing financing - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
30 Other local government financing - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
31
Collateral obtained by taking possession: residential and
commercial immovable properties
100.00% - - - - - - - - - - - - - - - - - - - - - - - - 100.00% - - - - -
32 Total GAR assets 34.55% - - - - - - - - - - - - - - - - - - - - - - - - 34.55% - - - - 96.12%
Proportion of total covered assets funding
taxonomy relevant sectors (Taxonomy-
aligned)
Proportion of total covered assets funding taxonomy
relevant sectors (Taxonomy-aligned)
Proportion of total covered assets funding taxonomy
relevant sectors (Taxonomy-eligible)
Proportion of total covered assets funding taxonomy
relevant sectors (Taxonomy-eligible)
Proportion of total covered assets funding taxonomy
relevant sectors (Taxonomy-eligible)
Proportion of total covered assets funding taxonomy
relevant sectors (Taxonomy-eligible)
Proportion of total covered assets funding taxonomy
relevant sectors (Taxonomy-eligible)
Proportion of total covered assets funding taxonomy relevant sectors
(Taxonomy-eligible)
% (compared to flow of total eligible assets)
Disclosure reference date T
Climate Change Mitigation (CCM)
Climate Change Adaptation (CCA)
Water and marine resources (WTR)
Circular economy (CE)
Pollution (PPC)
Biodiversity and Ecosystems (BIO)
TOTAL (CCM + CCA + WTR + CE + PPC + BIO)
Proportion of total covered assets funding taxonomy relevant sectors
(Taxonomy-eligible)
Proportion of
total new
assets
covered
Proportion of total covered assets funding taxonomy
relevant sectors (Taxonomy-aligned)
Proportion of total covered assets funding
taxonomy relevant sectors (Taxonomy-
aligned)
Proportion of total covered assets funding
taxonomy relevant sectors (Taxonomy-
aligned)
Proportion of total covered assets funding
taxonomy relevant sectors (Taxonomy-
aligned)
Proportion of total covered assets funding
taxonomy relevant sectors (Taxonomy-
aligned)
Lombard Bank Malta p.l.c.
Annual Report and Financial Statements 2024
42
Directors’ Report (continued)
4. GAR KPI flow (CapEx) as at 31 December 2024
a b c d e f g h i j k l m n o p q r s t u v w x z aa ab ac ad ae af
Of which
Use of
Proceeds
Of which
transitional
Of which
enabling
Of which
Use of
Proceeds
Of which
enabling
Of which
Use of
Proceeds
Of which
enabling
Of which
Use of
Proceeds
Of which
enabling
Of which
Use of
Proceeds
Of which
enabling
Of which
Use of
Proceeds
Of which
enabling
Of which
Use of
Proceeds
Of which
transitional
Of which
enabling
GAR - Covered assets in both numerator and denominator
1
Loans and advances, debt securities and equity instruments not
HfT eligible for GAR calculation
99.65% - - - - - - - - - - - - - - - - - - - - - - - - 99.65% - - - - 33.35%
2 Financial undertakings - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
3 Credit institutions - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
4 Loans and advances - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
5 Debt securities, including UoP - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
6 Equity instruments - - - - - - - - - - - - - - - - - - - - - - - - -
7 Other financial corporations - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
8 of which investment firms - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
9 Loans and advances - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
10 Debt securities, including UoP - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
11 Equity instruments - - - - - - - - - - - - - - - - - - - - - - - - -
12 of which management companies - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
13 Loans and advances - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
14 Debt securities, including UoP - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
15 Equity instruments - - - - - - - - - - - - - - - - - - - - - - - - -
16 of which insurance undertakings - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
17 Loans and advances - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
18 Debt securities, including UoP - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
19 Equity instruments - - - - - - - - - - - - - - - - - - - - - - - - -
20 Non-financial undertakings 22.63% - - - - - - - - - - - - - - - - - - - - - - - - 22.63% - - - - 0.15%
21 Loans and advances - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
22 Debt securities, including UoP 22.63% - - - - - - - - - - - - - - - - - - - - - - - - 22.63% - - - - 0.15%
23 Equity instruments - - - - - - - - - - - - - - - - - - - - - - - - -
24 Households 100.00% - - - - - - - - - - - - - - - - - - - - - - - - 100.00% - - - - -
25
of which loans collateralised by residential immovable
property
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 27.93%
26 of which building renovation loans - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
27 of which motor vehicle loans - - - - -
28 Local governments financing - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
29 Housing financing - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
30 Other local government financing - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
31
Collateral obtained by taking possession: residential and
commercial immovable properties
100.00% - - - - - - - - - - - - - - - - - - - - - - - - 100.00% - - - - -
32 Total GAR assets 34.55% - - - - - - - - - - - - - - - - - - - - - - - - 34.55% - - - - 96.12%
Proportion of total covered assets
funding taxonomy relevant sectors
(Taxonomy-aligned)
Proportion of total covered assets funding
taxonomy relevant sectors (Taxonomy-aligned)
Proportion of total covered assets funding
taxonomy relevant sectors (Taxonomy-eligible)
Proportion of total covered assets funding
taxonomy relevant sectors (Taxonomy-eligible)
Proportion of total covered assets funding
taxonomy relevant sectors (Taxonomy-eligible)
Proportion of total covered assets funding
taxonomy relevant sectors (Taxonomy-eligible)
Proportion of total covered assets funding
taxonomy relevant sectors (Taxonomy-eligible)
Proportion of total covered assets funding taxonomy relevant
sectors (Taxonomy-eligible)
% (compared to flow of total eligible assets)
Disclosure reference date T
Climate Change Mitigation (CCM)
Climate Change Adaptation (CCA)
Water and marine resources (WTR)
Circular economy (CE)
Pollution (PPC)
Biodiversity and Ecosystems (BIO)
TOTAL (CCM + CCA + WTR + CE + PPC + BIO)
Proportion of total covered assets funding taxonomy relevant
sectors (Taxonomy-eligible)
Proportion
of total new
assets
covered
Proportion of total covered assets funding
taxonomy relevant sectors (Taxonomy-aligned)
Proportion of total covered assets
funding taxonomy relevant sectors
(Taxonomy-aligned)
Proportion of total covered assets
funding taxonomy relevant sectors
(Taxonomy-aligned)
Proportion of total covered assets
funding taxonomy relevant sectors
(Taxonomy-aligned)
Proportion of total covered assets
funding taxonomy relevant sectors
(Taxonomy-aligned)
Lombard Bank Malta p.l.c.
Annual Report and Financial Statements 2024
43
Directors’ Report (continued)
4. GAR KPI flow (Turnover) as at 31 December 2023
a
b
c
d
e
f
g
h
i
aa
ab
ac
ad
ae
af
% (compared to flow of total eligible assets)
Disclosure reference date 2023
Climate Change Mitigation (CCM)
Climate Change Adaptation (CCA)
TOTAL (CCM + CCA)
Proportion of total covered assets funding taxonomy relevant sectors
(Taxonomy-eligible)
Proportion of total covered assets funding
taxonomy relevant sectors (Taxonomy-
eligible)
Proportion of total covered assets funding taxonomy relevant sectors
(Taxonomy-eligible)
Proportion
of total new
assets
covered
Proportion of total covered assets funding taxonomy
relevant sectors (Taxonomy-aligned)
Proportion of total covered
assets funding taxonomy
relevant sectors (Taxonomy-
aligned)
Proportion of total covered assets funding taxonomy
relevant sectors (Taxonomy-aligned)
Of which Use
of Proceeds
Of which
transitional
Of which
enabling
Of which
Use of
Proceeds
Of which
enabling
Of which
Use of
Proceeds
Of which
transitional
Of which
enabling
GAR - Covered assets in both numerator and
denominator
1
Loans and advances, debt securities and
equity instruments not HfT eligible for GAR
calculation
-
-
-
-
-
-
-
-
-
99.78%
0.001%
-
-
-
36.52%
2
Financial undertakings
-
-
-
-
-
-
-
-
-
59.02%
0.20%
-
-
-
0.11%
3
Credit institutions
-
-
-
-
-
-
-
-
-
59.02%
0.20%
-
-
-
0.11%
4
Loans and advances
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
5
Debt securities, including UoP
-
-
-
-
-
-
-
-
-
59.02%
0.20%
-
-
-
0.11%
6
Equity instruments
-
-
-
-
-
-
-
-
-
-
-
7
Other financial corporations
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
8
of which investment firms
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
9
Loans and advances
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
10
Debt securities, including UoP
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
11
Equity instruments
-
-
-
-
-
-
-
-
-
-
-
12
of which management companies
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
13
Loans and advances
-
-
-
-
-
-
-
-
-
-
-
-
-
14
Debt securities, including UoP
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
15
Equity instruments
-
-
-
-
-
-
-
-
-
-
-
-
16
of which insurance undertakings
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
17
Loans and advances
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
18
Debt securities, including UoP
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
19
Equity instruments
-
-
-
-
-
-
-
-
-
-
-
-
20
Non-financial undertakings
-
-
-
-
-
-
-
-
-
38.12%
-
-
-
-
0.06%
Lombard Bank Malta p.l.c.
Annual Report and Financial Statements 2024
44
Directors’ Report (continued)
a
b
c
d
e
f
g
h
i
aa
ab
ac
ad
ae
af
% (compared to flow of total eligible assets)
Disclosure reference date 2023
Climate Change Mitigation (CCM)
Climate Change Adaptation (CCA)
TOTAL (CCM + CCA)
Proportion of total covered assets funding taxonomy relevant sectors
(Taxonomy-eligible)
Proportion of total covered assets funding
taxonomy relevant sectors (Taxonomy-
eligible)
Proportion of total covered assets funding taxonomy relevant sectors
(Taxonomy-eligible)
Proportion
of total new
assets
covered
Proportion of total covered assets funding taxonomy
relevant sectors (Taxonomy-aligned)
Proportion of total covered
assets funding taxonomy
relevant sectors (Taxonomy-
aligned)
Proportion of total covered assets funding taxonomy
relevant sectors (Taxonomy-aligned)
Of which Use
of Proceeds
Of which
transitional
Of which
enabling
Of which
Use of
Proceeds
Of which
enabling
Of which
Use of
Proceeds
Of which
transitional
Of which
enabling
21
Loans and advances
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
22
Debt securities, including UoP
-
-
-
-
-
-
-
-
-
38.12%
-
-
-
-
-
23
Equity instruments
-
-
-
-
-
-
-
-
-
-
-
24
Households
-
-
-
-
-
-
-
-
-
100.00%
-
-
-
-
36.36%
25
of which loans collateralised by
residential immovable property
-
-
-
-
-
-
-
-
-
100.00%
-
-
-
-
32.78%
26
of which building renovation loans
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
27
of which motor vehicle loans
-
-
-
-
-
-
-
-
-
-
-
28
Local governments financing
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
29
Housing financing
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
30
Other local government financing
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
31
Collateral obtained by taking
possession: residential and commercial
immovable properties
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
32
Total GAR assets
-
-
-
-
-
-
-
-
-
36.44%
0.0002%
-
-
-
91.52%
Lombard Bank Malta p.l.c.
Annual Report and Financial Statements 2024
45
Directors’ Report (continued)
4. GAR KPI flow (CapEx) as at 31 December 2023
a
b
c
d
e
f
g
h
i
aa
ab
ac
ad
ae
af
% (compared to flow of total eligible assets)
Disclosure reference date 2023
Climate Change Mitigation (CCM)
Climate Change Adaptation (CCA)
TOTAL (CCM + CCA)
Proportion of total covered assets funding taxonomy relevant
sectors (Taxonomy-eligible)
Proportion of total covered assets funding
taxonomy relevant sectors (Taxonomy-eligible)
Proportion of total covered assets funding taxonomy relevant sectors
(Taxonomy-eligible)
Proportion
of total new
assets
covered
Proportion of total covered assets funding taxonomy
relevant sectors (Taxonomy-aligned)
Proportion of total covered assets
funding taxonomy relevant sectors
(Taxonomy-aligned)
Proportion of total covered assets funding taxonomy
relevant sectors (Taxonomy-aligned)
Of which
Use of
Proceeds
Of which
transitional
Of which
enabling
Of which
Use of
Proceeds
Of which
enabling
Of which
Use of
Proceeds
Of which
transitional
Of which
enabling
GAR - Covered assets in both numerator and
denominator
1
Loans and advances, debt securities and
equity instruments not HfT eligible for GAR
calculation
-
-
-
-
-
-
-
-
-
99.85%
0.001%
0.02%
-
-
36.52%
2
Financial undertakings
-
-
-
-
-
-
-
-
-
58.35%
0.28%
8.23%
-
-
0.11%
3
Credit institutions
-
-
-
-
-
-
-
-
-
58.35%
0.28%
8.23%
-
-
0.11%
4
Loans and advances
-
-
-
-
-
-
-
-
-
-
-
-
-
-
5
Debt securities, including UoP
-
-
-
-
-
-
-
-
-
58.35%
0.28%
8.23%
-
-
0.11%
6
Equity instruments
-
-
-
-
-
-
-
-
-
-
-
7
Other financial corporations
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
8
of which investment firms
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
9
Loans and advances
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
10
Debt securities, including UoP
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
11
Equity instruments
-
-
-
-
-
-
-
-
-
-
-
-
12
of which management companies
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
13
Loans and advances
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
14
Debt securities, including UoP
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
15
Equity instruments
-
-
-
-
-
-
-
-
-
-
-
-
16
of which insurance undertakings
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
17
Loans and advances
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
18
Debt securities, including UoP
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
19
Equity instruments
-
-
-
-
-
-
-
-
-
-
-
-
20
Non-financial undertakings
-
-
-
-
-
-
-
-
-
83.43%
-
-
-
-
0.06%
21
Loans and advances
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
22
Debt securities, including UoP
-
-
-
-
-
-
-
-
-
83.43%
-
-
-
-
0.06%
23
Equity instruments
-
-
-
-
-
-
-
-
-
-
-
-
24
Households
-
-
-
-
-
-
-
-
-
100.00%
-
-
-
-
36.36%
25
of which loans collateralised by
residential immovable property
-
-
-
-
-
-
-
-
-
100.00%
-
-
-
-
32.78%
26
of which building renovation loans
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
27
of which motor vehicle loans
-
-
-
-
-
-
-
-
-
-
-
28
Local governments financing
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
29
Housing financing
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
30
Other local government financing
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
31
Collateral obtained by taking
possession: residential and commercial
immovable properties
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
32
Total GAR assets
-
-
-
-
-
-
-
-
-
36.47%
0.0003%
0.01%
-
-
91.52%
Lombard Bank Malta p.l.c.
Annual Report and Financial Statements 2024
46
Directors’ Report (continued)
Template 5: KPI off-balance-sheet exposures
Template 5 presents eligible and aligned off-balance sheet exposures as a proportion of covered assets by Taxonomy environmental objective. The covered assets forming the
denominator of each ratio is the respective off-balance sheet exposure relating to the Bank’s assets under management, including exposures with both NFRD/CSRD and non-
NFRD/CSRD counterparties while excluding exposures to central governments, central banks and supranational issuers.
In the case of assets under management which are funds, these are treated as non-NFRD/CSRD entities since the Bank does not look through to underlying investees regarding
their status as NFRD/CSRD entities, given data limitations.
5. KPI off-balance sheet exposures (Turnover) (Stock) as at 31 December 2024
5. KPI off-balance sheet exposures (Turnover) (Flow) as at 31 December 2024
5. KPI off-balance sheet exposures (CapEx) (Stock) as at 31 December 2024
a b c d e f g h i j k l m n o p q r s t u v w x z aa ab ac ad ae
Of which Use
of Proceeds
Of which
transitional
Of which
enabling
Of which Use
of Proceeds
Of which
enabling
Of which Use
of Proceeds
Of which
enabling
Of which Use
of Proceeds
Of which
enabling
Of which Use
of Proceeds
Of which
enabling
Of which Use
of Proceeds
Of which
enabling
Of which Use
of Proceeds
Of which
transitional
Of which
enabling
1 Financial guarantees (FinGuar KPI)
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
2 Assets under management (AuM KPI) 24.18% 5.54% 0.09% 0.54% 2.73% 0.04% - - - 0.00% 0.00% - - 0.38% 0.00% - - 0.43% - - - - - - - 25.03% 5.54% 0.09% 0.54% 2.73%
Proportion of total covered assets funding taxonomy relevant sectors
(Taxonomy-eligible)
% (compared to total eligible off-balance sheet assets)
Climate Change Mitigation (CCM)
Climate Change Adaptation (CCA)
Water and marine resources (WTR)
Circular economy (CE)
Pollution (PPC)
Biodiversity and Ecosystems (BIO)
TOTAL (CCM + CCA + WTR + CE + PPC + BIO)
Proportion of total covered assets funding taxonomy relevant sectors
(Taxonomy-eligible)
Proportion of total covered assets funding taxonomy
relevant sectors (Taxonomy-eligible)
Proportion of total covered assets funding taxonomy
relevant sectors (Taxonomy-eligible)
Proportion of total covered assets funding taxonomy
relevant sectors (Taxonomy-eligible)
Proportion of total covered assets funding taxonomy
relevant sectors (Taxonomy-eligible)
Proportion of total covered assets funding taxonomy
relevant sectors (Taxonomy-eligible)
Proportion of total covered assets funding taxonomy
relevant sectors (Taxonomy-aligned)
Proportion of total covered assets funding taxonomy
relevant sectors (Taxonomy-aligned)
Proportion of total covered assets funding
taxonomy relevant sectors (Taxonomy-
aligned)
Proportion of total covered assets funding
taxonomy relevant sectors (Taxonomy-
aligned)
Proportion of total covered assets funding
taxonomy relevant sectors (Taxonomy-
aligned)
Proportion of total covered assets funding
taxonomy relevant sectors (Taxonomy-
aligned)
Proportion of total covered assets funding
taxonomy relevant sectors (Taxonomy-
aligned)
a b c d e f g h i j k l m n o p q r s t u v w x z aa ab ac ad ae
Of which Use
of Proceeds
Of which
transitional
Of which
enabling
Of which Use
of Proceeds
Of which
enabling
Of which Use
of Proceeds
Of which
enabling
Of which Use
of Proceeds
Of which
enabling
Of which Use
of Proceeds
Of which
enabling
Of which Use
of Proceeds
Of which
enabling
Of which Use
of Proceeds
Of which
transitional
Of which
enabling
1 Financial guarantees (FinGuar KPI) - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
2 Assets under management (AuM KPI) 29.42% 8.21% 0.12% 1.00% 4.03% - - - - - - - - 0.43% - - - 0.93% - - - - - - - 30.78% 8.21% 0.12% 1.00% 4.03%
Proportion of total covered assets funding taxonomy
relevant sectors (Taxonomy-aligned)
Proportion of total covered assets funding taxonomy
relevant sectors (Taxonomy-aligned)
Proportion of total covered assets funding
taxonomy relevant sectors (Taxonomy-
aligned)
Proportion of total covered assets funding
taxonomy relevant sectors (Taxonomy-
aligned)
Proportion of total covered assets funding
taxonomy relevant sectors (Taxonomy-
aligned)
Proportion of total covered assets funding
taxonomy relevant sectors (Taxonomy-
aligned)
Proportion of total covered assets funding
taxonomy relevant sectors (Taxonomy-
aligned)
Proportion of total covered assets funding taxonomy relevant sectors
(Taxonomy-eligible)
% (compared to total eligible off-balance sheet assets)
Disclosure reference date T
Climate Change Mitigation (CCM)
Climate Change Adaptation (CCA)
Water and marine resources (WTR)
Circular economy (CE)
Pollution (PPC)
Biodiversity and Ecosystems (BIO)
TOTAL (CCM + CCA + WTR + CE + PPC + BIO)
Proportion of total covered assets funding taxonomy relevant sectors
(Taxonomy-eligible)
Proportion of total covered assets funding taxonomy
relevant sectors (Taxonomy-eligible)
Proportion of total covered assets funding taxonomy
relevant sectors (Taxonomy-eligible)
Proportion of total covered assets funding taxonomy
relevant sectors (Taxonomy-eligible)
Proportion of total covered assets funding taxonomy
relevant sectors (Taxonomy-eligible)
Proportion of total covered assets funding taxonomy
relevant sectors (Taxonomy-eligible)
a b c d e f g h i j k l m n o p q r s t u v w x z aa ab ac ad ae
Of which
Use of
Proceeds
Of which
transitional
Of which
enabling
Of which
Use of
Proceeds
Of which
enabling
Of which
Use of
Proceeds
Of which
enabling
Of which
Use of
Proceeds
Of which
enabling
Of which
Use of
Proceeds
Of which
enabling
Of which
Use of
Proceeds
Of which
enabling
Of which
Use of
Proceeds
Of which
transitional
Of which
enabling
1 Financial guarantees (FinGuar KPI) - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
2 Assets under management (AuM KPI) 31.86% 15.44% 0.09% 1.28% 8.76% 0.18% - - - - - - - 0.49% - - - 0.67% - - - - - - - 33.20% 15.44% 0.09% 1.28% 8.76%
Proportion of total covered assets funding
taxonomy relevant sectors (Taxonomy-aligned)
Proportion of total covered assets funding
taxonomy relevant sectors (Taxonomy-aligned)
Proportion of total covered assets
funding taxonomy relevant sectors
(Taxonomy-aligned)
Proportion of total covered assets
funding taxonomy relevant sectors
(Taxonomy-aligned)
Proportion of total covered assets
funding taxonomy relevant sectors
(Taxonomy-aligned)
Proportion of total covered assets
funding taxonomy relevant sectors
(Taxonomy-aligned)
Proportion of total covered assets
funding taxonomy relevant sectors
(Taxonomy-aligned)
Proportion of total covered assets funding taxonomy relevant
sectors (Taxonomy-eligible)
% (compared to total eligible off-balance sheet assets)
Disclosure reference date T
Climate Change Mitigation (CCM)
Climate Change Adaptation (CCA)
Water and marine resources (WTR)
Circular economy (CE)
Pollution (PPC)
Biodiversity and Ecosystems (BIO)
TOTAL (CCM + CCA + WTR + CE + PPC + BIO)
Proportion of total covered assets funding taxonomy relevant
sectors (Taxonomy-eligible)
Proportion of total covered assets funding
taxonomy relevant sectors (Taxonomy-eligible)
Proportion of total covered assets funding
taxonomy relevant sectors (Taxonomy-eligible)
Proportion of total covered assets funding
taxonomy relevant sectors (Taxonomy-eligible)
Proportion of total covered assets funding
taxonomy relevant sectors (Taxonomy-eligible)
Proportion of total covered assets funding
taxonomy relevant sectors (Taxonomy-eligible)
Lombard Bank Malta p.l.c.
Annual Report and Financial Statements 2024
47
Directors’ Report (continued)
5. KPI off-balance sheet exposures (CapEx) (Flow) as at 31 December 2024
5. KPI off-balance sheet exposures (Turnover) (Stock) as at 31 December 2023
a
b
c
d
e
f
g
h
i
aa
ab
ac
ad
ae
% (compared to total eligible off-balance sheet assets)
Disclosure reference date 2023
Climate Change Mitigation (CCM)
Climate Change Adaptation (CCA)
TOTAL (CCM + CCA)
Proportion of total covered assets funding taxonomy relevant sectors
(Taxonomy-eligible)
Proportion of total covered assets funding
taxonomy relevant sectors (Taxonomy-eligible)
Proportion of total covered assets funding taxonomy relevant sectors
(Taxonomy-eligible)
Proportion of total covered assets funding taxonomy
relevant sectors (Taxonomy-aligned)
Proportion of total covered assets
funding taxonomy relevant sectors
(Taxonomy-aligned)
Proportion of total covered assets funding taxonomy
relevant sectors (Taxonomy-aligned)
Of which
Use of
Proceeds
Of which
transitional
Of which
enabling
Of which
Use of
Proceeds
Of which
enabling
Of which
Use of
Proceeds
Of which
transitional
Of which
enabling
1
Financial guarantees (FinGuar KPI)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
2
Assets under management (AuM KPI)
-
-
-
-
-
-
-
-
-
5.26%
4.84%
0.39%
0.03%
0.46%
5. KPI off-balance sheet exposures (Turnover) (Flow) as at 31 December 2023
a
b
c
d
e
f
g
h
i
aa
ab
ac
ad
ae
% (compared to total eligible off-balance sheet assets)
Disclosure reference date 2023
Climate Change Mitigation (CCM)
Climate Change Adaptation (CCA)
TOTAL (CCM + CCA)
Proportion of total covered assets funding taxonomy relevant sectors
(Taxonomy-eligible)
Proportion of total covered assets funding
taxonomy relevant sectors (Taxonomy-eligible)
Proportion of total covered assets funding taxonomy relevant sectors
(Taxonomy-eligible)
Proportion of total covered assets funding taxonomy
relevant sectors (Taxonomy-aligned)
Proportion of total covered assets
funding taxonomy relevant sectors
(Taxonomy-aligned)
Proportion of total covered assets funding taxonomy
relevant sectors (Taxonomy-aligned)
Of which
Use of
Proceeds
Of which
transitional
Of which
enabling
Of which
Use of
Proceeds
Of which
enabling
Of which
Use of
Proceeds
Of which
transitional
Of which
enabling
1
Financial guarantees (FinGuar KPI)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
2
Assets under management (AuM KPI)
-
-
-
-
-
-
-
-
-
24.65%
3.70%
0.52%
0.27%
2.45%
a b c d e f g h i j k l m n o p q r s t u v w x z aa ab ac ad ae
Of which
Use of
Proceeds
Of which
transitional
Of which
enabling
Of which
Use of
Proceeds
Of which
enabling
Of which
Use of
Proceeds
Of which
enabling
Of which
Use of
Proceeds
Of which
enabling
Of which
Use of
Proceeds
Of which
enabling
Of which
Use of
Proceeds
Of which
enabling
Of which
Use of
Proceeds
Of which
transitional
Of which
enabling
1 Financial guarantees (FinGuar KPI) - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
2 Assets under management (AuM KPI) 42.16% 22.16% 0.12% 2.26% 13.58% 0.05% 0.00% - 0.00% - - - - 0.03% - - - 0.14% - - - - - - - 42.37% 22.16% 0.12% 2.26% 13.58%
Proportion of total covered assets funding taxonomy relevant
sectors (Taxonomy-eligible)
% (compared to total eligible off-balance sheet assets)
Climate Change Mitigation (CCM)
Climate Change Adaptation (CCA)
Water and marine resources (WTR)
Circular economy (CE)
Pollution (PPC)
Biodiversity and Ecosystems (BIO)
TOTAL (CCM + CCA + WTR + CE + PPC + BIO)
Proportion of total covered assets funding taxonomy relevant
sectors (Taxonomy-eligible)
Proportion of total covered assets funding
taxonomy relevant sectors (Taxonomy-eligible)
Proportion of total covered assets funding
taxonomy relevant sectors (Taxonomy-eligible)
Proportion of total covered assets funding
taxonomy relevant sectors (Taxonomy-eligible)
Proportion of total covered assets funding
taxonomy relevant sectors (Taxonomy-eligible)
Proportion of total covered assets funding
taxonomy relevant sectors (Taxonomy-eligible)
Proportion of total covered assets funding
taxonomy relevant sectors (Taxonomy-aligned)
Proportion of total covered assets funding
taxonomy relevant sectors (Taxonomy-aligned)
Proportion of total covered assets
funding taxonomy relevant sectors
(Taxonomy-aligned)
Proportion of total covered assets
funding taxonomy relevant sectors
(Taxonomy-aligned)
Proportion of total covered assets
funding taxonomy relevant sectors
(Taxonomy-aligned)
Proportion of total covered assets
funding taxonomy relevant sectors
(Taxonomy-aligned)
Proportion of total covered assets
funding taxonomy relevant sectors
(Taxonomy-aligned)
Lombard Bank Malta p.l.c.
Annual Report and Financial Statements 2024
48
Directors’ Report (continued)
5. KPI off-balance sheet exposures (CapEx) (Stock) as at 31 December 2023
a
b
c
d
e
f
g
h
i
aa
ab
ac
ad
ae
% (compared to total eligible off-balance sheet assets)
Disclosure reference date 2023
Climate Change Mitigation (CCM)
Climate Change Adaptation (CCA)
TOTAL (CCM + CCA)
Proportion of total covered assets funding taxonomy relevant sectors
(Taxonomy-eligible)
Proportion of total covered assets funding
taxonomy relevant sectors (Taxonomy-eligible)
Proportion of total covered assets funding taxonomy relevant
sectors (Taxonomy-eligible)
Proportion of total covered assets funding taxonomy
relevant sectors (Taxonomy-aligned)
Proportion of total covered assets
funding taxonomy relevant sectors
(Taxonomy-aligned)
Proportion of total covered assets funding taxonomy
relevant sectors (Taxonomy-aligned)
Of which
Use of
Proceeds
Of which
transitional
Of which
enabling
Of which
Use of
Proceeds
Of which
enabling
Of which
Use of
Proceeds
Of which
transitional
Of which
enabling
1
Financial guarantees (FinGuar KPI)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
2
Assets under management (AuM KPI)
-
-
-
-
-
-
-
-
-
6.24%
2.50%
1.16%
0.12%
1.30%
5. KPI off-balance sheet exposures (CapEx) (Flow) as at 31 December 2023
a
b
c
d
e
f
g
h
i
aa
ab
ac
ad
ae
% (compared to total eligible off-balance sheet assets)
Disclosure reference date 2023
Climate Change Mitigation (CCM)
Climate Change Adaptation (CCA)
TOTAL (CCM + CCA)
Proportion of total covered assets funding taxonomy relevant sectors
(Taxonomy-eligible)
Proportion of total covered assets funding
taxonomy relevant sectors (Taxonomy-eligible)
Proportion of total covered assets funding taxonomy relevant sectors
(Taxonomy-eligible)
Proportion of total covered assets funding taxonomy
relevant sectors (Taxonomy-aligned)
Proportion of total covered assets
funding taxonomy relevant sectors
(Taxonomy-aligned)
Proportion of total covered assets funding taxonomy
relevant sectors (Taxonomy-aligned)
Of which
Use of
Proceeds
Of which
transitional
Of which
enabling
Of which
Use of
Proceeds
Of which
enabling
Of which
Use of
Proceeds
Of which
transitional
Of which
enabling
1
Financial guarantees (FinGuar KPI)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
2
Assets under management (AuM KPI)
-
-
-
-
-
-
-
-
-
35.95%
5.05%
0.81%
1.09%
4.48%
Lombard Bank Malta p.l.c.
Annual Report and Financial Statements 2024
49
Directors’ Report (continued)
EU Taxonomy templates - Annex XII
The following template is required to be disclosed by the Bank in terms of Annex XII of the Disclosures Delegated
Act.
Template 1: Nuclear and fossil gas related activities
Template 1 indicates whether, or not, the Bank carries out, funds, or has exposures to the nuclear energy and fossil
gas related activities referred to in rows 1-6 of such template.
Row
Nuclear energy related activities
1
The undertaking carries out, funds or has exposures to research, development, demonstration
and deployment of innovative electricity generation facilities that produce energy from
nuclear processes with minimal waste from the fuel cycle.
YES
2
The undertaking carries out, funds or has exposures to construction and safe operation of new
nuclear installations to produce electricity or process heat, including for the purposes of
district heating or industrial processes such as hydrogen production, as well as their safety
upgrades, using best available technologies.
YES
3
The undertaking carries out, funds or has exposures to safe operation of existing nuclear
installations that produce electricity or process heat, including for the purposes of district
heating or industrial processes such as hydrogen production from nuclear energy, as well as
their safety upgrades.
YES
Fossil gas related activities
4
The undertaking carries out, funds or has exposures to construction or operation of electricity
generation facilities that produce electricity using fossil gaseous fuels.
YES
5
The undertaking carries out, funds or has exposures to construction, refurbishment, and
operation of combined heat/cool and power generation facilities using fossil gaseous fuels.
YES
6
The undertaking carries out, funds or has exposures to construction, refurbishment and
operation of heat generation facilities that produce heat/cool using fossil gaseous fuels
YES
Lombard Bank Malta p.l.c.
Annual Report and Financial Statements 2024
50
Directors’ Report (continued)
Template 2 Taxonomy-aligned economic activities (denominator) – Turnover - Stock
The following templates present the Bank’s exposures to nuclear and gas activities 4.26 to 4.31, as defined in Annex XII of the Disclosures Delegated Act, covering Taxonomy
aligned activities in the denominator in relation to assets under management. The templates have been duplicated to present the information separately based on Turnover and
CapEx KPIs as reported by the Bank’s counterparties.
Row
Economic activities
Amount and proportion (the information is to be presented in monetary amounts and as percentages)
CCM + CCA
CCM
CCA
Amount
%
Amount
%
Amount
%
1.
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.26 of
Annexes I and II to Delegated Regulation 2021/ 2139 in the denominator of the applicable KPI
-
-
-
-
-
-
2.
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.27 of
Annexes I and II to Delegated Regulation 2021/ 2139 in the denominator of the applicable KPI
-
-
-
-
-
-
3.
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.28 of
Annexes I and II to Delegated Regulation 2021/ 2139 in the denominator of the applicable KPI
37,982
0.38%
37,777
0.38%
-
-
4.
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.29 of
Annexes I and II to Delegated Regulation 2021/ 2139 in the denominator of the applicable KPI
10
-
10
-
-
-
5.
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.30 of
Annexes I and II to Delegated Regulation 2021/ 2139 in the denominator of the applicable KPI
-
-
-
-
-
-
6.
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.31 of
Annexes I and II to Delegated Regulation 2021/ 2139 in the denominator of the applicable KPI
-
-
-
-
-
-
7.
Amount and proportion of other taxonomy-aligned economic activities not referred to in rows
1 to 6 above in the denominator of the applicable KPI
520,035
5.17%
519,807
5.17%
228
-
8.
Total applicable KPI
10,061,949
100.00%
10,061,949
100.00%
10,061,949
100.00%
Lombard Bank Malta p.l.c.
Annual Report and Financial Statements 2024
51
Directors’ Report (continued)
Template 2 Taxonomy-aligned economic activities (denominator) – CapEx - Stock
Row
Economic activities
Amount and proportion (the information is to be presented in monetary amounts and as percentages)
CCM + CCA
CCM
CCA
Amount
%
Amount
%
Amount
%
1.
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.26 of
Annexes I and II to Delegated Regulation 2021/ 2139 in the denominator of the applicable KPI
3,146
0.03%
3,146
0.03%
-
-
2.
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.27 of
Annexes I and II to Delegated Regulation 2021/ 2139 in the denominator of the applicable KPI
3,196
0.03%
3,196
0.03%
-
-
3.
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.28 of
Annexes I and II to Delegated Regulation 2021/ 2139 in the denominator of the applicable KPI
43,949
0.44%
43,745
0.43%
-
-
4.
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.29 of
Annexes I and II to Delegated Regulation 2021/ 2139 in the denominator of the applicable KPI
28,779
0.29%
28,779
0.29%
-
-
5.
Amount and proportion of taxonomy-aligned economic activity referred to
in Section 4.30 of Annexes I and II to Delegated Regulation 2021/ 2139 in the denominator of
the applicable KPI
10,615
0.11%
10,615
0.11%
-
-
6.
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.31 of
Annexes I and II to Delegated Regulation 2021/ 2139 in the denominator of the applicable KPI
-
-
-
-
-
-
7.
Amount and proportion of other taxonomy-aligned economic activities not referred to in rows
1 to 6 above in the denominator of the applicable KPI
1,464,970
14.56%
1,464,167
14.55%
803
0.01%
8.
Total applicable KPI
10,061,949
100.00%
10,061,949
100.00%
10,061,949
100.00%
Lombard Bank Malta p.l.c.
Annual Report and Financial Statements 2024
52
Directors’ Report (continued)
Template 3 Taxonomy-aligned economic activities (numerator) – Turnover - Stock
The following templates present the Bank’s exposures to nuclear and gas activities 4.26 to 4.31, as defined in Annex XII of the Disclosures Delegated Act, covering Taxonomy
aligned activities in the numerator in relation to assets under management. The templates have been duplicated to present the information separately based on Turnover and
CapEx KPIs as reported by the Bank’s counterparties.
Row
Economic activities
Amount and proportion (the information is to be presented in monetary amounts and as percentages)
CCM + CCA
CCM
CCA
Amount
%
Amount
%
Amount
%
1.
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.26 of
Annexes I and II to Delegated Regulation 2021/ 2139 in the numerator of the applicable KPI
-
-
-
-
-
-
2.
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.27 of
Annexes I and II to Delegated Regulation 2021/ 2139 in the numerator of the applicable KPI
-
-
-
-
-
-
3.
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.28 of
Annexes I and II to Delegated Regulation 2021/ 2139 in the numerator of the applicable KPI
37,982
6.81%
37,777
6.78%
-
-
4.
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.29 of
Annexes I and II to Delegated Regulation 2021/ 2139 in the numerator of the applicable KPI
10
-
10
-
-
-
5.
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.30 of
Annexes I and II to Delegated Regulation 2021/ 2139 in the numerator of the applicable KPI
-
-
-
-
-
-
6.
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.31 of
Annexes I and II to Delegated Regulation 2021/ 2139 in the numerator of the applicable KPI
-
-
-
-
-
-
7.
Amount and proportion of other taxonomy-aligned economic activities not referred to in rows
1 to 6 above in the numerator of the applicable KPI
520,035
93.23%
519,807
93.22%
228
100.00%
8.
Total amount and proportion of taxonomy-aligned economic activities in the numerator of the
applicable KPI
557,822
100.00%
557,595
100.00%
228
100.00%
Lombard Bank Malta p.l.c.
Annual Report and Financial Statements 2024
53
Directors’ Report (continued)
Template 3 Taxonomy-aligned economic activities (numerator) – CapEX - Stock
Row
Economic activities
Amount and proportion (the information is to be presented in monetary amounts and as percentages)
CCM + CCA
CCM
CCA
Amount
%
Amount
%
Amount
%
1.
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.26 of
Annexes I and II to Delegated Regulation 2021/ 2139 in the numerator of the applicable KPI
3,146
0.20%
3,146
0.20%
-
-
2.
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.27 of
Annexes I and II to Delegated Regulation 2021/ 2139 in the numerator of the applicable KPI
3,196
0.21%
3,196
0.21%
-
-
3.
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.28 of
Annexes I and II to Delegated Regulation 2021/ 2139 in the numerator of the applicable KPI
43,949
2.83%
43,745
2.82%
-
-
4.
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.29 of
Annexes I and II to Delegated Regulation 2021/ 2139 in the numerator of the applicable KPIa
28,779
1.85%
28,779
1.85%
-
-
5.
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.30 of
Annexes I and II to Delegated Regulation 2021/ 2139 in the numerator of the applicable KPI
10,615
0.68%
10,615
0.68%
-
-
6.
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.31 of
Annexes I and II to Delegated Regulation 2021/ 2139 in the numerator of the applicable KPI
-
-
-
-
-
-
7.
Amount and proportion of other taxonomy-aligned economic activities not referred to in rows
1 to 6 above in the numerator of the applicable KPI
1,464,970
94.24%
1,464,167
94.24%
803
100.00%
8.
Total amount and proportion of taxonomy-aligned economic activities in the numerator of the
applicable KPI
1,554,451
100.00%
1,553,648
100.00%
803
100.00%
Lombard Bank Malta p.l.c.
Annual Report and Financial Statements 2024
54
Directors’ Report (continued)
Template 4 Taxonomy-eligible but not taxonomy-aligned economic activities – Turnover – Stock
The following templates present the Bank’s exposures to nuclear and gas activities 4.26 to 4.31, as defined in Annex XII of the Disclosures Delegated Act, covering Taxonomy
eligible but not Taxonomy aligned activities in the numerator in relation to assets under management. The templates have been duplicated to present the information separately
based on Turnover and CapEx KPIs as reported by the Bank’s counterparties.
Row
Economic activities
Amount and proportion (the information is to be presented in monetary amounts and as percentages)
CCM + CCA
CCM
CCA
Amount
%
Amount
%
Amount
%
1.
Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity
referred to in Section 4.26 of Annexes I and II to Delegated Regulation 2021/2139 in the
denominator of the applicable KPI
-
-
-
-
-
-
2.
Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity
referred to in Section 4.27 of Annexes I and II to Delegated Regulation 2021/2139 in the
denominator of the applicable KPI
-
-
-
-
-
-
3.
Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity
referred to in Section 4.28 of Annexes I and II to Delegated Regulation 2021/2139 in the
denominator of the applicable KPI
2,374
0.01%
2,374
0.01%
-
-
4.
Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity
referred to in Section 4.29 of Annexes I and II to Delegated Regulation 2021/2139 in the
denominator of the applicable KPI
325,298
0.78%
325,275
0.78%
-
-
5.
Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity
referred to in Section 4.30 of Annexes I and II to Delegated Regulation 2021/2139 in the
denominator of the applicable KPI
49,755
0.12%
49,785
0.12%
-
-
6.
Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity
referred to in Section 4.31 of Annexes I and II to Delegated Regulation 2021/2139 in the
denominator of the applicable KPI
42,156
0.10%
42,156
0.10%
-
-
7.
Amount and proportion of other taxonomy-eligible but not taxonomy-aligned economic
activities not referred to in rows 1 to 6 above in the denominator of the applicable KPI
1,459,596
3.51%
1,455,887
3.50%
3,709
0.01%
8.
Total amount and proportion of taxonomy eligible but not taxonomy-aligned economic
activities in the denominator of the applicable KPI
1,879,187
4.52%
1,875,478
4.51%
3,709
0.01%
Lombard Bank Malta p.l.c.
Annual Report and Financial Statements 2024
55
Directors’ Report (continued)
Template 4 Taxonomy-eligible but not taxonomy-aligned economic activities – CapEX – Stock
Row
Economic activities
Amount and proportion (the information is to be presented in monetary amounts and as percentages)
CCM + CCA
CCM
CCA
Amount
%
Amount
%
Amount
%
1.
Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity
referred to in Section 4.26 of Annexes I and II to Delegated Regulation
2021/2139 in the denominator of the applicable KPI
-
-
-
-
-
-
2.
Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity
referred to in Section 4.27 of Annexes I and II to Delegated Regulation
2021/2139 in the denominator of the applicable KPI
-
-
-
-
-
-
3.
Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity
referred to in Section 4.28 of Annexes I and II to Delegated Regulation
2021/2139 in the denominator of the applicable KPI
1,472
-
1,472
-
-
-
4.
Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity
referred to in Section 4.29 of Annexes I and II to Delegated Regulation
2021/2139 in the denominator of the applicable KPI
261,375
0.63%
261,414
0.63%
-
-
5.
Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity
referred to in Section 4.30 of Annexes I and II to Delegated Regulation
2021/2139 in the denominator of the applicable KPI
97,033
0.23%
97,064
0.23%
-
-
6.
Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity
referred to in Section 4.31 of Annexes I and II to Delegated Regulation
2021/2139 in the denominator of the applicable KPI
78,606
0.19%
78,606
0.19%
-
-
7.
Amount and proportion of other taxonomy-eligible but not taxonomy-aligned
economic activities not referred to in rows 1 to 6 above in the denominator of
the applicable KPI
1,234,358
2.97%
1,217,013
2.93%
17,345
0.04%
8.
Total amount and proportion of taxonomy eligible but not taxonomy-aligned
economic activities in the denominator of the applicable KPI
1,672,914
4.03%
1,655,569
3.99%
17,345
0.04%
Lombard Bank Malta p.l.c.
Annual Report and Financial Statements 2024
56
Directors’ Report (continued)
Template 5 Taxonomy non-eligible economic activities – Turnover – Stock
The following templates present the Bank’s exposures to Taxonomy non-eligible nuclear and gas activities, as defined in Annex XII of the Disclosures Delegated Act. The templates
have been duplicated to present the information separately based on Turnover and CapEx KPIs as reported by the Bank’s counterparties.
Row
Economic activities
Amount
Percentage
1.
Amount and proportion of economic activity referred to in row 1 of Template 1 that is taxonomy-non-eligible in accordance with Section 4.26 of Annexes I
and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI
-
-
2.
Amount and proportion of economic activity referred to in row 2 of Template 1 that is taxonomy-non-eligible in accordance with Section 4.27 of Annexes I
and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI
38,876
0.09%
3.
Amount and proportion of economic activity referred to in row 3 of Template 1 that is taxonomy-non-eligible in accordance with Section 4.28 of Annexes I
and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI
8,538
0.02%
4.
Amount and proportion of economic activity referred to in row 4 of Template 1 that is taxonomy-non-eligible in accordance with Section 4.29 of Annexes I
and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI
-
-
5.
Amount and proportion of economic activity referred to in row 5 of Template 1 that is taxonomy-non-eligible in accordance with Section 4.30 of Annexes I
and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI
42
-
6.
Amount and proportion of economic activity referred to in row 6 of Template 1 that is taxonomy-non-eligible in accordance with Section 4.31 of Annexes I
and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI
-
-
7.
Amount and proportion of other taxonomy-non-eligible economic activities not referred to in rows 1 to 6 above in the denominator of the
applicable KPI
31,434,927
75.67%
8.
Total amount and proportion of taxonomy-non-eligible economic activities in the denominator of the applicable KPI
31,482,382
75.78%
Lombard Bank Malta p.l.c.
Annual Report and Financial Statements 2024
57
Directors’ Report (continued)
Template 5 Taxonomy non-eligible economic activities – CapEX – Stock
Row
Economic activities
Amount
Percentage
1.
Amount and proportion of economic activity referred to in row 1 of Template 1 that is taxonomy-non-eligible in accordance with Section 4.26 of Annexes I
and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI
-
-
2.
Amount and proportion of economic activity referred to in row 2 of Template 1 that is taxonomy-non-eligible in accordance with Section 4.27 of Annexes I
and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI
378
-
3.
Amount and proportion of economic activity referred to in row 3 of Template 1 that is taxonomy-non-eligible in accordance with Section 4.28 of Annexes I
and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI
11,471
0.03%
4.
Amount and proportion of economic activity referred to in row 4 of Template 1 that is taxonomy-non-eligible in accordance with Section 4.29 of Annexes I
and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI
-
-
5.
Amount and proportion of economic activity referred to in row 5 of Template 1 that is taxonomy-non-eligible in accordance with Section 4.30 of Annexes I
and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI
46
-
6.
Amount and proportion of economic activity referred to in row 6 of Template 1 that is taxonomy-non-eligible in accordance with Section 4.31 of Annexes I
and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI
-
-
7.
Amount and proportion of other taxonomy-non-eligible economic activities not referred to in rows 1 to 6 above in the denominator of the
applicable KPI
31,470,487
75.75%
8.
Total amount and proportion of taxonomy-non-eligible economic activities in the denominator of the applicable KPI
31,482,382
75.78%
Lombard Bank Malta p.l.c.
Annual Report and Financial Statements 2024
58
Directors’ Report (continued)
Template 2 Taxonomy-aligned economic activities (denominator) – Turnover – Flow
The following templates present the Bank’s exposures to nuclear and gas activities 4.26 to 4.31, as defined in Annex XII of the Disclosures Delegated Act, covering Taxonomy
aligned activities in the denominator in relation to assets under management. The templates have been duplicated to present the information separately based on Turnover and
CapEx KPIs as reported by the Bank’s counterparties.
Row
Economic activities
Amount and proportion (the information is to be presented in monetary amounts and as percentages)
CCM + CCA
CCM
CCA
Amount
%
Amount
%
Amount
%
1.
Amount and proportion of taxonomy-aligned economic activity referred to in Section
4.26 of Annexes I and II to Delegated Regulation 2021/ 2139 in the denominator of the
applicable KPI
-
-
-
-
-
-
2.
Amount and proportion of taxonomy-aligned economic activity referred to in Section
4.27 of Annexes I and II to Delegated Regulation 2021/ 2139 in the denominator of the
applicable KPI
-
-
-
-
-
-
3.
Amount and proportion of taxonomy-aligned economic activity referred to in Section
4.28 of Annexes I and II to Delegated Regulation 2021/ 2139 in the denominator of the
applicable KPI
37,443
0.19%
37,341
0.19%
-
-
4.
Amount and proportion of taxonomy-aligned economic activity referred to in Section
4.29 of Annexes I and II to Delegated Regulation 2021/ 2139 in the denominator of the
applicable KPI
-
-
-
-
-
-
5.
Amount and proportion of taxonomy-aligned economic activity referred to in Section
4.30 of Annexes I and II to Delegated Regulation 2021/ 2139 in the denominator of the
applicable KPI
-
-
-
-
-
-
6.
Amount and proportion of taxonomy-aligned economic activity referred to in Section
4.31 of Annexes I and II to Delegated Regulation 2021/ 2139 in the denominator of the
applicable KPI
-
-
-
-
-
-
7.
Amount and proportion of other taxonomy-aligned economic activities not referred to in rows
1 to 6 above in the denominator of the applicable KPI
397,625
2.06%
397,708
2.06%
18.57
-
8.
Total applicable KPI
19,334,997
100.00%
19,334,997
100.00%
19,334,997
100.00%
Lombard Bank Malta p.l.c.
Annual Report and Financial Statements 2024
59
Directors’ Report (continued)
Template 2 Taxonomy-aligned economic activities (denominator) – CapEX – Flow
Row
Economic activities
Amount and proportion (the information is to be presented in monetary amounts and as percentages)
CCM + CCA
CCM
CCA
Amount
%
Amount
%
Amount
%
1.
Amount and proportion of taxonomy-aligned economic activity referred to in Section
4.26 of Annexes I and II to Delegated Regulation 2021/ 2139 in the denominator of
the applicable KPI
3,167
0.02%
3,167
0.02%
-
-
2.
Amount and proportion of taxonomy-aligned economic activity referred to in Section
4.27 of Annexes I and II to Delegated Regulation 2021/ 2139 in the denominator of
the applicable KPI
3,173
0.02%
3,173
0.02%
-
-
3.
Amount and proportion of taxonomy-aligned economic activity referred to in Section
4.28 of Annexes I and II to Delegated Regulation 2021/ 2139 in the denominator of
the applicable KPI
42,367
0.22%
42,266
0.22%
-
-
4.
Amount and proportion of taxonomy-aligned economic activity referred to in Section
4.29 of Annexes I and II to Delegated Regulation 2021/ 2139 in the denominator of
the applicable KPI
24,450
0.13%
24,450
0.13%
-
-
5.
Amount and proportion of taxonomy-aligned economic activity referred to in Section
4.30 of Annexes I and II to Delegated Regulation 2021/ 2139 in the denominator of
the applicable KPI
8,947
0.05%
8,947
0.05%
-
-
6.
Amount and proportion of taxonomy-aligned economic activity referred to in Section
4.31 of Annexes I and II to Delegated Regulation 2021/ 2139 in the denominator of
the applicable KPI
-
-
-
-
-
-
7.
Amount and proportion of other taxonomy-aligned economic activities not referred to in
rows 1 to 6 above in the denominator of the applicable KPI
1,092,621
5.65%
1,092,531
5.65%
90.30
-
8.
Total applicable KPI
19,334,997
100.00%
19,334,997
100.00%
19,334,997
100.00%
Lombard Bank Malta p.l.c.
Annual Report and Financial Statements 2024
60
Directors’ Report (continued)
Template 3 Taxonomy-aligned economic activities (numerator) – Turnover – Flow
The following templates present the Bank’s exposures to nuclear and gas activities 4.26 to 4.31, as defined in Annex XII of the Disclosures Delegated Act, covering Taxonomy
aligned activities in the denominator in relation to assets under management. The templates have been duplicated to present the information separately based on Turnover and
CapEx KPIs as reported by the Bank’s counterparties.
Row
Economic activities
Amount and proportion (the information is to be presented in monetary amounts and as percentages)
CCM + CCA
CCM
CCA
Amount
%
Amount
%
Amount
%
1.
Amount and proportion of taxonomy-aligned economic activity referred to in Section
4.26 of Annexes I and II to Delegated Regulation 2021/ 2139 in the numerator of the
applicable KPI
-
-
-
-
-
-
2.
Amount and proportion of taxonomy-aligned economic activity referred to in Section
4.27 of Annexes I and II to Delegated Regulation 2021/ 2139 in the numerator of the
applicable KPI
-
-
-
-
-
-
3.
Amount and proportion of taxonomy-aligned economic activity referred to in Section
4.28 of Annexes I and II to Delegated Regulation 2021/ 2139 in the numerator of the
applicable KPI
37,443
8.61%
37,341
8.58%
-
-
4.
Amount and proportion of taxonomy-aligned economic activity referred to in Section
4.29 of Annexes I and II to Delegated Regulation 2021/ 2139 in the numerator of the
applicable KPI
-
-
-
-
-
-
5.
Amount and proportion of taxonomy-aligned economic activity referred to in
Section 4.30 of Annexes I and II to Delegated Regulation 2021/ 2139 in the numerator
of the applicable KPI
-
-
-
-
-
-
6.
Amount and proportion of taxonomy-aligned economic activity referred to in
Section 4.31 of Annexes I and II to Delegated Regulation 2021/ 2139 in the numerator
of the applicable KPI
-
-
-
-
-
-
7.
Amount and proportion of other taxonomy-aligned economic activities
not referred to in rows 1 to 6 above in the numerator of the applicable KPI
397,625
91.39%
397,708
91.42%
18.57
100.00%
8.
Total amount and proportion of taxonomy-aligned economic activities in
the numerator of the applicable KPI
435,068
100.00%
435,049
100.00%
18.57
100.00%
Lombard Bank Malta p.l.c.
Annual Report and Financial Statements 2024
61
Directors’ Report (continued)
Template 3 Taxonomy-aligned economic activities (numerator) – CapEX – Flow
Row
Economic activities
Amount and proportion (the information is to be presented in monetary amounts and as percentages)
CCM + CCA
CCM
CCA
Amount
%
Amount
%
Amount
%
1.
Amount and proportion of taxonomy-aligned economic activity referred to in
Section 4.26 of Annexes I and II to Delegated Regulation 2021/ 2139 in the numerator
of the applicable KPI
3,167
0.27%
3,167
0.27%
-
-
2.
Amount and proportion of taxonomy-aligned economic activity referred to in
Section 4.27 of Annexes I and II to Delegated Regulation 2021/ 2139 in the numerator
of the applicable KPI
3,173
0.27%
3,173
0.27%
-
-
3.
Amount and proportion of taxonomy-aligned economic activity referred to in
Section 4.28 of Annexes I and II to Delegated Regulation 2021/ 2139 in the numerator
of the applicable KPI
42,367
3.61%
42,266
3.60%
-
-
4.
Amount and proportion of taxonomy-aligned economic activity referred to in
Section 4.29 of Annexes I and II to Delegated Regulation 2021/ 2139 in the numerator
of the applicable KPI
24,450
2.08%
24,450
2.08%
-
-
5.
Amount and proportion of taxonomy-aligned economic activity referred to in
Section 4.30 of Annexes I and II to Delegated Regulation 2021/ 2139 in the numerator
of the applicable KPI
8,947
0.76%
8,947
0.76%
-
-
6.
Amount and proportion of taxonomy-aligned economic activity referred to in
Section 4.31 of Annexes I and II to Delegated Regulation 2021/ 2139 in the numerator
of the applicable KPI
-
-
-
-
-
-
7.
Amount and proportion of other taxonomy-aligned economic activities
not referred to in rows 1 to 6 above in the numerator of the applicable KPI
1,092,520
93.01%
1,092,531
93.02%
90.30
100.00%
8.
Total amount and proportion of taxonomy-aligned economic activities in
the numerator of the applicable KPI
1,174,625
100.00%
1,174,534
100.00%
90.30
100.00%
Lombard Bank Malta p.l.c.
Annual Report and Financial Statements 2024
62
Directors’ Report (continued)
Template 4 Taxonomy-eligible but not taxonomy-aligned economic activities – Turnover – Flow
The following templates present the Bank’s exposures to nuclear and gas activities 4.26 to 4.31, as defined in Annex XII of the Disclosures Delegated Act, covering Taxonomy
aligned activities in the denominator in relation to assets under management. The templates have been duplicated to present the information separately based on Turnover and
CapEx KPIs as reported by the Bank’s counterparties.
Row
Economic activities
Amount and proportion (the information is to be presented in monetary amounts and as percentages)
CCM + CCA
CCM
CCA
Amount
%
Amount
%
Amount
%
1.
Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity
referred to in Section 4.26 of Annexes I and II to Delegated Regulation
2021/2139 in the denominator of the applicable KPI
-
-
-
-
-
-
2.
Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity
referred to in Section 4.27 of Annexes I and II to Delegated Regulation
2021/2139 in the denominator of the applicable KPI
-
-
-
-
-
-
3.
Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity
referred to in Section 4.28 of Annexes I and II to Delegated Regulation
2021/2139 in the denominator of the applicable KPI
1,743
0.01%
1,743
0.01%
-
-
4.
Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity
referred to in Section 4.29 of Annexes I and II to Delegated Regulation
2021/2139 in the denominator of the applicable KPI
165,795
1.18%
165,795
1.18%
-
-
5.
Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity
referred to in Section 4.30 of Annexes I and II to Delegated Regulation
2021/2139 in the denominator of the applicable KPI
39,007
0.28%
39,007
0.28%
-
-
6.
Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity
referred to in Section 4.31 of Annexes I and II to Delegated Regulation
2021/2139 in the denominator of the applicable KPI
33,314
0.24%
33,314
0.24%
-
-
7.
Amount and proportion of other taxonomy-eligible but not taxonomy-
aligned economic activities not referred to in rows 1 to 6 above in the
denominator of the applicable KPI
852,741
6.07%
852,741
6.07%
-
-
8.
Total amount and proportion of taxonomy eligible but not taxonomy-aligned
economic activities in the denominator of the applicable KPI
1,092,600
7.78%
1,092,600
7.78%
-
-
Lombard Bank Malta p.l.c.
Annual Report and Financial Statements 2024
63
Directors’ Report (continued)
Template 4 Taxonomy-eligible but not taxonomy-aligned economic activities – CapEX – Flow
Row
Economic activities
Amount and proportion (the information is to be presented in monetary amounts and as percentages)
CCM + CCA
CCM
CCA
Amount
%
Amount
%
Amount
%
1.
Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity
referred to in Section 4.26 of Annexes I and II to Delegated Regulation
2021/2139 in the denominator of the applicable KPI
-
-
-
-
-
-
2.
Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity
referred to in Section 4.27 of Annexes I and II to Delegated Regulation
2021/2139 in the denominator of the applicable KPI
-
-
-
-
-
-
3.
Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity
referred to in Section 4.28 of Annexes I and II to Delegated Regulation
2021/2139 in the denominator of the applicable KPI
1,728
0.01%
1,728
0.01%
-
-
4.
Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity
referred to in Section 4.29 of Annexes I and II to Delegated Regulation
2021/2139 in the denominator of the applicable KPI
102,767
0.73%
102,771
0.73%
-
-
5.
Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity
referred to in Section 4.30 of Annexes I and II to Delegated Regulation
2021/2139 in the denominator of the applicable KPI
70,205
0.50%
70,205
0.50%
-
-
6.
Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity
referred to in Section 4.31 of Annexes I and II to Delegated Regulation
2021/2139 in the denominator of the applicable KPI
62,043
0.44%
62,043
0.44%
-
-
7.
Amount and proportion of other taxonomy-eligible but not taxonomy-
aligned economic activities not referred to in rows 1 to 6 above in the
denominator of the applicable KPI
793,963
5.66%
791,627
5.64%
2,336
0.02%
8.
Total amount and proportion of taxonomy eligible but not taxonomy-aligned
economic activities in the denominator of the applicable KPI
1,030,710
7.34%
1,028,374
7.33%
2,336
0.02%
Lombard Bank Malta p.l.c.
Annual Report and Financial Statements 2024
64
Directors’ Report (continued)
Template 5 Taxonomy non-eligible economic activities – Flow
The following templates present the Bank’s exposures to nuclear and gas activities 4.26 to 4.31, as defined in Annex XII of the Disclosures Delegated Act, covering Taxonomy
aligned activities in the denominator in relation to assets under management. The templates have been duplicated to present the information separately based on Turnover and
CapEx KPIs as reported by the Bank’s counterparties.
Row
Economic activities
Amount
Percentage
1.
Amount and proportion of economic activity referred to in row 1 of Template 1 that is taxonomy-non-eligible in accordance with Section 4.26 of Annexes I and
II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI
-
-
2.
Amount and proportion of economic activity referred to in row 2 of Template 1 that is taxonomy-non-eligible in accordance with Section 4.27 of Annexes I and
II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI
-
-
3.
Amount and proportion of economic activity referred to in row 3 of Template 1 that is taxonomy-non-eligible in accordance with Section 4.28 of Annexes I
and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI
4,764
0.03%
4.
Amount and proportion of economic activity referred to in row 4 of Template 1 that is taxonomy-non-eligible in accordance with Section 4.29 of Annexes I
and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI
-
-
5.
Amount and proportion of economic activity referred to in row 5 of Template 1 that is taxonomy-non-eligible in accordance with Section 4.30 of Annexes I
and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI
21
-
6.
Amount and proportion of economic activity referred to in row 6 of Template 1 that is taxonomy-non-eligible in accordance with Section 4.31 of Annexes I
and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI
-
-
7.
Amount and proportion of other taxonomy-non-eligible economic activities not referred to in rows 1 to 6 above in the denominator of the
applicable KPI
5,999,758
42.74%
8.
Total amount and proportion of taxonomy-non-eligible economic activities in the denominator of the applicable KPI
6,004,543
42.77%
Lombard Bank Malta p.l.c.
Annual Report and Financial Statements 2024
65
Directors’ Report (continued)
Template 5 Taxonomy non-eligible economic activities – CapEX – Flow
Row
Economic activities
Amount
Percentage
1.
Amount and proportion of economic activity referred to in row 1 of Template 1 that is taxonomy-non-eligible in accordance with Section 4.26 of Annexes I and
II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI
-
-
2.
Amount and proportion of economic activity referred to in row 2 of Template 1 that is taxonomy-non-eligible in accordance with Section 4.27 of Annexes I
and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI
66
-
3.
Amount and proportion of economic activity referred to in row 3 of Template 1 that is taxonomy-non-eligible in accordance with Section 4.28 of Annexes I
and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI
4,595
0.03%
4.
Amount and proportion of economic activity referred to in row 4 of Template 1 that is taxonomy-non-eligible in accordance with Section 4.29 of Annexes I
and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI
-
-
5.
Amount and proportion of economic activity referred to in row 5 of Template 1 that is taxonomy-non-eligible in accordance with Section 4.30 of Annexes I
and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI
21
-
6.
Amount and proportion of economic activity referred to in row 6 of Template 1 that is taxonomy-non-eligible in accordance with Section 4.31 of Annexes I
and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI
-
-
7.
Amount and proportion of other taxonomy-non-eligible economic activities not referred to in rows 1 to 6 above in the denominator of the
applicable KPI
5,999,862
42.74%
8.
Total amount and proportion of taxonomy-non-eligible economic activities in the denominator of the applicable KPI
6,004,543
42.77%
Lombard Bank Malta p.l.c.
Annual Report and Financial Statements 2024
66
Directors’ Report (continued)
Disclosure in respect of the Bank’s subsidiary MaltaPost p.l.c.
The Bank’s subsidiary MaltaPost p.l.c. (‘MaltaPost’) is subject to the NFRD and is therefore also subject to disclosure
requirements emanating from the Disclosures Delegated Act as a Group in its own right.
The Group is required to disclose the share of its turnover, capital expenditure (CapEx) and operating expenditure
(OpEx) for its non-financial subsidiaries, which are associated with the following, in accordance with the Disclosures
Delegated Act.
- Taxonomy-eligible and Taxonomy-aligned economic activities in respect of climate-related environmental
objectives; and
- Taxonomy-eligible economic activities in respect of non-climate environmental objectives.
Proportion of Taxonomy-eligible and Taxonomy-aligned economic activities in total turnover, CapEx and
OpEx
Total
(€000)
Proportion of
Taxonomy-eligible
(non-aligned)
economic
activities
Proportion of
Taxonomy-
aligned economic
activities
Proportion of
Taxonomy non-
eligible economic
activities
FY 2024
Turnover
40,144
86%
0%
14%
CapEx
2,104
42%
0%
58%
OpEx
1,401
82%
0%
18%
FY 2023
Turnover
39,610
86%
0%
14%
CapEx
1,844
42%
0%
58%
OpEx
1,141
82%
0%
18%
Taxonomy eligibility of turnover-generating activities
The Group has examined all economic activities which it carries out to determine which of these are Taxonomy
eligible in accordance with Annexes I and II to the Climate Delegated Act and Annexes I to IV to the Environmental
Delegated Act. The table below indicates the activities performed by the Group which have been identified as
Taxonomy eligible and the environmental objective with which the activity may be associated. Given that none of
the Group’s economic activities in terms of turnover, CapEx, or OpEx are Taxonomy aligned, no further detail with
respect to Taxonomy alignment is provided.
Taxonomy eligible activities were identified by extracting the total turnover, CapEx and OpEx required to be
captured in the denominators of the respective KPIs and assessing the NACE code of the activities to which the
amounts relate. The Group then assessed which of the identified NACE codes relate to activities included within
the annexes to the Climate Delegated Act. For the identified eligible activities, the Group then began the process
to assess them against the technical screening criteria.
Through the activities highlighted in the following table, the Group generates turnover, and may incur both CapEx
and OpEx for such activities.
Lombard Bank Malta p.l.c.
Annual Report and Financial Statements 2024
67
Directors’ Report (continued)
Economic activity
Description
Turnover
(%)*
CapEx
(%)*
OpEx
(%)*
Environmental
objective(s)
6.4 Operation of personal
mobility devices, cycle
logistics
Postal revenue earned through
delivery of post on foot and by
e-pedal cargo bikes
12%
0%
0%
CCM, CCA
6.5 Transport by
motorbikes, passenger
cars and light commercial
vehicles
Postal revenue earned through
delivery services by motorbikes,
cars and light commercial
vehicles including electric
vehicle quadricycles
54%
41%
75%
CCM, CCA
6.15 Infrastructure
enabling low-carbon road
transport and public
transport
Postal revenue earned through
infrastructure and related
activities in sorting centres and
hubs essential to minimise the
transport activities required
20%
0%
0%
CCM, CCA
*of the total turnover, CapEx and OpEx included in the denominator of the respective KPI
The Group has developed a system to allocate the proportion of its postal turnover towards transport activities.
This is based on transport modalities of postal beats, in the case of delivery services, where 14% of the Group’s
turnover attributable to its non-financial undertaking activities is allocated towards activity 6.4 ‘Operation of
personal mobility devices, cycle logistics’, and 63% towards activity 6.5 ‘Transport by motorbikes, passenger cars
and light commercial vehicles’. In the case of sorting activities, this is based on the area of its property used for
sorting as a proportion of total property area, where the remaining 23% of turnover attributable to Group non-
financial undertaking activities is allocated towards activity 6.15 ‘Infrastructure enabling low-carbon road transport
and public transport’.
Economic activities classified under activity 6.4 ‘Operation of personal mobility devices, cycle logistics’ relate to on-
foot deliveries and e-pedal cargo bikes, being two delivery methods used in the Group’s Last Mile Delivery which
are eligible under such activity.
Economic activities classified under activity 6.5 ‘Transport by motorbikes, passenger cars and light commercial
vehicles’ relate to motorcycles, delivery vans and light cargo electric vehicles (Micro Logistics Electric Vehicles),
which are another three delivery methods used in the Group’s Last Mile Delivery which are eligible under this
activity. In this respect, the CapEx classified as Taxonomy eligible entails capital investments pertaining to the
execution of such turnover-generating economic activity. Such CapEx relates to motor vehicle additions throughout
the year, whilst OpEx in this respect pertains to direct non-capitalised costs incurred in the day-to-day servicing of
such motor vehicles, namely running expenses relating to repair and maintenance, and short-term operating
leases.
Economic activities classified under activity 6.15 ‘Infrastructure enabling low-carbon road transport and public
transport’ relate to infrastructure and related activities in the Group’s sorting centre and hubs, which are
considered essential to enable the efficient transport of letters, small packets and parcels, making it a driver in
minimising the required transport activities in the postal business.
The Group also operates four heavy vehicles in scope of activity 6.6 ‘Freight transport services by road’, however
these are considered not to directly contribute to turnover generation.
The Group assessed its turnover-generating economic activities in light of the Environmental Delegated Act,
however, none are currently deemed to be eligible in this respect.
Lombard Bank Malta p.l.c.
Annual Report and Financial Statements 2024
68
Directors’ Report (continued)
Whilst the Group currently assesses its operating activities in accordance with activities classified under section 6
‘Transport’ of the Climate Delegated Act, PostEurop, the trade association that represents European public postal
operators, submitted a position paper on the EU Taxonomy in September 2022 recommending that the postal
sector be captured under a specific sector, as opposed to ‘Transport’. Therefore, in the future, should the Climate
Delegated Act be amended in light of such a proposal, the Group will re-assess the Taxonomy eligibility of its
turnover-generating activities.
Other turnover-generating activities classified as Taxonomy non-eligible
The Group’s Taxonomy non-eligible economic activities include warehousing services, document management
services, philatelic activities, retail sale of stamps, non-postal stationery and provision of non-postal services.
Taxonomy eligibility of investment activities not directly related to turnover-generating activities
Further to the activities from which the Group generates turnover, and generally incurs both CapEx and OpEx, it
also engages in investment activities not directly related to its turnover-generating activities as highlighted in the
following table.
Economic activity
Description
CapEx
(%)*
OpEx
(%)*
Environmental
objective(s)
7.7 Acquisition and ownership
of buildings
Additions to leased property
1%
7%
CCM, CCA
*of the total CapEx and OpEx included in the denominator of the respective KPI
Economic activities classified under activity 7.7 Acquisition and ownership of buildings relate to additions to leased
property.
The Group assessed its investment activities not directly related to turnover-generating economic activities in light
of the Environmental Delegated Act, however, none are currently deemed to be eligible in this respect.
Consolidated group-level KPI on Taxonomy aligned activities in the form of a weighted average KPI
The Group discloses a weighted average KPI of its financial and non-financial activities as required by FAQ7 in the
afore-mentioned Draft Commission Notice. The Group’s weighted average turnover-based KPI is 0.05% while its
weighted average CapEx-based KPI is 0.10%.
Signed on behalf of the Bank's Board of Directors on 16 April 2025 by Michael C. Bonello (Chairman) and Joseph Said
(Director and Chief Executive Officer) as per the Directors' Declaration on ESEF Annual Financial Report submitted
in conjunction with the Annual Report and Financial Statements 2024.
Lombard Bank Malta p.l.c.
Annual Report and Financial Statements 2024
69
Statement of Compliance with the Principles of Good Corporate Governance
A.
INTRODUCTION
In terms of the Capital Markets Rules of the Malta Financial Services Authority (Rule 5.94), Lombard Bank Malta
p.l.c. (the ‘Bank’), as a company having its securities admitted to trading on a regulated market, is obliged to report
on the extent to which it has adopted the ‘Code of Principles of Good Corporate Governance’ (the ‘ Principles’)
embodied in Appendix 5.1 to Chapter 5 of the same Capital Markets Rules, as well as the measures which have
been taken by the Bank to ensure compliance with these Principles.
While the Principles are not mandatory, the Board of Directors of the Bank has endeavoured to ensure that they
are upheld to the fullest extent possible, and this while acknowledging that good corporate governance is indeed
beneficial to all the Bank’s stakeholders. The instances in which the Bank has departed from the Principles are
explained below under Section C - ‘Non- Compliance with the Code’.
After having carried out a review of the extent to which the Bank has been compliant with the Principles throughout
the financial year ended 31 December 2024, the Board of Directors, in terms of Capital Markets Rule 5.97, presents
its report as follows:
B.
COMPLIANCE WITH THE CODE
Principle 1: The Board
As at 31 December 2024, the Board of Directors of the Bank consisted of six (6) Directors, five (5) of whom being
non-executive Directors together with the Chief Executive Officer of the Bank being also a Director.
With effect from 13 March 2024, Graham A. Fairclough resigned from his position as non-executive director
subsequent to which, the Board of Directors co-opted Aldo-Joseph Giordano as non-executive director with
regulatory approval being received and him being subsequently reappointed during the 2024 Annual General
Meeting. The Directors, individually and collectively, are considered fit and proper to direct the business of the
Bank, having the necessary skills and experience to be able to do so.
In order to assist it in the execution of its duties and responsibilities, the Board of Directors has set up a number of
committees and these include the Audit & Risk Committee, the Assets & Liabilities Committee, the Credit Committee
and the Suitabilities & Evaluations Committee, all of which are regulated by their own Terms of Reference as approved
and periodically reviewed by the Board.
Principle 2: Chairman and Chief Executive Officer
Different individuals occupy the positions of Chairman and Chief Executive Officer. A clear division of
responsibilities exists between the Chairman’s responsibility for the running of the Board of Directors and the
Chief Executive Officer’s responsibility for the running and managing of the Bank’s business. This separation of
roles of the Chairman and Chief Executive Officer avoids concentration of power, authority and unfettered
discretion in one individual alone and differentiates leadership of the Board from the running of the Bank’s
business.
The Chairman’s responsibilities, inter alia, include: (i) leading the Board and helping it reach its full potential,
particularly by facilitating the effective contribution of Directors and encouraging discussion; (ii) setting of the
Agenda for Board meetings; (iii) ensuring that the Directors receive precise, timely and objective information so
that they can make sound decisions and effectively monitor the performance of the Bank; (iv) ensuring that all
strategic and policy issues are appropriately discussed and formally approved; and (v) maintaining effective
communication with the Bank’s shareholders at all times. As stated below, the Chairman meets the independence
criteria set out in the Principles.
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Statement of Compliance with the Principles of Good Corporate Governance (continued)
The Board of Directors appoints the Chief Executive Officer. The Chief Executive Officer is responsible for managing
the day-to-day business of the Bank in conformity with the agreed plans, policies and strategies approved by the
Board. The Board of Directors also appointed two Deputy Chief Executive Officers, who support the Chief Executive
Officer in the exercise of his duties while also leading the Credit and Operations functions respectively.
Principle 3: Composition of the Board
The following Directors served on the Board during the period under review:
Michael C. Bonello
John Bonello
Graham A. Fairclough*
Aldo-Joseph Giordano*
Kimon Palamidis
Peter Perotti
Joseph Said
* Graham A. Fairclough resigned from his position as non-executive director with effect from 13 March 2024, subsequent to which the
Board of Directors co-opted Aldo-Joseph Giordano as non-executive director, with regulatory approval being received on 21 May 2024.
He was subsequently reappointed during the 2024 Annual General Meeting.
All Board members are Non-Executive Directors who are not engaged in the daily management of the Bank,
with the exception of Joseph Said who is also Chief Executive Officer of the Bank. Furthermore, the Board
considers Michael C. Bonello, John Bonello, Aldo-Joseph Giordano, Kimon Palamidis and Peter Perotti as
independent Directors. Kimon Palamidis is still considered to be independent despite the fact that he has served
on the Board for more than twelve consecutive years. In determining the independence of its members, the
Board takes into consideration the relevant criteria and Principles as well as what are generally considered
sound, acceptable standards. All Non-Executive Directors have declared in writing to the Board that they
undertake:
to maintain in all circumstances their independence of analysis, decision and action;
not to seek or accept any unreasonable advantages that could be considered as compromising their
independence; and
to clearly express their opposition in the event that they find that a decision of the Board may harm the Bank.
It is considered that, in the current circumstances in which the Bank is operating, the size of the Board is
sufficient for the requirements of the business and that the balance of skills and experience therein is appropriate
to properly enable the Board to carry out its duties and responsibilities. This is considered so also taking into
account, inter alia, the Bank’s simple model and the principle of proportionality, based on the Bank’s size and the
nature, scale and complexity of its activities and products. Should the necessity arise to supplement the skills of
its members, the Board has at its disposal the facility to appoint any external consultants to provide assistance and
advice so as to further enhance the Board’s oversight functions.
The composition and election of the Board of Directors is determined by the Bank’s Articles of Association wherein
it is established that it is the shareholders who must appoint Directors to serve on the Board. Within these
parameters, options for further strengthening the Board are always considered. In addition, however, the Bank,
by virtue of the Board-appointed Suitabilities & Evaluations Committee, carries out suitability assessments of its
existing Directors and any new nominated Directors in order to ensure that the suitability, fit and proper criteria
are observed, pursuant to all applicable laws, rules, regulations, guidelines etc.
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Statement of Compliance with the Principles of Good Corporate Governance (continued)
The overall composition of the Board and the collective knowledge, skills and experience required are evaluated
during individual suitability assessments and collective suitability assessments so as to ensure that the Board is
effectively discharging all its duties and obligations at all times.
The appointment of Directors to the Board is a matter that is reserved entirely to the Bank’s shareholders in terms
of the Memorandum and Articles of Association. Therefore diversity, to an extent, depends on the profiles of
nominees proposed and their suitability in terms of applicable laws, rules, regulations, guidelines, etc. The benefits
of diversity, including that in educational and professional backgrounds, age, gender, experience and geographical
provenance would be considered by the Suitability and Evaluations Committee in its assessment of suitability of
any nominees.
During 2024, the Bank further formalised its succession policy for directors (apart from senior management and
heads of internal control functions) into a consolidated document – Succession Policy for the Board of Directors &
Key Function Holders - which seeks to ensure continuity of the roles by having in place the processes for orderly
and planned succession. While the right to appoint the Bank’s Directors is vested in the shareholders, this Policy
serves to set out the best efforts to be in place in order to advise and support shareholders in the process, subject
to the parameters of applicable laws, rules, regulations etc., and the Bank’s Memorandum and Articles of
Association and to consider appropriate succession planning that is consistent with all legal requirements
regarding composition, appointment or succession of the Board of Directors.
The Board considers that as a policy and as reflected in its Board of Directors’ Charter, and its Succession Policy
for the Board of Directors and Key Function Holders, it endeavours to have a varied board, particularly in terms
of diverse educational and professional backgrounds and extensive and specialised experience of its members.
The Board is confident that for this reason, also taking into account proportionality and the Bank’s size and the
nature, scale and complexity of its activities and products, it benefits from a satisfactory diversity of skills,
knowledge and experience. This allows for a good understanding of current affairs, the Bank’s activities, business
model, strategy and associated risks, applicable regulatory framework and the environment in which the Bank
operates and longer-term risks and opportunities related to the Bank’s business. It also benefits from international
expertise. The Board also seeks to supplement and enhance its skillset for further effective oversight of certain
specialised areas by the engagement of external advisors for matters such as information and communication
technology and security.
The Board is cognisant of the fact that the appropriate mix of Board Members ensures diverse perspectives,
experience and knowledge. It continues to remain committed to achieving further diversity among its members
particularly in terms of age, geographical provenance, gender, experience, educational and professional
backgrounds.
Principle 4: The Responsibility of the Board
In pursuing the execution of the four basic roles of corporate governance, namely, accountability, monitoring,
strategy formulation and policy development, the Board of Directors, having the first level of responsibility for
such execution, inter alia:
regularly reviews and evaluates corporate strategy, major operational and financial plans, risk management
policies, performance objectives and monitors implementation and corporate performance within the
parameters of all relevant laws, regulations and codes of best business practice;
applies high ethical standards and takes into account the interests of stakeholders and acts responsibly and
with integrity and on a fully informed basis, in good faith, with due diligence and in the best interests of the
Bank and its shareholders;
recognises that the Bank’s success depends upon its relationship with all groups of its stakeholders, including
employees, suppliers, customers and the wider community in which the Bank operates;
monitors effectively the application and implementation by Management of its policies and strategy;
recognises and supports enterprise and innovation within Management and examines how best to motivate
the Bank’s Management;
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Statement of Compliance with the Principles of Good Corporate Governance (continued)
seeks to establish an effective decision-making process in order to develop the Bank’s business efficiently; and
ensures that a balance is struck between enterprise and control in the Bank.
Furthermore, the Board of Directors, inter alia:
defines in clear and concise terms the Bank’s strategy, policies, management performance criteria and
business policies and effectively monitors the implementation of such by Management;
establishes a clear internal and external reporting system so that the Board has continuous access to
accurate, relevant and timely information;
has appointed Committees, including the Audit & Risk Committee, Credit Committee, Assets & Liabilities
Committee and Suitabilities & Evaluations Committee;
continuously assesses and monitors the present and future operations’ opportunities, threats and risks;
evaluates the Management’s implementation of corporate strategy and financial objectives;
ensures that the Bank has appropriate policies and procedures in place to assure that the Bank and its staff
members maintain the highest standards of corporate conduct, including compliance with applicable laws,
regulations, business and ethical standards;
ensures that the financial statements of the Bank and the annual audit thereof are completed within the
stipulated time periods; and
requires Management to constantly monitor performance and report fully and accurately to the Board.
Furthermore, Directors keep themselves updated on an ongoing basis of their statutory and fiduciary duties, the
Bank’s operations and prospects, the general business environment and skills and competences of Senior
Management. The expectations of the Board are also discussed regularly.
As stated earlier, during 2024, the Bank further formalised its succession policy for directors (apart from senior
management and heads of internal control functions) into a consolidated document – Succession Policy for the
Board of Directors & Key Function Holders - which seeks to ensure continuity of the roles by having in place the
processes for orderly and planned succession. The Bank’s Suitability & Evaluations Committee oversees the
implementation and maintenance of this Policy, although the Chairman and Board of Directors continue to remain
ultimately responsible.
Principle 5: Board Meetings
The Board convened nine (9) times during the period under review with attendance of the Directors as follows:
Michael C. Bonello 9
John Bonello 9
Graham A. Fairclough 1*
Aldo-Joseph Giordano 7**
Kimon Palamidis 8
Peter Perotti 9
Joseph Said 9
* Graham A. Fairclough resigned from his position as non-executive director with effect from 13 March 2024 subsequent
to which the Board of Directors co-opted Aldo-Joseph Giordano as non-executive director.
** Aldo-Joseph Giordano was appointed as a non-executive Director of the Bank upon receipt of regulatory approval on
21 May 2024 and was re-appointed by the Bank’s Shareholders at the Bank’s 2024 Annual General Meeting.
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Statement of Compliance with the Principles of Good Corporate Governance (continued)
The dates when the Board meetings are scheduled to be held are determined prior to the beginning of the year in
question. When required, further meetings are scheduled.
Ahead of Board meetings an agenda and supporting documentation are made available to all Directors. Other than in
the case of meetings specially convened to discuss particular matters, generally the agendas of regular Board
meetings set out items of a long-term strategic nature, as well as performance-related issues, together with credit
applications which fall within the discretionary limits of the Board and regular updates from the various functions
of the Bank including the internal control functions. The continuously increasing regulatory requirements also
demand that agendas include several compliance and risk-related matters. During meetings, Directors are
encouraged to present their views pertinent to the subject matter and are given every opportunity to contribute to
the relevant issues on the agenda and to challenge each other and Management as necessary. Following each
meeting, minutes which record attendance as well as all decisions taken are circulated to all Board members.
Principle 6: Information and Professional Development
Each newly appointed Member of the Board is briefed by the Chief Executive Officer, Senior Management officials,
Heads of Internal Control Functions and any other staff members as necessary, on all aspects of the Bank’s
business and functions, while the Company Secretary provides each newly appointed Director with relevant
corporate governance information.
Board members are reminded that the Company Secretary is at their disposal to provide any advice or assistance
that may be required in the discharge of their duties and responsibilities. The Company Secretary is responsible
for advising the Board, through the Chairman, on all governance matters. The Secretary is responsible for ensuring
that Board procedures are complied with as well as that effective information flows within the Board, its
committees and with Senior Management. The Secretary also facilitates induction and assists with professional
development, as required.
Directors are given the opportunity to update and develop their skills and knowledge, particularly through detailed
presentations, briefings and training by senior executives and other relevant Bank officials. They are invited to attend
training sessions organised specifically for the Board and are also informed of and encouraged to attend externally
run seminars throughout their directorship.
Furthermore, Directors have access to the advice and services of any advisors and also the External Auditors. The
External Auditors are invited to attend all Audit & Risk Committee meetings as well as Board meetings when
required.
The Board continues to be mindful of the crucial importance of recruiting, retaining and motivating quality
management. The ongoing training and development of staff at all levels is considered of the utmost importance
and this also in the light of the need for orderly succession.
Principle 7: Evaluation of the Board’s Performance
An assessment exercise of the Board’s performance was carried out through a ‘self-evaluation’ questionnaire in which
Board members participated. Furthermore, assessment exercises of performance of the committees were also
carried out by virtue of ‘self-evaluation’ questionnaires completed by the members and some regular attendees
of the Audit & Risk Committee, the Assets & Liabilities Committee and the Credit Committee. These exercises also
included an evaluation of the Chairman of each respective Committee. These ‘self-evaluation’ questionnaires were
then analysed by the Suitabilities & Evaluations Committee established by the Board to report to the Board
accordingly. This exercise did not reveal the need for any material changes in the Bank’s governance structures
and organisation.
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Statement of Compliance with the Principles of Good Corporate Governance (continued)
Principle 8: Committees
The Board has appointed the following committees:
Audit & Risk Committee
The primary purpose of the Audit & Risk Committee is to further safeguard the interests of the Bank’s shareholders
and to assist the Directors in conducting their role effectively so that the Bank’s decision-making capability,
oversight of internal control functions and the accuracy of its reporting and financial results are maintained at a
high level at all times. The Committee assists the Board in fulfilling its supervisory and monitoring responsibility
for effective financial reporting, risk management, control and governance and this by, inter alia, reviewing any
financial information, statements and disclosures to be issued, systems of governance, systems of internal control
established by Management and the Board, the risk management processes, the external and internal audit
processes as well as the compliance processes.
The Audit & Risk Committee met seven (7) times during the period under review.
The Committee reviews the Bank’s financials regularly with the Chief Financial Officer attending meetings and
explaining the Bank’s position as required. All financial results are reviewed by the Committee and any
recommendations for approval by the Board put forward.
With respect to Risk Management, the Committee, inter alia, reviews reports from the Risk Management Function
which enable the Committee (and the Board) to consider the process of risk identification and management, to
assess the risks involved in the Bank’s business and to understand how they are controlled and monitored by
Management. The Committee also makes recommendations to the Board on the Bank’s overall current and future
risk appetite and strategy and assists the Board in overseeing the implementation of that strategy by Management.
Compliance Risk being one of the Bank’s main risks is also overseen by virtue of regular reporting to the Committee
by both the regulatory compliance and financial crime compliance functions.
The Committee also oversees the Internal Audit Function by, inter alia, reviewing internal audit reports and
overseeing the drawing up and implementation of the Audit Plan ensuring that it considers effectively the areas
set out in the Audit Universe. In this manner, the Audit & Risk Committee oversees the effectiveness of the Bank’s
internal controls.
During the year under review, the Audit & Risk Committee was composed of four (4) non-executive Board
members at any one time: Michael C. Bonello, Graham A. Fairclough / Aldo-Joseph Giordano, Kimon Palamidis and
Peter Perotti in accordance with the Audit & Risk Committee’s Terms of Reference. As stated earlier, Graham A.
Fairclough resigned from his position as non-executive director with effect from 13 March 2024 and was replaced
by Aldo-Joseph Giordano upon receipt of the relative regulatory approval.
Kimon Palamidis is the Chairman of this Committee and is considered by the Board to be independent as
explained earlier on in this statement. Together with other independent members, he is also competent in
accounting and / or auditing in terms of the Capital Markets Rules. The Bank’s Head of Internal Audit and Chief Risk
Officer attend meetings of the Audit & Risk Committee. The Bank’s External Auditors and members of Senior
Management and others, including, inter alia, the Chief Executive Officer, the two Deputy Chief Executive Officers,
the Chief Financial Officer, and the Compliance Officer and Money Laundering Reporting Officer, are also invited to
attend meetings for certain agenda items or discussions as is deemed necessary by the Committee. The Company
Secretary acts as Secretary to the Audit & Risk Committee.
Assets & Liabilities Committee (ALCO)
Membership of this Committee is made up of a number of Chief Officers and senior officers, including from the
Finance and Treasury departments and the Corporate Advisory & Research and Asset and Fund Management
functions. The Chief Executive Officer chairs the ALCO whose main objective is to manage risks within approved
limits at the same time as maximising returns by efficient and judicious management of the Bank’s assets and
liabilities. The Chief Risk Officer is also invited to attend meetings. A Secretary is appointed by the Committee.
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Statement of Compliance with the Principles of Good Corporate Governance (continued)
Credit Committee
The Credit Committee is responsible for considering and approving credit applications within delegated limits of
authority. It is composed of a number of Chief Officers and senior officers. The Chief Executive Officer chairs this
Committee and a Secretary is appointed by the Committee.
Suitabilities & Evaluations Committee
This Committee is responsible for carrying out suitability assessments of nominated and existing Directors, Key
Function holders or any other persons as may be required and also assesses the Board’s annual performance and
that of its committees following the completion of the self-evaluations by the Board and committee members.
The Chairman of the Committee, Peter Perotti, is an independent non-executive Director and Committee member
and the Company Secretary acts as Secretary.
Remuneration Committee
The functions of the Remuneration Committee are carried out by the Suitabilities & Evaluations Committee, as
delegated by the Board from time to time as well as the Board of Directors in view of the fact that the remuneration
of Directors for the holding of their office on the Board is not performance-related.
A separate ‘Remuneration Report’ features on page 79 of this Annual Report in compliance with the Principles.
Principle 9 and 10: Relations with Shareholders and Markets and Institutional Shareholders
The Bank fully appreciates the importance of maintaining open lines of communication with shareholders, the
markets and institutional shareholders. The Board, in this regard, considers that throughout the period under
review the Bank has continued to communicate appropriately by means of regular company announcements and
press releases.
The Bank also communicates with its shareholders with respect to its General Meetings. The documentation relative
to General Meetings is sent to all shareholders at least twenty-one (21) days prior to the holding of the Meeting.
The Bank’s website (www.lombardmalta.com), contains information about the Bank and its business and is
updated regularly.
It is therefore the Bank’s policy:
to publish information that can have a significant effect on the Bank’s share price through the Malta Stock
Exchange and on the Bank’s website;
to make other published information available to the public on the Bank’s website;
to strive for open, transparent communications;
to ensure continuity and high quality in the information disclosed; and
to be accessible to all stakeholders.
Minority shareholders are entitled to call special meetings should a minimum threshold of share ownership be
established in accordance with the Bank’s Memorandum and Articles of Association. Furthermore, minority
shareholders may formally present an issue to the Board if they own the predefined minimum threshold of shares.
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Statement of Compliance with the Principles of Good Corporate Governance (continued)
Principle 11: Conflicts of Interest
The Board of Directors recognises that its members have a primary responsibility to always act in the interest of the
Bank and its shareholders as a whole, irrespective of who appointed them to the Board.
Strict policies are in place, particularly in the Board of Directors’ Charter, to enable the management of conflict of
interest, both actual as well as potential, should the occasion arise.
In addition, the Bank’s Policy on the Prevention of Market Abuse was adopted and implemented in conformity with
Market Abuse laws and regulations. Directors and staff members are also regularly reminded of their obligations
when dealing in securities of the Bank and other scheduled financial instruments.
Joseph Said, who is a Director of the Bank, holds a directorship in two companies that have a shareholding in the
Group, as disclosed in the Directors’ Report.
Principle 12: Corporate Social Responsibility
The Bank is well aware of the need to adhere to accepted principles of corporate social responsibility and in this
regard remains fully committed to conducting its activities ethically at all times. It consistently seeks to contribute
to economic and social development while also improving the quality of life of its staff members and their families.
These principles also include matters concerning data privacy and protection, diversity and inclusion, talent
management, customer relations, innovation, community and staff engagement as well as responsible lending.
The Bank implements these principles of corporate social responsibility through strong governance and risk
management practices.
It extends support to various initiatives and projects together with direct community involvement. The Bank is also
sensitive to the fact that success in these areas requires investment in the community, customers and staff
members while not overlooking the impact that its activities may have on the environment.
C.
NON-COMPLIANCE WITH THE CODE
Principle 8a: (Remuneration Committee)
The Board did not establish a Remuneration Committee as specified in Code Provision 8.A.1. In terms of Code
Provision 8.A.2 of the Principles, given that the remuneration of Directors for the holding of their office on the
Board is not performance-related, the functions of the Remuneration Committee are carried out by the Board of
Directors. Furthermore, the Board of Directors, as it deems necessary, delegates certain matters regarding
remuneration to the Suitabilities & Evaluations Committee referred to above.
Principle 8b: (Nomination Committee)
A Nomination Committee has not been set up since the appointment of Directors to the Board is a matter that is
reserved entirely to the Bank’s shareholders in terms of the Memorandum and Articles of Association.
In this connection every member of the Bank holding in the aggregate at least fifteen percent (15%) of the ordinary
issued share capital of the Bank shall be entitled to appoint one (1) Director for each and every fifteen percent
(15%) of the ordinary issued share capital owned by that member.
Any fractional shareholding in excess of fifteen percent (15%) not applied in appointing such a Director or Directors,
and only that fraction, shall be entitled to vote in the election of the remaining Directors together with the
remaining body of shareholders. These are entitled to appoint the remaining Board members in accordance with
the provisions of the Bank’s statute.
This notwithstanding, in light of regulatory requirements, the Suitabilities & Evaluations Committee referred to
above was set up specifically to carry out suitability assessments of nominated and existing Directors, key function
holders or any other persons as may be required and also to assess the Board’s annual performance and that of its
committees. This Committee remains guided by applicable laws, rules, regulations and guidelines. This Committee
is also tasked with implementing the Bank’s Succession Policy for the Board of Directors and Key Function Holders.
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Statement of Compliance with the Principles of Good Corporate Governance (continued)
Principle 9: (Code Provision 9.3)
There are no procedures disclosed in the Bank’s Memorandum or Articles as recommended in Code Provision 9.3 to
resolve conflicts between minority shareholders and controlling shareholders.
D.
INTERNAL CONTROL (CAPITAL MARKETS RULE 5.97.4)
The Board is ultimately responsible for the Bank’s internal controls as well as their effectiveness, while authority to
operate the Bank is delegated to the Chief Executive Officer. The Bank’s system of internal controls is designed to
manage all the risks in the most appropriate manner. Such controls, however, cannot completely eliminate the
possibility of material error or fraud. The Board, therefore, assumes responsibility for executing the four basic roles
of corporate governance, i.e. accountability, monitoring, strategy formulation and policy development.
In summary, the Board is therefore responsible for:
reviewing the Bank’s strategy on an ongoing basis as well as setting the appropriate business objectives in
order to enhance value for all stakeholders;
appointing and monitoring the Chief Executive Officer whose function it is to manage the operations of the
Bank; and
identifying and ensuring that significant risks are managed satisfactorily.
Given the fiduciary responsibility involved, the Board of Directors also sets high business and ethical standards for
adoption right across the organisation.
The Board upholds a policy of clear demarcation between its role and responsibilities and those of Management. It
has defined the level of authority that it retains over strategy formulation and policy determination together with
delegated authority and has vested accountability for the Bank’s day-to-day business in the Assets & Liabilities
Committee, Credit Committee and in the management team comprising of the:
•
Chief Executive Officer;
•
Deputy Chief Executive Officers; and
•
Chief Officers and other officers.
The Board frequently participates in asset allocation decisions as well as credit proposals above a certain
threshold, after the appropriate recommendations have been made.
The Bank’s internal control framework covering all the Bank’s activities ensures:
•
effective and efficient operations and prudent conduct of business;
•
proper risk management;
•
reliable financial and non-financial information; and
•
compliance with all internal policies, processes and procedures, laws, rules and regulations.
To this effect, a three-lines-of-defence model has been adopted by the Bank as follows:
•
First line of defence - Business Units Operations: This is provided by front line staff members and business
unit management. The internal controls and systems, the culture and control environment developed and
implemented by these business units play a vital role in anticipating and managing operational risks.
•
Second line of defence - Risk Management & Compliance: The Bank maintains permanent and effective
compliance and risk management functions which report directly to the Audit & Risk Committee and Board of
Directors. The Compliance Function identifies, assesses and manages compliance risk. The Risk Management
Function is responsible for overseeing the Bank’s activities and for identifying, monitoring, controlling and
reporting such risk. Through the Bank’s Risk Management Framework, an appropriate balance is struck
between sound practices and profitability, by applying strict internal controls and discretionary limits, and
optimising the returns thereof, in line with the Bank’s risk appetite.
•
Third line of defence - Internal Audit: This is an integral part of the Bank’s control environment and provides
Management and the Audit & Risk Committee and Board of Directors with an independent and objective
review of the Bank’s business activities and support functions.
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Annual Report and Financial Statements 2024
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Statement of Compliance with the Principles of Good Corporate Governance (continued)
E.
GENERAL MEETINGS (CAPITAL MARKETS RULE 5.97.6)
General meetings are called by giving at least twenty-one (21) days’ notice and conducted in accordance with the
provisions contained in the Bank’s Articles of Association.
The ‘Ordinary Business’ which is dealt with at the Annual General Meeting consists of the adoption of the annual
financial statements, declaration of a dividend, appointment of Board members, appointment of auditors and the
fixing of their remuneration together with the voting of remuneration to the Directors for the holding of their
office. All other business shall be deemed ‘Special Business’.
All shareholders registered in the shareholders’ register on record date as defined in the Capital Markets Rules
have the right to attend, participate and vote in the general meeting.
A shareholder or shareholders holding not less than five per cent (5%) of the voting issued share capital of the Bank
may: (i) request the Bank to include items on the agenda and; (ii) table draft resolutions for items included in the
agenda of a general meeting. Such requests shall be submitted to the Bank at least forty-six (46) days before the
date set for the general meeting.
Every shareholder shall be entitled to appoint only one (1) person to act as proxy holder to attend and vote at a
general meeting instead of him. The proxy holder shall enjoy the same rights to speak and ask questions in the
general meeting as those to which the member thus represented would be entitled.
Signed on behalf of the Bank's Board of Directors on 16 April 2025 by Michael C. Bonello (Chairman) and Joseph
Said (Director and Chief Executive Officer) as per the Directors' Declaration on ESEF Annual Financial Report
submitted in conjunction with the Annual Report and Financial Statements 2024.
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Annual Report and Financial Statements 2024
79
Remuneration Report
As indicated in the ‘Statement of Compliance with the Code of Principles of Good Corporate Governance’, in terms
of the ‘Code of Principles of Good Corporate Governance’ within the Capital Markets Rules issued by the Malta
Financial Services Authority, the Board of Directors performs the functions of a Remuneration Committee on the
basis that the remuneration of the Bank’s Directors for the holding of their office on the Board, is not performance-
related and does not include share options, pension benefits, profit-sharing arrangements or any emolument
related to the performance of the Bank. Among the obligations established in the Capital Markets Rules, the Board,
where applicable, carries out the main duties established in the Supporting Principles enshrined in Principle 8A of
the ‘Code of Principles of Good Corporate Governance’. This Remuneration Report was approved by the Board of
Directors at the Board Meeting held on 16 April 2025.
Directors
The Bank’s Remuneration Policy for Directors is drawn up in terms of the Capital Markets Rule 12.26A et seq and
sets out the Bank’s remuneration policy with respect to its Directors, Chief Executive Officer and Deputy Chief
Executive Officers with their remuneration being paid in accordance with the same. During 2023, this Policy was
revised as approved by the Annual General Meeting on 22 June 2023 (Refer to
https://www.lombardmalta.com/annual-general-meeting-2023).
This Policy is reviewed by the Board on an annual basis and, in terms of the Capital Markets Rules, shall be put to
a vote by the General Meeting at every material change and, in any case, at least every four years. No changes are
being proposed for approval at the 2025 Annual General Meeting.
In terms of the Bank’s Memorandum and Articles of Association, the Bank’s shareholders determine the maximum
annual aggregate remuneration of the Directors. The maximum amount is established by resolution at each Annual
General Meeting of the Bank. The aggregate amount fixed for this purpose during the 2024 Annual General
Meeting was one hundred and twenty thousand euro (€120,000).
As per policy, members of the Board, in their role as directors, only receive a fixed fee, the amount of which is
determined on the basis of market practice as well as the Bank’s size and internal organisation and the nature,
scale and complexity of its activities and business model.
The fees paid to Directors for the holding of their office during 2024 amounted to €102,173 (2023: €92,794). This
amount is within the limit of €120,000 approved by the Annual General Meeting of 27 June 2024.
It is confirmed that none of the Directors in their role as directors of the Bank are entitled to profit-sharing, share
options, pension benefits, variable remuneration, any other remuneration or related payments. Only one of the
Directors has a service contract with the Bank, which Director is the only Executive Director and is the CEO Joseph
Said.
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Annual Report and Financial Statements 2024
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Remuneration Report (continued)
In terms of Code Provisions 8.A.5 of the Malta Financial Services Authority Capital Markets Rules, the total
emoluments received by Directors relative to their directorship for the financial year 2024, as compared to 2023
and 2022, are specified below:
* John Bonello was appointed as a non-executive director of the Bank with effect from 23 October 2023.
** Graham A. Fairclough resigned from his position as non-executive director with effect from 13 March 2024.
*** Aldo-Joseph Giordano was appointed as a non-executive director of the Bank with effect from 21 May 2024.
In determining the remuneration of the CEO and Deputy CEOs, the Board of Directors considers factors which
include among others, professional qualifications, experience, initiative, acumen, number of years of service, the
design and implementation of the overall business strategy, objectives and risk appetite at Bank as well as Group
level. The remuneration of the CEO and Deputy CEOs is fixed with no variable remuneration other than a
discretionary annual bonus which may be awarded as set out in the above-mentioned Policy.
The CEO and Deputy CEOs are also entitled to the use of a company car, health insurance and telecommunication
allowance.
In a previous financial year, the Bank had decided to grant the CEO an ex-gratia gratuity upon his eventual
retirement, which amount was fully provided for and reflected in the financial statements of previous years.
In terms of Code Provision 8.A.5 of the Capital Markets Rules, during financial year 2024, the total emoluments
received from the Group by the Executive Director amounted to €400,513 (2023: €385,513; 2022: €362,718), split
as follows:
€
€
€
2024
2023
2022
Gross annual, fixed salary & fixed role-based allowances
367,513
352,513
330,718
Director Fees - Lombard Bank Malta p.l.c.
15,000
15,000
15,000
Chairman / Director Fees MaltaPost p.l.c.
18,000
18,000
17,000
Further remuneration for 2024 received by two Non-Executive Directors from other companies within the Group
amounted to €14,445, split as follows:
€
€
€
2024
2023
2022
Director Fees - MaltaPost p.l.c.
1,681
8,850
7,100
Company Secretary Fees - MaltaPost p.l.c.
791
4,000
4,000
Director Fees - Lombard Select SICAV p.l.c.
1,973
10,000
10,000
€
2024
€
2023
€
2022
Director Fees - Lombard Select SICAV p.l.c.
10,000
10,000
10,000
There is no formal provision for the reclamation of variable remuneration.
€
2024
€
2023
€
2022
Michael C. Bonello (Chairman)
30,000
30,000
30,000
John Bonello*
15,000
2,794
N/A
Graham A. Fairclough**
3,058
15,000
15,000
Aldo-Joseph Giordano***
9,115
N/A
N/A
Joseph Said
15,000
15,000
15,000
Peter Perotti
15,000
15,000
10,673
Kimon Palamidis
15,000
15,000
15,000
Total
102,173
92,794
85,673
Lombard Bank Malta p.l.c.
Annual Report and Financial Statements 2024
81
Remuneration Report (continued)
During the financial year 2024, the total emoluments received by the Deputy Chief Executive Officers, from the
Group amounted to €369,984 split as follows:
€
€
€
2024
2023
2022
Gross annual & fixed salary
179,113
99,924*
N/A
Director Fees – MaltaPost p.l.c.
3,258**
N/A
N/A
€
€
€
2024
2023
2022
Gross annual & fixed salary
179,113
99,924*
N/A
Director Fees – MaltaPost p.l.c.
8,500
8,850
N/A
* From date of appointment on the 1 April 2023.
** From date of appointment on the 14 August 2024.
The above remuneration levels for 2024 comply with the provisions of the approved Remuneration Policy for
Directors and take into consideration the interests of all the Bank's stakeholders together with the external context
and there were no deviations from the procedure for the implementation of the said Policy.
Senior Management
Senior Management for the purposes of this section of the Remuneration Report, refers to the Chief Officers of
the Bank, excluding the Chief Executive Officer and Deputy Chief Executive Officers.
The Board of Directors is satisfied that the packages offered to Senior Management continue to ensure that the
Bank attracts and retains management staff with the necessary qualities and skills. The Bank’s policy remains that
of engaging its Senior Management staff on the basis of indefinite contracts of employment, and this after a period
of probation. The terms and conditions of employment of Senior Management are established in the relative
employment contracts. The applicable notice period, after probation, is that provided for in the relevant
legislation.
Share options, share incentive schemes and profit sharing do not feature in the Bank’s Remuneration Policy, and
the individual contracts of employment of Senior Management do not contain provisions for termination
payments and / or other payments linked to early termination other than as determined by the law.
From time to time the Board of Directors of the Bank approves the allocation of a financial contribution towards
retirement gratuities that it may decide to grant and contribute towards a staff pension fund that may be formally
established in the future. Gratuities that it may make, on an ex-gratia basis, to its employees are made accordingly.
Amounts contributed for this purpose in respect of 2024 amounted to €100,000 (2023: €100,000). Once
contributed, these amounts are held in a separate bank account which is not controlled by the Bank and is
therefore not included in the Bank’s financial statements. Amounts intended as a contribution to an eventual
pension fund will be regulated by rules yet to be determined in light of relevant legislation. No other pension
benefits are currently payable by the Bank.
Senior Management staff are eligible for annual salary increases, which are not directly performance-related. The
remuneration of Senior Management staff members is determined also by the role, responsibilities covered,
market practice, seniority, experience and qualifications. Annual bonuses are paid to Senior Management staff
members according to individual overall performance during the previous financial year. Bonus payments do not
exceed 100% of the fixed component of the total remuneration for each individual.
Non-cash benefits include private health care insurance as well as death-in-service benefits and personal accident
insurance cover.
Lombard Bank Malta p.l.c.
Annual Report and Financial Statements 2024
82
Remuneration Report (continued)
Total emoluments received by Senior Management, excluding the CEO and Deputy CEOs, during the period under
review are as detailed below, in terms of Code Provision 8.A.5.
Fixed Remuneration
Variable Remuneration
Share Options
Others
2024
2023
2022
2024
2023
2022
2024
2023
2022
2024
2023
2022
€
€
€
€
€
€
€
€
€
€
€
€
481,563
478,146
769,000
74,000
116,000
88,000
-
-
-
-
-
-
For other employees, fixed pay is determined by a Collective Agreement and annual bonuses are differentiated by
individual performance and grade.
The changes effected in the Bank’s Remuneration Policy during the financial year under review were such as to
further align it with regulatory requirements. Furthermore, the Bank does not plan to effect changes in its
Remuneration Policy in the forthcoming financial year, unless required to do so in terms of any regulatory
obligations or otherwise.
In terms of Chapter 12 of the Capital Markets Rules, this Remuneration Report is being put to an advisory vote at
the 2025 Annual General Meeting in accordance with the requirements of the Capital Markets Rule 12.26 L.
The Directors’ Remuneration Report for 2023 was approved at the Annual General Meeting held on 27 June 2024.
There were no issues raised on the Report during the said Annual General Meeting.
Other information on remuneration in terms of Appendix 12.1 of the Capital Markets Rules
In terms of the requirements within Appendix 12.1 of the Capital Markets Rules, the following tables present the
annual change regarding each individual director’s remuneration, the performance of the Bank, and of average
remuneration on a full-time equivalent basis of employees of the Bank, other than Directors over the three most
recent financial years.
2024
€
2023
€
2022
€
% change
(2024-2023)
% change
(2023-2022)
Michael C. Bonello (Chairman)
30,000
30,000
30,000
0%
0%
John Bonello*
15,000
2,794
N/A
N/A
N/A
Graham A. Fairclough**
3,058
15,000
15,000
N/A
0%
Aldo-Joseph Giordano***
9,115
N/A
N/A
N/A
N/A
Joseph Said
15,000
15,000
15,000
0%
0%
Kimon Palamidis
15,000
15,000
15,000
0%
0%
Peter Perotti
15,000
15,000
10,637
0%
N/A
Total
102,173
92,794
85,637
* John Bonello was appointed as a non-executive director of the Bank with effect from 23 October 2023.
** Graham A. Fairclough resigned from his position as non-executive director with effect from 13 March 2024.
*** Aldo-Joseph Giordano was appointed as a non-executive director of the Bank with effect from 21 May 2024.
Lombard Bank Malta p.l.c.
Annual Report and Financial Statements 2024
83
Remuneration Report (continued)
% annual change of the
Bank’s performance
based on profit before tax
(2024-2023)
% annual change of the
Bank’s performance based
on profit before tax
(2023-2022)
% annual change of the
Bank’s performance based
on profit before tax
(2022-2021)
% annual change of the
Bank’s performance based
on profit before tax
(2021-2020)
16%
(52%)
136%
32%
% annual change of the
average remuneration on
a full-time equivalent
basis of employees of the
Bank other than Directors
(2024-2023)
% annual change of the
average remuneration on
a full-time equivalent
basis of employees of the
Bank other than Directors
(2023-2022)
% annual change of the
average remuneration on
a full-time equivalent
basis of employees of the
Bank other than Directors
(2022-2021)
% annual change of the
average remuneration on
a full-time equivalent
basis of employees of the
Bank other than Directors
(2021-2020)
6%
0%
4%
2%
€'000
2024
2023
% change
Group
Bank
Group
Bank
Group
Bank
Employee remuneration (excluding CEO)
26,161
9,145
24,031
8,542
9%
7%
CEO remuneration
368
368
353
353
4%
4%
Entity’s performance – Profit before tax
19,415
16,101
14,527
13,850
34%
16%
€'000
2023
2022
% change
Group
Bank
Group
Bank
Group
Bank
Employee remuneration (excluding CEO)
24,031
8,542
23,681
8,352
1%
2%
CEO remuneration
353
353
331
331
6%
6%
Entity’s performance – Profit before tax
14,527
13,850
27,676
28,767
(48%)
(52%)
The Group’s / Bank’s performance is measured using Profit before tax.
The contents of the Remuneration Report have been reviewed by PricewaterhouseCoopers, the external auditors,
to ensure that the information required in terms of Appendix 12.1 to Chapter 12 of the Capital Markets Rules have
been included.
Lombard Bank Malta p.l.c.
Annual Report and Financial Statements 2024
84
Company Information
Number of shareholders analysed by range:
31 December 2024
31 March 2025
Range
Shareholders
Shares
Shareholders
Shares
1 – 500
119
21,547
120
22,016
501 – 1000
38
31,644
38
31,644
1001 – 5000
390
1,156,751
390
1,154,644
5001 and over
989
153,362,321
985
153,363,959
Total
1,536
154,572,263
1,533
154,572,263
The Bank has one class of shares and each share is entitled to one vote.
BOARD OF DIRECTORS
Michael C. Bonello
John Bonello
Chairman
Graham A. Fairclough
(Resigned w.e.f. 13.03.2024)
Aldo Joseph Giordano
(Appointed w.e.f. 21.05.2024)
Kimon Palamidis
Peter Perotti
Joseph Said
COMPANY SECRETARY
Helena Said
SENIOR MANAGEMENT
Joseph Said
Anthony Bezzina
Eugenio Farrugia
Chief Executive Officer
Deputy Chief Executive Officer
Deputy Chief Executive Officer
David Attard
Chief Officer - Group Corporate Services
Moira Balzan
Carlos Camenzuli
Chief Financial Officer
Chief Risk Officer
Helena Said
Anthony Zahra
Chief Legal Officer
Chief Information Officer
Lombard Bank Malta p.l.c.
Annual Report and Financial Statements 2024
85
Company Information (continued)
REGISTERED OFFICE
Tel: 25581 117
BRANCHES
43, Pitkali Road, Attard ATD 2219 Bertu Fenech Square, Balzan BZN 1409
Tel: 25581 560 Tel: 25581 500
82, St Sebastian Street, Qormi, QRM 2335 198, Naxxar Road, San Gwann SGN 9030
Tel: 25581 360 Tel: 25581 650
4, Fleur-De-Lys Junction, Santa Venera SVR 1587 41, Robert Arrigo Street, Sliema SLM 3174
Tel: 25581 300 Tel: 25581 251
225, Tower Road, Sliema SLM 1601 67, Republic Street, Valletta VLT 1117
Tel: 25581 260 Tel: 25581 100
Ninu Cremona Street, Victoria VCT 2561 19, Sanctuary Street, Zabbar, ZBR 1010
Tel: 25581 600 Tel: 25581 400
13, Gregorio Bonici Square, Zejtun ZTN 1051
Tel: 25581 245
24/7 OUTLET
Paceville Avenue, St. Julian’s STJ 3103
CREDIT
9A St. Fredrick Street, Valletta VLT 1470
Tel: 25581 115
HOME LOANS
4 Main Street, Qormi QRM 1100
Tel: 25581 370
INTERNATIONAL BUSINESS BANKING
Graham Street, Sliema SLM 1711
Tel: 25581 226
LEGAL OFFICE
59 Republic Street, Valletta VLT 1117
Tel: 25581 116
TRADE SERVICES
43, Pitkali Road, Attard ATD 2219
Tel: 25581 576
WEALTH MANAGEMENT
Financial Advice & Stockbroking Services: 225A, Tower Road, Sliema SLM 1601
Tel: 25581 167
Portfolio Management: 225A, Tower Road, Sliema SLM 1601
Tel: 25581 288
Research & Corporate Advisory: 225A, Tower Road, Sliema SLM 1601
Tel: 25581 287
Lombard Bank Malta p.l.c.
Annual Report and Financial Statements 2024
86
Financial Statements
Statements of Financial Position
Group
Bank
Notes | 2024 | 2023 | 2024 | 2023 | |
€ 000 | € 000 | € 000 | € 000 | ||
Assets | |||||
Balances with Central Bank of Malta, treasury bills and cash | 5 | 153,361 | 146,308 | ||
Cheques in course of collection | 266 | 1,880 | |||
Financial investments | 6 | 205,978 | 214,505 | ||
Loans and advances to banks | 7 | 40,964 | 33,605 | ||
Loans and advances to customers | 8 | 872,690 | 758,304 | ||
Trade and other receivables | 16 | 3,443 | 3,405 | ||
Accrued income and other assets | 17 | 4,612 | 4,537 | ||
Assets classified as held for sale | 8 | 703 | 703 | ||
Current tax assets | - | - | |||
Inventories | 15 | 878 | 639 | ||
Investments in subsidiaries | 9 | - | - | 17,927 | 17,135 |
Investments in associates | 10 | 1,645 | 1,645 | ||
Intangible assets | 11 | 10 | 19 | ||
Property, plant and equipment | 12 | 44,798 | 42,255 | ||
Deferred tax assets | 14 | 7,772 | 11,381 | ||
Total assets | 1,355,047 | 1,236,321 |
Lombard Bank Malta p.l.c.
Annual Report and Financial Statements 2024
87
Statements of Financial Position (continued)
Group
Bank
Notes | 2024 | 2023 | 2024 | 2023 | |
€ 000 | € 000 | € 000 | € 000 | ||
Equity and Liabilities | |||||
Equity | |||||
Share capital | 18 | 19,322 | 19,322 | ||
Share premium | 19 | 56,534 | 56,534 | ||
Revaluation and other reserves | 19 | 7,048 | (1,297) | ||
Retained earnings | 119,917 | 111,444 | |||
Equity attributable to equity holders of the Bank | 202,821 | 186,003 | |||
Non-controlling interests | - | - | |||
Total equity | 202,821 | 186,003 | |||
Liabilities | |||||
Amounts owed to banks | 20 | 438 | 145 | ||
Amounts owed to customers | 21 | 1,121,816 | 1,021,254 | ||
Current tax liabilities | 597 | 1,556 | |||
Accruals and deferred income | 24 | 9,643 | 7,958 | ||
Other liabilities | 23 | 14,880 | 16,236 | ||
Provisions for liabilities and other charges | 22 | 1,573 | 369 | ||
Deferred tax liabilities | 14 | 3,279 | 2,800 | ||
Total liabilities | 1,152,226 | 1,050,318 | |||
Total equity and liabilities | 1,355,047 | 1,236,321 |
Memorandum items | |||||
Contingent liabilities | 25 | 19,827 | 14,315 | ||
Commitments | 25 | 292,833 | 258,525 |
The notes on pages 95 to 220 are an integral part of these financial statements.
Lombard Bank Malta p.l.c.
Annual Report and Financial Statements 2024
88
Income Statements
Group
Bank
Notes | 2024 | 2023 | 2024 | 2023 | |
€ 000 | € 000 | € 000 | € 000 | ||
Interest receivable and similar income | |||||
- on loans and advances, balances with Central | |||||
Bank of Malta and treasury bills | 26 | 35,374 | 31,492 | ||
- on debt and other fixed income instruments | 26 | 2,627 | 2,094 | ||
Interest expense | 26 | ( | ( | (10,837) | (7,791) |
Net interest income | 27,164 | 25,795 | |||
Fee and commission income | 27 | 5,610 | 4,475 | ||
Fee and commission expense | 27 | ( | ( | (269) | (288) |
Net fee and commission income | 5,341 | 4,187 | |||
Postal sales and other revenues | 28 | 500 | 488 | ||
Dividend income | 29 | 1,910 | 1,860 | ||
Net trading income | 30 | 665 | 525 | ||
Other operating income | 18 | 21 | |||
Operating income | 35,598 | 32,876 | |||
Employee compensation and benefits | 31 | ( | ( | (9,513) | (8,895) |
Other operating costs | 33 | ( | ( | (8,707) | (7,596) |
Depreciation and amortisation | 11,12 | ( | ( | (1,166) | (1,219) |
Net movement in provisions for liabilities and other charges | 22 | ( | (1,150) | - | |
Net movement in expected credit losses | 32 | ( | 1,039 | (1,316) | |
Operating profit | 16,101 | 13,850 | |||
Share of loss attributable to investment accounted for using the equity method, net of tax | 10 | ( | ( | - | - |
Profit before taxation | 16,101 | 13,850 | |||
Income tax expense | 34 | ( | ( | (5,877) | (5,053) |
Profit for the year | 10,224 | 8,797 | |||
Attributable to: | |||||
Equity holders of the Bank | |||||
Non-controlling interests | |||||
Profit for the year | |||||
Earnings per share | 35 | € | € | ||
The notes on pages 95 to 220 are an integral part of these financial statements. |
Lombard Bank Malta p.l.c.
Annual Report and Financial Statements 2024
89
Statements of Comprehensive Income
Group
Bank
Notes
2024
2023
2024 | 2023 | ||||
€ 000 | € 000 | € 000 | € 000 | ||
Profit for the year | 10,224 | 8,797 | |||
Other comprehensive income | |||||
Items that may be subsequently reclassified to profit | |||||
or loss | |||||
Investments in debt securities measured at FVOCI | |||||
Net gains/(losses) from changes in fair value, before tax | 6 | ( | 8,858 | (2,243) | |
Net losses reclassified to profit or loss on disposal, before tax | - | 376 | |||
Net movements in credit losses released to profit or loss, before tax | ( | ( | (247) | (55) | |
Income taxes relating to these items | 34 | ( | (3,014) | 672 | |
Items that will not be subsequently reclassified to profit or loss | |||||
Net (losses)/gains from changes in fair value of investments in equity instruments designated at FVOCI, before tax | 6 | ( | (74) | 1,123 | |
Surplus arising on revaluation of land and buildings, before tax | 12 | 3,162 | - | ||
Remeasurements of defined benefit obligations, before tax | ( | - | - | ||
Income taxes relating to these items | 34 | ( | ( | (453) | (393) |
Other comprehensive income for the year, net of income tax | ( | 8,232 | (520) | ||
Total comprehensive income for the year, net of income tax | 18,456 | 8,277 | |||
Attributable to: | |||||
Equity holders of the Bank | |||||
Non-controlling interests | |||||
Total comprehensive income for the year, net of income tax | |||||
The notes on pages 95 to 220 are an integral part of these financial statements. |
Lombard Bank Malta p.l.c.
Annual Report and Financial Statements 2024
90
Statements of Changes in Equity
Group
Attributable to equity holders of the Bank | ||||||||
Revaluation | Non- | |||||||
Share | Share | and other | Retained | controlling | Total | |||
capital | premium | reserves | earnings | Total | interests | Equity | ||
Notes | € 000 | € 000 | € 000 | € 000 | € 000 | € 000 | € 000 | |
At 1 January 2023 | ||||||||
Comprehensive income | ||||||||
Profit for the year | ||||||||
Other comprehensive income | ||||||||
Fair valuation of financial assets measured at FVOCI: | ||||||||
Net movements in fair value arising during the year | ( | ( | ( | ( | ||||
Reclassification adjustments: | ||||||||
- net movement attributable to changes in credit risk | ( | ( | ( | |||||
- net amounts reclassified to profit or loss on disposal | ||||||||
Remeasurements of defined benefit obligations | ||||||||
Total other comprehensive income for the year | ( | ( | ( | ( | ||||
Total comprehensive income for the year | ( | |||||||
Transfers and other movements | 19 | ( | ||||||
Transactions with owners, recorded directly in equity | ||||||||
Contributions by and distributions to owners | ||||||||
Dividends to equity holders | 36 | ( | ( | |||||
Rights issue of ordinary shares | 18 | |||||||
Bonus issue | 18 | ( | ||||||
Changes in ownership interests in subsidiaries that do not result in loss of control | ||||||||
Impacts of change in non-controlling interests in subsidiary | ( | ( | ||||||
Total transactions with owners | ( | ( | ||||||
At 31 December 2023 |
The notes on pages 95 to 220 are an integral part of these financial statements.
Lombard Bank Malta p.l.c.
Annual Report and Financial Statements 2024
91
Statements of Changes in Equity (continued)
Group
Attributable to equity holders of the Bank
Revaluation | Non- | |||||||
Share | Share | and other | Retained | controlling | Total | |||
capital | premium | reserves | earnings | Total | interests | Equity | ||
Notes | € 000 | € 000 | € 000 | € 000 | € 000 | € 000 | € 000 | |
At 1 January 2024 | ||||||||
Comprehensive income | ||||||||
Profit for the year | ||||||||
Other comprehensive income | ||||||||
Surplus on revaluation of land and buildings | ||||||||
Fair valuation of financial assets measured at FVOCI: | ||||||||
Net movements in fair value arising during the year | ||||||||
Reclassification adjustments: | ||||||||
- net movement attributable to changes in credit risk | ( | ( | ( | |||||
- net amounts reclassified to retained earnings on disposal | 6 | ( | ||||||
Remeasurements of defined benefit obligations | ( | ( | ( | ( | ||||
Total other comprehensive income for the year | ||||||||
Total comprehensive income for the year | ||||||||
Transfers and other movements | 19 | ( | ||||||
Transactions with owners, recorded directly in equity | ||||||||
Distributions to owners | ||||||||
Dividends to equity holders | 36 | ( | ( | ( | ( | |||
Changes in ownership interests in subsidiaries that do not result in loss of control | ||||||||
Impacts of change in non-controlling interests in subsidiary | ( | ( | ||||||
Total transactions with owners | ( | ( | ( | ( | ||||
At 31 December 2024 | ||||||||
The notes on pages 95 to 220 are an integral part of these financial statements. |
Lombard Bank Malta p.l.c.
Annual Report and Financial Statements 2024
92
Statements of Changes in Equity (continued)
Bank
Revaluation
Share
Share
and other
Retained
Total
capital
premium
reserves
earnings
Equity
Notes
€ 000
€ 000
€ 000
€ 000
€ 000
At 1 January 2023
11,341
18,530
1,918
100,204
131,993
Comprehensive income
Profit for the year
-
-
-
8,797
8,797
Other comprehensive income
Fair valuation of financial assets measured at FVOCI:
Net movements in fair value arising during the year
-
-
(728)
-
(728)
Reclassification adjustments:
- net movement attributable to changes in credit risk
-
-
(36)
-
(36)
- net amounts reclassified to profit or loss on disposal
-
-
244
-
244
Total other comprehensive income for the year
-
-
(520)
-
(520)
Total comprehensive income for the year
-
-
(520)
8,797
8,277
Transfers and other movements
19
-
-
(2,695)
2,695
-
Transactions with owners, recorded directly in equity
Contributions by and distributions to owners
Rights issue of ordinary shares
18
7,729
38,004
-
-
45,733
Bonus issue
18
252
-
-
(252)
-
Total transactions with owners
7,981
38,004
-
(252)
45,733
At 31 December 2023
19,322
56,534
(1,297)
111,444
186,003
The notes on pages 95 to 220 are an integral part of these financial statements.
Lombard Bank Malta p.l.c.
Annual Report and Financial Statements 2024
93
Statements of Changes in Equity (continued)
Bank
Revaluation
Share
Share
and other
Retained
Total
capital
premium
reserves
earnings
Equity
Notes
€ 000
€ 000
€ 000
€ 000
€ 000
At 1 January 2024
19,322
56,534
(1,297)
111,444
186,003
Comprehensive income
Profit for the year
-
-
-
10,224
10,224
Other comprehensive income
Surplus on revaluation of land and buildings
-
-
2,683
-
2,683
Fair valuation of financial assets measured at FVOCI:
Net movements in fair value arising during the year
-
-
5,710
-
5,710
Reclassification adjustments:
- net movement attributable to changes in credit risk
-
-
(161)
-
(161)
- net amounts reclassified to retained earnings on disposal
6
-
-
(140)
140
-
Total other comprehensive income for the year
-
-
8,092
140
8,232
Total comprehensive income for the year
-
-
8,092
10,364
18,456
Transfers and other movements
19
-
-
253
(253)
-
Transactions with owners, recorded directly in equity
Distributions to owners
Dividends to equity holders
36
-
-
-
(1,638)
(1,638)
Total transactions with owners
-
-
-
(1,638)
(1,638)
At 31 December 2024
19,322
56,534
7,048
119,917
202,821
The notes on pages 95 to 220 are an integral part of these financial statements.
Lombard Bank Malta p.l.c.
Annual Report and Financial Statements 2024
94
Statements of Cash Flows
Group
Bank
2024
2023
2024
2023 | |||||
Notes | € 000 | € 000 | € 000 | € 000 | |
Cash flows from operating activities | |||||
Interest, fees and commission receipts | 40,591 | 35,614 | |||
Receipts from customers relating to postal sales and other revenue | 500 | 488 | |||
Interest, fees and commission payments | ( | ( | (9,864) | (7,759) | |
Payments to employees and suppliers | ( | ( | (17,122) | (16,248) | |
Cash flows attributable to funds collected on behalf of third parties | - | - | |||
Cash flows from operating profit before changes | |||||
in operating assets and liabilities | 14,105 | 12,095 | |||
Movements in operating assets: | |||||
Treasury bills | 2,935 | 52,695 | |||
Balances with Central Bank of Malta | ( | ( | (132) | (6,130) | |
Loans and advances to banks and customers | ( | ( | (113,672) | (48,157) | |
Other receivables | ( | 1,206 | (829) | ||
Movements in operating liabilities: | |||||
Amounts owed to banks and to customers | 100,562 | 11,154 | |||
Other payables | ( | ( | (1,337) | (949) | |
Net cash generated from operating activities, before tax | 3,667 | 19,879 | |||
Income tax paid | ( | ( | (5,888) | (3,171) | |
Net cash flows generated from/(used in) | |||||
operating activities | (2,221) | 16,708 | |||
Cash flows from investing activities | |||||
Dividends received | 465 | 203 | |||
Interest received from debt securities | 3,643 | 4,568 | |||
Purchase of financial investments | 6 | ( | ( | (12,631) | (8,359) |
Proceeds from maturity/disposal of financial | |||||
investments | 29,839 | 9,779 | |||
Net proceeds from liquidation of subsidiary | 101 | - | |||
Purchase of property, plant and equipment and intangible assets | ( | ( | (416) | (900) | |
Proceeds from disposal of property, plant and equipment | 2 | - | |||
Investments in associate | 10 | ( | ( | - | - |
Net cash flows generated from investing activities | 21,003 | 5,291 | |||
Cash flows from financing activities | |||||
Proceeds from rights issue of ordinary shares | - | 45,733 | |||
Principal elements of lease payments | 13 | ( | ( | (213) | (194) |
Dividends paid to equity holders of the Bank | 36 | ( | (1,638) | - | |
Dividends paid to non-controlling interests | ( | ( | - | - | |
Net cash flows (used in)/generated from financing | |||||
activities | ( | (1,851) | 45,539 | ||
Net movement in cash and cash equivalents | 16,931 | 67,538 | |||
Cash and cash equivalents at beginning of year | 168,436 | 100,898 | |||
Cash and cash equivalents at end of year | 37 | 185,367 | 168,436 | ||
The notes on pages 95 to 220 are an integral part of these financial statements. |
Lombard Bank Malta p.l.c.
Notes to the Financial Statements for the year ended 31 December 2024
95
Notes to the Financial Statements
1. Summary of material accounting policies ................................................................................................. 96
2. Financial risk management ..................................................................................................................... 110
3. Accounting estimates and judgements ................................................................................................... 183
4. Segmental information ............................................................................................................................ 186
5. Balances with Central Bank of Malta, treasury bills and cash................................................................. 187
6. Financial investments .............................................................................................................................. 187
7. Loans and advances to banks .................................................................................................................. 189
8. Loans and advances to customers ........................................................................................................... 190
9. Investments in subsidiaries ...................................................................................................................... 190
10. Investments in associates ........................................................................................................................ 192
11. Intangible assets ...................................................................................................................................... 193
12. Property, plant and equipment ............................................................................................................... 194
13. Leases ...................................................................................................................................................... 198
14. Deferred tax assets and liabilities ............................................................................................................ 201
15. Inventories ............................................................................................................................................... 203
16. Trade and other receivables .................................................................................................................... 203
17. Accrued income and other assets ............................................................................................................ 203
18. Share capital ............................................................................................................................................ 204
19. Reserves ................................................................................................................................................... 204
20. Amounts owed to banks .......................................................................................................................... 205
21. Amounts owed to customers ................................................................................................................... 205
22. Provisions for liabilities and other charges .............................................................................................. 206
23. Other liabilities ........................................................................................................................................ 207
24. Accruals and deferred income ................................................................................................................. 208
25. Commitments and contingent liabilities .................................................................................................. 208
26. Net interest income ................................................................................................................................. 209
27. Net fee and commission income .............................................................................................................. 209
28. Postal sales and other revenues .............................................................................................................. 210
29. Dividend income ...................................................................................................................................... 210
30. Net trading income .................................................................................................................................. 210
31. Employee compensation and benefits ..................................................................................................... 210
32. Net movement in expected credit losses ................................................................................................. 211
33. Profit before taxation .............................................................................................................................. 213
34. Income tax expense ................................................................................................................................. 214
35. Earnings per share ................................................................................................................................... 215
36. Dividends ................................................................................................................................................. 216
37. Cash and cash equivalents....................................................................................................................... 216
38. Related parties ........................................................................................................................................ 217
39. Investor compensation scheme ............................................................................................................... 220
40. Statutory information .............................................................................................................................. 220
Lombard Bank Malta p.l.c.
Notes to the Financial Statements for the year ended 31 December 2024
96
Lombard Bank Malta p.l.c.
Notes to the Financial Statements for the year ended 31 December 2024
97
Lombard Bank Malta p.l.c.
Notes to the Financial Statements for the year ended 31 December 2024
98
Lombard Bank Malta p.l.c.
Notes to the Financial Statements for the year ended 31 December 2024
99
Lombard Bank Malta p.l.c.
Notes to the Financial Statements for the year ended 31 December 2024
100
Lombard Bank Malta p.l.c.
Notes to the Financial Statements for the year ended 31 December 2024
101
Lombard Bank Malta p.l.c.
Notes to the Financial Statements for the year ended 31 December 2024
102
Lombard Bank Malta p.l.c.
Notes to the Financial Statements for the year ended 31 December 2024
103
Lombard Bank Malta p.l.c.
Notes to the Financial Statements for the year ended 31 December 2024
104
Lombard Bank Malta p.l.c.
Notes to the Financial Statements for the year ended 31 December 2024
105
Years | |
Buildings | 100 or over period of lease arrangement |
Leasehold property | Over period of lease arrangement |
Computer equipment | 4 |
Other | 4 – 8 |
Lombard Bank Malta p.l.c.
Notes to the Financial Statements for the year ended 31 December 2024
106
Lombard Bank Malta p.l.c.
Notes to the Financial Statements for the year ended 31 December 2024
107
Lombard Bank Malta p.l.c.
Notes to the Financial Statements for the year ended 31 December 2024
108
Lombard Bank Malta p.l.c.
Notes to the Financial Statements for the year ended 31 December 2024
109
Lombard Bank Malta p.l.c.
Notes to the Financial Statements for the year ended 31 December 2024
110
Lombard Bank Malta p.l.c.
Notes to the Financial Statements for the year ended 31 December 2024
111
2. Financial risk management (continued)
Lombard Bank Malta p.l.c.
Notes to the Financial Statements for the year ended 31 December 2024
112
2. Financial risk management (continued)
Lombard Bank Malta p.l.c.
Notes to the Financial Statements for the year ended 31 December 2024
113
Lombard Bank Malta p.l.c.
Notes to the Financial Statements for the year ended 31 December 2024
114
2. Financial risk management (continued)
Lombard Bank Malta p.l.c.
Notes to the Financial Statements for the year ended 31 December 2024
115
2. Financial risk management (continued)
Lombard Bank Malta p.l.c.
Notes to the Financial Statements for the year ended 31 December 2024
116
Lombard Bank Malta p.l.c.
Notes to the Financial Statements for the year ended 31 December 2024
117
2. Financial risk management (continued)
Stage 1 | Stage 2 | Stage 3 |
(Initial recognition) | (Significant increase in credit risk | (Credit-impaired financial |
since initial recognition) | assets) | |
12-month expected credit losses | Lifetime expected credit losses | Lifetime expected credit |
losses |
Change in credit quality since initial recognitionMateriality
Group scoping
nKey audit matters
nce initial recognitio
Lombard Bank Malta p.l.c.
Notes to the Financial Statements for the year ended 31 December 2024
118
2. Financial risk management (continued)
Lombard Bank Malta p.l.c.
Notes to the Financial Statements for the year ended 31 December 2024
119
2. Financial risk management (continued)
Lombard Bank Malta p.l.c.
Notes to the Financial Statements for the year ended 31 December 2024
120
2. Financial risk management (continued)
Lombard Bank Malta p.l.c.
Notes to the Financial Statements for the year ended 31 December 2024
121
2. Financial risk management (continued)
Lombard Bank Malta p.l.c.
Notes to the Financial Statements for the year ended 31 December 2024
122
2. Financial risk management (continued)
Lombard Bank Malta p.l.c.
Notes to the Financial Statements for the year ended 31 December 2024
123
2. Financial risk management (continued)
As of 31 December 2024 | |||
Gross Domestic Product, constant prices (YoY)* | 2025 | 2026 | 2027 |
‘Base’ | 3.90% | 3.60% | 3.40% |
Range of forecasts for alternative scenarios | [0.9 - 6.9]% | [0.6 - 6.6]% | [0.4 - 6.4]% |
Unemployment rate (YoY)* | |||
‘Base’ | 3.2% | 3.1% | 3.1% |
Range of forecasts for alternative scenarios | [1.8 - 4.6]% | [1.7- 4.5]% | [1.7– 4.5]% |
Inflation rate (YoY)* | |||
‘Base’ | 2.2% | 2.0% | 2.0% |
Range of forecasts for alternative scenarios | [0.8 - 3.6]% | [0.6 - 3.4]% | [0.6 – 3.4]% |
As of 31 December 2023 | |||
Gross Domestic Product, constant prices (YoY)* | 2024 | 2025 | 2026 |
‘Base’ | 3.80% | 3.60% | 3.30% |
Range of forecasts for alternative scenarios | [0.8 – 6.8]% | [0.6 – 6.6]% | [0.3 – 6.3]% |
Unemployment rate (YoY)* | |||
‘Base’ | 2.9% | 2.9% | 3.0% |
Range of forecasts for alternative scenarios | [0.1 - 5.9]% | [0.1 – 5.9]% | [0 – 6.0]% |
Inflation rate (YoY)* | |||
‘Base’ | 3.0% | 2.3% | 2.0% |
Range of forecasts for alternative scenarios | [0 – 6.0]% | [0.30 – 5.3]% | [1 – 5]% |
Lombard Bank Malta p.l.c.
Notes to the Financial Statements for the year ended 31 December 2024
124
2. Financial risk management (continued)
Lombard Bank Malta p.l.c.
Notes to the Financial Statements for the year ended 31 December 2024
125
2. Financial risk management (continued)
Lombard Bank Malta p.l.c.
Notes to the Financial Statements for the year ended 31 December 2024
126
2. Financial risk management (continued)
Group | Bank | |||||||
2024 | 2023 | 2024 | 2023 | |||||
Gross | ECL | Gross | ECL | Gross | ECL | Gross | ECL | |
exposure | allowance | exposure | allowance | exposure | allowance | exposure | allowance | |
€ 000 | € 000 | € 000 | € 000 | € 000 | € 000 | € 000 | € 000 | |
Credit risk exposures relating to on-balance sheet assets: | ||||||||
Subject to IFRS 9 expected credit loss allowance | ||||||||
Financial assets measured at amortised cost: | ||||||||
Balances with Central Bank of Malta and treasury bills | 146,872 | - | 138,157 | - | 146,872 | - | 138,157 | - |
Cheques in course of collection | 266 | - | 1,880 | - | 266 | - | 1,880 | - |
Debt securities | 21,132 | (25) | 8,357 | (72) | 21,132 | (25) | 8,357 | (72) |
Loans and advances to banks | 46,198 | (9) | 38,139 | - | 40,973 | (9) | 33,605 | - |
Loans and advances to customers | ||||||||
• Corporate and commercial | 594,777 | (7,486) | 529,052 | (10,148) | 594,777 | (7,486) | 529,052 | (10,148) |
• Personal Corporate | 286,325 | (934) | 240,703 | (1,303) | 286,333 | (934) | 240,703 | (1,303) |
Trade and other receivables | 13,182 | (203) | 11,460 | (91) | 3,443 | - | 3,405 | - |
Accrued income and other assets | 3,884 | - | 3,704 | - | 3,855 | - | 3,676 | - |
Debt securities measured at FVOCI | 178,828 | (224) | 199,965 | (471) | 176,696 | (224) | 197,700 | (471) |
Credit risk exposure | 1,291,464 | (8,881) | 1,171,417 | (12,085) | 1,274,347 | (8,678) | 1,156,535 | (11,994) |
Credit risk exposure relating to off-balance sheet instruments: | ||||||||
Contingent liabilities | 19,827 | (12) | 14,315 | (23) | 19,827 | (12) | 14,315 | (23) |
Undrawn commitments to lend | 291,647 | (71) | 257,338 | (6) | 292,754 | (71) | 258,448 | (6) |
Credit risk exposure | 311,474 | (83) | 271,653 | (29) | 312,581 | (83) | 272,763 | (29) |
Lombard Bank Malta p.l.c.
Notes to the Financial Statements for the year ended 31 December 2024
127
2. Financial risk management (continued)
Group | Bank | |||
2024 | 2023 | 2024 | 2023 | |
€ 000 | € 000 | € 000 | € 000 | |
Government | 147,232 | 162,743 | 146,029 | 161,609 |
Corporate | ||||
Tourism | 425 | 422 | 382 | 379 |
Property and construction | 918 | 1,368 | 569 | 804 |
Financial institutions | 27,415 | 32,345 | 26,878 | 31,821 |
Other sectors | 2,838 | 3,087 | 2,838 | 3,087 |
Gross financial investments measured at FVOCI | 178,828 | 199,965 | 176,696 | 197,700 |
Group and Bank | ||
2024 | 2023 | |
€ 000 | € 000 | |
Government | 14,875 | 7,020 |
Corporate | ||
Tourism | 72 | 72 |
Financial institutions | 5,884 | 224 |
Other sectors | 301 | 1,041 |
Gross financial investments measured at amortised cost | 21,132 | 8,357 |
Lombard Bank Malta p.l.c.
Notes to the Financial Statements for the year ended 31 December 2024
128
2. Financial risk management (continued)
Group | Bank | |||
2024 | 2023 | 2024 | 2023 | |
€ 000 | € 000 | € 000 | € 000 | |
Manufacturing | 10,976 | 10,223 | 10,976 | 10,223 |
Tourism | 63,810 | 56,601 | 63,810 | 56,601 |
Trade | 51,497 | 51,210 | 51,497 | 51,210 |
Property and construction | 296,231 | 254,919 | 296,231 | 254,919 |
Personal, professional and home loans | 297,582 | 249,196 | 297,590 | 249,196 |
Financial institutions | 144,022 | 136,319 | 144,022 | 136,319 |
Other sectors | 16,984 | 11,287 | 16,984 | 11,287 |
Gross loans and advances to customers | 881,102 | 769,755 | 881,110 | 769,755 |
Group | Bank | |||
2024 | 2023 | 2024 | 2023 | |
€ 000 | € 000 | € 000 | € 000 | |
Spain | 14,481 | 9,668 | 14,481 | 9,668 |
Germany | 3,455 | 9,086 | 3,455 | 9,086 |
Ireland | 10,884 | 7,264 | 10,884 | 7,264 |
Malta | 5,230 | 4,542 | 5 | 8 |
United States of America | 3,213 | 2,824 | 3,213 | 2,824 |
United Kingdom | 4,377 | 2,200 | 4,377 | 2,200 |
Italy | 2,153 | 1,863 | 2,153 | 1,863 |
Belgium | 478 | 437 | 478 | 437 |
Switzerland | 1,924 | 249 | 1,924 | 249 |
Other | 3 | 6 | 3 | 6 |
Gross loans and advances to banks | 46,198 | 38,139 | 40,973 | 33,605 |
Lombard Bank Malta p.l.c.
Notes to the Financial Statements for the year ended 31 December 2024
129
2. Financial risk management (continued)
2024 | ||||
Stage 1 | Stage 2 | Stage 3 | ||
12-month | Lifetime | Lifetime | ||
ECL | ECL | ECL | Total | |
€ 000 | € 000 | € 000 | € 000 | |
Balances with Central Bank of Malta and treasury | ||||
bills at amortised cost | ||||
Gross carrying amount | 146,872 | - | - | 146,872 |
Loss allowance | - | - | - | - |
Carrying amount – net of loss allowance | 146,872 | - | - | 146,872 |
2023 | ||||
Stage 1 | Stage 2 | Stage 3 | ||
12-month | Lifetime | Lifetime | ||
ECL | ECL | ECL | Total | |
€ 000 | € 000 | € 000 | € 000 | |
Balances with Central Bank of Malta and treasury | ||||
bills at amortised cost | ||||
Gross carrying amount | 138,157 | - | - | 138,157 |
Loss allowance | - | - | - | - |
Carrying amount – net of loss allowance | 138,157 | - | - | 138,157 |
Lombard Bank Malta p.l.c.
Notes to the Financial Statements for the year ended 31 December 2024
130
2. Financial risk management (continued)
2024 | ||||
Stage 1 | Stage 2 | Stage 3 | ||
12-month | Lifetime | Lifetime | ||
ECL | ECL | ECL | Total | |
Debt securities measured at FVOCI | € 000 | € 000 | € 000 | € 000 |
AAA to AA- | 11,423 | - | - | 11,423 |
A+ to A- | 144,140 | - | - | 144,140 |
BBB+ to BBB- | 15,312 | - | - | 15,312 |
Unrated | 5,821 | - | - | 5,821 |
Carrying amount – fair value | 176,696 | - | - | 176,696 |
Loss allowance | (224) | - | - | (224) |
Debt securities measured at amortised cost | ||||
AAA to AA- | 7,480 | - | - | 7,480 |
A+ to A- | 12,015 | - | - | 12,015 |
Unrated | 1,637 | - | - | 1,637 |
Gross carrying amount | 21,132 | - | - | 21,132 |
Loss allowance | (25) | - | - | (25) |
Carrying amount – net of loss allowance | 21,107 | - | - | 21,107 |
Loans and advances to banks at amortised cost | ||||
AAA to AA- | 3,215 | - | - | 3,215 |
A+ to A- | 34,141 | - | - | 34,141 |
BBB+ to BBB- | 2,153 | - | - | 2,153 |
Lower than BB- | 1 | - | - | 1 |
Unrated | 1,463 | - | - | 1,463 |
Gross carrying amount | 40,973 | - | - | 40,973 |
Loss allowance | (9) | - | - | (9) |
Carrying amount – net of loss allowance | 40,964 | - | - | 40,964 |
Lombard Bank Malta p.l.c.
Notes to the Financial Statements for the year ended 31 December 2024
131
2. Financial risk management (continued)
2023 | ||||
Stage 1 | Stage 2 | Stage 3 | ||
12-month | Lifetime | Lifetime | ||
ECL | ECL | ECL | Total | |
Debt securities measured at FVOCI | € 000 | € 000 | € 000 | € 000 |
AAA to AA- | 15,500 | - | - | 15,500 |
A+ to A- | 158,253 | - | - | 158,253 |
BBB+ to BBB- | 17,599 | - | - | 17,599 |
Unrated | 6,348 | - | - | 6,348 |
Carrying amount – fair value | 197,700 | - | - | 197,700 |
Loss allowance | (471) | - | - | (471) |
Debt securities measured at amortised cost | ||||
A+ to A- | 7,020 | - | - | 7,020 |
Unrated | 1,337 | - | - | 1,337 |
Gross carrying amount | 8,357 | - | - | 8,357 |
Loss allowance | (72) | - | - | (72) |
Carrying amount – net of loss allowance | 8,285 | - | - | 8,285 |
Loans and advances to banks at amortised cost | ||||
AAA to AA- | 3,266 | - | - | 3,266 |
A+ to A- | 28,466 | - | - | 28,466 |
BBB+ to BBB- | 1,863 | - | - | 1,863 |
Unrated | 10 | - | - | 10 |
Gross carrying amount | 33,605 | - | - | 33,605 |
Loss allowance | - | - | - | - |
Carrying amount – net of loss allowance | 33,605 | - | - | 33,605 |
Lombard Bank Malta p.l.c.
Notes to the Financial Statements for the year ended 31 December 2024
132
2. Financial risk management (continued)
Lombard Bank Malta p.l.c.
Notes to the Financial Statements for the year ended 31 December 2024
133
2. Financial risk management (continued)
2024 | ||||
Stage 1 | Stage 2 | Stage 3 | ||
12-month ECL | Lifetime ECL | Lifetime ECL | Total | |
€ 000 | € 000 | € 000 | € 000 | |
Loans and advances to customers at amortised cost | ||||
Corporate and commercial | ||||
P1 | 422,210 | 2,400 | - | 424,610 |
P2 | - | 89,758 | - | 89,758 |
P3 | - | 24,123 | - | 24,123 |
PF | - | 12,146 | - | 12,146 |
NP | - | - | 5,316 | 5,316 |
NF | - | - | 33,223 | 33,223 |
NR | - | - | 5,601 | 5,601 |
Gross carrying amount | 422,210 | 128,427 | 44,140 | 594,777 |
Loss allowance | (712) | (412) | (6,362) | (7,486) |
Carrying amount | 421,498 | 128,015 | 37,778 | 587,291 |
2024 | ||||
Stage 1 | Stage 2 | Stage 3 | ||
12-month ECL | Lifetime ECL | Lifetime ECL | Total | |
€ 000 | € 000 | € 000 | € 000 | |
Loans and advances to customers at amortised cost | ||||
Personal | ||||
P1 | 277,054 | 942 | - | 277,996 |
P2 | - | 164 | - | 164 |
P3 | - | 367 | - | 367 |
PF | - | 1,259 | - | 1,259 |
NP | - | - | 1,199 | 1,199 |
NF | - | - | 5,087 | 5,087 |
NR | - | - | 261 | 261 |
Gross carrying amount | 277,054 | 2,732 | 6,547 | 286,333 |
Loss allowance | (268) | (34) | (632) | (934) |
Carrying amount | 276,786 | 2,698 | 5,915 | 285,399 |
Lombard Bank Malta p.l.c. Notes to the Financial Statements for the year ended 31 December 2024 | ||||
2. Financial risk management (continued) | ||||
134 |
2023 | ||||
Stage 1 | Stage 2 | Stage 3 | ||
12-month ECL | Lifetime ECL | Lifetime ECL | Total | |
€ 000 | € 000 | € 000 | € 000 | |
Loans and advances to customers at amortised cost | ||||
Corporate and commercial | ||||
P1 | 379,074 | 1,841 | - | 380,915 |
P2 | - | 51,370 | - | 51,370 |
P3 | - | 16,262 | - | 16,262 |
PF | - | 52,562 | - | 52,562 |
NP | - | - | 10,636 | 10,636 |
NF | - | - | 6,462 | 6,462 |
NR | - | - | 10,845 | 10,845 |
Gross carrying amount | 379,074 | 122,035 | 27,943 | 529,052 |
Loss allowance | (1,270) | (1,020) | (7,858) | (10,148) |
Carrying amount | 377,804 | 121,015 | 20,085 | 518,904 |
2023 | ||||
Stage 1 | Stage 2 | Stage 3 | ||
12-month ECL | Lifetime ECL | Lifetime ECL | Total | |
€ 000 | € 000 | € 000 | € 000 | |
Loans and advances to customers at amortised cost | ||||
Personal | ||||
P1 | 232,239 | 3,440 | - | 235,679 |
P2 | - | 1,962 | - | 1,962 |
P3 | - | 175 | - | 175 |
PF | - | 1,612 | - | 1,612 |
NP | - | - | 685 | 685 |
NF | - | - | 590 | 590 |
Gross carrying amount | 232,239 | 7,189 | 1,275 | 240,703 |
Loss allowance | (310) | (867) | (126) | (1,303) |
Carrying amount | 231,929 | 6,322 | 1,149 | 239,400 |
Lombard Bank Malta p.l.c.
Notes to the Financial Statements for the year ended 31 December 2024
135
2. Financial risk management (continued)
2023 | ||||
Stage 1 | Stage 2 | Stage 3 | ||
12-month ECL | Lifetime ECL | Lifetime ECL | Total | |
€ 000 | € 000 | € 000 | € 000 | |
Loans and advances to customers at amortised cost | ||||
Total | ||||
P1 | 611,313 | 5,281 | - | 616,594 |
P2 | - | 53,332 | - | 53,332 |
P3 | - | 16,437 | - | 16,437 |
PF | - | 54,174 | - | 54,174 |
NP | - | - | 11,321 | 11,321 |
NF | - | - | 7,052 | 7,052 |
NR | - | - | 10,845 | 10,845 |
Gross carrying amount | 611,313 | 129,224 | 29,218 | 769,755 |
Loss allowance | (1,580) | (1,887) | (7,984) | (11,451) |
Carrying amount | 609,733 | 127,337 | 21,234 | 758,304 |
2024 | 2023 | |
€ 000 | € 000 | |
Property and construction | 37,516 | 20,801 |
Personal, professional and home loans | 6,574 | 1,383 |
Trade | 4,794 | 550 |
Financial institutions | 1,313 | 564 |
Manufacturing | 156 | 423 |
Tourism | - | 2,494 |
Other sectors | 334 | 3,003 |
Gross impaired advances to customers | 50,687 | 29,218 |
Lombard Bank Malta p.l.c.
Notes to the Financial Statements for the year ended 31 December 2024
136
2. Financial risk management (continued)
The following table provides a detailed analysis of the credit quality of the Bank’s lending portfolio as at 31
December 2024:
Non-forborne | Forborne | ||
exposures | exposures | Total | |
2024 | 2024 | 2024 | |
Performing - Stage 1 | € 000 | € 000 | € 000 |
Loans which are not past due | 689,885 | - | 689,885 |
Loans which are past due up to 30 days | 9,379 | - | 9,379 |
699,264 | - | 699,264 | |
Performing - Stage 2 | |||
Loans which are not past due | |||
P1 | 994 | - | 994 |
P2 | 81,011 | - | 81,011 |
P3 | 24,265 | - | 24,265 |
PF | - | 12,567 | 12,567 |
Loans which are past due up to 90 days | |||
Past due between 1 and 30 days | 4,155 | 838 | 4,993 |
Past due between 31 to 90 days | 7,329 | - | 7,329 |
117,754 | 13,405 | 131,159 | |
Non-performing – Stage 3 | |||
Past due loans by 90 days or more and credit-impaired loans | 6,515 | 38,310 | 44,825 |
Past due loans by 90 days or more and credit-impaired loans | |||
that are subject to judicial action | 5,629 | 233 | 5,862 |
12,144 | 38,543 | 50,687 | |
Gross loans and advances | 829,162 | 51,948 | 881,110 |
Expected credit losses | |||
12-month ECL | (980) | - | (980) |
Lifetime ECL | (5,224) | (2,216) | (7,440) |
Net loans and advances | 822,958 | 49,732 | 872,690 |
Lombard Bank Malta p.l.c.
Notes to the Financial Statements for the year ended 31 December 2024
137
2. Financial risk management (continued)
Non-forborne | Forborne | ||
exposures | exposures | Total | |
2023 | 2023 | 2023 | |
Performing - Stage 1 | € 000 | € 000 | € 000 |
Loans which are not past due | 604,157 | - | 604,157 |
Loans which are past due up to 30 days | 7,156 | - | 7,156 |
611,313 | - | 611,313 | |
Performing - Stage 2 | |||
Loans which are not past due | |||
P1 | 5,092 | - | 5,092 |
P2 | 51,341 | - | 51,341 |
P3 | 16,242 | - | 16,242 |
PF | - | 51,302 | 51,302 |
Loans which are past due up to 90 days | |||
Past due between 1 and 30 days | 825 | 2,872 | 3,697 |
Past due between 31 to 90 days | 1,550 | - | 1,550 |
75,050 | 54,174 | 129,224 | |
Non-performing – Stage 3 | |||
Past due loans by 90 days or more and credit-impaired loans | 11,321 | 7,052 | 18,373 |
Past due loans by 90 days or more and credit-impaired loans | |||
that are subject to judicial action | 10,630 | 215 | 10,845 |
Gross loans and advances | 708,314 | 61,441 | 769,755 |
Expected credit losses | |||
12-month ECL | (1,580) | - | (1,580) |
Lifetime ECL | (8,975) | (896) | (9,871) |
Net loans and advances | 697,759 | 60,545 | 758,304 |
Lombard Bank Malta p.l.c.
Notes to the Financial Statements for the year ended 31 December 2024
138
2. Financial risk management (continued)
Lombard Bank Malta p.l.c.
Notes to the Financial Statements for the year ended 31 December 2024
139
2. Financial risk management (continued)
Forborne exposures | ||
2024 | 2023 | |
€ 000 | € 000 | |
At 1 January | 61,441 | 58,040 |
Loans to which forbearance measures have been extended during the year | 15,633 | 31,125 |
Repayments | (10,439) | (815) |
Retired from forborne | (14,687) | (26,909) |
At 31 December | 51,948 | 61,441 |
2024 | 2023 | |
€ 000 | € 000 | |
Property and construction | 37,176 | 34,340 |
Financial institutions | 1,013 | 17,523 |
Trade | 7,152 | 5,860 |
Personal, professional and home loans | 6,346 | 2,202 |
Other sectors | 261 | 1,516 |
51,948 | 61,441 |
Lombard Bank Malta p.l.c.
Notes to the Financial Statements for the year ended 31 December 2024
140
2. Financial risk management (continued)
Lombard Bank Malta p.l.c.
Notes to the Financial Statements for the year ended 31 December 2024
141
2. Financial risk management (continued)
2024 | ||||
Stage 1 | Stage 2 | Stage 3 | ||
12-month | Lifetime | Lifetime | Total | |
ECL | ECL | ECL | ||
€ 000 | € 000 | € 000 | € 000 | |
Debt securities measured at FVOCI | ||||
Loss allowance as at 1 January 2024 | 471 | - | - | 471 |
Changes to risk parameters (model inputs: PDs/LGDs/EADs) | (247) | - | - | (247) |
Total net income statement credit during the year | (247) | - | - | (247) |
Loss allowance as at 31 December 2024 | 224 | - | - | 224 |
Debt securities measured at amortised cost | ||||
Loss allowance as at 1 January 2024 | 72 | - | - | 72 |
Changes to risk parameters (model inputs: PDs/LGDs/EADs) | (47) | - | - | (47) |
Total net income statement credit during the year | (47) | - | - | (47) |
Loss allowance as at 31 December 2024 | 25 | - | - | 25 |
Loans and advances to banks at amortised cost | ||||
Loss allowance as at 1 January 2024 | - | - | - | - |
Changes to risk parameters (model inputs: PDs/LGDs/EADs) | 9 | - | - | 9 |
Total net income statement charge during the year | 9 | - | - | 9 |
Loss allowance as at 31 December 2024 | 9 | - | - | 9 |
Undrawn commitments | ||||
Loss allowance as at 1 January 2024 | - | 5 | 1 | 6 |
Changes to risk parameters (model inputs: PDs/LGDs/EADs) | 70 | (5) | - | 65 |
Total net income statement charge/(credit) during the year | 70 | (5) | - | 65 |
Loss allowance as at 31 December 2024 | 70 | - | 1 | 71 |
Contingent liabilities | ||||
Loss allowance as at 1 January 2024 | 23 | - | - | 23 |
Changes to risk parameters (model inputs: PDs/LGDs/EADs) | (11) | - | - | (11) |
Total net income statement credit during the year | (11) | - | - | (11) |
Loss allowance as at 31 December 2024 | 12 | - | - | 12 |
Lombard Bank Malta p.l.c.
Notes to the Financial Statements for the year ended 31 December 2024
142
2. Financial risk management (continued)
2024 | ||||
Stage 1 | Stage 2 | Stage 3 | ||
12-month | Lifetime | Lifetime | Total | |
ECL | ECL | ECL | ||
€ 000 | € 000 | € 000 | € 000 | |
Loans and advances to customers at amortised cost | ||||
Corporate and commercial | ||||
Loss allowance as at 1 January 2024 | 1,270 | 1,020 | 7,858 | 10,148 |
Transfers of financial instruments | ||||
Transfer from Stage 1 to Stage 2 | (14) | 14 | - | - |
Transfer from Stage 2 to Stage 1 | 22 | (22) | - | - |
Transfer from Stage 2 to Stage 3 | - | (483) | 483 | - |
Transfer from Stage 3 to Stage 2 | - | 31 | (31) | - |
Net remeasurement of ECL arising from stage | ||||
transfers | (19) | (28) | 96 | 49 |
Total remeasurement of loss allowance arising | ||||
from transfers in stages | (11) | (488) | 548 | 49 |
New financial assets originated | 441 | 38 | 1 | 480 |
Changes to risk parameters (model inputs: | ||||
PDs/LGDs/EADs)* | (734) | (83) | 573 | (244) |
Financial assets derecognised | (253) | (84) | (231) | (568) |
Other changes | 1 | 8 | (207) | (198) |
Total net income statement (credit)/charge | ||||
during the year | (556) | (609) | 684 | (481) |
Other movements | ||||
Write-offs | - | - | (2,379) | (2,379) |
Unwinding of discount | - | - | 198 | 198 |
Loss allowance as at 31 December 2024 | 714 | 411 | 6,361 | 7,486 |
Lombard Bank Malta p.l.c.
Notes to the Financial Statements for the year ended 31 December 2024
143
2. Financial risk management (continued)
2024 | ||||
Stage 1 | Stage 2 | Stage 3 | ||
12-month | Lifetime | Lifetime | Total | |
ECL | ECL | ECL | ||
€ 000 | € 000 | € 000 | € 000 | |
Loans and advances to customers at amortised cost | ||||
Personal | ||||
Loss allowance as at 1 January 2024 | 310 | 867 | 126 | 1,303 |
Transfers of financial instruments | ||||
Transfer from Stage 1 to Stage 2 | (1) | 1 | - | - |
Transfer from Stage 1 to Stage 3 | (1) | - | 1 | - |
Transfer from Stage 2 to Stage 1 | 8 | (8) | - | - |
Transfer from Stage 2 to Stage 3 | - | (826) | 826 | - |
Transfer from Stage 3 to Stage 1 | 10 | - | (10) | - |
Net remeasurement of ECL arising from stage | ||||
transfers | (17) | 8 | 53 | 44 |
Total remeasurement of loss allowance arising | ||||
from transfers in stages | (1) | (825) | 870 | 44 |
New financial assets originated | 151 | - | 90 | 241 |
Changes to risk parameters (model inputs: | ||||
PDs/LGDs/EADs)* | (186) | 1 | (603) | (788) |
Financial assets derecognised | (8) | - | (64) | (72) |
Other changes | (1) | (8) | 207 | 198 |
Total net income statement (credit)/charge | ||||
during the year | (45) | (832) | 500 | (377) |
Other movements | ||||
Unwinding of discount | - | - | 8 | 8 |
Loss allowance as at 31 December 2024 | 265 | 35 | 634 | 934 |
Lombard Bank Malta p.l.c.
Notes to the Financial Statements for the year ended 31 December 2024
144
2. Financial risk management (continued)
2024 | ||||
Stage 1 | Stage 2 | Stage 3 | ||
12-month | Lifetime | Lifetime | Total | |
ECL | ECL | ECL | ||
€ 000 | € 000 | € 000 | € 000 | |
Loans and advances to customers at amortised cost | ||||
Total | ||||
Loss allowance as at 1 January 2024 | 1,580 | 1,887 | 7,984 | 11,451 |
Transfers of financial instruments | ||||
Transfer from Stage 1 to Stage 2 | (15) | 15 | - | - |
Transfer from Stage 1 to Stage 3 | (1) | - | 1 | - |
Transfer from Stage 2 to Stage 1 | 30 | (30) | - | - |
Transfer from Stage 2 to Stage 3 | - | (1,309) | 1,309 | - |
Transfer from Stage 3 to Stage 1 | 10 | - | (10) | - |
Transfer from Stage 3 to Stage 2 | - | 31 | (31) | - |
Net remeasurement of ECL arising from stage | ||||
transfers | (36) | (20) | 149 | 93 |
Total remeasurement of loss allowance arising | ||||
from transfers in stages | (12) | (1,313) | 1,418 | 93 |
New financial assets originated | 592 | 38 | 91 | 721 |
Changes to risk parameters (model inputs: | ||||
PDs/LGDs/EADs)* | (920) | (82) | (30) | (1,032) |
Financial assets derecognised | (261) | (84) | (295) | (640) |
Total net income statement (credit)/charge during the year | (601) | (1,441) | 1,184 | (858) |
Other movements | ||||
Write-offs | - | - | (2,379) | (2,379) |
Unwinding of discount | - | - | 206 | 206 |
Loss allowance as at 31 December 2024 | 979 | 446 | 6,995 | 8,420 |
Lombard Bank Malta p.l.c.
Notes to the Financial Statements for the year ended 31 December 2024
145
2. Financial risk management (continued)
2023 | ||||
Stage 1 | Stage 2 | Stage 3 | ||
12-month ECL | Lifetime | Lifetime | Total | |
ECL | ECL | |||
€ 000 | € 000 | € 000 | € 000 | |
Debt securities measured at FVOCI | ||||
Loss allowance as at 1 January 2023 | 526 | - | - | 526 |
Changes to risk parameters (model inputs: PDs/LGDs/EADs) | (55) | - | - | (55) |
Total net income statement credit during the year | (55) | - | - | (55) |
Loss allowance as at 31 December 2023 | 471 | - | - | 471 |
Debt securities measured at amortised cost | ||||
Loss allowance as at 1 January 2023 | - | - | - | - |
Changes to risk parameters (model inputs: PDs/LGDs/EADs) | 72 | - | - | 72 |
Total net income statement charge during the year | 72 | - | - | 72 |
Loss allowance as at 31 December 2023 | 72 | - | - | 72 |
Undrawn commitments | ||||
Loss allowance as at 1 January 2023 | 6 | - | 1 | 7 |
Changes to risk parameters (model inputs: PDs/LGDs/EADs) | (6) | 5 | - | (1) |
Total net income statement (credit)/charge during the year | (6) | 5 | - | (1) |
Loss allowance as at 31 December 2023 | - | 5 | 1 | 6 |
Contingent liabilities | ||||
Loss allowance as at 1 January 2023 | 36 | - | - | 36 |
Changes to risk parameters (model inputs: PDs/LGDs/EADs) | (13) | - | - | (13) |
Total net income statement credit during the year | (13) | - | - | (13) |
Loss allowance as at 31 December 2023 | 23 | - | - | 23 |
Lombard Bank Malta p.l.c.
Notes to the Financial Statements for the year ended 31 December 2024
146
2. Financial risk management (continued)
2023 | ||||
Stage 1 | Stage 2 | Stage 3 | ||
12-month | Lifetime | Lifetime | Total | |
ECL | ECL | ECL | ||
€ 000 | € 000 | € 000 | € 000 | |
Loans and advances to customers at amortised cost | ||||
Corporate and commercial | ||||
Loss allowance as at 1 January 2023 | 1,924 | 1,548 | 5,687 | 9,159 |
Transfers of financial instruments | ||||
Transfer from Stage 1 to Stage 2 | (287) | 287 | - | - |
Transfer from Stage 1 to Stage 3 | (4) | - | 4 | - |
Transfer from Stage 2 to Stage 1 | 450 | (450) | - | - |
Transfer from Stage 3 to Stage 1 | 3 | - | (3) | - |
Net remeasurement of ECL arising from stage | ||||
transfers | (189) | 143 | - | (46) |
Total remeasurement of loss allowance arising | ||||
from transfers in stages | (27) | (20) | 1 | (46) |
New financial assets originated | 397 | 160 | - | 557 |
Changes to risk parameters (model inputs: | ||||
PDs/LGDs/EADs)* | (980) | (381) | 1,950 | 589 |
Financial assets derecognised | (44) | (287) | (13) | (344) |
Total net income statement (credit)/charge | ||||
during the year | (654) | (528) | 1,938 | 756 |
Other movements | ||||
Unwinding of discount | - | - | 233 | 233 |
Loss allowance as at 31 December 2023 | 1,270 | 1,020 | 7,858 | 10,148 |
Lombard Bank Malta p.l.c.
Notes to the Financial Statements for the year ended 31 December 2024
147
2. Financial risk management (continued)
2023 | ||||
Stage 1 | Stage 2 | Stage 3 | ||
12-month | Lifetime | Lifetime | Total | |
ECL | ECL | ECL | ||
€ 000 | € 000 | € 000 | € 000 | |
Loans and advances to customers at amortised cost | ||||
Personal | ||||
Loss allowance as at 1 January 2023 | 415 | 66 | 309 | 790 |
Transfers of financial instruments | ||||
Transfer from Stage 1 to Stage 2 | (19) | 19 | - | - |
Transfer from Stage 2 to Stage 1 | 31 | (31) | - | - |
Transfer from Stage 2 to Stage 3 | - | (1) | 1 | - |
Transfer from Stage 3 to Stage 1 | 39 | - | (39) | - |
Transfer from Stage 3 to Stage 2 | - | 158 | (158) | - |
Net remeasurement of ECL arising from stage | ||||
transfers | (9) | 34 | - | 25 |
Total remeasurement of loss allowance arising | ||||
from transfers in stages | 42 | 179 | (196) | 25 |
New financial assets originated | 177 | 13 | 2 | 192 |
Changes to risk parameters (model inputs: | ||||
PDs/LGDs/EADs) | (299) | 610 | 12 | 323 |
Financial assets derecognised | (25) | (1) | (3) | (29) |
Total net income statement (charge)/credit | ||||
during the year | (105) | 801 | (185) | 511 |
Other movements | ||||
Unwinding of discount | - | - | 2 | 2 |
Loss allowance as at 31 December 2023 | 310 | 867 | 126 | 1,303 |
Lombard Bank Malta p.l.c.
Notes to the Financial Statements for the year ended 31 December 2024
148
2. Financial risk management (continued)
2023
Stage 1
12-month
ECL
Stage 2
Lifetime
ECL
Stage 3
Lifetime
ECL
Total
€ 000
€ 000
€ 000
€ 000
Loans and advances to customers at amortised cost
Total
Loss allowance as at 1 January 2023
2,339
1,614
5,996
9,949
Transfers of financial instruments
Transfer from Stage 1 to Stage 2
(306)
306
-
-
Transfer from Stage 1 to Stage 3
(4)
-
4
-
Transfer from Stage 2 to Stage 1
481
(481)
-
-
Transfer from Stage 2 to Stage 3
-
(1)
1
-
Transfer from Stage 3 to Stage 1
42
-
(42)
-
Transfer from Stage 3 to Stage 2
-
158
(158)
-
Net remeasurement of ECL arising from stage
transfers
(198)
177
-
(21)
Total remeasurement of loss allowance arising
from transfers in stages
15
159
(195)
(21)
New financial assets originated
574
173
2
749
Changes to risk parameters (model inputs:
PDs/LGDs/EADs) *
(1,279)
229
1,962
912
Financial assets derecognised
(69)
(288)
(16)
(373)
Total net income statement (charge)/credit
during the year
(759)
273
1,753
1,267
Other movements
Unwinding of discount
-
-
235
235
Loss allowance as at 31 December 2023
1,580
1,887
7,984
11,451
The movements reflected within the line item “Changes to risk parameters” have been analysed and
described in notes 2.3.4.3, 2.3.4.4 and 2.3.9.
*The movements reflected within the line item “Changes to risk parameters” reflect changes in ECL as a
consequence of updates to specific model inputs impacting Stage 1 and Stage 2 PDs. The increase in ECL on
Stage 3 exposures principally arises on a particular borrower following an update to the respective LGD
parameter.
Lombard Bank Malta p.l.c.
Notes to the Financial Statements for the year ended 31 December 2024
149
2. Financial risk management (continued)
2024 | ||||
Stage 1 | Stage 2 | Stage 3 | ||
12-month | Lifetime | Lifetime | ||
ECL | ECL | ECL | Total | |
Balances with Central Bank of Malta and treasury | € 000 | € 000 | € 000 | € 000 |
bills | ||||
Gross carrying amount as at 1 January 2024 | 138,157 | - | - | 138,157 |
New financial assets originated | 6,016,795 | - | - | 6,016,795 |
Financial assets derecognised | (6,008,080) | - | - | (6,008,080) |
Gross carrying amount as at 31 December 2024 | 146,872 | - | - | 146,872 |
Debt securities measured at FVOCI | ||||
Gross carrying amount as at 1 January 2024 | 199,965 | - | - | 199,965 |
Financial assets derecognised | (29,283) | - | - | (29,283) |
Fair value and other movements | 8,146 | - | - | 8,146 |
Gross carrying amount as at 31 December 2024 | 178,828 | - | - | 178,828 |
Debt securities measured at amortised cost | ||||
Gross carrying amount as at 1 January 2024 | 8,357 | - | - | 8,357 |
New financial assets originated | 12,542 | - | - | 12,542 |
Other movements | 233 | - | - | 233 |
Gross carrying amount as at 31 December 2024 | 21,132 | - | - | 21,132 |
Loans and advances to banks at amortised cost | ||||
Gross carrying amount as at 1 January 2024 | 38,139 | - | - | 38,139 |
New financial assets originated | 4,319,694 | - | - | 4,319,694 |
Financial assets derecognised | (4,311,635) | - | - | (4,311,635) |
Gross carrying amount as at 31 December 2024 | 46,198 | - | - | 46,198 |
Lombard Bank Malta p.l.c.
Notes to the Financial Statements for the year ended 31 December 2024
150
2. Financial risk management (continued)
2024
Stage 1
12-month
ECL
Stage 2
Lifetime
ECL
Stage 3
Lifetime
ECL
Total
€ 000
€ 000
€ 000
€ 000
Loans and advances to customers at
amortised cost
Corporate and commercial
Gross carrying amount as at 1 January 2024
379,074
122,035
27,943
529,052
Transfers of financial instruments
Transfer from Stage 1 to Stage 2
(43,190)
43,190
-
-
Transfer from Stage 1 to Stage 3
(2,407)
-
2,407
-
Transfer from Stage 2 to Stage 1
13,310
(13,310)
-
-
Transfer from Stage 2 to Stage 3
-
(27,511)
27,511
-
Transfer from Stage 3 to Stage 2
-
1,951
(1,951)
-
Total changes in gross carrying amounts arising from
transfers in stages
(32,287)
4,320
27,967
-
New financial assets originated
116,054
15,156
2,004
133,214
Changes in gross carrying amount in respect of facilities
present as at 1 January 2024
(20,864)
(4,877)
(6,005)
(31,746)
Financial assets derecognised
(22,895)
(8,580)
(4,801)
(36,276)
Write-offs
-
-
(2,621)
(2,621)
Other changes
3,129
372
(347)
3,154
Total net change during the year
43,137
6,391
16,197
65,725
Gross carrying amount as at 31 December 2024
422,211
128,426
44,140
594,777
Lombard Bank Malta p.l.c.
Notes to the Financial Statements for the year ended 31 December 2024
151
2. Financial risk management (continued)
2024 | ||||
Stage 1 | Stage 2 | Stage 3 | ||
12-month | Lifetime | Lifetime | ||
ECL | ECL | ECL | Total | |
Loans and advances to customers at amortised cost | € 000 | € 000 | € 000 | € 000 |
Personal | ||||
Gross carrying amount as at 1 January 2024 | 232,239 | 7,189 | 1,275 | 240,703 |
Transfers of financial instruments | ||||
Transfer from Stage 1 to Stage 2 | (789) | 789 | - | - |
Transfer from Stage 1 to Stage 3 | (420) | - | 420 | - |
Transfer from Stage 2 to Stage 1 | 799 | (799) | - | - |
Transfer from Stage 2 to Stage 3 | - | (3,868) | 3,868 | - |
Transfer from Stage 3 to Stage 1 | 11 | - | (11) | - |
Total changes in gross carrying amounts arising from transfers in stages | (399) | (3,878) | 4,277 | - |
New financial assets originated | 62,704 | 3 | 1,391 | 64,098 |
Changes in gross carrying amount in respect of facilities | ||||
present as at 1 January 2024 | (7,090) | (129) | (222) | (7,441) |
Financial assets derecognised | (7,279) | (81) | (521) | (7,881) |
Other changes | (3,129) | (372) | 347 | (3,154) |
Total net change during the year | 44,807 | (4,457) | 5,272 | 45,622 |
Gross carrying amount as at 31 December 2024 | 277,046 | 2,732 | 6,547 | 286,325 |
Lombard Bank Malta p.l.c.
Notes to the Financial Statements for the year ended 31 December 2024
152
2. Financial risk management (continued)
2024 | ||||
Stage 1 | Stage 2 | Stage 3 | ||
12-month | Lifetime | Lifetime | ||
ECL | ECL | ECL | Total | |
Loans and advances to customers at amortised cost | € 000 | € 000 | € 000 | € 000 |
Total | ||||
Gross carrying amount as at 1 January 2024 | 611,313 | 129,224 | 29,218 | 769,755 |
Transfers of financial instruments | ||||
Transfer from Stage 1 to Stage 2 | (43,979) | 43,979 | - | - |
Transfer from Stage 1 to Stage 3 | (2,827) | - | 2,827 | - |
Transfer from Stage 2 to Stage 1 | 14,109 | (14,109) | - | - |
Transfer from Stage 2 to Stage 3 | - | (31,379) | 31,379 | - |
Transfer from Stage 3 to Stage 1 | 11 | - | (11) | - |
Transfer from Stage 3 to Stage 2 | - | 1,951 | (1,951) | - |
Total changes in gross carrying amounts arising from transfers in stages | (32,686) | 442 | 32,244 | - |
New financial assets originated | 178,758 | 15,159 | 3,395 | 197,312 |
Changes in gross carrying amount in respect of facilities | ||||
present as at 1 January 2024 | (27,954) | (5,006) | (6,227) | (39,187) |
Financial assets derecognised | (30,174) | (8,661) | (5,322) | (44,157) |
Write-offs | - | - | (2,621) | (2,621) |
Total net change during the year | 87,944 | 1,934 | 21,469 | 111,347 |
Gross carrying amount as at 31 December 2024 | 699,257 | 131,158 | 50,687 | 881,102 |
Lombard Bank Malta p.l.c.
Notes to the Financial Statements for the year ended 31 December 2024
153
2. Financial risk management (continued)
2023 | ||||
Stage 1 | Stage 2 | Stage 3 | ||
12-month | Lifetime | Lifetime | ||
ECL | ECL | ECL | Total | |
€ 000 | € 000 | € 000 | € 000 | |
Balances with Central Bank of Malta and treasury bills | ||||
Gross carrying amount as at 1 January 2023 | 132,119 | - | - | 132,119 |
New financial assets originated | 3,986,316 | - | - | 3,986,316 |
Financial assets derecognised | (3,980,278) | - | - | (3,980,278) |
Gross carrying amount as at 31 December 2023 | 138,157 | - | - | 138,157 |
Debt securities measured at FVOCI | ||||
Gross carrying amount as at 1 January 2023 | 213,391 | - | - | 213,391 |
Financial assets derecognised | (9,477) | - | - | (9,477) |
Fair value and other movements | (3,949) | - | - | (3,949) |
Gross carrying amount as at 31 December 2023 | 199,965 | - | - | 199,965 |
Debt securities measured at amortised cost | ||||
New financial assets purchased | 8,359 | - | - | 8,359 |
Other movements | (2) | - | - | (2) |
Gross carrying amount as at 31 December 2023 | 8,357 | - | - | 8,357 |
Loans and advances to banks at amortised cost | ||||
Gross carrying amount as at 1 January 2023 | 27,615 | - | - | 27,615 |
New financial assets originated | 271,954 | - | - | 271,954 |
Financial assets derecognised | (261,430) | - | - | (261,430) |
Gross carrying amount as at 31 December 2023 | 38,139 | - | - | 38,139 |
Lombard Bank Malta p.l.c.
Notes to the Financial Statements for the year ended 31 December 2024
154
2. Financial risk management (continued)
2023 | ||||
Stage 1 | Stage 2 | Stage 3 | ||
12-month | Lifetime | Lifetime | ||
ECL | ECL | ECL | Total | |
Loans and advances to customers at amortised cost | € 000 | € 000 | € 000 | € 000 |
Corporate and commercial | ||||
Gross carrying amount as at 1 January 2023 | 344,301 | 164,071 | 25,816 | 534,188 |
Transfers of financial instruments | ||||
Transfer from Stage 1 to Stage 2 | (29,758) | 29,758 | - | - |
Transfer from Stage 1 to Stage 3 | (2,322) | - | 2,322 | - |
Transfer from Stage 2 to Stage 1 | 68,134 | (68,134) | - | - |
Transfer from Stage 2 to Stage 3 | - | (254) | 254 | - |
Transfer from Stage 3 to Stage 1 | 51 | - | (51) | - |
Transfer from Stage 3 to Stage 2 | - | 281 | (281) | - |
Total changes in gross carrying amounts arising from transfers in stages | 36,105 | (38,349) | 2,244 | - |
New financial assets originated | 39,903 | 11,869 | 47 | 51,819 |
Changes in gross carrying amount in respect of facilities | ||||
present as at 1 January 2023 | (14,539) | (5,022) | 883 | (18,678) |
Financial assets derecognised | (26,696) | (10,534) | (1,047) | (38,277) |
Total net change during the year | 34,773 | (42,036) | 2,127 | (5,136) |
Gross carrying amount as at 31 December 2023 | 379,074 | 122,035 | 27,943 | 529,052 |
Lombard Bank Malta p.l.c.
Notes to the Financial Statements for the year ended 31 December 2024
155
2. Financial risk management (continued)
2023 | ||||
Stage 1 | Stage 2 | Stage 3 | ||
12-month | Lifetime | Lifetime | ||
ECL | ECL | ECL | Total | |
Loans and advances to customers at amortised cost | € 000 | € 000 | € 000 | € 000 |
Personal | ||||
Gross carrying amount as at 1 January 2023 | 181,897 | 3,480 | 1,996 | 187,373 |
Transfers of financial instruments | ||||
Transfer from Stage 1 to Stage 2 | (2,636) | 2,636 | - | - |
Transfer from Stage 1 to Stage 3 | (198) | - | 198 | - |
Transfer from Stage 2 to Stage 1 | 616 | (616) | - | - |
Transfer from Stage 2 to Stage 3 | - | (97) | 97 | - |
Transfer from Stage 3 to Stage 1 | 338 | - | (338) | - |
Transfer from Stage 3 to Stage 2 | - | 515 | (515) | - |
Total changes in gross carrying amounts arising from transfers in stages | (1,880) | 2,438 | (558) | - |
New financial assets originated | 63,147 | 65 | 2 | 63,214 |
Changes in gross carrying amount in respect of facilities | ||||
present as at 1 January 2023 | (3,424) | 1,861 | (141) | (1,704) |
Financial assets derecognised | (7,501) | (655) | (24) | (8,180) |
Total net change during the year | 50,342 | 3,709 | (721) | 53,330 |
Gross carrying amount as at 31 December 2023 | 232,239 | 7,189 | 1,275 | 240,703 |
Lombard Bank Malta p.l.c.
Notes to the Financial Statements for the year ended 31 December 2024
156
2. Financial risk management (continued)
2023 | ||||
Stage 1 | Stage 2 | Stage 3 | ||
12-month | Lifetime | Lifetime | ||
ECL | ECL | ECL | Total | |
Loans and advances to customers at amortised cost | € 000 | € 000 | € 000 | € 000 |
Total | ||||
Gross carrying amount as at 1 January 2023 | 526,198 | 167,551 | 27,812 | 721,561 |
Transfers of financial instruments | ||||
Transfer from Stage 1 to Stage 2 | (32,394) | 32,394 | - | - |
Transfer from Stage 1 to Stage 3 | (2,520) | - | 2,520 | - |
Transfer from Stage 2 to Stage 1 | 68,750 | (68,750) | - | - |
Transfer from Stage 2 to Stage 3 | - | (351) | 351 | - |
Transfer from Stage 3 to Stage 1 | 389 | - | (389) | - |
Transfer from Stage 3 to Stage 2 | - | 796 | (796) | - |
Total changes in gross carrying amounts arising from transfers in stages | 34,225 | (35,911) | 1,686 | - |
New financial assets originated | 103,050 | 11,934 | 49 | 115,033 |
Changes in gross carrying amount in respect of facilities | ||||
present as at 1 January 2023 | (17,963) | (3,161) | 742 | (20,382) |
Financial assets derecognised | (34,197) | (11,189) | (1,071) | (46,457) |
Total net change during the year | 85,115 | (38,327) | 1,406 | 48,194 |
Gross carrying amount as at 31 December 2023 | 611,313 | 129,224 | 29,218 | 769,755 |
Lombard Bank Malta p.l.c.
Notes to the Financial Statements for the year ended 31 December 2024
157
Lombard Bank Malta p.l.c.
Notes to the Financial Statements for the year ended 31 December 2024
2. Financial risk management (continued)
As at 31 December 2024 | |||||
| Gross | Impairment | Carrying | Extendible value | ||
| exposure | allowance | amount | of collateral held | ||
Credit-impaired assets | € 000 | € 000 | € 000 | € 000 | |
Corporate and commercial | |||||
- | Overdrafts | 5,721 | 819 | 4,902 | 15,997 |
- Personal | Term loans | 37,988 | 5,497 | 32,491 | 164,445 |
- | Term loans | 1,467 | 178 | 1,289 | 3,029 |
Total credit-impaired assets | 45,176 | 6,494 | 38,682 | 183,471 |
As at 31 December 2023 | |||||
| Gross | Impairment | Carrying | Extendible value | ||
| exposure | allowance | amount | of collateral held | ||
Credit-impaired assets | € 000 | € 000 | € 000 | € 000 | |
Corporate and commercial | |||||
- | Overdrafts | 4,253 | 1,108 | 3,145 | 6,324 |
- Personal | Term loans | 20,581 | 4,859 | 15,722 | 48,377 |
- | Term loans | 1,235 | 86 | 1,149 | 3,694 |
- | Credit cards | 3 | 1 | 2 | 3 |
Total credit-impaired assets | 26,072 | 6,054 | 20,018 | 58,398 |
| Gross | Impairment | Carrying | ||
| exposure | allowance | amount | ||
€ 000 | € 000 | € 000 | ||
Credit-impaired assets | ||||
Corporate and commercial | ||||
- | Overdrafts | 428 | 46 | 382 |
- Personal | Credit cards | 3 | - | 3 |
- | Overdrafts | 110 | 86 | 24 |
- | Term loans | 4,957 | 355 | 4,602 |
- | Credit cards | 13 | 13 | - |
Total credit-impaired assets | 5,511 | 500 | 5,011 |
158
Lombard Bank Malta p.l.c.
Notes to the Financial Statements for the year ended 31 December 2024
159
2. Financial risk management (continued)
Gross | Impairment | Carrying | ||
exposure | allowance | amount | ||
€ 000 | € 000 | € 000 | ||
Credit-impaired assets | ||||
Corporate and commercial | ||||
- | Overdrafts | 629 | 387 | 242 |
- Personal | Term loans | 2,480 | 1,506 | 974 |
- | Overdrafts | 8 | 8 | - |
- | Term loans | 9 | 9 | - |
- | Credit cards | 20 | 20 | - |
Total credit-impaired assets | 3,146 | 1,930 | 1,216 |
Lombard Bank Malta p.l.c.
Notes to the Financial Statements for the year ended 31 December 2024
160
2. Financial risk management (continued)
Non-forborne | Forborne | Non-forborne | Forborne | |||
exposures | exposures | Total | exposures | exposures | Total | |
2024 | 2024 | 2024 | 2023 | 2023 | 2023 | |
Performing – Stage 1 | € 000 | € 000 | € 000 | € 000 | € 000 | € 000 |
Not collateralised | 57,785 | - | 57,785 | 39,069 | - | 39,069 |
Fully collateralised: | ||||||
Less than 50% LTV | 265,156 | - | 265,156 | 276,216 | - | 276,216 |
51% to 75% LTV | 79,859 | - | 79,859 | 42,182 | - | 42,182 |
76% to 90% LTV | 6,925 | - | 6,925 | 1,829 | - | 1,829 |
91% to 100% LTV | 9,561 | - | 9,561 | 14,095 | - | 14,095 |
361,501 | - | 361,501 | 334,322 | - | 334,322 | |
Partially collateralised | ||||||
Greater than 100% LTV | 2,924 | - | 2,924 | 5,683 | - | 5,683 |
Total performing – Stage 1 | 422,210 | - | 422,210 | 379,074 | - | 379,074 |
Underperforming – Stage 2 | ||||||
Not collateralised | 2,531 | - | 2,531 | 1,715 | 2,121 | 3,836 |
Fully collateralised: | ||||||
Less than 50% LTV | 81,210 | 4,965 | 86,175 | 46,345 | 25,979 | 72,324 |
51% to 75% LTV | 12,065 | 6,876 | 18,941 | 19,304 | 11,253 | 30,557 |
76% to 90% LTV | 4,968 | - | 4,968 | 377 | - | 377 |
91% to 100% LTV | 417 | - | 417 | - | - | - |
98,660 | 11,841 | 110,501 | 66,026 | 37,232 | 103,258 | |
Partially collateralised | ||||||
Greater than 100% LTV | 15,089 | 306 | 15,395 | 1,732 | 13,209 | 14,941 |
Total underperforming – Stage 2 | 116,280 | 12,147 | 128,427 | 69,473 | 52,562 | 122,035 |
Non-performing – Stage 3 | ||||||
Not collateralised | 427 | 4 | 431 | 3,109 | - | 3,109 |
Fully collateralised: | ||||||
Less than 50% LTV | 1,161 | 27,450 | 28,611 | 6,034 | 5,809 | 11,843 |
51% to 75% LTV | 4,151 | 5,769 | 9,920 | 6,298 | 653 | 6,951 |
76% to 90% LTV | 956 | - | 956 | 1,695 | 215 | 1,910 |
91% to 100% LTV | 31 | 233 | 264 | - | - | - |
6,299 | 33,452 | 39,751 | 14,027 | 6,677 | 20,704 | |
Partially collateralised | ||||||
Greater than 100% LTV | 3,958 | - | 3,958 | 4,130 | - | 4,130 |
Total non-performing – Stage 3 | 10,684 | 33,456 | 44,140 | 21,266 | 6,677 | 27,943 |
At 31 December | 549,174 | 45,603 | 594,777 | 469,813 | 59,239 | 529,052 |
Lombard Bank Malta p.l.c.
Notes to the Financial Statements for the year ended 31 December 2024
161
2. Financial risk management (continued)
Non-forborne | Forborne | Non-forborne | Forborne | |||
exposures | exposures | Total | exposures | exposures | Total | |
2024 | 2024 | 2024 | 2023 | 2023 | 2023 | |
Performing – Stage 1 | € 000 | € 000 | € 000 | € 000 | € 000 | € 000 |
Not collateralised | 14,408 | - | 14,408 | 10,888 | - | 10,888 |
Fully collateralised: | ||||||
Less than 50% LTV | 77,548 | - | 77,548 | 61,904 | - | 61,904 |
51% to 75% LTV | 72,340 | - | 72,340 | 69,804 | - | 69,804 |
76% to 90% LTV | 108,026 | - | 108,026 | 85,895 | - | 85,895 |
91% to 100% LTV | 3,281 | - | 3,281 | 3,161 | - | 3,161 |
261,195 | - | 261,195 | 220,764 | - | 220,764 | |
Partially collateralised | ||||||
Greater than 100% LTV | 1,451 | - | 1,451 | 587 | - | 587 |
Total performing – Stage 1 | 277,054 | - | 277,054 | 232,239 | - | 232,239 |
Underperforming – Stage 2 | ||||||
Not collateralised | 122 | - | 122 | 3,902 | 2 | 3,904 |
Fully collateralised: | ||||||
Less than 50% LTV | 641 | 988 | 1,629 | 257 | 1,112 | 1,369 |
51% to 75% LTV | - | 270 | 270 | 657 | 259 | 916 |
76% to 90% LTV | 711 | - | 711 | 713 | 239 | 952 |
91% to 100% LTV | - | - | - | 48 | - | 48 |
1,352 | 1,258 | 2,610 | 1,675 | 1,610 | 3,285 | |
Partially collateralised | ||||||
Greater than 100% LTV | - | - | - | - | - | - |
Total underperforming – Stage 2 | 1,474 | 1,258 | 2,732 | 5,577 | 1,612 | 7,189 |
Non-performing – Stage 3 | ||||||
Not collateralised | 181 | 4,899 | 5,080 | 31 | 6 | 37 |
Fully collateralised: | ||||||
Less than 50% LTV | 486 | 188 | 674 | 433 | 212 | 645 |
51% to 75% LTV | 185 | - | 185 | 1 | - | 1 |
76% to 90% LTV | 347 | - | 347 | 217 | 372 | 589 |
1,018 | 188 | 1,206 | 651 | 584 | 1,235 | |
Partially collateralised | ||||||
Greater than 100% LTV | 261 | - | 261 | 3 | - | 3 |
Total non-performing – Stage 3 | 1,460 | 5,087 | 6,547 | 685 | 590 | 1,275 |
At 31 December | 279,988 | 6,345 | 286,333 | 238,501 | 2,202 | 240,703 |
Lombard Bank Malta p.l.c.
Notes to the Financial Statements for the year ended 31 December 2024
2. Financial risk management (continued)
Total | Non-forborne | Forborne | Non-forborne | Forborne | ||
exposures | exposures | Total | exposures | exposures | Total | |
2024 | 2024 | 2024 | 2023 | 2023 | 2023 | |
Performing – Stage 1 | € 000 | € 000 | € 000 | € 000 | € 000 | € 000 |
Not collateralised | 72,193 | - | 72,193 | 49,957 | - | 49,957 |
Fully collateralised: | ||||||
Less than 50% LTV | 342,704 | - | 342,704 | 338,120 | - | 338,120 |
51% to 75% LTV | 152,199 | - | 152,199 | 111,986 | - | 111,986 |
76% to 90% LTV | 114,951 | - | 114,951 | 87,724 | - | 87,724 |
91% to 100% LTV | 12,842 | - | 12,842 | 17,256 | - | 17,256 |
622,696 | - | 622,696 | 555,086 | - | 555,086 | |
Partially collateralised | ||||||
Greater than 100% LTV | 4,375 | - | 4,375 | 6,270 | - | 6,270 |
Total performing – Stage 1 | 699,264 | - | 699,264 | 611,313 | - | 611,313 |
Underperforming – Stage 2 | ||||||
Not collateralised | 2,653 | - | 2,653 | 5,617 | 2,123 | 7,740 |
Fully collateralised: | ||||||
Less than 50% LTV | 81,851 | 5,953 | 87,804 | 46,602 | 27,091 | 73,693 |
51% to 75% LTV | 12,065 | 7,146 | 19,211 | 19,961 | 11,512 | 31,473 |
76% to 90% LTV | 5,679 | - | 5,679 | 1,090 | 239 | 1,329 |
91% to 100% LTV | 417 | - | 417 | 48 | - | 48 |
100,012 | 13,099 | 113,111 | 67,701 | 38,842 | 106,543 | |
Partially collateralised | ||||||
Greater than 100% LTV | 15,089 | 306 | 15,395 | 1,732 | 13,209 | 14,941 |
Total underperforming – Stage 2 | 117,754 | 13,405 | 131,159 | 75,050 | 54,174 | 129,224 |
Non-performing – Stage 3 | ||||||
Not collateralised | 608 | 4,903 | 5,511 | 3,140 | 6 | 3,146 |
Fully collateralised: | ||||||
Less than 50% LTV | 1,647 | 27,638 | 29,285 | 6,467 | 6,021 | 12,488 |
51% to 75% LTV | 4,336 | 5,769 | 10,105 | 6,299 | 653 | 6,952 |
76% to 90% LTV | 1,303 | - | 1,303 | 1,912 | 587 | 2,499 |
91% to 100% LTV | 31 | 233 | 264 | - | - | - |
7,317 | 33,640 | 40,957 | 14,678 | 7,261 | 21,939 | |
Partially collateralised | ||||||
Greater than 100% LTV | 4,219 | - | 4,219 | 4,133 | - | 4,133 |
Total non-performing – Stage 3 | 12,144 | 38,543 | 50,687 | 21,951 | 7,267 | 29,218 |
At 31 December | 829,162 | 51,948 | 881,110 | 708,314 | 61,441 | 769,755 |
162
Lombard Bank Malta p.l.c.
Notes to the Financial Statements for the year ended 31 December 2024
163
Lombard Bank Malta p.l.c.
Notes to the Financial Statements for the year ended 31 December 2024
164
2. Financial risk management (continued)
Lombard Bank Malta p.l.c.
Notes to the Financial Statements for the year ended 31 December 2024
165
2. Financial risk management (continued)
Average | |||||||
effective | Between | Between | |||||
Carrying | interest | Less than | 3 months | 1 year | More than | Non-interest | |
amount | rate | 3 months | and 1 year | and 5 years | 5 years | bearing | |
As at 31 December 2024 | € 000 | % | € 000 | € 000 | € 000 | € 000 | € 000 |
Financial assets | |||||||
Balances with Central Bank of Malta, treasury bills and cash | 154,480 | 3.12 | 146,872 | - | - | - | 7,608 |
Debt and other fixed income instruments measured at FVOCI | 178,828 | 1.06 | 2,661 | 6,224 | 118,170 | 51,773 | - |
Debt and other fixed income instruments measured at amortised cost | 21,107 | 4.30 | - | - | 14,000 | 7,107 | - |
Loans and advances to banks | 46,189 | 2.43 | 45,189 | 1,000 | - | - | - |
Loans and advances to customers | 872,682 | 3.73 | 694,909 | 44,822 | 129,975 | 433 | 2,543 |
Total financial assets | 1,273,286 | 889,631 | 52,046 | 262,145 | 59,313 | 10,151 | |
Financial liabilities | |||||||
Amounts owed to banks | 438 | 0.15 | 410 | - | - | - | 28 |
Amounts owed to customers | 1,120,006 | 1.29 | 515,217 | 66,702 | 275,996 | 49,231 | 212,860 |
Total financial liabilities | 1,120,444 | 515,627 | 66,702 | 275,996 | 49,231 | 212,888 | |
Interest repricing gap | 374,004 | (14,656) | (13,851) | 10,082 | |||
Cumulative gap | 374,004 | 359,348 | 345,497 | 355,579 |
Lombard Bank Malta p.l.c.
Notes to the Financial Statements for the year ended 31 December 2024
166
2. Financial risk management (continued)
Average | |||||||
effective | Between | Between | |||||
Carrying | interest | Less than | 3 months | 1 year | More than | Non-interest | |
amount | rate | 3 months | and 1 year | and 5 years | 5 years | bearing | |
As at 31 December 2023 | € 000 | % | € 000 | € 000 | € 000 | € 000 | € 000 |
Financial assets | |||||||
Balances with Central Bank of Malta, treasury bills and cash | 147,043 | 4.19 | 137,174 | 983 | - | - | 8,886 |
Debt and other fixed income instruments measured at FVOCI | 199,965 | 1.01 | 1,475 | 26,998 | 97,100 | 74,392 | - |
Debt and other fixed income instruments measured at amortised cost | 8,285 | 5.12 | - | - | 7,227 | 1,058 | - |
Loans and advances to banks | 38,139 | 2.59 | 37,739 | 400 | - | - | - |
Loans and advances to customers | 758,304 | 3.67 | 594,376 | 53,652 | 106,060 | 759 | 3,457 |
Total financial assets | 1,151,736 | 770,764 | 82,033 | 210,387 | 76,209 | 12,343 | |
Financial liabilities | |||||||
Amounts owed to banks | 145 | 0.22 | 134 | - | - | - | 11 |
Amounts owed to customers | 1,019,075 | 1.09 | 488,388 | 104,885 | 167,407 | 77,571 | 180,824 |
Total financial liabilities | 1,019,220 | 488,522 | 104,885 | 167,407 | 77,571 | 180,835 | |
Interest repricing gap | 282,242 | (22,852) | 42,980 | (1,362) | |||
Cumulative gap | 282,242 | 259,390 | 302,370 | 301,008 |
Lombard Bank Malta p.l.c.
Notes to the Financial Statements for the year ended 31 December 2024
167
2. Financial risk management (continued)
Bank
Carrying
amount
Average
effective
interest
rate
Less than
3 months
Between
3 months
and 1 year
Between
1 year
and 5 years
More than
5 years
Non-interest
bearing
As at 31 December 2024
€ 000
%
€ 000
€ 000
€ 000
€ 000
€ 000
Financial assets
Balances with Central Bank of Malta, treasury bills and cash
153,361
3.12
146,872
-
-
-
6,489
Debt and other fixed income instruments measured at FVOCI
176,696
1.01
2,661
6,224
118,070
49,741
-
Debt and other fixed income instruments measured at amortised cost
21,107
4.30
-
-
14,000
7,107
-
Loans and advances to banks
40,964
2.74
40,964
-
-
-
-
Loans and advances to customers
872,690
3.73
694,916
44,822
129,975
433
2,544
Total financial assets
1,264,818
885,413
51,046
262,045
57,281
9,033
Financial liabilities
Amounts owed to banks
438
0.15
410
-
-
-
28
Amounts owed to customers
1,121,816
1.29
515,504
67,102
275,996
49,231
213,983
Total financial liabilities
1,122,254
515,914
67,102
275,996
49,231
214,011
Interest repricing gap
369,499
(16,056)
(13,951)
8,050
Cumulative gap
369,499
353,443
339,492
347,542
Lombard Bank Malta p.l.c.
Notes to the Financial Statements for the year ended 31 December 2024
168
2. Financial risk management (continued)
Bank
Carrying
amount
Average
effective
interest
rate
Less than
3 months
Between
3 months
and 1 year
Between
1 year
and 5 years
More than
5 years
Non-interest
bearing
As at 31 December 2023
€ 000
%
€ 000
€ 000
€ 000
€ 000
€ 000
Financial assets
Balances with Central Bank of Malta, treasury bills and cash
146,308
4.19
137,174
983
-
-
8,151
Debt and other fixed income instruments measured at FVOCI
197,700
1.01
1,474
26,682
96,611
72,933
-
Debt and other fixed income instruments measured at amortised cost
8,285
5.12
-
-
7,227
1,058
-
Loans and advances to banks
33,605
2.59
33,605
-
-
-
-
Loans and advances to customers
758,304
3.67
594,376
53,652
106,060
759
3,457
Total financial assets
1,144,202
766,629
81,317
209,898
74,750
11,608
Financial liabilities
Amounts owed to banks
145
0.22
134
-
-
-
11
Amounts owed to customers
1,021,254
1.09
488,764
105,285
167,407
77,571
182,227
Total financial liabilities
1,021,399
488,898
105,285
167,407
77,571
182,238
Interest repricing gap
277,731
(23,968)
42,491
(2,821)
Cumulative gap
277,731
253,763
296,254
293,433
Lombard Bank Malta p.l.c.
Notes to the Financial Statements for the year ended 31 December 2024
169
2. Financial risk management (continued)
Fixed rate | Variable rate | |||
2024 | 2023 | 2024 | 2023 | |
€ 000 | € 000 | € 000 | € 000 | |
Interest-bearing assets | ||||
Balances with Central Bank of Malta and treasury bills | 138,320 | 129,737 | 8,552 | 8,420 |
Debt and other fixed income instruments measured at: | ||||
FVOCI | 178,828 | 199,965 | - | - |
Amortised cost | 21,107 | 8,285 | - | - |
Loans and advances to banks | 27,243 | 16,698 | 18,946 | 21,441 |
Loans and advances to customers | 185,170 | 168,298 | 684,969 | 586,548 |
550,668 | 522,983 | 712,467 | 616,409 | |
Interest-bearing liabilities | ||||
Amounts owed to banks | - | 23 | 410 | 112 |
Amounts owed to customers | 484,266 | 431,721 | 422,880 | 406,530 |
484,266 | 431,744 | 423,290 | 406,642 |
At the end of the reporting periods the interest rate profile of the Bank’s interest-bearing financial
instruments was:
Bank
Fixed rate
Variable rate
2024
2023
2024
2023
€ 000
€ 000
€ 000
€ 000
Interest-bearing assets
Balances with Central Bank of Malta and treasury bills
138,320
129,737
8,552
8,420
Debt and other fixed income instruments measured at:
FVOCI
176,696
197,700
-
-
Amortised cost
21,107
8,285
-
-
Loans and advances to banks
24,743
16,298
16,221
17,307
Loans and advances to customers
185,170
168,298
684,976
586,548
546,036
520,318
709,749
612,275
Interest-bearing liabilities
Amounts owed to banks
-
23
410
112
Amounts owed to customers
484,666
432,121
423,167
406,906
484,666
432,144
423,577
407,018
Lombard Bank Malta p.l.c.
Notes to the Financial Statements for the year ended 31 December 2024
170
2. Financial risk management (continued)
Group | 2024 | 2023 |
€ 000 | € 000 | |
(+) 250 bp | 7,229 | 5,244 |
(-) 250 bp | (7,229) | (5,244) |
Bank
2024
2023
€ 000
€ 000
(+) 250 bp
7,154
5,131
(-) 250 bp
(7,154)
(5,131)
Lombard Bank Malta p.l.c.
Notes to the Financial Statements for the year ended 31 December 2024
171
2. Financial risk management (continued)
Group | Total | EUR | GBP | USD | Other |
€ 000 | € 000 | € 000 | € 000 | € 000 | |
As at 31 December 2024 | |||||
Financial assets | |||||
Balances with Central Bank of Malta, treasury bills and cash | 154,480 | 132,038 | 202 | 22,210 | 30 |
Financial investments measured at FVOCI | 187,003 | 177,187 | 4,024 | 5,792 | - |
Financial investments measured at amortised cost | 21,107 | 13,627 | - | 7,480 | - |
Loans and advances to banks | 46,189 | 9,346 | 18,888 | 15,987 | 1,968 |
Loans and advances to customers | 872,682 | 868,368 | 3,727 | 587 | - |
Other assets | 16,074 | 12,591 | 380 | 2,252 | 851 |
Total financial assets | 1,297,535 | 1,213,157 | 27,221 | 54,308 | 2,849 |
Financial liabilities | |||||
Amounts owed to banks | 438 | 424 | - | - | 14 |
Amounts owed to customers | 1,120,006 | 1,039,443 | 27,058 | 51,553 | 1,952 |
Other liabilities | 41,600 | 39,623 | 273 | 1,234 | 470 |
Total financial liabilities | 1,162,044 | 1,079,490 | 27,331 | 52,787 | 2,436 |
Net currency position | 133,667 | (110) | 1,521 | 413 | |
Commitments and contingent liabilities | 311,392 | 310,859 | 3 | 530 | - |
Group | Total | EUR | GBP | USD | Other |
€ 000 | € 000 | € 000 | € 000 | € 000 | |
As at 31 December 2023 | |||||
Financial assets | |||||
Balances with Central Bank of Malta, treasury bills and cash | 147,043 | 124,871 | 220 | 21,932 | 20 |
Financial investments measured at FVOCI | 208,485 | 194,479 | 4,915 | 9,091 | - |
Financial investments measured at amortised cost | 8,285 | 8,285 | - | - | - |
Loans and advances to banks | 38,139 | 11,098 | 4,099 | 20,135 | 2,807 |
Loans and advances to customers | 758,304 | 749,956 | 7,201 | 1,143 | 4 |
Other assets | 15,898 | 13,084 | 425 | 1,734 | 655 |
Total financial assets | 1,176,154 | 1,101,773 | 16,860 | 54,035 | 3,486 |
Financial liabilities | |||||
Amounts owed to banks | 145 | 145 | - | - | - |
Amounts owed to customers | 1,019,075 | 947,752 | 16,400 | 52,127 | 2,796 |
Other liabilities | 41,621 | 39,767 | 316 | 1,077 | 461 |
Total financial liabilities | 1,060,841 | 987,664 | 16,716 | 53,204 | 3,257 |
Net currency position | 114,109 | 144 | 831 | 229 | |
Commitments and contingent liabilities | 271,624 | 269,917 | 1,164 | 543 | - |
Lombard Bank Malta p.l.c.
Notes to the Financial Statements for the year ended 31 December 2024
172
2. Financial risk management (continued)
The following tables summarise the Bank’s exposures to foreign currency risk. Included in the tables are
the entity’s financial instruments which are subject to foreign exchange risk at carrying amounts,
categorised by currency.
Bank
Total
EUR
GBP
USD
Other
€ 000
€ 000
€ 000
€ 000
€ 000
At 31 December 2024
Financial assets
Balances with Central Bank of Malta,
treasury bills and cash
153,361
130,919
202
22,210
30
Financial investments measured at FVOCI
184,871
175,055
4,024
5,792
-
Financial investments measured at amortised cost
21,107
13,627
-
7,480
-
Loans and advances to banks
40,964
4,257
18,888
15,851
1,968
Loans and advances to customers
872,690
868,376
3,727
587
-
Other assets
6,510
6,057
58
395
-
Total financial assets
1,279,503
1,198,291
26,899
52,315
1,998
Financial liabilities
Amounts owed to banks
438
424
-
-
14
Amounts owed to customers
1,121,816
1,041,251
27,058
51,554
1,953
Other liabilities
25,120
24,791
103
213
13
Total financial liabilities
1,147,374
1,066,466
27,161
51,767
1,980
Net currency position
131,825
(262)
548
18
Commitments and contingent liabilities
312,499
311,966
3
530
-
Lombard Bank Malta p.l.c.
Notes to the Financial Statements for the year ended 31 December 2024
173
2. Financial risk management (continued)
Bank
Total
EUR
GBP
USD
Other
€ 000
€ 000
€ 000
€ 000
€ 000
At 31 December 2023
Financial assets
Balances with Central Bank of Malta,
treasury bills and cash
146,308
124,136
220
21,932
20
Financial investments measured at FVOCI
206,220
192,214
4,915
9,091
-
Financial investments measured at amortised cost
8,285
8,285
-
-
-
Loans and advances to banks
33,605
6,563
4,099
20,136
2,807
Loans and advances to customers
758,304
749,956
7,201
1,143
4
Other assets
7,906
7,509
91
305
1
Total financial assets
1,160,628
1,088,663
16,526
52,607
2,832
Financial liabilities
Amounts owed to banks
145
145
-
-
-
Amounts owed to customers
1,021,254
949,930
16,400
52,128
2,796
Other liabilities
25,749
25,509
142
87
11
Total financial liabilities
1,047,148
975,584
16,542
52,215
2,807
Net currency position
113,079
(16)
392
25
Commitments and contingent liabilities
272,734
271,027
1,164
543
-
Under the scenario that the euro appreciates by 20% against all currencies the effect would result in a
decrease of €61,000 (2023: €80,000) in the carrying amount of financial instruments with the adverse
impact recognised in profit or loss. Should the euro depreciate against all currencies by 20%, the effect
would result in a gain of €61,000 (2023: €80,000) in the carrying amount of financial instruments and the
favourable impact would be recognised in profit or loss.
Lombard Bank Malta p.l.c.
Notes to the Financial Statements for the year ended 31 December 2024
174
2. Financial risk management (continued)
Lombard Bank Malta p.l.c.
Notes to the Financial Statements for the year ended 31 December 2024
175
2. Financial risk management (continued)
Lombard Bank Malta p.l.c.
Notes to the Financial Statements for the year ended 31 December 2024
176
2. Financial risk management (continued)
Group | Between | Between | ||||
Less than | 3 months | 1 year and | More than | No maturity | ||
3 months | and 1 year | 5years | 5 years | date | Total | |
As at 31 December 2024 | € 000 | € 000 | € 000 | € 000 | € 000 | € 000 |
Financial assets | ||||||
Balances with Central Bank of Malta, treasury bills and cash | 145,928 | - | - | - | 8,552 | 154,480 |
Financial investments measured at FVOCI | 2,661 | 6,224 | 118,170 | 51,773 | 8,175 | 187,003 |
Financial investments measured at amortised cost | - | - | 14,000 | 7,107 | - | 21,107 |
Loans and advances to banks | 45,189 | 1,000 | - | - | - | 46,189 |
Loans and advances to customers | 149,781 | 70,137 | 157,808 | 494,956 | - | 872,682 |
Other assets | 13,419 | 2,379 | - | - | 276 | 16,074 |
Total financial assets | 356,978 | 79,740 | 289,978 | 553,836 | 17,003 | 1,297,535 |
Financial liabilities | ||||||
Amounts owed to banks | 438 | - | - | - | - | 438 |
Amounts owed to customers | 728,077 | 66,702 | 275,996 | 49,231 | - | 1,120,006 |
Other liabilities | 22,340 | 624 | 1,863 | 8,333 | 8,440 | 41,600 |
Total financial liabilities | 750,855 | 67,326 | 277,859 | 57,564 | 8,440 | 1,162,044 |
Maturity gap | (393,877) | 12,414 | 12,119 | 496,272 | ||
Cumulative gap | (393,877) | (381,463) | (369,344) | 126,928 | ||
As at 31 December 2023 | ||||||
Financial assets | ||||||
Balances with Central Bank of Malta, treasury bills and cash | 138,702 | 983 | - | - | 7,358 | 147,043 |
Financial investments measured at FVOCI | 1,475 | 26,998 | 97,100 | 74,392 | 8,520 | 208,485 |
Financial investments measured at amortised cost | - | - | 7,227 | 1,058 | - | 8,285 |
Loans and advances to banks | 37,739 | 400 | - | - | - | 38,139 |
Loans and advances to customers | 137,556 | 49,065 | 140,617 | 431,066 | - | 758,304 |
Other assets | 13,275 | 2,379 | - | - | 244 | 15,898 |
Total financial assets | 328,747 | 79,825 | 244,944 | 506,516 | 16,122 | 1,176,154 |
Financial liabilities | ||||||
Amounts owed to banks | 145 | - | - | - | - | 145 |
Amounts owed to customers | 669,212 | 104,885 | 167,407 | 77,571 | - | 1,019,075 |
Other liabilities | 23,974 | 594 | 1,269 | 7,853 | 7,931 | 41,621 |
Total financial liabilities | 693,331 | 105,479 | 168,676 | 85,424 | 7,931 | 1,060,841 |
Maturity gap | (364,584) | (25,654) | 76,268 | 421,092 | ||
Cumulative gap | (364,584) | (390,238) | (313,970) | 107,122 |
Lombard Bank Malta p.l.c.
Notes to the Financial Statements for the year ended 31 December 2024
177
2. Financial risk management (continued)
Bank
Less than
3 months
Between
3 months
and 1 year
Between
1 year and
5 years
More than
5 years
No maturity
date
Total
As at 31 December 2024
€ 000
€ 000
€ 000
€ 000
€ 000
€ 000
Financial assets
Balances with Central Bank of Malta, treasury bills and cash
144,809
-
-
-
8,552
153,361
Financial investments measured at FVOCI
2,661
6,224
118,070
49,741
8,175
184,871
Financial investments measured at amortised cost
-
-
14,000
7,107
-
21,107
Loans and advances to banks
40,964
-
-
-
-
40,964
Loans and advances to customers
149,789
70,137
157,808
494,956
-
872,690
Other assets
3,855
2,379
-
-
276
6,510
Total financial assets
342,078
78,740
289,878
551,804
17,003
1,279,503
Financial liabilities
Amounts owed to banks
438
-
-
-
-
438
Amounts owed to customers
729,487
67,102
275,996
49,231
-
1,121,816
Other liabilities
12,117
624
1,863
6,280
4,236
25,120
Total financial liabilities
742,042
67,726
277,859
55,511
4,236
1,147,374
Maturity gap
(399,964)
11,014
12,019
496,293
Cumulative gap
(399,964)
(388,950)
(376,931)
119,362
As at 31 December 2023
Financial assets
Balances with Central Bank of Malta, treasury bills and cash
137,967
983
-
-
7,358
146,308
Financial investments measured at FVOCI
1,475
26,682
96,611
72,932
8,520
206,220
Financial investments measured at amortised cost
-
-
7,227
1,058
-
8,285
Loans and advances to banks
33,605
-
-
-
-
33,605
Loans and advances to customers
137,556
49,065
140,617
431,066
-
758,304
Other assets
5,283
2,379
-
-
244
7,906
Total financial assets
315,886
79,109
244,455
505,056
16,122
1,160,628
Financial liabilities
Amounts owed to banks
145
-
-
-
-
145
Amounts owed to customers
670,991
105,285
167,407
77,571
-
1,021,254
Other liabilities
12,923
594
1,269
6,378
4,585
25,749
Total financial liabilities
684,059
105,879
168,676
83,949
4,585
1,047,148
Maturity gap
(368,173)
(26,770)
75,779
421,107
Cumulative gap
(368,173)
(394,943)
(319,164)
101,943
Lombard Bank Malta p.l.c.
Notes to the Financial Statements for the year ended 31 December 2024
178
2. Financial risk management (continued)
Group | Between | Between | |||
Less than | 3 months | 1 year | More than | ||
3 months | and 1 year | and 5 years | 5 years | Total | |
As at 31 December 2024 | € 000 | € 000 | € 000 | € 000 | € 000 |
Financial liabilities | |||||
Amounts owed to banks | 438 | - | - | - | 438 |
Amounts owed to customers | 728,887 | 68,674 | 301,387 | 57,162 | 1,156,110 |
Other liabilities | 12,850 | 1,519 | 3,709 | 6,367 | 24,445 |
Total financial liabilities | 742,175 | 70,193 | 305,096 | 63,529 | 1,180,993 |
As at 31 December 2023 | € 000 | € 000 | € 000 | € 000 | € 000 |
Financial liabilities | |||||
Amounts owed to banks | 145 | - | - | - | 145 |
Amounts owed to customers | 669,922 | 106,960 | 177,459 | 90,185 | 1,044,526 |
Other liabilities | 24,055 | 997 | 3,206 | 6,093 | 34,351 |
Total financial liabilities | 694,122 | 107,957 | 180,665 | 96,278 | 1,079,022 |
Bank
Less than
3 months
Between
3 months
and 1 year
Between
1 year
and 5 years
More than
5 years
Total
As at 31 December 2024
€ 000
€ 000
€ 000
€ 000
€ 000
Financial liabilities
Amounts owed to banks
438
-
-
-
438
Amounts owed to customers
730,909
68,492
298,339
61,418
1,159,158
Other liabilities
12,127
1,349
2,728
5,078
21,282
Total financial liabilities
743,474
69,841
301,067
66,496
1,180,878
As at 31 December 2023
€ 000
€ 000
€ 000
€ 000
€ 000
Financial liabilities
Amounts owed to banks
145
-
-
-
145
Amounts owed to customers
671,702
107,363
177,459
90,185
1,046,709
Other liabilities
12,928
795
2,517
5,328
21,568
Total financial liabilities
684,775
108,158
179,976
95,513
1,068,422
Lombard Bank Malta p.l.c.
Notes to the Financial Statements for the year ended 31 December 2024
179
Lombard Bank Malta p.l.c.
Notes to the Financial Statements for the year ended 31 December 2024
180
2. Financial risk management (continued)
Lombard Bank Malta p.l.c.
Notes to the Financial Statements for the year ended 31 December 2024
181
Lombard Bank Malta p.l.c.
Notes to the Financial Statements for the year ended 31 December 2024
182
2. Financial risk management (continued)
Lombard Bank Malta p.l.c.
Notes to the Financial Statements for the year ended 31 December 2024
183
Lombard Bank Malta p.l.c.
Notes to the Financial Statements for the year ended 31 December 2024
184
3. Accounting estimates and judgements (continued)
Lombard Bank Malta p.l.c.
Notes to the Financial Statements for the year ended 31 December 2024
185
3. Accounting estimates and judgements (continued)
Lombard Bank Malta p.l.c.
Notes to the Financial Statements for the year ended 31 December 2024
186
Banking services | Postal services | Total | ||||
2024 | 2023 | 2024 | 2023 | 2024 | 2023 | |
€ 000 | € 000 | € 000 | € 000 | € 000 | € 000 | |
Interest receivable | 37,996 | 33,585 | 147 | 113 | 38,143 | 33,698 |
Interest expense | (10,826) | (7,780) | (57) | (57) | (10,883) | (7,837) |
Postal sales and other revenue | 72 | 109 | 39,111 | 38,611 | 39,183 | 38,720 |
Net fee and commission income | 5,340 | 4,184 | 1,033 | 999 | 6,373 | 5,183 |
Other operating income | 1,246 | 668 | 233 | (39) | 1,479 | 629 |
Segment operating income | 33,828 | 30,766 | 40,467 | 39,627 | 74,295 | 70,393 |
Depreciation and amortisation | (1,132) | (1,184) | (2,492) | (1,975) | (3,624) | (3,159) |
Net movement in expected | ||||||
credit losses | 1,039 | (1,316) | (112) | 55 | 927 | (1,261) |
Employee compensation | ||||||
and benefits | (9,513) | (8,895) | (17,016) | (15,489) | (26,529) | (24,384) |
Other costs | (9,383) | (7,215) | (16,229) | (19,532) | (25,612) | (26,747) |
Operating profit | 14,839 | 12,156 | 4,618 | 2,686 | 19,457 | 14,842 |
Share of (loss)/profit attributable to investment accounted for using the equity method, net | ||||||
of tax | (101) | 53 | 59 | (368) | (42) | (315) |
Profit before taxation | 14,738 | 12,209 | 4,677 | 2,318 | 19,415 | 14,527 |
Income tax expense | (5,548) | (4,474) | (1,709) | (435) | (7,257) | (4,909) |
Profit for the year | 9,190 | 7,735 | 2,968 | 1,883 | 12,158 | 9,618 |
Segment total assets | 1,335,804 | 1,217,744 | 52,618 | 47,390 | 1,388,422 | 1,265,134 |
Capital expenditure during the year | 416 | 900 | 2,104 | 1,757 | 2,520 | 2,657 |
Segment total liabilities | 1,150,144 | 1,047,870 | 19,357 | 18,472 | 1,169,501 | 1,066,342 |
Lombard Bank Malta p.l.c.
Notes to the Financial Statements for the year ended 31 December 2024
187
Group | Bank | |||
2024 | 2023 | 2024 | 2023 | |
€ 000 | € 000 | € 000 | € 000 | |
Balances with Central Bank of Malta | 146,872 | 126,302 | 146,872 | 126,302 |
Malta Government treasury bills | - | 11,855 | - | 11,855 |
Cash in hand | 7,608 | 8,886 | 6,489 | 8,151 |
154,480 | 147,043 | 153,361 | 146,308 |
Group | Bank | |||
2024 | 2023 | 2024 | 2023 | |
Measured at FVOCI | € 000 | € 000 | € 000 | € 000 |
Debt and other fixed income instruments | 178,828 | 199,965 | 176,696 | 197,700 |
Equity instruments | 8,175 | 8,520 | 8,175 | 8,520 |
Measured at amortised cost | ||||
Debt and other fixed income instruments | 21,107 | 8,285 | 21,107 | 8,285 |
208,110 | 216,770 | 205,978 | 214,505 |
Group | Bank | |||
2024 | 2023 | 2024 | 2023 | |
Issued by public bodies: | € 000 | € 000 | € 000 | € 000 |
- local government | 141,008 | 156,209 | 139,805 | 155,075 |
- foreign governments | 6,224 | 6,534 | 6,224 | 6,534 |
- supranational | 4,010 | 7,304 | 4,010 | 7,304 |
Issued by public issuers: | ||||
- local banks | 12,197 | 11,748 | 11,660 | 11,225 |
- local corporates | 2,836 | 3,554 | 2,444 | 2,946 |
- foreign banks | 7,243 | 8,763 | 7,243 | 8,763 |
- foreign corporates | 5,310 | 5,853 | 5,310 | 5,853 |
178,828 | 199,965 | 176,696 | 197,700 |
Lombard Bank Malta p.l.c.
Notes to the Financial Statements for the year ended 31 December 2024
188
2024 | 2023 | 2024 | 2023 | |
Issued by public bodies: | € 000 | € 000 | € 000 | € 000 |
- local government | 12,016 | 7,020 | 12,016 | 7,020 |
- foreign governments | 2,860 | - | 2,860 | - |
- supranational | 2,695 | - | 2,695 | - |
Issued by public issuers: | ||||
- local banks | 224 | 224 | 224 | 224 |
- local corporates | 1,412 | 1,113 | 1,412 | 1,113 |
- foreign banks | 1,925 | - | 1,925 | |
Expected credit loss allowances | (25) | (72) | (25) | (72) |
21,107 | 8,285 | 21,107 | 8,285 |
Group | Bank | |||
2024 | 2023 | 2024 | 2023 | |
€ 000 | € 000 | € 000 | € 000 | |
At 1 January | 199,965 | 213,391 | 197,700 | 210,862 |
Amortisation | (883) | (1,364) | (881) | (1,364) |
Redemptions/disposals | (29,642) | (9,478) | (29,423) | (9,348) |
Fair value movement | 8,946 | (2,380) | 8,858 | (2,243) |
Foreign exchange differences | 442 | (204) | 442 | (207) |
At 31 December | 178,828 | 199,965 | 176,696 | 197,700 |
Lombard Bank Malta p.l.c.
Notes to the Financial Statements for the year ended 31 December 2024
189
6. Financial investments (continued)
Group and Bank | ||
2024 | 2023 | |
€ 000 | € 000 | |
At 1 January | 8,285 | - |
Acquisitions | 12,542 | 8,359 |
Amortisation | 12 | (2) |
Foreign exchange differences | 221 | - |
Expected credit loss allowances | 47 | (72) |
At 31 December | 21,107 | 8,285 |
Group and Bank | ||
2024 | 2023 | |
€ 000 | € 000 | |
At 1 January | 8,520 | 7,424 |
Acquisitions | 88 | - |
Disposals | (416) | - |
Fair value movement | (74) | 1,123 |
Foreign exchange differences | 57 | (27) |
At 31 December | 8,175 | 8,520 |
Group | Bank | |||
2024 | 2023 | 2024 | 2023 | |
€ 000 | € 000 | € 000 | € 000 | |
Repayable on call and at short notice | 18,955 | 19,841 | 16,230 | 17,307 |
Term loans and advances | 27,243 | 18,298 | 24,743 | 16,298 |
Gross loans and advances to banks | 46,198 | 38,139 | 40,973 | 33,605 |
Credit loss allowances | (9) | - | (9) | - |
Net loans and advances to banks | 46,189 | 38,139 | 40,964 | 33,605 |
Lombard Bank Malta p.l.c.
Notes to the Financial Statements for the year ended 31 December 2024
190
Group | Bank | |||
2024 | 2023 | 2024 | 2023 | |
€ 000 | € 000 | € 000 | € 000 | |
Repayable on call and at short notice | 114,456 | 118,166 | 114,464 | 118,166 |
Term loans and advances | 766,646 | 651,589 | 766,646 | 651,589 |
Gross loans and advances to customers | 881,102 | 769,755 | 881,110 | 769,755 |
Credit loss allowances | (8,420) | (11,451) | (8,420) | (11,451) |
Net loans and advances to customers | 872,682 | 758,304 | 872,690 | 758,304 |
Credit loss allowances | ||||
Stage 1 | 979 | 1,580 | 979 | 1,580 |
Stage 2 | 446 | 1,887 | 446 | 1,887 |
Stage 3 | 6,995 | 7,984 | 6,995 | 7,984 |
8,420 | 11,451 | 8,420 | 11,451 |
Country of | ||||||
Name of company | incorporation | Nature of business | Equity interest | Carrying amount | ||
2024 | 2023 | 2024 | 2023 | |||
% | % | € 000 | € 000 | |||
Redbox Limited | Malta | Holding company | 100 | 100 | 17,926 | 16,809 |
Lombard Capital Asset | ||||||
Management Limited | Malta | Asset management | - | 100 | - | 325 |
Lombard Select SICAV p.l.c. | Malta | Collective Investment | 100 | 100 | 1 | 1 |
Scheme |
Lombard Bank Malta p.l.c.
Notes to the Financial Statements for the year ended 31 December 2024
191
Subsidiary | Registered office | Percentage of | Nature of business |
shares held | |||
Tanseana Limited | 305, Qormi Road, | 100% of ordinary Document management | |
Marsa, MTP 1001, | shares | Services | |
Malta | |||
Ciabro Limited | 22, Warehouse il-Moll | 100% of ordinary Leasing warehouse | |
tal-Pont, | shares | space | |
Marsa, MRS1400, | |||
Malta | |||
PostaInsure Agency Limited | 4, Old Bakery Street, | 49% of ordinary | Insurance agent - |
Valletta, VLT 1450, | shares (rights to | General insurance | |
Malta | appoint 60% of | services | |
the investee’s | |||
Board of | |||
Directors) | |||
Lombard Bank Malta p.l.c.
Notes to the Financial Statements for the year ended 31 December 2024
192
Group | Bank | |||
2024 | 2023 | 2024 | 2023 | |
€ 000 | € 000 | € 000 | € 000 | |
At 1 January | 3,292 | 2,607 | 1,645 | 1,645 |
Additions | 1,000 | 1,000 | - | - |
Share of results | (42) | (315) | - | - |
At 31 December | 4,250 | 3,292 | 1,645 | 1,645 |
At 31 December | ||||
Cost | 5,520 | 4,520 | 1,645 | 1,645 |
Share of results | (1,270) | (1,228) | - | - |
Carrying amount | 4,250 | 3,292 | 1,645 | 1,645 |
Country of | Nature of | Group | ||||
Name of company | incorporation | business | Equity interest | carrying amount | ||
2024 | 2023 | 2024 | 2023 | |||
Gozo Hotels | % | % | € 000 | € 000 | ||
Company Limited | Malta Accommodation | 33.3 | 33.3 | 1,475 | 1,576 | |
IVALIFE Insurance | ||||||
Limited | Malta | Insurance | 25.0 | 25.0 | 2,775 | 1,716 |
Lombard Bank Malta p.l.c.
Notes to the Financial Statements for the year ended 31 December 2024
193
10. Investments in associates (continued)
Group | Other | Bank | |||
Computer | intangible | Computer | |||
Goodwill | software | assets | Total | software | |
€ 000 | € 000 | € 000 | € 000 | € 000 | |
At 1 January 2023 | |||||
Cost | 857 | 7,783 | 140 | 8,780 | 3,449 |
Accumulated amortisation | - | (6,623) | (36) | (6,659) | (3,392) |
Net book amount | 857 | 1,160 | 104 | 2,121 | 57 |
Year ended 31 December 2023 | |||||
At 1 January 2023 | 857 | 1,160 | 104 | 2,121 | 57 |
Additions | - | 666 | - | 666 | - |
Amortisation for the year | - | (577) | (18) | (595) | (38) |
At 31 December 2023 | 857 | 1,249 | 86 | 2,192 | 19 |
At 31 December 2023 | |||||
Cost | 857 | 8,449 | 140 | 9,446 | 3,449 |
Accumulated amortisation | - | (7,200) | (54) | (7,254) | (3,430) |
Net book amount | 857 | 1,249 | 86 | 2,192 | 19 |
Year ended 31 December 2024 | |||||
At 1 January 2024 | 857 | 1,249 | 86 | 2,192 | 19 |
Additions | - | 578 | - | 578 | - |
Amortisation for the year | - | (567) | (17) | (584) | (9) |
At 31 December 2024 | 857 | 1,260 | 69 | 2,186 | 10 |
At 31 December 2024 | |||||
Cost | 857 | 9,027 | 140 | 10,024 | 3,449 |
Accumulated amortisation | - | (7,767) | (71) | (7,838) | (3,439) |
Net book amount | 857 | 1,260 | 69 | 2,186 | 10 |
Lombard Bank Malta p.l.c.
Notes to the Financial Statements for the year ended 31 December 2024
194
11. Intangible assets (continued)
Group | Land and | Computer | ||
buildings | equipment | Other | Total | |
€ 000 | € 000 | € 000 | € 000 | |
At 1 January 2023 | ||||
Cost or valuation | 64,195 | 5,366 | 15,016 | 84,577 |
Accumulated depreciation | (3,695) | (4,200) | (10,307) | (18,202) |
Net book amount | 60,500 | 1,166 | 4,709 | 66,375 |
Year ended 31 December 2023 | ||||
At 1 January 2023 | 60,500 | 1,166 | 4,709 | 66,375 |
Additions | 419 | 617 | 1,163 | 2,199 |
Disposals | - | (11) | (20) | (31) |
Adjustments to right-of-use assets | 503 | - | - | 503 |
Depreciation charge for the year | (1,014) | (554) | (996) | (2,564) |
Depreciation released on disposals | - | 11 | 18 | 29 |
At 31 December 2023 | 60,408 | 1,229 | 4,874 | 66,511 |
At 31 December 2023 | ||||
Cost or valuation | 65,117 | 5,972 | 16,159 | 87,248 |
Accumulated depreciation | (4,709) | (4,743) | (11,285) | (20,737) |
Net book amount | 60,408 | 1,229 | 4,874 | 66,511 |
Year ended 31 December 2024 | ||||
At 1 January 2024 | 60,408 | 1,229 | 4,874 | 66,511 |
Revaluation surplus arising during the year: | ||||
Effect on cost or valuation | 3,839 | - | - | 3,839 |
Effect on accumulated depreciation | 1,219 | - | - | 1,219 |
Additions | 120 | 582 | 1,362 | 2,064 |
Disposals | (120) | (237) | (184) | (541) |
Adjustments to right-of-use assets | 857 | - | - | 857 |
Depreciation charge for the year | (1,430) | (533) | (1,077) | (3,040) |
Depreciation released on disposals | 120 | 237 | 184 | 541 |
Other adjustment | ||||
Effect on cost or valuation | - | - | (24) | (24) |
Effect on accumulated depreciation | - | - | 24 | 24 |
At 31 December 2024 | 65,013 | 1,278 | 5,159 | 71,450 |
At 31 December 2024 | ||||
Cost or valuation | 69,813 | 6,317 | 17,313 | 93,443 |
Accumulated depreciation | (4,800) | (5,039) | (12,154) | (21,993) |
Net book amount | 65,013 | 1,278 | 5,159 | 71,450 |
Lombard Bank Malta p.l.c.
Notes to the Financial Statements for the year ended 31 December 2024
195
12. Property, plant and equipment (continued)
Bank
Land and
buildings
Computer
equipment
Other
Total
€ 000
€ 000
€ 000
€ 000
At 1 January 2023
Cost or valuation
42,919
3,229
3,180
49,328
Accumulated depreciation
(2,002)
(2,370)
(2,556)
(6,928)
Net book amount
40,917
859
624
42,400
Year ended 31 December 2023
At 1 January 2023
40,917
859
624
42,400
Additions
318
457
245
1,020
Disposals
-
(11)
(20)
(31)
Adjustments to right-of-use assets
18
-
-
18
Depreciation charge for the year
(592)
(404)
(185)
(1,181)
Depreciation released on disposals
-
11
18
29
At 31 December 2023
40,661
912
682
42,255
At 31 December 2023
Cost or valuation
43,255
3,675
3,405
50,335
Accumulated depreciation
(2,594)
(2,763)
(2,723)
(8,080)
Net book amount
40,661
912
682
42,255
Year ended 31 December 2024
At 1 January 2024
40,661
912
682
42,255
Revaluation surplus arising during the year:
Effect on cost or valuation
2,580
-
-
2,580
Effect on accumulated depreciation
582
-
-
582
Additions
96
250
192
538
Disposals
(120)
(5)
(37)
(162)
Depreciation charge for the year
(595)
(368)
(194)
(1,157)
Depreciation released on disposals
120
5
37
162
At 31 December 2024
43,324
794
680
44,798
At 31 December 2024
Cost or valuation
45,811
3,920
3,560
53,291
Accumulated depreciation
(2,487)
(3,126)
(2,880)
(8,493)
Net book amount
43,324
794
680
44,798
In 2024, the adjustments to the Group’s right-of-use assets referred to in the table above, comprise the
impacts of the reassessment of the lease term in respect of lease extensions attributable to lease
agreements of MaltaPost p.l.c, which resulted in an increase in right-of-use assets of €857,000 (2023:
€503,000).
In 2023, the adjustments to the Bank’s right-of-use assets pertains to a specific lease contract resulting in
an increase in right-of-use assets of €18,000.
Lombard Bank Malta p.l.c.
Notes to the Financial Statements for the year ended 31 December 2024
196
Group | Bank | |||
2024 | 2023 | 2024 | 2023 | |
€ 000 | € 000 | € 000 | € 000 | |
At 1 January | 2,016 | 2,126 | 1,529 | 1,493 |
Additions | 8 | 155 | 8 | 147 |
Disposals | (120) | - | (120) | - |
Depreciation charge for the year | (250) | (265) | (113) | (111) |
Depreciation released on disposals | 120 | - | 120 | - |
At 31 December | 1,774 | 2,016 | 1,424 | 1,529 |
Lombard Bank Malta p.l.c.
Notes to the Financial Statements for the year ended 31 December 2024
197
12. Property, plant and equipment (continued)
Lombard Bank Malta p.l.c.
Notes to the Financial Statements for the year ended 31 December 2024
198
12. Property, plant and equipment (continued)
Significant | Range of | |||||
Description by class based on | Valuation | unobservable | unobservable inputs | |||
highest and best use | Fair value | technique | inputs | (weighted average) | ||
Current use as Bank’s offices | €22 million | Rent capitalisation | Rental value (€/sqm) | 60 – 367 (226) | ||
and operational premises | method | Growth rate (%) | 2 per annum | |||
Capitalisation rate (%) | 6 – 8 | (7) | ||||
€17 million | Adjusted sales | Sales price per | 2,000 – | 15,000 | ||
comparison | square metre (€) | (3,179) | ||||
approach | ||||||
Current use as subsidiary’s | €19 million | Adjusted sales | Sales price per | 1,500 | – 6,900 | |
office premises, retail | comparison | square metre (€) | (4,116) | |||
outlets and mail delivery | approach | |||||
hubs |
Group | Bank | |||
2024 | 2023 | 2024 | 2023 | |
€ 000 | € 000 | € 000 | € 000 | |
Cost | 38,331 | 38,331 | 24,526 | 24,550 |
Accumulated depreciation | (3,743) | (3,491) | (3,086) | (2,897) |
Net book amount at 31 December | 34,588 | 34,840 | 21,440 | 21,653 |
Lombard Bank Malta p.l.c.
Notes to the Financial Statements for the year ended 31 December 2024
199
Group | Bank | |||||
Buildings | Other | Total | Buildings | Other | Total | |
€ 000 | € 000 | € 000 | € 000 | € 000 | € 000 | |
At 1 January 2023 | ||||||
Cost | 5,502 | 315 | 5,817 | 3,891 | - | 3,891 |
Accumulated depreciation | (1,351) | (179) | (1,530) | (717) | - | (717) |
Net book amount | 4,151 | 136 | 4,287 | 3,174 | - | 3,174 |
Year ended 31 December 2023 | ||||||
At 1 January 2023 | 4,151 | 136 | 4,287 | 3,174 | - | 3,174 |
Additions | 90 | 120 | 210 | - | 120 | 120 |
Adjustments upon reassessment | ||||||
of lease term in respect of extensions (see Note 12) | 503 | - | 503 | - | - | - |
Adjustments upon reassessment | ||||||
of lease payments (see Note | ||||||
12) | - | - | - | 18 | - | 18 |
Depreciation charge for the year | (474) | (84) | (558) | (279) | (22) | (301) |
At 31 December 2023 | 4,270 | 172 | 4,442 | 2,913 | 98 | 3,011 |
At 31 December 2023 | ||||||
Cost | 6,095 | 435 | 6,530 | 3,909 | 120 | 4,029 |
Accumulated depreciation | (1,825) | (263) | (2,088) | (996) | (22) | (1,018) |
Net book amount | 4,270 | 172 | 4,442 | 2,913 | 98 | 3,011 |
Year ended 31 December 2024 | ||||||
At 1 January 2024 | 4,270 | 172 | 4,442 | 2,913 | 98 | 3,011 |
Additions | - | 122 | 122 | - | 122 | 122 |
Adjustments upon reassessment | ||||||
of lease term in respect of extensions (see Note 12) | 857 | - | 857 | - | - | - |
Depreciation charge for the year | (477) | (105) | (582) | (278) | (42) | (320) |
At 31 December 2024 | 4,650 | 189 | 4,839 | 2,635 | 178 | 2,813 |
At 31 December 2024 | ||||||
Cost | 6,952 | 557 | 7,509 | 3,909 | 242 | 4,151 |
Accumulated depreciation | (2,302) | (368) | (2,670) | (1,274) | (64) | (1,338) |
Net book amount | 4,650 | 189 | 4,839 | 2,635 | 178 | 2,813 |
Lombard Bank Malta p.l.c.
Notes to the Financial Statements for the year ended 31 December 2024
200
13. Leases (continued)
Group | Bank | |||
2024 | 2023 | 2024 | 2023 | |
Lease liabilities (Note 23) | € 000 | € 000 | € 000 | € 000 |
Current | 928 | 407 | 678 | 149 |
Non-current | 4,175 | 4,138 | 2,373 | 2,921 |
5,103 | 4,545 | 3,051 | 3,070 |
Group | Bank | |||
2024 | 2023 | 2024 | 2023 | |
Lease liabilities | € 000 | € 000 | € 000 | € 000 |
At beginning of year | 4,545 | 4,228 | 3,070 | 3,104 |
Additions | 122 | 183 | 122 | 69 |
Payments | (542) | (491) | (213) | (194) |
Interest charge | 121 | 122 | 72 | 73 |
Adjustments upon reassessment of lease | ||||
term in respect of extensions | 857 | 503 | - | - |
Adjustments upon reassessment of lease | ||||
payments | - | - | - | 18 |
At end of year | 5,103 | 4,545 | 3,051 | 3,070 |
Group | Bank | |||
2024 | 2023 | 2024 | 2023 | |
€ 000 | € 000 | € 000 | € 000 | |
The income statement reflects the following | ||||
amounts relating to leases: | ||||
Depreciation charge of right-of-use assets | 582 | 558 | 320 | 301 |
Interest expense | 121 | 122 | 72 | 73 |
Expense relating to short-term leases (included | ||||
in administrative expenses) | 509 | 394 | 95 | 87 |
Expense relating to leases of low-value assets | ||||
that are not shown above as short-term leases | ||||
(included in administrative expenses) | 211 | 205 | 34 | 33 |
Lombard Bank Malta p.l.c.
Notes to the Financial Statements for the year ended 31 December 2024
201
Assets Liabilities | Net | Assets | Liabilities | Net | ||
2024 | 2024 | 2024 | 2023 | 2023 | 2023 | |
Group | € 000 | € 000 | € 000 | € 000 | € 000 | € 000 |
Deferred tax asset, after offsetting | ||||||
Differences between depreciation | ||||||
and capital allowances | - | (252) | (252) | - | (42) | (42) |
Provisions for liabilities and charges | 720 | - | 720 | 288 | - | 288 |
Credit loss allowances | 3,361 | - | 3,361 | 4,385 | - | 4,385 |
Fair value movements on financial | ||||||
investments | 4,049 | - | 4,049 | 7,048 | - | 7,048 |
Others | 83 | - | 83 | 15 | - | 15 |
8,213 | (252) | 7,961 | 11,736 | (42) | 11,694 | |
Deferred tax liability | ||||||
Revaluation of property | - | (4,824) | (4,824) | - | (4,099) | (4,099) |
- | (4,824) | (4,824) | - | (4,099) | (4,099) |
Bank
Deferred tax asset, after offsetting
Differences between depreciation
and capital allowances
-
(174)
(174)
-
(140)
(140)
Provisions for liabilities and
charges
522
-
522
119
-
119
Credit loss allowances
3,291
-
3,291
4,353
-
4,353
Fair value movements on financial
investments
4,050
-
4,050
7,049
-
7,049
Others
83
-
83
-
-
-
7,946
(174)
7,772
11,521
(140)
11,381
Deferred tax liability
Revaluation of property
-
(3,279)
(3,279)
-
(2,800)
(2,800)
-
(3,279)
(3,279)
-
(2,800)
(2,800)
Lombard Bank Malta p.l.c.
Notes to the Financial Statements for the year ended 31 December 2024
202
14. Deferred tax assets and liabilities (continued)
Recognised | Recognised | ||||||
At 1 | Recognised | in other | At 31 | Recognised | in other | At 31 | |
January | in profit | comprehensive December | in profit | comprehensive | December | ||
2023 | or loss | income | 2023 | or loss | income | 2024 | |
Group | € 000 | € 000 | € 000 | € 000 | € 000 | € 000 | € 000 |
Differences between depreciation and capital allowances | (110) | 68 | - | (42) | (210) | - | (252) |
Provisions for liabilities and charges | 344 | - | (56) | 288 | 403 | 29 | 720 |
Credit loss allowances | 3,831 | 535 | 19 | 4,385 | (1,110) | 86 | 3,361 |
Revaluation of property | (4,099) | - | - | (4,099) | - | (725) | (4,824) |
Fair value movements on investments | 6,788 | - | 260 | 7,048 | - | (2,999) | 4,049 |
Others | 36 | (21) | - | 15 | 68 | - | 83 |
6,790 | 582 | 223 | 7,595 | (849) | (3,609) | 3,137 | |
Bank
Differences between depreciation and capital allowances
(134)
(6)
-
(140)
(34)
-
(174)
Provisions for liabilities and charges
119
-
-
119
403
-
522
Credit loss allowances
3,778
556
19
4,353
(1,148)
86
3,291
Revaluation of property
(2,800)
-
-
(2,800)
-
(479)
(3,279)
Fair value movements on investments
6,789
-
260
7,049
-
(2,999)
4,050
Others
-
-
-
-
83
-
83
7,752
550
279
8,581
(696)
(3,392)
4,493
The recognised deferred tax assets and liabilities are expected to be recovered or settled principally after more than twelve months from the end of the reporting period. The
deferred tax liabilities reflected in other comprehensive income relate principally to the revaluation of property, plant and equipment and the fair valuation of investments
measured at FVOCI (note 34).
Lombard Bank Malta p.l.c.
Notes to the Financial Statements for the year ended 31 December 2024
203
Group | Bank | |||
2024 | 2023 | 2024 | 2023 | |
€ 000 | € 000 | € 000 | € 000 | |
Postal supplies and materials | 331 | 327 | - | - |
Merchandise | 522 | 425 | - | - |
Stocks for resale | 822 | 570 | 822 | 570 |
Other stock items | 56 | 69 | 56 | 69 |
1,731 | 1,391 | 878 | 639 |
Group | Bank | |||
2024 | 2023 | 2024 | 2023 | |
€ 000 | € 000 | € 000 | € 000 | |
Trade receivables - net of expected | ||||
credit loss allowances | 6,341 | 4,840 | - | - |
Others | 6,638 | 6,529 | 3,443 | 3,405 |
12,979 | 11,369 | 3,443 | 3,405 |
Group | Bank | |||
2024 | 2023 | 2024 | 2023 | |
€ 000 | € 000 | € 000 | € 000 | |
Loss allowance as at 1 January | 91 | 146 | - | - |
Net charge/(credit) recognised in profit | ||||
or loss during the year | 112 | (55) | - | - |
Loss allowance as at 31 December | 203 | 91 | - | - |
Group | Bank | |||
2024 | 2023 | 2024 | 2023 | |
€ 000 | € 000 | € 000 | € 000 | |
Accrued income | 2,553 | 2,405 | 2,524 | 2,377 |
Prepayments | 1,551 | 1,499 | 757 | 861 |
Other assets | 1,331 | 1,299 | 1,331 | 1,299 |
5,435 | 5,203 | 4,612 | 4,537 |
Lombard Bank Malta p.l.c.
Notes to the Financial Statements for the year ended 31 December 2024
204
Lombard Bank Malta p.l.c.
Notes to the Financial Statements for the year ended 31 December 2024
205
Group | Bank | |||
2024 | 2023 | 2024 | 2023 | |
€ 000 | € 000 | € 000 | € 000 | |
Property revaluation reserve | 17,016 | 13,109 | 12,851 | 10,168 |
Investment revaluation reserve | (7,877) | (13,349) | (7,936) | (13,345) |
Other reserve | 1,871 | 1,660 | 2,133 | 1,880 |
11,010 | 1,420 | 7,048 | (1,297) |
Group | Bank | |||
2024 | 2023 | 2024 | 2023 | |
€ 000 | € 000 | € 000 | € 000 | |
Term deposits with agreed maturity dates or periods of notice | 23 | 23 | 23 | 23 |
Repayable on demand | 415 | 122 | 415 | 122 |
438 | 145 | 438 | 145 |
Group | Bank | |||
2024 | 2023 | 2024 | 2023 | |
€ 000 | € 000 | € 000 | € 000 | |
Term deposits with agreed maturity dates | 484,266 | 431,721 | 484,666 | 432,121 |
Repayable on demand | 635,740 | 587,354 | 637,150 | 589,133 |
1,120,006 | 1,019,075 | 1,121,816 | 1,021,254 |
Lombard Bank Malta p.l.c.
Notes to the Financial Statements for the year ended 31 December 2024
206
Group | Bank | |||
2024 | 2023 | 2024 | 2023 | |
€ 000 | € 000 | € 000 | € 000 | |
Obligation to Government | 1,060 | 1,034 | - | - |
Legal | 1,490 | 340 | 1,490 | 340 |
Other expected credit losses on off-balance | ||||
sheet items | 83 | 29 | 83 | 29 |
2,633 | 1,403 | 1,573 | 369 |
Group | 2024 | Expected | 2023 | Expected | ||||
Obligation to | Legal | Credit Loss | Obligation to | Legal | Credit Loss | |||
Government | claims | allowance | Total | Government | Claims | allowance | Total | |
€ 000 | € 000 | € 000 | € 000 | € 000 | € 000 | € 000 | € 000 | |
At 1 January | 1,034 | 340 | 29 | 1,403 | 1,305 | 340 | 43 | 1,688 |
Actuarial losses/(gains) | ||||||||
– recognised in other comprehensive income | 84 | - | - | 84 | (159) | - | - | (159) |
Charge/(reversal) - recognised | ||||||||
in profit or loss | 31 | 1,150 | - | 1,181 | (429) | - | - | (429) |
Crystallised obligations | (89) | - | - | (89) | (150) | - | - | (150) |
Impact of settlements | - | - | - | - | 467 | - | - | 467 |
Change in ECL provision | ||||||||
on off-balance sheet | ||||||||
items | - | - | 54 | 54 | - | - | (14) | (14) |
At 31 December | 1,060 | 1,490 | 83 | 2,633 | 1,034 | 340 | 29 | 1,403 |
2024 | 2023 | |
€ 000 | € 000 | |
Present value of unfunded obligations | 1,931 | 1,817 |
Crystallised obligations | (871) | (783) |
1,060 | 1,034 |
Lombard Bank Malta p.l.c.
Notes to the Financial Statements for the year ended 31 December 2024
207
22. Provisions for liabilities and other charges (continued)
2024 | 2023 | |
€ 000 | € 000 | |
Net actuarial (losses)/gains | ||
- attributable to financial assumptions | (84) | 159 |
(84) | 159 |
Bank
2024
2023
Legal
claims
Expected
Credit Loss
allowance
Total
Legal
claims
Expected
Credit Loss
allowance
Total
€ 000
€ 000
€ 000
€ 000
€ 000
€ 000
At 1 January
340
29
369
340
43
383
Charge recognised in profit or loss
1,150
-
1,150
-
-
-
Change in ECL provision on off-
balance sheet items
-
54
54
-
(14)
(14)
At 31 December
1,490
83
1,573
340
29
369
In addition, the Bank is also a defendant in legal actions by other customers as a result of which the
Directors are of the opinion that no liability will arise.
Group | Bank | |||
2024 | 2023 | 2024 | 2023 | |
€ 000 | € 000 | € 000 | € 000 | |
Trade payables | 5,640 | 7,242 | - | - |
Bills payable | 5,373 | 3,845 | 5,373 | 3,845 |
Lease liabilities | 5,103 | 4,545 | 3,051 | 3,070 |
Other payables | 10,381 | 13,130 | 6,456 | 9,321 |
26,497 | 28,762 | 14,880 | 16,236 |
Lombard Bank Malta p.l.c.
Notes to the Financial Statements for the year ended 31 December 2024
208
Group | Bank | |||
2024 | 2023 | 2024 | 2023 | |
€ 000 | € 000 | € 000 | € 000 | |
Accrued interest | 7,323 | 6,152 | 7,324 | 6,153 |
Other | 6,524 | 5,150 | 2,319 | 1,805 |
13,847 | 11,302 | 9,643 | 7,958 |
2024 | 2023 | |
€ 000 | € 000 | |
Current | ||
Within 1 year | 654 | 538 |
Lombard Bank Malta p.l.c.
Notes to the Financial Statements for the year ended 31 December 2024
209
Group | Bank | |||
2024 | 2023 | 2024 | 2023 | |
Interest income | € 000 | € 000 | € 000 | € 000 |
On loans and advances to banks | 1,405 | 296 | 1,333 | 263 |
On loans and advances to customers | 28,989 | 26,461 | 28,989 | 26,461 |
On balances with Central Bank of Malta | 4,992 | 3,778 | 4,992 | 3,778 |
On Malta Government treasury bills | 60 | 990 | 60 | 990 |
35,446 | 31,525 | 35,374 | 31,492 | |
On debt and other fixed income instruments | 3,568 | 3,539 | 3,496 | 3,460 |
Net amortisation of premiums and discounts | (871) | (1,366) | (869) | (1,366) |
2,697 | 2,173 | 2,627 | 2,094 | |
Total interest income | 38,143 | 33,698 | 38,001 | 33,586 |
Interest expense | ||||
On amounts owed to banks | (2) | (2) | (2) | (2) |
On amounts owed to customers | (10,760) | (7,713) | (10,763) | (7,716) |
On leases | (121) | (122) | (72) | (73) |
Total interest expense | (10,883) | (7,837) | (10,837) | (7,791) |
Net interest income | 27,260 | 25,861 | 27,164 | 25,795 |
Group | Bank | |||
2024 | 2023 | 2024 | 2023 | |
Fee and commission income | € 000 | € 000 | € 000 | € 000 |
Retail banking customer fees | 3,855 | 3,246 | 3,856 | 3,249 |
Brokerage | 72 | 59 | 72 | 59 |
Other | 2,715 | 2,166 | 1,682 | 1,167 |
Total fee and commission income | 6,642 | 5,471 | 5,610 | 4,475 |
Fee and commission expense | ||||
Inter-bank transaction fees | (246) | (270) | (246) | (270) |
Other | (23) | (18) | (23) | (18) |
Total fee and commission expense | (269) | (288) | (269) | (288) |
Net fee and commission income | 6,373 | 5,183 | 5,341 | 4,187 |
Lombard Bank Malta p.l.c.
Notes to the Financial Statements for the year ended 31 December 2024
210
Group | Bank | |||
2024 | 2023 | 2024 | 2023 | |
€ 000 | € 000 | € 000 | € 000 | |
Stamps, parcel post and postal stationery | ||||
including income from foreign inbound mail | 34,038 | 33,629 | - | - |
Collectibles and philatelic sales | 733 | 772 | 500 | 488 |
Other | 4,412 | 4,319 | - | - |
39,183 | 38,720 | 500 | 488 |
29. Dividend income
Group | Bank | |||
2024 | 2023 | 2024 | 2023 | |
€ 000 | € 000 | € 000 | € 000 | |
Subsidiary undertaking | - | - | 1,445 | 1,657 |
Equity investments measured at FVOCI | 465 | 203 | 465 | 203 |
465 | 203 | 1,910 | 1,860 |
Group | Bank | |||
2024 | 2023 | 2024 | 2023 | |
€ 000 | € 000 | € 000 | € 000 | |
Gains on foreign exchange activities | 628 | 378 | 665 | 525 |
Group | Bank | |||
2024 | 2023 | 2024 | 2023 | |
Staff costs | € 000 | € 000 | € 000 | € 000 |
Wages, salaries and allowances | 24,731 | 22,738 | 9,002 | 8,424 |
Social security costs | 1,798 | 1,646 | 511 | 471 |
26,529 | 24,384 | 9,513 | 8,895 |
Group | Bank | |||
2024 | 2023 | 2024 | 2023 | |
Average number of employees | ||||
Executives and senior managerial | 47 | 48 | 35 | 36 |
Other managerial, supervisory and clerical | 373 | 356 | 173 | 169 |
Others | 523 | 502 | 6 | 6 |
943 | 906 | 214 | 211 |
Lombard Bank Malta p.l.c.
Notes to the Financial Statements for the year ended 31 December 2024
211
32. Net movement in expected credit losses
Movement in expected credit losses during 2024 was as follows:
Group | Bank | |||||
Reversals | Reversals | |||||
Write- | of write- | Write- | of write- | |||
downs | downs | Total | downs | downs | Total | |
Trade receivables | € 000 | € 000 | € 000 | € 000 | € 000 | € 000 |
Stage 3 | (112) | - | (112) | - | - | - |
Total trade receivables | (112) | - | (112) | - | - | - |
Loans and advances to banks | ||||||
Stage 1 | (9) | - | (9) | (9) | - | (9) |
Total loans and advances | ||||||
to banks | (9) | - | (9) | (9) | - | (9) |
Loans and advances to customers | ||||||
Stage 1 | - | 601 | 601 | - | 601 | 601 |
Stage 2 | - | 1,441 | 1,441 | - | 1,441 | 1,441 |
Stage 3 | (1,184) | - | (1,184) | (1,184) | - | (1,184) |
Write offs | (129) | - | (129) | (129) | - | (129) |
Recoveries | - | 63 | 63 | - | 63 | 63 |
Total loans and advances | ||||||
to customers | (1,313) | 2,105 | 792 | (1,313) | 2,105 | 792 |
Debt securities measured | ||||||
at FVOCI | ||||||
Stage 1 | - | 247 | 247 | - | 247 | 247 |
Total financial investments | ||||||
measured at FVOCI | - | 247 | 247 | - | 247 | 247 |
Debt securities measured | ||||||
at amortised cost | ||||||
Stage 1 | - | 47 | 47 | - | 47 | 47 |
Total financial investments | ||||||
measured at amortised cost | - | 47 | 47 | - | 47 | 47 |
Other financial assets | ||||||
Stage 1 | - | 16 | 16 | - | 16 | 16 |
Total other financial assets | - | 16 | 16 | - | 16 | 16 |
Off-balance sheet items | ||||||
Stage 1 | (59) | - | (59) | (59) | - | (59) |
Stage 2 | - | 5 | 5 | - | 5 | 5 |
Total off-balance sheet items | (59) | 5 | (54) | (59) | 5 | (54) |
Net movement in expected | ||||||
credit losses | (1,493) | 2,420 | 927 | (1,381) | 2,420 | 1,039 |
Lombard Bank Malta p.l.c.
Notes to the Financial Statements for the year ended 31 December 2024
212
32. Net movement in expected credit losses (continued)
Group | Bank | |||||
Reversals | Reversals | |||||
Write- | of write- | Write- | of write- | |||
downs | downs | Total | downs | downs | Total | |
Trade receivables | € 000 | € 000 | € 000 | € 000 | € 000 | € 000 |
Stage 3 | - | 55 | 55 | - | - | - |
Total trade receivables | - | 55 | 55 | - | - | - |
Loans and advances to customers | ||||||
Stage 1 | - | 759 | 759 | - | 759 | 759 |
Stage 2 | (273) | - | (273) | (273) | - | (273) |
Stage 3 | (1,753) | - | (1,753) | (1,753) | - | (1,753) |
Recoveries | - | 38 | 38 | - | 38 | 38 |
Total loans and advances | ||||||
to customers | (2,026) | 797 | (1,229) | (2,026) | 797 | (1,229) |
Debt securities measured | ||||||
at FVOCI | ||||||
Stage 1 | - | 55 | 55 | - | 55 | 55 |
Total financial investments | ||||||
measured at FVOCI | - | 55 | 55 | - | 55 | 55 |
Debt securities measured | ||||||
at amortised cost | ||||||
Stage 1 | (72) | - | (72) | (72) | - | (72) |
Total financial investments | ||||||
measured at amortised cost | (72) | - | (72) | (72) | - | (72) |
Other financial assets | ||||||
Stage 1 | (84) | - | (84) | (84) | - | (84) |
Total other financial assets | (84) | - | (84) | (84) | - | (84) |
Off-balance sheet items | ||||||
Stage 1 | - | 19 | 19 | - | 19 | 19 |
Stage 2 | (5) | - | (5) | (5) | - | (5) |
Total off-balance sheet items | (5) | 19 | 14 | (5) | 19 | 14 |
Net movement in expected | ||||||
credit losses | (2,187) | 926 | (1,261) | (2,187) | 871 | (1,316) |
Lombard Bank Malta p.l.c.
Notes to the Financial Statements for the year ended 31 December 2024
213
Group | Bank | |||
2024 | 2023 | 2024 | 2023 | |
After charging | € 000 | € 000 | € 000 | € 000 |
Directors' emoluments | ||||
- fees | 148 | 139 | 102 | 93 |
- other emoluments | 368 | 395 | 368 | 391 |
After crediting | ||||
Net income from investment services | 429 | 334 | 429 | 334 |
Group | Bank | |||
2024 | 2023 | 2024 | 2023 | |
€ 000 | € 000 | € 000 | € 000 | |
Foreign outbound mail | 10,710 | 14,889 | - | - |
Utilities, insurance and security | 1,089 | 1,020 | 717 | 649 |
Depositor and investor compensation schemes | 593 | 488 | 593 | 488 |
Information systems and telecommunications | 2,977 | 2,570 | 2,126 | 1,759 |
Repairs and maintenance | 1,275 | 1,194 | 440 | 422 |
Short-term and low value leases | 720 | 599 | 129 | 121 |
Expenses associated with card services | 1,542 | 1,108 | 1,542 | 1,108 |
Licence fees | 524 | 639 | 229 | 403 |
Legal and professional fees | 720 | 635 | 590 | 405 |
Other administrative expenses | 4,281 | 4,034 | 2,341 | 2,241 |
Total other operating costs | 24,431 | 27,176 | 8,707 | 7,596 |
Other assurance/ | ||
Audit | advisory services | |
Bank | € 000 | € 000 |
2024 | 108 | 158 |
2023 | 108 | 26 |
Subsidiary companies | ||
2024 | 86 | 18 |
2023 | 85 | 18 |
Lombard Bank Malta p.l.c.
Notes to the Financial Statements for the year ended 31 December 2024
214
Group | Bank | |||
2024 | 2023 | 2024 | 2023 | |
Current taxation | € 000 | € 000 | € 000 | € 000 |
Current tax expense | 6,408 | 5,491 | 5,181 | 5,603 |
Deferred taxation | ||||
Deferred tax charge/(credit) (note 14) | 849 | (582) | 696 | (550) |
7,257 | 4,909 | 5,877 | 5,053 |
Group | Bank | |||
2024 | 2023 | 2024 | 2023 | |
€ 000 | € 000 | € 000 | € 000 | |
Profit before tax | 19,415 | 14,527 | 16,101 | 13,850 |
Tax on profit at 35% | 6,795 | 5,084 | 5,635 | 4,848 |
Tax effect of: | ||||
Expenses not deductible for tax purposes | 776 | 313 | 435 | 295 |
Deductions attributable to usage of electric | ||||
vehicles | (315) | (445) | - | - |
Income taxed at different tax rates | (118) | (38) | (232) | (16) |
Share of results of associate | 15 | 110 | - | - |
Other differences | 104 | (115) | 39 | (74) |
7,257 | 4,909 | 5,877 | 5,053 |
Lombard Bank Malta p.l.c.
Notes to the Financial Statements for the year ended 31 December 2024
215
34. Income tax expense (continued)
2024 | 2023 | |||||
Before Tax credit/ | Before | Tax credit/ | Net of | |||
tax | (charge) | Net of tax | tax | (charge) | tax | |
€ 000 | € 000 | € 000 | € 000 | € 000 | € 000 | |
Group | ||||||
Fair valuation of land and buildings | 5,058 | (725) | 4,333 | - | - | - |
Fair valuation of financial | ||||||
assets measured at FVOCI: | ||||||
• Net changes in fair value | 8,872 | (3,074) | 5,798 | (1,257) | 392 | (865) |
• Reclassification | ||||||
adjustments to profit or loss upon disposal | - | - | - | 376 | (132) | 244 |
• Net movement attributable to change in credit risk | (247) | 86 | (161) | (55) | 19 | (36) |
Remeasurements of defined | ||||||
benefit obligations | (84) | 29 | (55) | 159 | (56) | 103 |
13,599 | (3,684) | 9,915 | (777) | 223 | (554) |
2024
2023
Before tax
Tax credit/
(charge)
Net of tax
Before tax
Tax credit/
(charge)
Net of tax
€ 000
€ 000
€ 000
€ 000
€ 000
€ 000
Bank
Fair valuation of land and
buildings
3,162
(479)
2,683
-
-
-
Fair valuation of financial
assets measured at FVOCI:
• Net changes in fair value
8,784
(3,074)
5,710
(1,120)
392
(728)
• Reclassification
adjustments to profit or
loss upon disposal
-
-
-
376
(132)
244
• Net movement attributable
to change in credit risk
(247)
86
(161)
(55)
19
(36)
11,699
(3,467)
8,232
(799)
279
(520)
35. Earnings per share
Group | ||
2024 | 2023 | |
Net profit attributable to equity holders of the Bank (€ 000) | 11,293 | 9,064 |
Weighted average number of ordinary shares in issue | 154,572,263 | 100,366,602 |
Earnings per share | €0.07 | €0.09 |
Lombard Bank Malta p.l.c.
Notes to the Financial Statements for the year ended 31 December 2024
216
Subsequent to the end of the reporting period, a gross dividend of 3.40 cent per nominal € |
Group investments with original maturities of three months or less. | Bank | |||
2024 | 2023 | 2024 | 2023 Cash and cash equivalents comprise balances with less than three months’ maturity from the date of acquisition, including cash in hand, deposits held at call with banks and other short-term highly liquid | |
€ 000 | € 000 | € 000 | € 000 | |
Balances with Central Bank of Malta (note 5) | 138,320 | 117,882 | 138,320 | 117,882 |
Malta Government treasury bills (note 5) | - | 8,920 | - | 8,920 |
Cash in hand (note 5) | 7,608 | 8,886 | 6,489 | 8,151 |
Loans and advances to banks (note 7) | 43,697 | 36,139 | 40,973 | 33,605 |
Amounts owed to banks (note 20) | (415) | (122) | (415) | (122) |
Cash and cash equivalents | 189,210 | 171,705 | 185,367 | 168,436 |
Lombard Bank Malta p.l.c.
Notes to the Financial Statements for the year ended 31 December 2024
217
Lombard Bank Malta p.l.c.
Notes to the Financial Statements for the year ended 31 December 2024
218
38. Related parties (continued)
2024 | 2023 | |
€ 000 | € 000 | |
Income statement | ||
Interest receivable and similar income | 31 | 30 |
Interest expense | 5 | 5 |
Other operating costs | 1,427 | 1,298 |
2024 | 2023 | |
€ 000 | € 000 | |
Statement of financial position | ||
Loans and advances to customers | 3,195 | 2,380 |
Amounts owed to customers | 1,722 | 1,698 |
Contingent liabilities and commitments | 213 | 464 |
Loans and | Loans and | |||
advances | Commitments | advances | Commitments | |
2024 | 2024 | 2023 | 2023 | |
€ 000 | € 000 | € 000 | € 000 | |
At 1 January | 2,380 | (462) | 1,518 | (1,047) |
Additions | 1,070 | (109) | 1,273 | (376) |
Reductions/ repayments | (255) | 368 | (564) | 950 |
Other movements | - | 1 | 153 | 11 |
At 31 December | 3,195 | (202) | 2,380 | (462) |
Lombard Bank Malta p.l.c.
Notes to the Financial Statements for the year ended 31 December 2024
219
38. Related parties (continued)
2024 | 2023 | |
Income statement | € 000 | € 000 |
Fee and commission income | 1 | 3 |
Interest expense | 4 | 2 |
Other operating income | 73 | 70 |
Other operating costs | 453 | 336 |
Statement of financial position | ||
Loans and advances to customers | 8 | - |
Trade and other receivables | 18 | 4 |
Accrued income and other assets | 3 | 7 |
Amounts owed to customers | 1,810 | 2,180 |
Accruals and deferred income | 96 | 49 |
Contingent liabilities | 210 | 300 |
Commitments | 1,107 | 1,110 |
2024 | 2023 | |
Income statement | € 000 | € 000 |
Fee and commission income | 33 | 36 |
Other operating costs | 60 | 60 |
Statement of financial position | ||
Loans and advances to customers/Accrued income and other assets | 2,298 | 2,379 |
Investments in associates | 1,645 | 1,645 |
Amounts owed to customers | 12 | 9 |
Lombard Bank Malta p.l.c.
Notes to the Financial Statements for the year ended 31 December 2024
220
39. Investor compensation scheme
In accordance with the requirements of the Investor Compensation Scheme Regulations, 2003 issued
under the Investment Services Act, 1994 (Chapter 370 of the Laws of Malta) licence holders are required
to transfer a variable contribution to an Investor Compensation Scheme Reserve and place the equivalent
amount with a bank, pledged in favour of the Scheme. Alternatively licence holders can elect to pay the
amount of variable contribution directly to the Scheme. Lombard Bank Malta p.l.c. has elected to pay the
amount of the variable contribution directly to the Scheme.
40. Statutory information
Lombard Bank Malta p.l.c. is a public limited liability company domiciled and incorporated in Malta
Lombard Bank Malta p.l.c.
Additional Regulatory Disclosures for the year ended 31 December 2024
221
Additional Regulatory Disclosures
1. Risk management
1.1 Overview of risk disclosures
The Additional Regulatory Disclosures seek to increase public disclosure with respect to a bank’s capital
structure and adequacy as well as its risk management policies and practices. These disclosures have been
prepared by the Bank in accordance with the Pillar III quantitative and qualitative disclosure requirements
as governed by Banking Rule BR/07: Publication of Annual Report and Audited Financial Statements of
Credit Institutions authorised under the Banking Act, 1994, issued by the Malta Financial Services Authority.
These disclosures are published by the Bank on an annual basis as part of the Annual Report. The rule
follows the disclosure requirements of Directive 2013/36/EU (Capital Requirements Directive) and EU
Regulation No. 575/2013 (Capital Requirements Regulation) of the European Parliament and of the Council
of 26 June 2013.
Consistent with the requirements of banking regulations, these disclosures are not subject to an external
audit, except to the extent that any disclosures are equivalent to those made in the Financial Statements
which have been prepared in accordance with the requirements of International Financial Reporting
Standards (‘IFRS’) as adopted by the EU. The Bank is satisfied that internal verification procedures ensure
that these Additional Regulatory Disclosures are presented fairly.
1.2 Risk Management Framework
The Board of Directors has overall responsibility for the establishment and oversight of the Bank’s risk
management framework.
To enhance its risk oversight efforts, the Board of Directors established an Audit & Risk Committee with a
mandate to supervise and monitor inter alia, the Bank’s compliance with its risk management policies and
procedures, review any financial information, statements and disclosures to be issued and the adequacy of
the Bank’s risk management framework, including its risk appetite statement and strategy.
The Bank has also established the Assets & Liabilities Committee (‘ALCO’) and the Credit Committee that
are responsible for developing the Bank’s risk management policies in their specific areas.
The Bank also has an independent Risk Management function as the Bank's second line of defence and
independent of operations which also reports directly to the ARC and is represented during meetings of the
above-mentioned committees. It is responsible for ensuring that the Bank's Risk Management Policy, Risk
Appetite Statement and any other guidelines support the Bank’s objectives. It is also responsible for further
identifying any unmitigated risks and for formulating suitable action plans for their treatment. The function
monitors the high-level principles that guide staff in its day-to-day management of risk through oversight
of policies, limits, procedures, processes and systems as well as by using methods and tools for risk
measuring, monitoring, controlling and reporting.
The Bank considers risk management a core competency that helps produce consistently high returns for
its various stakeholders. The Bank’s business involves taking on risks in a targeted manner and managing
them professionally. The Bank aims to manage all major types of risk by applying methods that meet best
practice. The Bank considers it important to have a clear distribution of responsibilities within risk
management. One of the main tasks of the Bank’s executive management is to set the framework for this
area. The core functions of the Bank’s risk management are to identify all key risks for the Bank, measure
these risks, manage the risk positions and determine capital allocations. The Bank regularly reviews its risk
management policies and systems to reflect changes in markets, products and best market practice.
Lombard Bank Malta p.l.c.
Additional Regulatory Disclosures for the year ended 31 December 2024
222
1. Risk management (continued)
An understanding of risk-taking and transparency in risk-taking are key elements in the Bank’s business
strategy and thus in its ambition to be a strong financial institution. The Bank’s internal risk management
processes support this objective.
Risk management within the Bank is mainly carried out on a unified basis, using an integrated and global
framework. This framework is based on local and international guidelines, such as the Basel III Accord and
corresponding Directives and Regulations of the European Union, including technical standards, as well as
on contemporary international banking practices guided by the Basel Committee on Banking Supervision.
The Bank has adopted the Standardised Approach and the Basic Method with respect to the calculation of
capital requirements and management of credit and foreign exchange risk respectively, as well as the Basic
Indicator Approach with respect to operational risk.
The Bank’s risk management policies are established to identify and analyse the risks faced by the Bank, to
set appropriate risk limits and controls, and to monitor risks and adherence to limits. Risk management
policies and systems are reviewed regularly to reflect changes in market conditions, products and services
offered. The Bank, through its training and management standards and procedures, aims to develop a
disciplined and constructive control environment, in which all employees understand their roles and
obligations.
The Board deems the risk management framework adopted by the Bank to be adequate and gives assurance
to the Bank’s stakeholders that the risk management systems are appropriate in relation to the Bank’s risk
profile and strategy.
The Bank’s different operational functions, on an entity-wide basis, are primarily responsible for risk
management procedures and activities in their respective areas. All the operational functions have a
primary role in risk management at Bank-wide level. The Risk Management Function provides oversight,
independently from operations. The Bank’s risk management is implemented and handled properly by the
operational functions. The Bank’s Internal Audit Function, through verification, ensures that effective risk
management procedures and activities are adequately designed and operating as prescribed.
1.3 Board appointed Committees
The Bank’s Board of Directors is responsible for ensuring that adequate processes and procedures exist to
ensure effective internal control systems for the Bank. These internal control systems ensure that decision-
making capability and the accuracy of the reporting and financial results are maintained at a high level at
all times. The Board assumes responsibility for:
- setting business objectives, goals and the general strategic direction for Management with a view to
maximise value;
- selecting and appointing the Chief Executive Officer who is entrusted with the day-to-day operations of
the Bank;
- management of the Bank’s operations, as well as appointment of members of Management;
- ensuring that significant business risks are identified and appropriately managed; and
- setting the highest business standards and code for ethical behaviour, and monitoring performance in
this respect.
Lombard Bank Malta p.l.c.
Additional Regulatory Disclosures for the year ended 31 December 2024
223
1. Risk management (continued)
In deciding how best to discharge its responsibilities, the Board upholds a policy of clear demarcation
between its role and responsibilities and those of Management. It has defined the level of authority that it
retains over strategy formulation and policy determination, and delegated authority and vested
accountability for the Bank’s day-to-day business in the Assets & Liabilities Committee and Credit
Committee and, for the Bank’s day-to-day operations, in an Executive Team comprising the Chief Executive
Officer and Chief Officers. The Audit & Risk Committee reviews the processes and procedures to ensure the
effectiveness of the Bank’s system of internal control, as well as the implementation of the Board’s risk
strategy by Management. The Audit & Risk Committee is supported by the Internal Audit, Risk Management
and Compliance functions.
The ALCO monitors the Bank’s financial performance, considers investment policy and overseas
counterparty limits. Membership of this Committee is made up of a number of Chief Officers and Senior
Managers including managers from Finance and Treasury Departments. The Chief Executive Officer is
Chairman of ALCO and retains primary responsibility for asset and liability management. The ALCO oversees
risk management practices in relation to asset and liability management.
The Credit Committee considers the development of general lending principles and oversees risk
management practices in lending operations. The Credit Committee is chaired by the Chief Executive Officer
and is composed of other Chief Officers as well as other Senior Officers.
The Audit & Risk Committee assists the Board in fulfilling its supervisory and monitoring responsibility by
reviewing the financial statements and disclosures, the system of internal control established by
management as well as the external and internal audit processes. The Audit & Risk Committee is also
responsible for monitoring compliance with the Bank’s risk management policies and procedures, and for
reviewing the adequacy of the risk management framework in relation to the risks faced by the Bank.
The Bank’s independent Internal Audit Department reviews the adequacy and proper operation of internal
controls in individual areas of operation and reports its findings to the Audit & Risk Committee. The Internal
Audit Function carries out both regular and ad-hoc reviews of risk management controls and procedures,
in both cases reporting its findings.
The Bank has an appropriate organisational structure for planning, executing, controlling and monitoring
business operations in order to achieve the Bank’s objectives.
Authority to operate the Bank and its subsidiaries is delegated to the Chief Executive Officer within the
limits set by the Board. The Board is ultimately responsible for the Bank’s system of internal control and for
reviewing its effectiveness. Such a system is designed to manage rather than eliminate the risk of failure to
achieve business objectives, and can provide only reasonable, and not absolute, assurance against material
misstatement or loss.
The Bank is committed to the highest standards of business conduct and seeks to maintain these standards
across all of its operations. Bank policies and procedures are in place for the reporting and resolution of
fraudulent activities.
Lombard Bank Malta p.l.c.
Additional Regulatory Disclosures for the year ended 31 December 2024
224
1. Risk management (continued)
1.4 Key risk components
The Bank’s Board of Directors is empowered to set out the overall risk policies and limits for all material risk
types. The Board also decides on the general principles for managing and monitoring risks.
To ensure coherence between the Bank’s strategic considerations regarding risk-taking and day-to-day
decisions, from time to time, the Bank establishes its risk appetite as a strategic tool. Risk appetite is the
maximum risk that the Bank is willing to assume to meet business targets. The Bank’s risk appetite is set in
a process based on a thorough analysis of its current risk profile. The Bank identifies a number of key risk
components and for each determines a target that represents the Bank’s views on the component in
question.
In terms of the CRR, an ‘exposure’ is the amount at risk arising from the reporting credit institution's assets
and off-balance sheet instruments. Consistent with this, an exposure would include the amount at risk
arising from the Bank’s:
- claims on a customer including actual and potential claims which would arise from the drawing down in
full of undrawn advised facilities, which the Bank has committed itself to provide;
- contingent liabilities arising in the normal course of business, and those contingent liabilities which
would arise from the drawing down in full of undrawn advised facilities which the Bank has committed
itself to provide; and
- other on and off-balance sheet financial assets and commitments.
The Bank is exposed to a number of risks, which it manages at different organisational levels.
The main categories of risk are:
• Credit risk: Credit risk stems from the possible non-prompt repayment or non-payment of existing and
contingent obligations by the Bank’s counterparties, resulting in the loss of equity and profit. It
comprises the risk that deterioration in the financial condition of a borrower will cause the asset value
to decrease or be extinguished. Country risk and Settlement risk are included in this category. Country
risk refers to the risk of losses arising from economic or political changes that affect the country from
which the asset originates. Settlement risk refers to the risk of losses through failure of the counterparty
to settle outstanding dues on the settlement date owing to bankruptcy or other causes.
• Market risk: Risk of losses arising from unfavourable changes in the level and volatility of interest rates,
foreign exchange rates or investment prices.
• Liquidity risk: Liquidity risk may be divided into two sub-categories:
o Market (product) liquidity risk: Risk of losses arising from difficulty in accessing a product or market
at the required time, price and volume.
o Funding liquidity risk: Risk of losses arising from a timing mismatch between investing, placements
and fund raising activities resulting in obligations missing the settlement date or satisfied at higher
than normal rates.
• Operational risk: Risk of loss resulting from the lack of skilful management or good governance within
the Bank and the inadequacy of internal control, which might involve internal operations, staff, systems
or external occurrences that in turn affect the income and capital funds of financial institutions. The
Bank has adopted an operational risk management framework and procedures, which provide for the
identification, assessment, management, monitoring and reporting of the Bank’s operational risks.
Lombard Bank Malta p.l.c.
Additional Regulatory Disclosures for the year ended 31 December 2024
225
1. Risk management (continued)
1.5 Risk statement by the Board of Directors
The Bank’s business model throughout the years has been that of retaining a stable deposit base and
granting credit principally to the commercial real estate sector, particularly because the Board strongly
believes that despite the increased capital requirements introduced by the CRR, an active commercial real
estate market is a fundamental source of employment and economic growth in Malta. Nonetheless, the
Bank is conscious of the risks involved in commercial real estate lending, and thus ensures it prices loans by
reference to underlying risks. In this respect, the Bank’s return on assets, expressed as a percentage of profit
after tax to average total assets, for the reporting period ended 31 December 2024 amounts to 0.8%.
In this respect, the loan loss coverage ratio, calculated as expected credit losses on non-performing
exposures to total non-performing exposures, which as at 31 December 2024, amounted to 14.0% differs
from that experienced within the sector, which generally tends to fluctuate between 50% to 55%. This
clearly illustrates the robustness of the Bank’s risk management practices particularly in respect of credit
risk.
1.6 Scope of application of regulatory framework
In preparing the consolidation of its financial statements, the Group follows IFRS 9 as adopted by the EU
for the purposes of the accounting framework. However, the scope of accounting consolidation might differ
from the prudential scope of consolidation. For the purposes of prudential consolidation, the Group follows
the provisions of CRR 575/2013 as amended by Regulation (EU) 2019/876 (CRR 2).
Under the prudential consolidation approach, CRR requires so-called ‘prudential adjustments’ to ensure a
more cautious approach. This produces a more granular, consolidated view of diversified financial
institutions, thereby introducing greater transparency. As the parent institution, Lombard Bank Malta p.l.c.
is required to assess the scope and perimeter of prudential consolidation. The outcome of this assessment
reveals that Lombard Bank Malta p.l.c.as a standalone entity meets the conditions for prudential
consolidation, making the Bank the only entity within the Group that falls within the prudential
consolidation perimeter.
2. Credit risk
2.1 Introduction to Credit risk
Credit risk is the risk of suffering financial loss, should any of the Bank’s customers, clients or market
counterparties fail to fulfil their contractual obligations to the Bank. Credit risk arises mainly from
commercial and consumer loans and advances and loan commitments arising from such lending activities,
but can also arise from credit enhancement provided, such as financial guarantees, letters of credit,
endorsements and acceptances.
Credit risk constitutes the Bank’s largest risk in view of its significant lending and securities portfolios, which
are monitored in several ways. The Bank is fully aware of such risk and places great importance on its
effective management.
The Bank allocates considerable resources in ensuring the ongoing compliance with approved credit limits
and to monitor its credit portfolio. In particular, the Bank has a fixed reporting cycle to ensure that the
relevant management bodies, including the Board of Directors and the Executive Team, are kept informed
on an ongoing basis of developments in the credit portfolio, non-performing loans and other relevant
information.
Lombard Bank Malta p.l.c.
Additional Regulatory Disclosures for the year ended 31 December 2024
226
2. Credit risk (continued)
2.2 Credit risk management
The Board of Directors has delegated the responsibility for the monitoring of management of credit risk to
the Credit Committee. The granting of a credit facility is based on the Bank’s insight into the customer’s
financial position, which is reviewed regularly to assess whether the basis for the granting of credit has
changed. Furthermore, the customer must be able to demonstrate a reasonable ability to repay the debt.
Approval limits are graded starting from authorised staff members and leading up to the Credit Committee
and the Board of Directors depending on the size and the particular risk attached to the loan. Facilities are
generally adequately secured either by property and/or guarantees and are reviewed periodically by
Management both in terms of the exposure to the Bank and to ensure that security is still valid.
The Bank’s Credit Department is responsible for undertaking and managing credit risk in relation to the
entity’s lending activities; covering all the stages in the lending cycle comprising credit proposal, loan
approval, effecting advances, credit and collateral monitoring, processing repayments and credit recovery
procedures. The Bank manages, limits and controls concentrations of credit risk arising from loans and
advances wherever they are identified − in particular, to individual customers and groups, and to industry
sectors. Such risks are monitored on a revolving basis and subject to frequent review, as considered
necessary. The exposure to any one borrower is further restricted by sub-limits covering on and off-balance
sheet exposures. Actual exposures against limits are monitored at end of day on a daily basis and on a real-
time basis too. As highlighted previously, the Bank’s reporting framework with respect to lending credit
risk is comprehensive with regular reporting by the Credit Department to the Board, Credit Committee and
Executive Team on adherence to limits, activity levels, performance measures and specific credit risk
events.
In order to minimise the credit risk undertaken, counterparty credit limits may be defined, which consider
a counterparty’s creditworthiness, the value of collateral and guarantees which can reduce the overall
credit risk exposure, as well as the type and the duration of the credit facility. In order to examine a
counterparty’s creditworthiness, the following are considered: country risk, quantitative and qualitative
characteristics, as well as the industry sector in which the counterparty operates. The Bank has set limits of
authority and has segregated duties so as to maintain impartiality and independence during the approval
process and control for new and existing credit facilities.
The Bank’s maximum exposure amount to credit risk before taking account of any collateral held or other
credit enhancements can be classified in the following categories:
• Financial assets recognised on-balance sheet comprising principally balances with Central Bank of Malta,
Malta Government treasury bills, cheques in course of collection, financial assets measured at FVOCI
and amortised cost as well as loans and advances to banks and customers. The maximum exposure of
these financial assets to credit risk equals their carrying amount.
• Guarantee obligations incurred on behalf of third parties. The maximum exposure to credit risk is the
full amount that the Bank would have to pay if the guarantees are called upon.
• Loan commitments and other credit related commitments that are irrevocable over the life of the
respective facilities. The maximum exposure to credit risk is the full amount of the committed facilities.
Lombard Bank Malta p.l.c.
Additional Regulatory Disclosures for the year ended 31 December 2024
227
2. Credit risk (continued)
The Bank’s credit risk exposure amounts reflect the maximum exposure to credit risk before collateral held
or other credit enhancements in accordance with the regulatory information submitted to the MFSA and
are as follows:
2024
2024
Average value
Year end
Exposure value
€ 000
€ 000
Central governments or central banks
307,646
315,548
Public sector industries
409
1
Multilateral development banks
7,465
6,705
Institutions
70,394
66,208
Corporates
94,219
100,104
Retail
30,411
33,386
Secured by mortgages on immovable property
590,672
610,638
Exposures in default
15,583
23,123
Exposures associated with particularly high risk
128,747
147,409
Equity
25,947
26,082
Other items
61,886
61,189
1,333,379
1,390,393
The exposures set out in the table above are based on the sum of on-balance sheet exposures and off-
balance sheet exposures adjusted for the credit conversion factors stipulated in Article 166(10) of the CRR.
The following is an analysis of the Bank’s exposure to credit risk split by on-balance sheet assets and off-
balance sheet instruments:
2024
€ 000
On-balance sheet assets
1,355,047
Other adjustments
134
Off-balance sheet instruments
35,212
1,390,393
As set out in the Financial Statements under ‘Accounting estimates and judgements’, the measurement of
the Expected Credit Loss allowance for financial assets measured at amortised cost and Fair Value through
Other Comprehensive Income (‘FVOCI’) is an area that requires the use of complex models and significant
assumptions about future economic conditions and credit behaviour. As previously explained, the
disinflation process continued during the financial year ended 31 December 2024, bringing inflation rates
closer to central bank targets. Despite a resilient labour market, Euro Area economic performance remained
underwhelming, weighed by headwinds coming from lower confidence in private consumption and
investment. Geopolitical risks related to the ongoing wars in Eastern Europe and the Middle East, also pose
risks to Euro Area growth, with the potential to disrupt energy supplies and global trade. Within this context,
the ECB decided to lower its Deposit Facility rate to 3.00%, the MRO rate to 3.15% and the MLF rate 3.40%.
Despite these rate cuts, the ECB’s monetary policy stance remains restrictive when compared to the historic
averages of the past two decades. At the reporting date the asset quality of the Bank’s financial assets
remains sound and there is no evidence of an increase in credit risk. The Bank will continue to closely
monitor its exposures in the light of developments so as to align the Expected Credit Loss accordingly.
Lombard Bank Malta p.l.c.
Additional Regulatory Disclosures for the year ended 31 December 2024
228
2. Credit risk (continued)
2.3 Concentration risk
Concentration risk arises as a result of the concentration of exposures within the same category, whether
the category relates to geographical location, industry sector or counterparty type.
As at 31 December 2024, no loans and advances to customers were deemed to be prohibited large
exposures, prior to any eligible exemptions, in accordance with the requirements of Part Four of the CRR,
Large Exposures. A limited number of customers account for a certain percentage of the Bank’s loans and
advances.
Credit risk attributable to concentration of investments is not considered by the Directors to be significant
in view of the credit standing of the issuers.
The following tables analyse the concentration of credit risk by geographical region, industry sector and
residual maturity at the end of the reporting period.
2.3.1 Credit risk exposures analysed by geographical region
The Bank monitors concentration of credit risk by geographical region. The following table summarises the
country of risk by exposure class:
At 31 December 2024
Total
Malta
Eurozone
Other European
countries
Other
€ 000
€ 000
€ 000
€ 000
€ 000
Central governments or central banks
315,548
306,463
3,622
2,138
3,325
Public Sector entities
1
1
-
-
-
Multilateral Development Banks
6,705
-
3,651
956
2,098
Institutions
66,208
12,077
37,924
9,738
6,469
Corporates
100,104
98,137
800
1,162
5
Retail
33,386
33,370
-
4
12
Secured by mortgages on immovable
property
610,638
609,803
172
370
293
Exposures in default
23,123
16,466
4,431
2,226
-
Items associated with particularly high
risk
147,409
147,409
-
-
-
Equity
26,082
26,082
-
-
-
Other items
61,189
60,913
-
-
276
1,390,393
1,310,721
50,600
16,594
12,478
Lombard Bank Malta p.l.c.
Additional Regulatory Disclosures for the year ended 31 December 2024
229
2. Credit risk (continued)
2.3.2 Credit risk exposures analysed by industry sector
The following are the exposure amounts split by exposure class according to the respective industry concentration:
At 31 December 2024
Property and
Personal,
professional and
Financial
Other
Total
Manufacturing
Tourism
Trade
construction
home loans
Institutions
sectors
€ 000
€ 000
€ 000
€ 000
€ 000
€ 000
€ 000
€ 000
Central governments or central banks
315,548
-
-
-
-
-
315,548
-
Public Sector entities
1
-
-
-
-
-
1
-
Multilateral Development Banks
6,705
-
-
-
-
-
6,705
-
International Organisations
-
-
-
-
-
-
-
-
Institutions
66,208
-
-
-
-
-
66,208
-
Corporates
100,104
7,661
5,383
33,543
7,629
7,935
30,127
7,826
of which: SME
84,501
4,923
4,930
33,514
5,228
2,230
29,094
4,582
Retail
33,386
18
-
1,067
584
29,397
12
2,308
of which: SME
1,867
-
-
1,066
158
529
12
102
Secured by mortgages on immovable property
610,638
3,113
56,142
17,708
149,448
251,838
98,488
33,901
of which: SME
328,762
2,918
55,481
17,273
137,063
6,509
98,488
11,030
Exposures in default
23,123
147
-
4,674
11,185
5,914
1,038
165
of which: SME
14,218
147
-
4,674
8,319
-
1,038
40
Items associated with particularly high risk
147,409
-
2,723
1,937
124,792
2,167
14,693
1,097
of which: SME
136,181
-
2,721
1,936
114,010
1,817
14,692
1,005
Equity
26,082
216
1,645
-
-
-
4,822
19,399
Other items
61,189
-
2,379
-
44,205
-
7,289
7,316
1,390,393
11,155
68,272
58,929
337,843
297,251
544,931
72,012
Lombard Bank Malta p.l.c.
Additional Regulatory Disclosures for the year ended 31 December 2024
230
2. Credit risk (continued)
2.3.3 Credit risk exposures analysed by residual maturity
The residual maturity breakdown by exposure class at the end of the reporting period was as follows:
Over 1 but
Carrying
Less than
less than
Over
Amount
1 year
5 years
5 years
At 31 December 2024
€ 000
€ 000
€ 000
€ 000
Central Government or central banks
315,548
157,917
121,196
36,435
Public sector entities
1
1
-
-
Multilateral Development Banks
6,705
2,898
3,020
787
International Organisations
-
-
-
-
Institutions
66,208
43,715
5,280
17,213
Corporates
100,104
42,488
41,988
15,628
Retail
33,386
7,625
1,250
24,511
Secured by mortgages on immovable property
610,638
124,215
52,732
433,691
Exposures in default
23,123
10,853
4,428
7,842
Exposures associated with particularly high risk
147,409
72,052
59,929
15,428
Equity exposures
26,082
26,082
-
-
Other items
61,189
61,189
-
-
1,390,393
549,035
289,823
551,535
2.3.4 Counterparty banks’ risk
The Bank runs the risk of loss of funds due to the possible delay in the repayment of existing and future
obligations by counterparty banks.
Within its daily operations, the Bank transacts with banks and other financial institutions. By conducting
these transactions, the Bank is running the risk of losing funds due to the possible delays in the repayment
to the Bank of the existing and future obligations of the counterparty banks. The Bank primarily places
short-term funds with pre-approved banks subject to the limits in place and subject to the respective
institutions’ credit rating being within controlled parameters. The positions are checked against the limits
in real time and at end of day on a daily basis.
2.3.5 Country risk
The Bank runs the risk of loss of funds due to the possible political, economic and other events in a particular
country where funds have been placed or invested with several counterparties. Countries are assessed
according to their size, economic data and prospects and their credit ratings from international rating
agencies. Existing country credit risk exposures are monitored and reviewed periodically. The Bank’s assets
are predominantly in Malta. The Bank’s exposures to other countries are mainly limited to bank balances
and money market placements with a total carrying amount of €40,968,000 (2023: €33,597,000) at the end
of the reporting period.
2.4 Use of External Credit Assessment Institutions
In calculating its risk-weighted exposure amounts, the Bank uses an External Credit Assessment Institution
(‘ECAI’) for Central governments, Institutions, Corporates and Items associated with particularly high risk
for which a credit assessment is available. The credit quality of such exposures is determined by reference
to external credit ratings applicable to issuers or counterparties. The Bank maps the external ratings to the
credit quality steps prescribed in the CRR as required by CEBS publication ‘Standardised Approach: Mapping
of ECAIs’ credit assessments to credit quality steps’.
Lombard Bank Malta p.l.c.
Additional Regulatory Disclosures for the year ended 31 December 2024
231
2. Credit risk (continued)
The following are the exposure values for which an ECAI is used:
Credit
quality
step
Central
governments
or central
banks
Public
Sector
entities
Multilateral
Development
Banks
International
organisations
Institutions
Total
€ 000
€ 000
€ 000
€ 000
€ 000
€ 000
At 31 December
2024
AAA to AA-
1
5,836
-
6,705
-
9,511
22,052
A+ to A-
2
307,467
1
-
-
37,035
344,503
BBB+ to BBB-
3
2,245
-
-
-
14,414
16,659
BB+ to BB-
4
-
-
-
-
-
-
B+ to B-
5
-
-
-
-
-
-
CCC+ and below
6
-
-
-
-
5,248
5,248
315,548
1
6,705
-
66,208
388,462
2.5 Credit quality of the Bank’s lending portfolio
The Bank manages the credit quality of its loans and advances to customers by using internal risk grades,
which provide a progressively increasing risk profile ranging from ‘P1’ (best quality, less risky) to ‘NP’. These
risk grades are an essential tool for the Bank to identify both non-performing exposures and better-
performing customers. The internal risk grades used by the Bank are as follows:
• Performing: Internal grade ‘P1’
• Under performing: Internal grades ‘P2’, ‘P3’ and ‘PF’; and
• Non-performing: Internal grade ‘NP’, ‘NF’ and ‘NR’.
P1
The Bank’s loans and advances to customers which are categorised as ‘P1’ are principally debts in respect
of which the payment of interest and/or capital is not overdue by 30 days and with no recent history of
customer default. Management does not expect any losses from non-performance by these customers.
P2
Loans and advances which attract a ‘P2’ grading are those which are receiving the close attention of the
Bank’s Management and are being reviewed periodically in order to determine whether such advances
should be reclassified to either ‘P1’ or ‘P3’ classification. Credit facilities that attract this category include
those where the payment of interest and/or capital becomes overdue by 30 days and over but not
exceeding 60 days.
P3
Loans and advances which attract a ‘P3’ grading are those having the weaknesses inherent in those loans
and advances classified as ‘P2’ with the added characteristics that repayment is inadequately protected by
the current sound worth and paying capacity of the borrower. Loans and advances so graded have a well-
defined weakness or weaknesses that could jeopardise the repayment of the debt. They are characterised
by the distinct possibility that the Bank will sustain some loss if the deficiencies are not corrected. Credit
facilities that attract this category include those where the payment of interest and/or capital becomes
overdue by 60 days and over but not exceeding 90 days.
PF
Loans and advances which attract a ‘PF’ grading are those facilities (other than Non-Performing Exposures)
in respect of which forbearance measures have been extended. Forbearance measures consist of
concessions towards a debtor facing or about to face difficulties in meeting its financial commitments
(financial difficulties).
Lombard Bank Malta p.l.c.
Additional Regulatory Disclosures for the year ended 31 December 2024
232
2. Credit risk (continued)
A concession is deemed to have taken place when any of the following two actions are taken;
(a) a modification of the previous terms and conditions of a contract, as the debtor is considered unable to
comply therewith, due to its financial difficulties (‘troubled debt’) to allow for sufficient debt service ability,
that would not have been granted had the debtor not been in financial difficulties; and/or
(b) a total or partial refinancing of a troubled debt contract, that would not have been granted had the
debtor not been in financial difficulties.
NP
Loans and advances which attract a ‘NP’ grading are those facilities where the Bank deems the
recoverability to be remote as a result of worsening conditions. Credit facilities that attract this category
include those where the payment of interest and/or capital becomes overdue by more than 90 days. These
loans and advances are generally past due by more than 90 days and comprise those exposures which are
deemed by the Bank as credit-impaired (see definition in note 2.3.10).
NF
Loans and advances which attract a ‘NF’ grading are credit-impaired facilities where the Bank deems the
recoverability to be remote as a result of worsening conditions but which forbearance measures have been
extended. Forbearance measures consist of concessions towards a debtor facing difficulties in meeting its
financial commitments.
NR
Loans and advances which attract a ‘NR’ grading are credit-impaired facilities where the Bank deems
recovery to be remote as a result of worsening conditions and where legal action against the obligor has
commenced.
The following table provides a detailed analysis of the credit quality of the Bank’s lending portfolio.
2024
€ 000
Gross loans and advances to customers
Performing (‘Stage 1’ assets)
699,264
Under-performing (‘Stage 2’ assets)
131,159
Non-performing (‘Stage 3’ assets)
50,687
881,110
2.5.1 Credit-impaired loans and advances to customers
Credit-impaired loans and advances are advances which are either more than 90 days past due, or for which
the Bank determines as probable that it will be unable to collect all principal and interest due according to
the contractual terms of the loans and advances agreement(s). The Bank’s credit-impaired loans and
advances mainly relate to a number of independent customers which are not meeting repayment
obligations or deemed by the Bank as unlikely to pay their obligations to the Bank without recourse by the
Bank to realising the collateral.
2.5.2 Past due but not credit-impaired loans
Past due but not credit-impaired loans include loans and advances where contractual interest or principal
payments are past due. Credit losses that may arise are covered through the Bank’s assessment of Expected
Credit Loss allowances.
Lombard Bank Malta p.l.c.
Additional Regulatory Disclosures for the year ended 31 December 2024
233
2. Credit risk (continued)
Loans and advances to customers are analysed into credit-impaired, past due and other exposures as
follows:
2024
€ 000
Gross loans and advances to customers
Credit-impaired
50,687
Past due but not credit-impaired
21,701
Neither past due nor credit-impaired
808,722
881,110
The table below analyses the impaired and the past due but not impaired gross loans and advances to
customers by industry sector.
Past due but
At 31 December 2024
Impaired
not impaired
€ 000
€ 000
Manufacturing
156
-
Tourism
-
441
Trade
4,794
-
Property and construction
37,516
17,812
Personal, professional and home loans
6,574
3,180
Financial institutions
1,313
3
Other sectors
334
265
50,687
21,701
The majority of the impaired and past due but not impaired loans and advances to customers were
concentrated within Malta.
2.5.3 Collateral
The Bank holds collateral against exposures in the form of hypothecs over property, other registered
securities over assets and guarantees. The nature and level of collateral required depends on a number of
factors, including, but not limited to, the amount of the exposure, the type of facility provided, the term of
the facility, the amount of the counterparty’s contribution and an evaluation of the level of the credit risk
or Probability of Default involved. Collateral is an important mitigant of credit risk. Nevertheless, it is the
Bank’s policy to establish that facilities are within the customer’s capacity to repay rather than to over rely
on security. In certain cases, depending on the customer’s standing and the type of product, facilities may
be unsecured. The Bank applies various measures to reduce the risk on individual transactions, including
collateral in the form of physical assets and guarantees.
The principal collateral types used as credit risk mitigants are mortgages on residential properties and
commercial real estate. For regulatory purposes, none of the Bank’s collateral in the form of commercial
real estate qualifies as eligible collateral, as these properties fail to meet the conditions of Article 126(2) of
the CRR.
Out of the €871.9 million exposures arising from the Bank’s lending, €589.2 million are secured by
mortgages on immovable property, while €144.7 million are classified within the high-risk exposures since
these are associated with speculative immovable property financing. From the €589.2 million exposures
secured by mortgages on immovable property, €271.5 million qualify as fully and completely secured by
mortgages on residential immovable property, and accordingly attract a risk-weight of 35%.
Lombard Bank Malta p.l.c.
Additional Regulatory Disclosures for the year ended 31 December 2024
234
2. Credit risk (continued)
2.5.4 Loss allowances
The Bank assesses on a forward-looking basis the expected credit losses associated with its loans and advances portfolio. The Bank recognises a loss allowance for such losses at
each reporting date.
Total
Manufacturing
Tourism
Trade
Property and
construction
Personal,
professional and
home loans
Financial
institutions
Other sectors
€ 000
€ 000
€ 000
€ 000
€ 000
€ 000
€ 000
€ 000
Expected credit losses
At 1 January 2024
11,451
323
1,597
732
6,469
1,454
755
121
Additions
2,326
25
36
176
1,203
520
301
65
Reversals
(5,357)
(266)
(1,593)
(482)
(1,394)
(984)
(583)
(55)
At 31 December 2024
8,420
82
40
426
6,278
990
473
131
Lombard Bank Malta p.l.c.
Additional Regulatory Disclosures for the year ended 31 December 2024
235
2. Credit risk (continued)
2.5.5 Write-off policy
The Bank writes off loan or advance balances (and any related allowances for impairment losses) when it
determines that these are uncollectible. This decision is reached after considering information such as the
occurrence of significant changes in the borrower’s financial position, such that the borrower can no longer
pay the obligation, or that proceeds from collateral will not be sufficient to pay back the entire exposure.
3. Market risk
The Bank takes on exposure to market risk, which is the risk that the fair value or future cash flows of a
financial instrument will fluctuate because of changes in market prices. Market risks arise from open
positions in interest rate, currency and equity products, all of which are exposed to general and specific
market movements and changes in the level of volatility of market rates or prices such as interest rates,
credit spreads, foreign exchange rates and equity prices.
Accordingly, market risk for the Bank consists of three elements:
• Interest rate risk, which is the risk of losses because of changes in interest rates;
• Exchange rate risk, which is the risk of losses on the Bank’s positions in foreign currency because of
changes in exchange rates; and
• Equity price risk, which is the risk of losses because of changes in investment prices.
3.1 Interest rate risk
Interest rate risk is the risk that the value of a financial instrument will fluctuate due to changes in market
interest rates. The Bank’s operations are subject to the risk of interest rate fluctuations to the extent that
interest-earning assets and interest-bearing liabilities mature or reprice at different times or at different
amounts. The Bank accepts deposits from customers at both fixed and floating rates and for varying
maturity periods. This risk is managed through the matching of the interest resetting on repricing dates on
assets and liabilities as much as it is practicable. The Bank monitors on a continuous basis the level of
mismatch of interest rate repricing taking cognisance of the terms of the Bank’s principal assets, comprising
loans and advances to customers, that are repriceable at the Bank’s discretion. Accordingly, the Bank is in
a position to manage the interest rate terms of its financial assets and simultaneously modify the interest
terms of its liabilities. The Bank seeks to manage its net interest spread, taking cognisance of the cost of
capital, by investing funds in a portfolio of loans and advances and securities with a longer tenure than the
funding liabilities (therefore normally giving rise to a negative maturity gap position) through the effective
management of shorter-term deposit liabilities with a view to securing steady base deposits with differing
terms over the medium to longer term.
Interest rate risk is managed principally through monitoring interest rate gaps and by having pre-approved
limits for repricing bands which are set by ALCO. ALCO is the monitoring body for compliance with these
limits and is assisted by Treasury through its day-to-day operational activities. The management of interest
rate risk against interest rate gap limits is supplemented by monitoring the sensitivity of the Bank’s financial
assets and liabilities to interest rate movements.
Accordingly, the Bank’s ALCO is primarily responsible for the interest rate risk management process and for
monitoring actively the interest rate risk measures utilised by the Bank. Reporting of interest rate risk
measures exposures vis-à-vis limits flows to the ALCO and Board on a regular systematic basis. The Bank’s
independent Risk Management Function provides oversight in respect of the interest rate risk management
process ensuring that it is designed in an appropriate manner and is functioning properly.
Lombard Bank Malta p.l.c.
Additional Regulatory Disclosures for the year ended 31 December 2024
236
3. Market risk (continued)
The Bank’s repricing gaps at 31 December 2024 are disclosed in the tables within note 2.4.1 to the financial
statements. The measures applied for the monitoring of the fair value sensitivity of the fixed rate
instruments and the cash flow sensitivity for variable rate instruments are disclosed within notes 2.4.3 and
2.4.4 to the financial statements.
3.2 Currency risk
The Bank takes on exposure to the effects of fluctuations in the prevailing foreign currency exchange rates
on its financial position and cash flows. Foreign exchange risk is the risk to earnings and value caused by a
change in foreign exchange rates. Foreign exchange risk arises when financial assets or liabilities are
denominated in currencies which are different from the Bank’s functional currency.
The Bank manages this risk principally by ensuring that its foreign currency denominated liabilities are
matched with corresponding assets in the same currency.
Accordingly, foreign currency liabilities are utilised to fund assets denominated in the same foreign currency
thereby matching asset and liability positions as much as is practicable. This mechanism is reflected in the
figures reported in the table below which presents this matching process.
The Bank’s foreign exchange risks are managed actively and monitored by the Treasury Function, which
process ensures that the Bank maintains its exposure to foreign currencies within prescribed limits set by
the Bank’s ALCO. ALCO sets limits on the level of exposure by currency and in aggregate for both overnight
and intra-day positions which are monitored on a real-time basis. Reporting of exposures vis-à-vis limits
flows to the ALCO and Board on a regular systematic basis. The Bank’s independent Risk Management
Function is responsible for assuring that the foreign exchange risk management process is designed in an
appropriate manner and is functioning effectively.
In the normal course of its business, the Bank may enter into forward foreign currency exchange contracts
with customers. It is the Bank’s policy to hedge these open positions against forward contracts traded with
authorised counterparties to eliminate exchange risk brought by these derivatives. Furthermore, the Bank
also takes a deposit margin of the nominal value from the customer thereby reducing its credit risk should
the client default. The Bank had no open forward foreign currency contracts at the end of the reporting
period.
Lombard Bank Malta p.l.c.
Additional Regulatory Disclosures for the year ended 31 December 2024
237
3. Market risk (continued)
The following table summarises the Bank’s net exchange position by currency taking into account the Bank’s
financial assets and liabilities as well as off-balance sheet instruments exposing the Bank to foreign
exchange risk.
Bank
Total
EUR
GBP
USD
Other
€ 000
€ 000
€ 000
€ 000
€ 000
At 31 December 2024
Financial assets
Balances with Central Bank of Malta,
treasury bills and cash
153,361
130,919
202
22,210
30
Financial investments measured at FVOCI
184,871
175,055
4,024
5,792
-
Financial investments measured at amortised cost
21,107
13,627
-
7,480
-
Loans and advances to banks
40,964
4,257
18,888
15,851
1,968
Loans and advances to customers
872,690
868,376
3,727
587
-
Other assets
6,510
6,057
58
395
-
Total financial assets
1,279,503
1,198,291
26,899
52,315
1,998
Financial liabilities
Amounts owed to banks
438
424
-
-
14
Amounts owed to customers
1,121,816
1,041,251
27,058
51,554
1,953
Other liabilities
25,120
24,791
103
213
13
Total financial liabilities
1,147,374
1,066,466
27,161
51,767
1,980
Net currency position
131,825
(262)
548
18
Commitments and contingent liabilities
312,499
311,966
3
530
-
3.3 Equity price risk
The exposure of the Bank to this risk is not significant given the low holdings of equity instruments by the
Bank, which are not deemed material in the context of the Bank’s statement of financial position. Such
holdings are limited to locally quoted equity instruments issued by local well-known corporate issuers.
Frequent management reviews are carried out to obtain comfort on the high quality of the portfolio.
4. Liquidity risk
4.1 Management of liquidity risk
Liquidity risk is defined as the risk of losses due to:
• the Bank’s funding costs increasing disproportionately;
• lack of funding preventing the Bank from establishing new business; and
• lack of funding ultimately preventing the Bank from meeting its obligations.
Lombard Bank Malta p.l.c.
Additional Regulatory Disclosures for the year ended 31 December 2024
238
4. Liquidity risk (continued)
Liquidity risk may result from an inability to sell a financial asset quickly at close to its fair value. The Bank
is exposed to daily calls on its available cash resources from overnight deposits, current and call deposits,
maturing term deposits, loan drawdowns and guarantees.
The objective of the Bank’s liquidity and funding management is to ensure that all foreseeable funding
commitments and deposit withdrawals can be met when due. It is the Bank’s objective to maintain a
diversified and stable funding base with the objective of enabling the Bank to respond quickly and smoothly
to unforeseen liquidity requirements.
The Bank manages this risk by ensuring that its assets and liabilities are matched in terms of maturities as
much as is practicable. However, the Bank ought to manage its net interest spread by investing funds in a
portfolio of assets with a longer term than the liabilities funding them. To mitigate exposures arising in this
respect, the Bank holds significant liquid assets in the form of Malta Government treasury bills, money
market placements and other short-term instruments for managing liquidity risk to support payment
obligations and contingent funding in a stressed market environment.
The Bank maintains internal liquidity buffers established by ALCO made up of cash and financial assets
which are also eligible for collateral against borrowing from the European Central Bank. In order to ensure
that maturing funds are always available to meet unexpected demand for cash, the Board sets parameters
within which maturities of assets and liabilities may be mismatched in line with the stance referred to
previously. Unmatched positions potentially enhance profitability, but also increase risks. The Bank’s ALCO
focuses on the entity’s management process with respect to market and funding liquidity risks. ALCO
maintains ongoing oversight of forecast and actual cash flows, by monitoring the availability of funds to
meet commitments associated with financial instruments. ALCO is supported by the Bank’s Executive Team
and Treasury Function in this respect, at operational level. ALCO monitors the Bank’s Liquidity Gap analysis
on a monthly basis. The Bank’s liquidity management process comprises management of day-to-day
funding, by monitoring future cash flows to ensure that requirements can be met and that funds are
replenished as they mature or are borrowed by customers. This implies a structured ongoing analysis of the
contractual maturity of the financial liabilities and the expected collection date of the financial assets. The
Bank’s liquidity management focuses on maintaining a portfolio of highly marketable assets, subject to pre-
established limits, that can easily be liquidated in case of any unforeseen interruption to cash flow; and
monitoring the liquidity ratios of the Bank against internal and regulatory requirements. In this respect, the
Bank’s advances-to-deposit ratio of 77.8% at the end of the reporting period reflects management’s
prudent stance in the context of liquidity management. Also, the Liquidity Coverage ratio at 31 December
2024 is 231.8%, which is significantly higher than the prudential parameters set by Regulation.
Reporting of measures of liquidity risk and liquidity ratios vis-à-vis internal limits flows to the ALCO and
Board on a regular basis. The Bank’s Risk Management Function provides oversight in respect of the
liquidity risk management process ensuring that it is functioning effectively.
The Bank also monitors the level and type of undrawn lending commitments and the impact of contingent
liabilities such as guarantees as part of the liquidity management process previously referred to.
As at 31 December 2024, the Bank had outstanding guarantees on behalf of third parties amounting to
€12,619,000 (2023: €11,286,000), which are cancellable upon the request of the third parties. The Bank’s
liquidity exposures arising from these commitments and contingencies are expected to expire principally
within a period of twelve months from the end of the reporting period.
Lombard Bank Malta p.l.c.
Additional Regulatory Disclosures for the year ended 31 December 2024
239
4. Liquidity risk (continued)
4.2 Asset Encumbrance
The disclosure on asset encumbrance is a requirement introduced in Banking Rule BR/07 transposing the
provisions of the EBA Guidelines on Disclosure of Encumbered and Unencumbered Assets
(EBA/GL/2014/03).
The objective of this disclosure is to facilitate an understanding of available and unrestricted assets that
could be used to support potential future funding and collateral needs. An asset is defined as encumbered
if it has been pledged as collateral against an existing liability, and as a result is no longer available to the
Bank to secure funding, satisfy collateral needs or be sold to reduce the funding requirement.
The disclosure is not designed to identify assets which would be available to meet the claims of creditors
or to predict assets that would be available to creditors in the event of a resolution or bankruptcy.
In accordance with the EBA ‘Guidelines on Disclosure of Encumbered and Unencumbered Assets’, the
amounts disclosed in the table below represent median values, being the rolling quarterly amounts over
the previous 12 months.
Carrying
amount of
encumbered
assets
Fair value of
encumbered
assets
Carrying amount
of unencumbered
assets
Fair value of
unencumbered
assets
€ 000
€ 000
€ 000
€ 000
At 31 December 2024
Assets of the reporting institution
10,626
10,626
1,344,247
1,344,540
Loans on demand
1,315
1,315
161,298
161,298
Equity instruments
-
-
8,176
8,176
Debt securities
8,013
8,013
190,780
191,073
Loans and advances
478
478
899,212
899,212
Other assets
820
820
84,781
84,781
The Bank does not encumber any of the collateral received. Moreover, as at 31 December 2024, the Bank
did not have any outstanding liabilities associated with encumbered assets and collateral received.
The Bank undertakes encumbrance by pledging debt securities against the provision of credit lines by the
Central Bank of Malta and in favour of the Depositor Compensation Scheme.
5. Operational risk
Operational risk is the risk of loss resulting from the lack of skilful management or good governance within
the Bank and the inadequacy of internal control, which might involve internal operations, staff, systems or
external occurrences that in turn affect the income and capital funds of financial institutions. The Bank has
adopted an operational risk management framework and procedures, which provide for the identification,
assessment, management, monitoring and reporting of the Bank’s operational risks. Operational risk is also
addressed through proper insurance cover.
Operational risk management relies on a framework of policies and procedures implemented by the
different operational functions within the Bank through transaction processing and business execution.
Regular reporting of operational risk events to the Board of Directors is carried out as required. The
implementation of such policies and procedures by the Bank’s operational functions is overseen by the Risk
Management Function.
Lombard Bank Malta p.l.c.
Additional Regulatory Disclosures for the year ended 31 December 2024
240
5. Operational risk (continued)
The Bank currently uses the Basic Indicator Approach to assess the operational risk capital requirements
and accordingly allocates 15% of average gross income for a three-year period in accordance with
regulatory requirements. The operational risk capital regulatory requirement as at 31 December 2024
amounted to €4,907,000.
6. Capital risk management
The Bank is a licensed credit institution and must therefore comply with the capital requirements under the
relevant capital requirements within laws and regulations. Maltese law and regulations on capital adequacy
are naturally based on EU capital requirements.
The prudent and efficient management of capital remains one of the Bank’s top priorities. The Bank must
have sufficient capital to comply with regulatory capital requirements. The purpose of the Bank’s capital
management is to ensure an efficient use of capital in relation to risk appetite as well as business
development. Capital management is managed primarily through the capital planning process that
determines the optimal amount and mix of capital that should be held by the Bank, subject to regulatory
limits.
Capital adequacy and the use of regulatory capital are monitored regularly by the Bank’s management,
employing techniques based on the guidelines developed by the Basel Committee, European Union
Regulations and Directives, as implemented by the MFSA for supervisory purposes. The Bank’s capital
management is based on the regulatory requirements established within the CRR and by local regulations
which are modelled on the requisites of the CRD rules.
The Bank’s Executive Team and ALCO are predominately responsible for the Bank’s capital risk management
process. Capital adequacy ratios together with the level and quality of Own funds are reported on a regular
basis to the Board and the ALCO by the Finance Function.
6.1 Own funds
Own funds represent the Bank’s available capital and reserves for the purposes of capital adequacy. Capital
adequacy is a measure of the financial strength of a bank, expressed as a ratio of its capital to its assets.
The Bank adopts processes to ensure that the minimum regulatory requirements are met at all times,
through the assessment of its capital resources and requirements given current financial projections.
During the year ended 31 December 2024, the Bank’s OCR and P2G continued to be met at all times. The
Bank fully implemented the CRD V capital requirements with effect from January 2020. During 2023, the
Central Bank of Malta introduced an additional Sectoral Systemic Risk Buffer (sSyRB) which at the end of
December 2024 stood at 1.5% of exposures secured by residential real estate. This Buffer was also met.
In July 2013, the European Banking Authority (EBA) issued its final draft Implementing Technical Standards
(ITS) on Own funds disclosures. The disclosure requirements of these technical standards have been
integrated within the Bank’s disclosures set out below.
The Bank’s capital base comprises Common Equity Tier 1 (CET1) capital, which includes the following items:
• ordinary share capital;
• share premium;
• retained earnings;
• revaluation and other reserves; and
• other regulatory adjustments relating to items that are included in equity but are treated differently
for capital adequacy purposes including deductions relating to amounts pledged in favour of the
Depositor Compensation Scheme.
Lombard Bank Malta p.l.c.
Additional Regulatory Disclosures for the year ended 31 December 2024
241
6. Capital risk management (continued)
(a) Share capital
The Bank’s share capital as at 31 December 2024 is analysed as follows:
2024
No. of
shares
000s
€ 000
Authorised
Ordinary shares of €0.125 each
300,000
37,500
Issued
Ordinary shares of €0.125 each
154,572
19,322
The holders of ordinary shares are entitled to receive dividends as declared from time to time and are
entitled to one vote per share at meetings of the Bank. All shares rank equally with regard to the Bank's
residual assets.
The following table describes the terms and conditions of the ordinary share capital issued by the Bank.
Capital Instruments
Ordinary share capital and
share premium
Unique Identifier
MT0000040106
Governing law(s) of the instrument
Maltese Law
Regulatory treatment
Transitional CRR rules
Common Equity Tier 1
Post-transitional CRR rules
Common Equity Tier 1
Eligible at solo/(sub)-consolidated/ solo&(sub-) consolidated
Solo
Amount recognised in regulatory capital
€19,321,533
Nominal amount of instrument
€19,321,533
Nominal amount of each share
€0.125
Accounting classification
Share capital
Issuer call subject to prior supervisory approval
No
Position in subordination hierarchy in liquidation
Subordinated to creditors
and depositors
Non-compliant transitioned features
No
(b) Share premium
The share premium represents the amounts at which ordinary shares were issued in excess of their nominal
value, normally arising as a result of rights issues approved by the shareholders during the Annual General
Meetings. The amount is not distributable by way of dividend to shareholders.
(c) Retained earnings
The retained earnings represent earnings not paid out as dividends.
Retained earnings form part of Own funds only if those profits have been verified by the Bank’s
independent external auditor. The Bank has demonstrated to the satisfaction of the competent authority
that any foreseeable charge or dividend has been deducted from the amount of those profits.
Lombard Bank Malta p.l.c.
Additional Regulatory Disclosures for the year ended 31 December 2024
242
6. Capital risk management (continued)
(d) Property revaluation reserve
This represents the surplus arising on the revaluation of the Bank's freehold property net of related
deferred tax effects. The revaluation reserve is not available for distribution.
(e) Investment revaluation reserve
This represents the cumulative net change in fair values of assets measured at FVOCI held by the Bank, net
of related deferred tax effects.
The Bank’s Own funds and capital ratio calculations are set out below:
At 31 December 2024
€ 000
Common Equity Tier 1 (CET1) capital
Common Equity Tier 1 (CET1) capital: instruments and reserves
Capital instruments and the related share premium accounts
75,856
Retained earnings
116,501
Accumulated other comprehensive income (and other reserves)
4,915
CET1 capital before regulatory adjustments
197,272
Common Equity Tier 1 (CET1) capital: regulatory adjustments
Intangible assets
(10)
Other regulatory adjustments
(754)
Total regulatory adjustments to CET1
(764)
CET1 capital
196,508
Total risk-weighted assets
982,444
Capital ratios
CET1 capital
20.0%
Tier 1 capital
20.0%
Total capital
20.0%
Institution specific buffer requirement
7.18%
of which: capital conservation buffer requirement
2.50%
of which: countercyclical buffer requirement
0.01%
of which: sectorial systemic risk buffer requirement
0.17%
CET1 available to meet buffers in excess of the CRR 4.5% minimum requirement
CET1 available to meet buffers
12.8%
€000
Items not deducted from own funds in accordance with Article 48 of CRR
7,772
Lombard Bank Malta p.l.c.
Additional Regulatory Disclosures for the year ended 31 December 2024
243
6. Capital risk management (continued)
6.2 Capital requirements
The allocation of capital between specific operations and activities is, to a large extent, driven by
optimisation of the return achieved on the capital allocated. The amount of capital allocated to each
operation or activity is based primarily upon the regulatory capital, though in some cases the regulatory
requirements do not reflect differing risk profiles, subject to the overall level of capital to support a
particular operation or activity not falling below the minimum required for regulatory purposes. The
process of allocating capital to specific operations and activities is undertaken independently of those
responsible for the operation.
Although maximisation of the return on risk-adjusted capital is the principal basis used in determining how
capital is allocated within the Bank to particular operations or activities, it is not the sole basis used for
decision-making. Account is also taken of synergies with other operations and activities, the availability of
management and other resources, and the fit of the activity with the Bank’s long-term strategic objectives.
The Bank’s policies in respect of capital management and allocation are reviewed regularly by the Board of
Directors.
The Pillar I minimum capital requirements are calculated for credit, market and operational risks. During
the year, the Bank continued to use the Standardised Approach for credit risk, the Basic Method for foreign
exchange risk and the Basic Indicator Approach for operational risk in order to calculate the Pillar I minimum
capital requirements. For credit risk, under the Standardised Approach, risk weights are determined
according to the asset class, credit risk mitigation and external credit ratings - or by using the applicable
regulatory risk weights for unrated exposures. Capital charge for foreign exchange risk using the Basic
Method is calculated at 8% of the higher of the sum of all the net short positions and the sum of all the net
long positions in each foreign currency. The Basic Indicator Approach requires that the Bank allocates
capital for operational risk by taking 15% of the average gross income of the preceding three years.
The Total Capital Ratio is calculated using the definition of regulatory capital and risk-weighted assets. As
required by the CRR, the minimum level of the Capital Requirements Ratio stands at 8%. The Capital
Requirements Ratio expresses Own funds as a proportion of risk-weighted assets and off-balance sheet
instruments for credit risk purposes, together with notional risk-weighted assets in respect of operational
risk and market risk. Total risk-weighted assets are determined by multiplying the capital requirements for
market risk and operational risk by 12.5 (i.e. the reciprocal of the minimum capital ratio of 8%) and adding
the resulting figures to the sum of risk-weighted assets for credit risk.
The Bank’s policy is to maintain a strong capital base so as to maintain investor, creditor and market
confidence and to sustain future development of the business. The impact of the level of capital on
shareholders’ return is also recognised and the Bank recognises the need to maintain a balance between
the higher returns that might be possible with greater gearing and the advantages and security afforded by
a sound capital position.
The Bank fully implemented the CRD V capital requirements with effect from January 2020. During 2023,
the Central Bank of Malta introduced an additional Sectoral Systemic Risk Buffer (sSyRB) of 1% of risk-
weighted assets (which rose to 1.5% as of March 2024) of exposures to residential real estate. As the end
of December 2024, this Buffer was also met.
Additionally, the Bank is required to maintain a capital conservation buffer of 2.5%, made up of CET1 capital,
on the risk-weighted exposures of the Bank as at 31 December 2024.
Lombard Bank Malta p.l.c.
Additional Regulatory Disclosures for the year ended 31 December 2024
244
6. Capital risk management (continued)
The Bank’s capital requirements and Total Capital Ratio computation are as follows:
At 31 December 2024
Exposure
value
€ 000
Risk weighted
assets
€ 000
Capital required
€ 000
Central governments or central banks
315,548
20,553
1,644
Public Sector Entities
1
1
-
Multilateral Development Banks
6,705
150
12
Institutions
66,208
18,975
1,518
Corporates
100,104
99,670
7,974
Retail
33,386
25,040
2,003
Secured by mortgage on immovable property
610,638
420,184
33,615
Exposures in default
23,123
34,685
2,775
Items associated with particularly high risk
147,409
221,114
17,689
Equity
26,082
27,428
2,194
Other items
61,189
53,191
4,255
Credit risk
1,390,393
920,991
73,679
Foreign exchange risk
112
9
Operational risk
61,341
4,907
Total capital required
982,444
78,595
Own funds
Common Equity Tier 1 capital
196,508
Total own funds
196,508
Total capital ratio
20.00%
Lombard Bank Malta p.l.c.
Additional Regulatory Disclosures for the year ended 31 December 2024
245
6. Capital risk management (continued)
The following is an analysis of the Bank’s Capital Base in accordance with the CRD’s requirements:
2024
€ 000
Common Equity Tier 1 (CET1) capital
Share capital
19,322
Share premium
56,534
Revaluation and other reserves
7,048
Retained earnings
119,917
202,821
Adjustments:
Final dividend (note 36)
(3,416)
Depositor Compensation Scheme
(2,133)
Intangible assets
(10)
Other regulatory adjustments
(754)
Total CET1 capital
196,508
Total own funds
196,508
6.3 Other disclosures on own funds
The Bank has opted for the transitional arrangements laid down in Regulation (EU) 575/2013 Article 473a
to mitigate the impact of IFRS9 on own funds. Under Regulation (EU) 2017/2395, during the transitional
period ending 31 December 2024, the Bank would have had the option to add back a proportion of:
• the Day 1 impact as a result of the introduction of IFRS 9, being the difference between IFRS 9 expected
credit losses (‘ECLs’) on 1 January 2018 and IAS 39 provisions determined at 31 December 2017; and
• on difference in the IFRS 9 ECLs determined at reporting date and the ECLs determined on ‘day 1’ of
the introduction of IFRS 9 (being 1 January 2018 for the Bank) for ‘Stage 1’ (12-months ECLs) and ‘Stage
2’ (lifetime ECLs) assets.
The factors used to adjust the above ECLs declines across the transitional period starting at 100% during
the financial year ended 31 December 2020 to 25% in the final transitional financial year ended 31
December 2024. The above treatment is in accordance with the requirements laid down in paragraph 2 and
paragraph 4 of Regulation (EU) 2017/2395.
In line with Section 2 of the EBA ‘Guidelines on uniform disclosures under Article 473a of Regulation (EU)
No 575/2013 as regards transitional arrangements for mitigating the impact of the introduction of IFRS 9
on own funds’, the Bank is required to disclose a comparison of the institutions’ own funds, Common Equity
Tier 1 capital, Tier 1 capital, risk-weighted assets, Common Equity Tier 1 capital ratio, Tier 1 capital ratio,
total capital ratio and leverage ratio with and without the application of transitional arrangements for IFRS
9 or analogous ECLs.
Lombard Bank Malta p.l.c.
Additional Regulatory Disclosures for the year ended 31 December 2024
246
6. Capital risk management (continued)
The comparison of Bank’s own funds and capital and leverage ratios with and without the application of
transitional arrangements for IFRS 9 or analogous ECLs, and with and without the application of the
temporary treatment in accordance with Article 473a of the CRR is presented below:
At 31 December 2024
€ 000
Available capital
CET1 capital
196,508
CET1 capital as if IFRS 9 or analogous ECLs transitional arrangements had not been applied
196,508
Tier1 capital
196,508
Tier 1 capital as if IFRS 9 or analogous ECLs transitional arrangements had not been applied
196,508
Total capital
196,508
Total capital as if IFRS 9 or analogous ECLs transitional arrangements had not been applied
196,508
Risk-weighted assets
Total risk-weighted assets
982,444
Total risk-weighted assets as if IFRS 9 or analogous ECLs transitional arrangements had not
been applied
982,444
Capital Ratios
CET1 (as a percentage of risk exposure amount)
20.00%
CET1 (as a percentage of risk exposure amount) as if IFRS 9 or analogous ECLs transitional
arrangements had not been applied
20.00%
Tier 1 (as a percentage of risk exposure amount)
20.00%
Tier 1 (as a percentage of risk exposure amount) as if IFRS 9 or analogous ECLs transitional
arrangements had not been applied
20.00%
Total capital (as a percentage of risk exposure amount)
20.00%
Total capital (as a percentage of risk exposure amount) as if IFRS 9 or analogous ECLs
transitional arrangements had not been applied
20.00%
Leverage ratio
Leverage ratio total exposure measure
1,414,974
Leverage ratio
13.89%
Leverage ratio as if IFRS 9 or analogous ECLs transitional arrangements had not been applied
13.89%
Lombard Bank Malta p.l.c.
Additional Regulatory Disclosures for the year ended 31 December 2024
247
6. Capital risk management (continued)
6.4 Internal Capital Adequacy Assessment Process (ICAAP)
The Bank considers the Internal Capital Adequacy Assessment Process (ICAAP) embedded in Pillar II as a
tool that ensures the proper measurement of material risks and capital and allows for better capital
management and improvements in risk management. Therefore, it facilitates a better alignment between
material risks and regulatory capital in order to have better capital deployment and improvements in the
risk management and mitigation techniques adopted by the Bank. The ICAAP as required by the MFSA
Banking Rule BR/12: The Supervisory Review Process of Credit Institutions authorised under the Banking
Act, 1994, is performed on an annual basis.
Therefore, ICAAP is a process that the Bank utilises to ensure that:
• there is adequate identification, measurement, aggregation and monitoring of the Bank’s risks;
• adequate internal capital is held by the institution in relation to its risk profile; and
• the Bank uses sound risk management systems and there is the intention to develop them further.
The Board and the Bank’s Senior Management take overall responsibility for the conceptual design and
technical details of the ICAAP document. Apart from the responsibility for the conceptual design, the Board
discussed, approved, endorsed and delivered the yearly ICAAP submission. The Bank’s independent Risk
Management Function is involved in the ICAAP with a view to ensuring that the process reflects and takes
cognisance of the Bank’s risk management activities and processes.
The ICAAP is an ongoing process which starts with defining risk strategy followed by identifying, quantifying
and aggregating risks, determining risk-bearing ability, allocating capital, establishing limits and ongoing
risk monitoring. The individual elements of the process are performed with varying regularity. All the
activities described are examined at least once a year to ensure that they are up to date, adequate and also
adjusted to current underlying conditions when necessary.
The process involves a quantitative assessment of individual types of risk and an assessment of the existing
methods and systems for monitoring and managing risk (qualitative assessment). The risk assessment
concept is based on a scoring procedure, thus providing a comprehensive overview of the risk situation of
the Bank.
The basis for the quantitative implementation of the ICAAP is the risk-bearing capacity calculation which
demonstrates that adequate capital is in place at all times to provide sufficient cover for risks that have
been entered into and which also ensures such cover is available for the future. The Bank’s ICAAP is based
upon a ‘Pillar I Plus’ approach whereby the Pillar I capital requirement for credit, market and operational
requirements are supplemented by the capital allocation for other material risks not fully addressed within
Pillar I. The risks considered for ICAAP include concentration, liquidity, reputational and strategic risks,
interest rate risk in the banking book, and risks arising from the macro-economic environment.
The Bank’s ICAAP contains three-year projections as well as the capital plan, and the Board monitors that
there are adequate capital resources to support the corporate goals contained within the Bank’s plan and
the associated risks.
The Bank also covers Pillar II capital requirements through stress testing processes to forecast the Bank’s
projected capital requirements and resources in a range of stress scenarios. This enables the Bank to
guarantee that it can meet its total SREP capital requirements in a stressed environment. The results of the
ICAAP once again show that the Bank maintains a comfortable level of excess capital and substantial
liquidity that ensured the flexibility and resources needed to achieve the long-term strategic objectives of
the Bank, even in situations of market stress.
Lombard Bank Malta p.l.c.
Additional Regulatory Disclosures for the year ended 31 December 2024
248
7. Leverage
The Leverage Ratio is a non-risk-based measure intended to act as a backstop for the risk-based framework
embedded in CRR. It therefore complements the Bank’s use of the Standardised Approach to promote a
robust capital position and limit the leverage effects on the balance sheet. Set at 3%, the Leverage Ratio
stipulates the minimum amount of Tier 1 Capital that the Bank must hold at all times as a percentage of its
total on- and off-balance sheet exposures. For financial year ended 2024 (‘FYE2024’), the Bank reported a
Leverage Ratio of 13.89%, which is well above the 3% minimum. Nevertheless, the Bank continuously
monitors its leverage ratio and reports it to the ARC and the Board periodically. Responsibility for
compliance with the 3% minimum lies with the Board of Directors.
Apart from being reported in the Annual Report, the leverage ratio is reported for the purposes of the
ICAAP and features as one of the early warning indicators in the Bank’s recovery plan and its Risk Appetite
Statement. On the latter, the Bank sets an internal tolerance level well above the 3% minimum to allow the
Bank to act in a proactive manner in case of deteriorations to this ratio, thereby avoiding breaches of the
minimum required 3%. Furthermore, the Bank monitors its liquidity position to ensure that it poses minimal
threats to the capital position. In this regard, maturity mismatches are monitored by the Asset-Liability
Committee (ALCO) to ensure stability in funding and liquidity management. Indeed, the bank holds
sufficient High-Quality Liquid Assets (HQLA) to manage short-term cash flow needs effectively.
Furthermore, the bank is not exposed to risks associated with excessive encumbrance since the level of
encumbered assets is negligible. Overall, the bank remains committed to prudent leverage risk
management, supported by strong capital buffers and active monitoring of liquidity and asset
encumbrance.
Favourable market conditions have led to positive trends in asset valuations, which contributed to gains in
revaluation reserves, further supporting own funds. Recent years have been characterised by higher
demand for credit, which have buttressed the Bank’s growth driven strategy, increasing the Bank’s
profitability. The Board decided to continue bolstering own funds by an internal decision to retain 70% of
earnings, thus strengthening the Bank’s capital base. As a result, own funds increased from €182,099,000
to €196,508,000 during the FYE2024.
Meanwhile, total exposures rose from €1,285,729,000 to €1,414,974,000, reflecting the Bank’s growing
business through increased lending activity, leading to a larger balance sheet and a lower leverage ratio.
The growth in total exposures outpaced the growth in own funds, leading to the slight decrease in the
Bank’s leverage ratio. In this regard, the decline in the leverage ratio during FYE2024. was an indirect
consequence of business growth rather than a direct strategic objective. No significant regulatory changes
directly impacted the leverage ratio during this period.
Tables EU LR1 and EU LR2 below provide quantitative information on the developments concerning the
Bank’s leverage ratio for the Financial Year ended 31 December 2024. These table show that the leverage
ratio, determined in accordance with the requirements stipulated by Implementing Regulation EU
2016/200, declined from 14.16% to 13.89% over the reporting period, a decrease of 0.27 percentage points.
The following table provides a reconciliation of accounting assets and leverage ratio exposures.
EU LR1 - LRSum: Summary reconciliation of accounting assets and leverage ratio exposures
At 31 December 2024
€ 000
1
Total assets as per published financial statements
1,355,047
10
Adjustment for off-balance sheet items (ie conversion to credit equivalent
amounts of off-balance sheet exposures)
59,793
12
Other adjustments
134
13
Total exposure measure
1,414,974
Lombard Bank Malta p.l.c.
Additional Regulatory Disclosures for the year ended 31 December 2024
249
7. Leverage (continued)
The table shown hereunder represents the amounts making up the leverage ratio exposures.
EU LR2 - LRCom: Leverage ratio common disclosure
At 31 December 2024
CRR leverage ratio
exposures
€ 000
On-balance sheet exposures (excluding derivatives and SFTs)
1
On-balance sheet items
(excluding derivatives, SFTs, but including collateral)
1,355,945
6
(Asset amounts deducted in determining Tier 1 capital)
(764)
7
Total on-balance sheet exposures (excluding derivatives and SFTs)
1,355,181
Other off-balance sheet exposures
19
Off-balance sheet exposures at gross notional amount
312,581
20
(Adjustments for conversion to credit equivalent amounts)
(252,788)
22
Off-balance sheet exposures
59,793
Capital and total exposure measure
23
Tier 1 capital
196,508
24
Total exposure measure
1,414,974
Leverage ratio
25
Leverage ratio
13.89%
The table below shows the different on-balance sheet exposures in relation to the calculation of the
leverage ratio.
At 31 December 2024
Tier 1 Capital
€ 000
Total on-balance sheet exposures (excluding derivatives and SFTs), of
which:
Exposures treated as sovereigns
315,548
Multilateral Development Banks
6,705
Institutions
65,978
Secured by mortgages on immovable property
589,154
Retail
30,525
Corporates
89,564
Exposures in default
23,123
Other exposures
234,584
1,355,181
The leverage ratio is a regulatory and supervisory instrument used by the Regulator to limit the build-up
of excessive leverage. The leverage ratio at 31 December 2024 stood at 13.9%.
At this level, the Bank is currently not at risk in curtailing excessive leverage and is expected to remain
well above the mandatory requirement. Board limits to the leverage ratio are set and reviewed annually
while this ratio is monitored at every Audit & Risk Committee to ensure that it remains within the
tolerance limits set by the Board of Directors. This limit supports the Bank’s attitude towards finding a
suitable balance between risk and returns provided to shareholders.
Lombard Bank Malta p.l.c.
Additional Regulatory Disclosures for the year ended 31 December 2024
250
8. Key metrics tables (EU KM1)
At 31 December 2024
Available own funds (amounts)
€ 000
1
Common Equity Tier (CET1) capital
196,508
2
Tier 1 capital
196,508
3
Total capital
196,508
Risk-weighted exposure amounts
€ 000
4
Total risk exposure amount
982,444
Capital ratios (as a percentage of risk-weighted exposure amount)
5
Common Equity Tier (CET1) capital
20.00%
6
Tier 1 ratio
20.00%
7
Total capital ratio
20.00%
Additional own funds requirements to address risks other than the risk of excessive
leverage (as a percentage of risk-weighted exposure amount)
EU 7a
Additional own funds requirements to address risks other than the risk of excessive
leverage
3.25%
EU 7b
of which: to be made up of CE1 capital
1.83%
EU 7c
of which: to be made up of Tier 1 capital
2.44%
EU 7d
Total SREP own funds requirements
11.25%
Combined buffer and overall capital requirement (as a percentage of risk-weighted
exposure amount)
8
Capital conversation buffer
2.50%
EU 8a
Conservation buffer due to macro-prudential or systemic risk identified at the level of a
Member State
-
9
Institution specific countercyclical capital buffer
0.01%
EU 9a
Systemic risk buffer
0.17%
10
Global Systemically Important Institution buffer
-
EU 10a
Other Systemically Important Institution buffer
-
11
Combined buffer requirement
2.68%
EU 11a
Overall capital requirements
13.93%
12
CET1 available after meeting the total SREP own funds requirements
8.75%
Leverage ratio
13
Total exposure measure (€ 000)
1,414,974
14
Leverage ratio
13.89%
Regulatory minimum leverage ratio requirement
3.00%
Additional own funds requirements to address the risk of excessive leverage (as a
percentage of total exposure measure)
EU 14a
Additional own funds requirements to address the risk of excessive leverage (%)
-
EU 14b
of which: to be made up of CET1 capital (percentage points)
-
EU 14c
Total SREP leverage ratio requirements (%)
-
Leverage ratio buffer and overall leverage ratio requirement (as a percentage of total
exposure measure)
EU 14d
Leverage ratio buffer requirement (%)
-
EU 14e
Overall leverage ratio requirement
3.00%
Liquidity coverage ratio
1
€ 000
15
Total high-quality liquid assets (HQLA) (weighted value-average)
297,086
EU 16a
Cash outflows - Total weighted value
192,886
EU 16b
Cash inflows - Total weighted value
72,492
16
Total net cash outflows (adjusted value)
120,395
17
Liquidity coverage ratio (%)
246.76%
Net stable funding ratio
1
€ 000
18
Total available stable funding
1,116,311
19
Total required stable funding
759,378
20
NSFR ratio
147.00%
_______________________________________________
1
In line with EU Regulation No. 575/2013 LCR is disclosed as an average over 12 months, whereas NSFR is disclosed as at the reporting
date.
Lombard Bank Malta p.l.c.
Additional Regulatory Disclosures for the year ended 31 December 2024
251
9. Remuneration policy
Information on the Bank’s remuneration policy and practices is disclosed in the Remuneration Report
within the Annual Report located on page 79.
10. Other Directorships
In terms of Article 91 of Directive 2013/36/EU (CRD V), directors of an institution that is significant in
terms of its size, internal organisation and the nature, scope and complexity of its activities shall not hold
more than one of the following combinations of directorships at the same time:
(a) one executive directorship with two non-executive directorships;
(b) four non-executive directorships.
According to the ‘Guide to banking supervision’ issued by the European Central Bank in November 2014,
a credit institution will be considered significant if any one of the following conditions is met:
- the total value of its assets exceeds €30 billion or – unless the total value of its assets is below €5
billion – exceeds 20% of national GDP;
- it is one of the three most significant credit institutions established in a Member State;
- it is a recipient of direct assistance from the European Stability Mechanism; or
- the total value of its assets exceeds €5 billion and the ratio of its cross-border assets/liabilities in
more than one other participating Member State to its total assets/liabilities is above 20%.
Lombard Bank Malta p.l.c. does not meet any of the above criteria, and therefore is currently not
considered significant by banking supervisors. Accordingly, the Bank is exempt from the requirements of
Article 91 of CRD V.
The Bank is not disclosing the number of directorships held by the members of the Bank’s Board of
Directors on the basis of materiality in terms of Article 432 of the CRR.
11. Recruitment and Diversity policy
The Bank is aware that a vigorous and professional approach to recruitment and selection of prospective
staff members within the Bank helps it to attract and appoint those individuals having the necessary skills
and attributes compatible with achieving the Bank’s overall objectives. Thus, the Bank ensures that
appointments at all levels are based on each individual’s knowledge, skills, expertise and merit, as
required by laws, rules, regulations, etc. and in line with policy.
The Bank undertakes a rigorous selection process for all prospective staff members bearing in mind the
key activities, tasks and skills required. As part of the selection process, multiple interviews are conducted,
during which the individual’s knowledge, experience, skills and competence are evaluated.
The Bank continues to promote diversity with no discrimination as to gender, race, family, disability,
sexual orientation, identity or preference, etc.
Bearing its objectives in mind, the Bank, particularly by virtue of the Board appointed Suitabilities &
Evaluations Committee, endeavours to have a Board of Directors composed of members possessing
diverse skills and expertise that allow the Board to create value for shareholders by ensuring that the
specific risks pursued by the Bank as well as risks that are intrinsic to banking business are appropriately
managed and mitigated within the Bank’s risk appetite.
Lombard Bank Malta p.l.c.
Additional Regulatory Disclosures for the year ended 31 December 2024
252
12. Qualitative Disclosures
Disclosure Location
Notes to the
Financial Statements
Additional Disclosure
Requirements
EU OVA: Institution risk management
approach
2.1; 2.1.1; 2.1.2;
2.1.3; 2.1.4; 2.1.5;
2.2
EU OVB: Disclosure on governance
arrangements
2.1.1; 2.1.2
EU LIA: Explanations of differences between
accounting and regulatory exposure amounts
1.6
EU LRA: Disclosure of LR qualitative
information
7
EU OVC: ICAAP information
6.4
EU CRA: General qualitative information
about credit risk
2.3.1
EU CRD: Qualitative disclosure requirements
related to standardized approach
6.2
EU CRB: Additional disclosure related to the
credit quality of assets
2.5; 2.5.1; 2.5.2;
2.5.4; 2.5.5
EU CRC: Qualitative disclosure requirements
related to CRM techniques
2.3; 2.5.3
EU MRA: Qualitative disclosure requirements
related to market risk
2.4
EU ORA: Qualitative information on
operational risk
2.6
EU REMA: Remuneration policy
8
EU LIQA: Liquidity risk management
2.5
EU LIQB: Qualitative information on LCR,
which complements template EU LIQ1
2.5
EU AE4: Accompanying narrative information
4.2
253
Five Year Summary
Statements of Financial Position
Group
2024
2023
2022
2021
2020
€ 000
€ 000
€ 000
€ 000
€ 000
Assets
Balances with Central Bank of Malta,
treasury bills and cash
154,480
147,043
139,234
126,279
169,687
Cheques in course of collection
266
1,880
1,053
530
666
Financial investments
208,110
216,770
220,815
227,135
161,424
Loans and advances to banks
46,189
38,139
38,139
27,615
78,279
96,985
Loans and advances to customers
872,682
758,304
711,612
642,893
621,129
Investments in associates
4,250
3,292
2,607
3,006
1,932
Intangible assets
2,186
2,192
2,121
2,145
2,050
Property, plant and equipment
71,450
66,511
66,375
65,346
50,928
Assets classified as held for sale
703
703
703
661
134
Current tax assets
-
643
575
2,691
1,156
Deferred tax assets
7,961
11,694
10,889
7,034
10,117
Inventories
1,731
1,391
1,271
1,324
1,274
Trade and other receivables
12,979
11,369
11,369
13,243
10,787
9,136
Accrued income and other assets
5,435
5,203
5,302
4,536
4,337
Total assets
1,388,422
1,265,134
1,265,134
1,203,415
1,172,646
1,130,955
Equity and liabilities
Equity
Share capital
19,322
19,322
11,341
11,192
11,044
Share premium
56,534
56,534
18,530
18,530
18,530
Property revaluation reserve
17,016
13,109
13,087
13,040
6,383
Investment revaluation reserve
(7,877)
(13,349)
(12,733)
5,180
7,181
Reserve for General Banking Risks
-
-
2,903
2,903
2,903
Other reserves
1,871
1,660
1,382
2,545
2,510
Retained earnings
122,582
113,107
101,700
83,910
77,470
Equity attributable to equity holders
of the Bank
209,448
190,383
136,210
137,300
126,021
Non-controlling interests
9,473
8,409
8,090
8,470
7,741
Total equity
218,921
198,792
144,300
145,770
133,762
Liabilities
Amounts owed to banks
438
145
535
1,224
5,602
Amounts owed to customers
1,120,006
1,019,075
1,008,431
977,143
941,110
Provisions for liabilities and other charges
2,633
1,403
1,688
2,113
2,632
Current tax liabilities
1,256
1,556
-
809
844
Deferred tax liabilities
4,824
4,099
4,099
4,099
6,448
Other liabilities
26,497
28,762
33,347
30,649
29,665
Accruals and deferred income
13,847
11,302
11,015
10,839
10,892
Total liabilities
1,169,501
1,066,342
1,059,115
1,026,876
997,193
Total equity and liabilities
1,388,422
1,265,134
1,203,415
1,172,646
1,130,955
Memorandum items
Contingent liabilities
19,827
14,315
13,611
13,195
10,851
Commitments
292,036
257,415
202,396
195,848
200,870
254
Five Year Summary
Income Statements
Group
2024
2023
2022
2021
2020
€ 000
€ 000
€ 000
€ 000
€ 000
Interest receivable and similar income
38,143
33,698
29,020
25,725
24,898
Interest expense
(10,883)
(7,837)
(6,744)
(6,169)
(6,026)
Net interest income
27,260
25,861
22,276
19,556
18,872
Other operating income
47,304
44,820
37,605
43,856
41,731
Other operating charges
(56,034)
(54,578)
(48,049)
(51,836)
(46,107)
Net movement in expected credit losses
927
(1,261)
16,243
1,464
(3,973)
Share of loss of investment accounted for
using equity method
(42)
(315)
(399)
(402)
(151)
Profit before taxation
19,415
14,527
27,676
12,638
10,372
Income tax expense
(7,257)
(4,909)
(10,050)
(4,759)
(3,230)
Profit for the year
12,158
9,618
17,626
7,879
7,142
Attributable to:
Equity holders of the Bank
11,293
9,064
17,530
7,481
6,640
Non-controlling interests
865
554
96
398
502
Profit for the year
12,158
9,618
17,626
7,879
7,142
255
Five Year Summary
Statements of Cash Flows
Group
2024
2023
2022
2021
2020
€ 000
€ 000
€ 000
€ 000
€ 000
Net cash flows generated from/(used
in) operating activities
1,501
18,179
(36,281)
31,632
14,475
Cash flows from investing activities
Dividends received
465
203
141
81
105
Interest received from debt securities
3,791
4,675
3,485
3,012
2,198
Purchase of financial investments
(12,631)
(8,359)
(27,518)
(75,270)
(67,862)
Proceeds from maturity/disposal
-
of financial investments
30,156
9,903
5,220
6,760
16,468
Purchase of property, plant
and equipment and intangible assets
(2,289)
(2,657)
(3,709)
(7,601)
(8,942)
Proceeds from disposal of property,
plant and equipment
2
-
-
-
18
Purchase of investment in associate
-
-
-
(1,500)
(399)
Investments in associate
(1,000)
(1,000)
-
-
-
Net cash inflow arising from acquisition
of subsidiary
-
-
-
833
-
Net cash flows generated from/(used
in) investing activities
18,494
2,765
(22,381)
(73,685)
(58,414)
Cash flows from financing activities
Proceeds from rights issue of ordinary
shares
-
45,733
-
-
-
Dividends paid to equity holders
of the Bank
(1,638)
-
(873)
(862)
-
Dividends paid to non-controlling
interests
(300)
(299)
(429)
(429)
(427)
Principal element of lease payments
(552)
(491)
(478)
(523)
(409)
Net cash flows (used in)/generated
from financing activities
(2,490)
44,943
(1,780)
(1,814)
(836)
Independent auditor’s report
To the Shareholders of Lombard Bank Malta p.l.c.
Report on the audit of the financial statements
Our opinion
In our opinion:
● The Group financial statements and the Parent Company financial statements (the “financial statements”) of Lombard Bank Malta p.l.c. (“the Bank”) give a true and fair view of the Group and the Bank’s financial position as at 31 December 2024, and of their financial performance and cash flows for the year then ended in accordance with International Financial Reporting Standards (‘IFRSs’) as adopted by the EU; and
● The financial statements have been prepared in accordance with the requirements of the Maltese Banking Act (Cap. 371) and the Maltese Companies Act (Cap. 386).
Our opinion is consistent with our additional report to the Audit Committee.
What we have audited
Lombard Bank Malta p.l.c.’s financial statements comprise:
● the Consolidated and Parent Company statements of financial position as at 31 December 2024
● the Consolidated and Parent Company income statements and statements of other comprehensive income for the year then ended;
● the Consolidated and Parent Company statements of changes in equity for the year then ended;
● the Consolidated and Parent Company statements of cash flows for the year then ended; and
● the notes to the financial statements, comprising material accounting policy information and other explanatory information.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (ISAs). Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Independence
We are independent of the Group and the Bank in accordance with the International Code of Ethics for Professional Accountants (including International Independence Standards) issued by the International Ethics Standards Board for Accountants (IESBA Code) together with the ethical requirements of the Accountancy Profession (Code of Ethics for Warrant Holders) Directive issued in terms of the Accountancy Profession Act (Cap. 281) that are relevant to our audit of the financial statements in Malta. We have fulfilled our other ethical responsibilities in accordance with these Codes.
To the best of our knowledge and belief, we declare that non-audit services that we have provided to the Bank and its subsidiaries are in accordance with the applicable law and regulations in Malta and that we have not provided non-audit services that are prohibited under Article 18A of the Accountancy Profession Act (Cap. 281).
The non-audit services that we have provided to the Bank and its subsidiaries, in the period from 1 January 2024 to 31 December 2024, are disclosed in note 33 to the financial statements.
Our audit approach
Overview
|
|
Overall group materiality: €824,000, which represents approximately 5% of the past 3-years average consolidated profit before tax adjusted for non-recurring items. |
|
The audit procedures carried out covered all the components within the Group namely Lombard Bank Malta p.l.c. (the Parent Company) and its subsidiaries Redbox Limited, Lombard Capital Asset Management Limited and Lombard Select SICAV p.l.c. The Group also includes MaltaPost p.l.c. which is a subsidiary of Redbox Limited (which is fully owned by Lombard Bank Malta p.l.c.) and Tanseana Limited, Ciabro Limited formerly known as Ciantar Brothers Limited and PostaInsure Agency Limited, by virtue of MaltaPost p.l.c.’s controlling shareholding in these three entities.
The group auditor performed a full scope audit on the financial statements of the Bank, while the significant component, namely MaltaPost p.l.c., was audited by component auditor.
The Parent Company and its subsidiaries are based in Malta. |
|
|
Credit loss allowances in respect of loans and advances to customers of the Bank. |
As part of designing our audit, we determined materiality and assessed the risks of material misstatement in the financial statements. In particular, we considered where the directors made subjective judgements; for example, in respect of significant accounting estimates that involved making assumptions and considering future events that are inherently uncertain. As in all of our audits, we also addressed the risk of management override of internal controls, including among other matters, consideration of whether there was evidence of bias that represented a risk of material misstatement due to fraud.
Materiality
The scope of our audit was influenced by our application of materiality. An audit is designed to obtain reasonable assurance whether the financial statements are free from material misstatement. Misstatements may arise due to fraud or error. They are considered material if individually or in aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the financial statements.
Based on our professional judgement, we determined certain quantitative thresholds for materiality, including the overall group materiality for the financial statements as a whole as set out in the table below. These, together with qualitative considerations, helped us to determine the scope of our audit and the nature, timing and extent of our audit procedures and to evaluate the effect of misstatements, both individually and in aggregate on the financial statements as a whole.
|
Overall group materiality |
€824,000 |
|
How we determined it |
Approximately 5% of the past 3-years average consolidated profit before tax adjusted for non-recurring items. |
|
Rationale for the materiality benchmark applied |
We chose profit before tax as the benchmark because, in our view, it is the benchmark against which the performance of the Group is most commonly measured by users, and is a generally accepted benchmark. We chose an average of the past 3 years, adjusted for non-recurring items, as it was determined more appropriate in view of the fluctuations in results. We chose 5% which is within the range of quantitative materiality thresholds that we consider acceptable. |
We agreed with the Audit & Risk Committee that we would report to them misstatements identified during our audit above €82,000 as well as misstatements below that amount that, in our view, warranted reporting for qualitative reasons.
Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial statements of the current period. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.
|
Key audit matter |
How our audit addressed the key audit matter |
|
Credit loss allowances in respect of loans and advances to customers of the Group and Bank
Credit loss allowances in respect of loans and advances to customers represent management’s best estimate of Expected Credit Losses (‘ECLs’) within the loan portfolios at the end of the reporting period. The development of the models designed to estimate ECLs on loans measured at amortised cost in accordance with the requirements of IFRS 9 requires a considerable level of judgement since the determination of ECLs is subject to a high degree of estimation uncertainty driven by inflation and interest rate environments experienced internationally, and as well as the geopolitical tensions as a result of ongoing Russia-Ukraine and Middle East conflicts. These conditions have exacerbated the level of uncertainty around the calculation of ECLs, giving rise to heightened subjectivity in the determination of model assumptions used to estimate key model risk parameters and hence necessitating a higher level of expert judgement. Credit loss allowances relating to loans and advances in the Bank’s Personal and Corporate and commercial portfolios are determined at an instrument level. In general, the Bank calculates ECLs by multiplying three main components: probability of default (PD), loss given default (LGD) and exposure at default (EAD): i. Probability of default (“PD”): the likelihood of a borrower defaulting on its financial obligation either over the next 12 months or over the remaining lifetime of the obligation. ii. Loss given default (“LGD”): the expected losses taking into account, among other attributes, the mitigating effect of collateral value (if any) at the time it is expected to be realised and the time value of money. The LGD modelling methodology utilises historical experience, which might result in limitations in its reliability to appropriately estimate ECLs especially during periods characterised by economic conditions such as those currently experienced. iii. Exposure at default (“EAD”): the expected exposure in the event of a default (including any expected drawdowns of committed facilities). When applicable, the Bank also applies overlays based on expert judgement where management’s view is that the calculated ECLs based on these key inputs do not fully capture the risks within the Bank’s loan portfolios. For non-defaulted (Stage 1 and 2) loans and a number of defaulted (Stage 3) loans which are not individually significant, the Bank uses internally developed statistical models. For non-defaulted (Stages 1 and 2) exposures, PDs are estimated using historical model development data based on the Bank’s own experience as available at the reporting date. For exposures secured by immovable properties, LGDs are driven by the adjusted loan-to-value ratio of the individual facilities and takes into account other assumptions, including market value haircut (which includes costs to sell), time to sell and the impact of discounting the collateral from the date of realisation back to the date of default. The maximum period considered when measuring ECLs is the maximum contractual period over which the Bank is exposed to credit risk. For individually significant defaulted (Stage 3) exposures, discounted cash flow models are utilised in order to estimate ECLs. Internal credit risk management practices are used to determine when a default has occurred, considering quantitative and qualitative factors where appropriate. Judgement is required to determine when a default has occurred and then to estimate the expected future cash flows related to the loan, which are dependent on parameters or assumptions such as the valuation of collateral (including forced sale discounts and assumed realisation period) or forecasted operating cash flows. The Bank is required to assess multiple scenarios in this respect, which scenarios will have probabilities attached. The current macro-economic conditions experienced locally have increased the level of uncertainty around judgements made in determining the timing of defaults and in respect of staging. In this respect, these economic conditions might be reasonably expected to impact the affordability of repayments attributable to exposures within the personal portfolio. Moreover the current macro-economic scenario, could create additional pressures on the business of the Bank’s borrowers in the corporate and commercial portfolio. Under IFRS 9, the Bank is required to formulate and incorporate multiple forward-looking economic conditions, reflecting management’s view of potential future economic variables and environments, into the ECL estimates. A number of macro-economic scenarios based on the selected macro-economic variables are considered to capture non-linearity across credit portfolios. The complexity attributable to this factor requires management to develop multiple macro-economic scenarios involving the use of significant judgements. The current economic conditions and the macro-economic uncertainty induced by fluctuations in market interest rates, together with geopolitical uncertainties attributable to the ongoing conflicts within Eastern Europe and the Middle East have significantly impacted macro-economic variables, increasing the uncertainty around judgements made in determining the severity and likelihood of macro-economic forecasts across the different economic scenarios used in ECL models. Overly sensitive ECL modelled outcomes can be observed when current conditions fall outside the range of historical experience. Data used in the impairment calculation is sourced from a number of systems, including systems that are not necessarily used for the preparation of accounting records. The ECL models are based on a general-purpose application which requires extensive manual handling of data. This increases risk around the accuracy and completeness of data used to determine assumptions and to operate the ECL models. In some cases, data is unavailable and reasonable alternatives have been applied to allow calculations to be performed. Since the estimation of ECLs is subjective in nature and inherently judgmental, the Bank’s application of the IFRS 9 impairment requirements is deemed to be an area of focus, especially in the context of the unprecedented macro-economic conditions currently experienced, which have significantly increased the level of estimation uncertainty in respect of the calculation of credit loss allowances. We focused on credit loss allowances due to the subjective nature of specific data inputs into the calculation of ECLs and the subjective judgements involved in both timing of recognition of impairment and the estimation of the size of any such impairment. Accordingly, summarising the key areas relevant to the Bank’s measurement of ECLs would include: • Allocation of assets to stage 1, 2, or 3 using criteria in accordance with IFRS 9; • Accounting interpretations and modelling assumptions used to build the models that calculate the ECL; • Completeness and accuracy of data used to calculate the ECL; • Inputs and assumptions used to estimate the impact of multiple macro-economic scenarios; and • Measurement of individually assessed provisions including the assessment of multiple scenarios. Relevant references in the Annual Report and Financial Statements: • Summary of material accounting policies: note 1.4 • Financial risk management: note 2.3; • Accounting estimates and judgements: note 3.2; • Note on Loans and advances to customers: note 8; and Net movement in expected credit losses: note 32. |
During our audit of the financial statements for the year ended 31 December 2024, we continued to focus on the key drivers of the estimation of ECL. Apart from assessing the continuing appropriateness of management assumptions, updates to key parameters and model enhancements were evaluated and tested. Discussions with the Audit & Risk Committee and management were held on: · observations in respect of the methodology applied by the Bank to estimate ECLs in accordance with the requirements emanating from IFRS 9, including the appropriateness of the models and staging criteria used by the Bank as part of the ECL calculation. · the controls and governance framework implemented by management in respect of the estimation of ECLs in accordance with IFRS 9; and · individually significant loan impairments. With respect to the ECL models utilised by the Bank, the continued appropriateness of the modelling policies and methodologies used was independently assessed by reference to the requirements of IFRS 9. ECL calculation for non-defaulted loan exposures and a number of defaulted loans which are not individually significant We understood and critically assessed the models used for ECL estimation for the Bank’s loan portfolio. Since modelling assumptions and parameters are based on historic data, we assessed whether historic experience was representative of current circumstances and of the recent losses incurred within the portfolios. The appropriateness of management’s judgements was also independently considered in respect of calculation methodologies, calibration of PDs and LGDs, segmentation and selection of macro-economic variables. Model calculations were also tested independently. Substantive procedures were performed as follows: · Performed an overall assessment of the ECL provision levels by stage to determine if they were reasonable considering the Bank’s portfolio, risk profile, credit risk management practices and the macro-economic environment. · Tested a sample of loans to independently review the borrower’s financial performance and ability to meet loan repayments and assess the appropriateness of the credit rating assigned by management, taking into consideration the impact of the current macro-economic conditions on the repayment capabilities of the sampled borrowers. · Challenged the criteria used to allocate an asset to stage 1, 2 or 3 in accordance with IFRS 9 and tested a sample of assets in stage 1, 2 and 3 to verify that they were allocated to the appropriate stage. · Tested the completeness and accuracy of the critical data extracted from the underlying systems, that is utilised within the models for the purposes of the year end ECL calculation. · Risk based testing of models, including a review of the continuing appropriateness of model assumptions. We tested the assumptions, inputs and formulas used in ECL models on a sample basis. This included assessing the appropriateness of model design and formulas used, and recalculating PDs, LGDs and EADs on a sample basis, through the involvement of subject matter experts. · We assessed the reasonableness of modelled PDs through a comparison of historically predicted and observed default rates and the reasonableness of modelled LGDs taking cognisance of the potential impacts of the current macro-economic environment. · We also assessed the reasonableness of market value haircuts and time to sell assumptions used as inputs in the light of the current economic climate. · Tested the multiple macro-economic scenarios and variables to assess their reasonableness. We assessed the appropriateness of changes effected during the year to factor the impact of the current macro-economic environment. We assessed whether the severity of the forecasted macro-economic variables was appropriate in view of the elevated level of uncertainty related to the current economic conditions. We challenged the correlation between economic factors and ECL allowances and the impact of these macro-economic factors on the ECL. Our testing of models and model assumptions did not highlight material differences. Based on the evidence obtained, we found the model assumptions and data used within the models to be reasonable.
ECL calculation for defaulted individually significant loan exposures For defaulted exposures within the loan portfolio, the appropriateness of the methodology and policy used to calculate ECLs was independently assessed. We understood and evaluated the processes for identifying default events within loan portfolios, as well as the impairment assessment process. Substantive procedures were performed in respect of identification of defaults as follows: · Assessed critically the criteria used by management for identifying borrowers whose financial performance is expected to be particularly susceptible to the potential impact of the economic pressures being experienced and for determining whether a UTP/default event had occurred by testing a sample of loans with characteristics that might imply a default event had occurred (for example a customer experiencing financial difficulty or material sector disruption) to challenge whether default events had actually occurred and to assess whether default events had been identified by management in a timely manner. · Selected a sample of performing loans which had not been identified by management as potentially defaulted, to form our own judgement as to whether that was appropriate and to further challenge whether all relevant events had been identified by management. Substantive procedures were performed on defaulted exposures in respect of the estimation of the amounts of the respective ECL provisions, as follows: · Reviewed the credit files of a selected sample of loans to understand the latest developments at the level of the borrower and the basis of measuring the ECL provisions and considered whether key judgements were appropriate taking cognisance of the current macro-economic environment. · Challenged the severity of scenarios being applied for these exposures, together with their respective probability weights by forming an independent view of the recoverability of the selected loan exposures under different scenarios, assigning probabilities independently and comparing the outcomes to that of the Bank. · Tested key inputs to and reperformed the impairment calculation used to derive expected cash flows under different scenarios. · Assessed the appropriateness of a sample of property valuations securing impaired loans through the use of experts. In the case of some impairment provisions, we formed a different view from that of management, but in our view the differences were within a reasonable range of outcomes. |
How we tailored our group audit scope
The Group is composed of eight components. These include Lombard Bank Malta p.l.c. (the Parent Company), and its subsidiaries Redbox Limited, Lombard Select SICAV p.l.c. and Lombard Capital Asset Management Limited. The Group also includes MaltaPost p.l.c. which is a subsidiary of Redbox Limited (which is fully owned by Lombard Bank Malta p.l.c.) and Tanseana Limited, Ciabro Limited formerly known as Ciantar Brothers Limited and PostaInsure Agency Limited, by virtue of MaltaPost p.l.c.’s controlling shareholding in these three entities.
MaltaPost p.l.c. has been determined to be a financially significant entity.
We tailored the scope of our audit in order to perform sufficient work on all components to enable us to provide an opinion on the financial statements as a whole, taking into account the structure of the Group, the accounting processes and controls, and the industry in which the Group operates, and local statutory requirements.
The Group auditor performed all of this work by applying the Group overall materiality, together with additional procedures performed on the consolidation. This gave us sufficient appropriate audit evidence for our opinion on the Group financial statements as a whole.
Other information
The directors are responsible for the other information. The other information comprises all of the information presented in the Annual Report and Financial Statements 2024 (but does not include the financial statements and our auditor’s report thereon).
Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon except as explicitly stated within the Report on other legal and regulatory requirements.
In connection with our audit of the financial statements, our responsibility is to read the other information identified above and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
Responsibilities of the directors and those charged with governance for the financial statements
The directors are responsible for the preparation of financial statements that give a true and fair view in accordance with IFRSs as adopted by the EU and the requirements of the Maltese Banking Act (Cap. 371) and the Maltese Companies Act (Cap. 386), and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the directors are responsible for assessing the Group’s and the Bank’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Group or the Bank or to cease operations, or have no realistic alternative but to do so.
Those charged with governance are responsible for overseeing the Group’s financial reporting process.
Auditor’s responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
As part of an audit in accordance with ISAs, we exercise professional judgement and maintain professional scepticism throughout the audit. We also:
● Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
● Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group’s and the Bank’s internal control.
● Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors.
● Conclude on the appropriateness of the directors’ use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group’s or the Bank’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Group or the Bank to cease to continue as a going concern.
● Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
● Plan and perform the group audit to obtain sufficient appropriate audit evidence regarding the financial information of the entities or business units within the Group as a basis for forming an opinion on the consolidated financial statements. We are responsible for the direction, supervision and review of the audit work performed for purposes of the group audit. We remain solely responsible for our audit opinion.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, actions taken to eliminate threats or safeguards applied.
From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.
Report on other legal and regulatory requirements
Report on compliance with the requirements of the European Single Electronic Format Regulatory Technical Standard (the “ESEF RTS”), by reference to Capital Markets Rule 5.55.6
We have undertaken a reasonable assurance engagement in accordance with the requirements of Directive 6 issued by the Accountancy Board in terms of the Accountancy Profession Act (Cap. 281) - the Accountancy Profession (European Single Electronic Format) Assurance Directive (the “ESEF Directive 6”) on the Annual Financial Report of Lombard Bank Malta p.l.c. for the year ended 31 December 2024, entirely prepared in a single electronic reporting format.
Responsibilities of the directors
The directors are responsible for the preparation of the Annual Financial Report, including the consolidated financial statements and the relevant mark-up requirements therein, by reference to Capital Markets Rule 5.56A, in accordance with the requirements of the ESEF RTS.
Our responsibilities
Our responsibility is to obtain reasonable assurance about whether the Annual Financial Report, including the consolidated financial statements and the relevant electronic tagging therein, complies in all material respects with the ESEF RTS based on the evidence we have obtained. We conducted our reasonable assurance engagement in accordance with the requirements of ESEF Directive 6.
Our procedures included:
● Obtaining an understanding of the entity's financial reporting process, including the preparation of the Annual Financial Report, in accordance with the requirements of the ESEF RTS.
● Obtaining the Annual Financial Report and performing validations to determine whether the Annual Financial Report has been prepared in accordance with the requirements of the technical specifications of the ESEF RTS.
● Examining the information in the Annual Financial Report to determine whether all the required taggings therein have been applied and whether, in all material respects, they are in accordance with the requirements of the ESEF RTS.
We believe that the evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Opinion
In our opinion, the Annual Financial Report for the year ended 31 December 2024 has been prepared, in all material respects, in accordance with the requirements of the ESEF RTS.
Other reporting requirements
The Annual Financial Report and Financial Statements 2024 contains other areas required by legislation or regulation on which we are required to report. The Directors are responsible for these other areas.
The table below sets out these areas presented within the Annual Financial Report, our related responsibilities and reporting, in addition to our responsibilities and reporting reflected in the Other information section of our report. Except as outlined in the table, we have not provided an audit opinion or any form of assurance.
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Area of the Annual Report and Financial Statements 2024 and the related Directors’ responsibilities |
Our responsibilities |
Our reporting |
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Directors’ Report The Maltese Companies Act (Cap. 386) requires the directors to prepare a Directors’ report, which includes the contents required by Article 177 of the Act and the Sixth Schedule to the Act. |
We are required to consider whether the information given in the Directors’ report for the financial year for which the financial statements are prepared is consistent with the financial statements.
We are also required to express an opinion as to whether the Directors’ report has been prepared in accordance with the applicable legal requirements.
In addition, we are required to state whether, in the light of the knowledge and understanding of the Company and its environment obtained in the course of our audit, we have identified any material misstatements in the Directors’ report, and if so to give an indication of the nature of any such misstatements.
With respect to the information required by paragraphs 8 and 11 of the Sixth Schedule to the Act, our responsibility is limited to ensuring that such information has been provided. |
In our opinion: ● the information given in the Directors’ report for the financial year for which the financial statements are prepared is consistent with the financial statements; and ● the Directors’ report has been prepared in accordance with the Maltese Companies Act (Cap. 386).
We have nothing to report to you in respect of the other responsibilities, as explicitly stated within the Other information section.
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Statement of compliance with the principles of good corporate governance The Capital Markets Rules issued by the Malta Financial Services Authority require the directors to prepare and include in the Annual Financial Report a Statement of Compliance with the Code of Principles of Good Corporate Governance within Appendix 5.1 to Chapter 5 of the Capital Markets Rules. The Statement’s required minimum contents are determined by reference to Capital Markets Rule 5.97. The Statement provides explanations as to how the Company has complied with the provisions of the Code, presenting the extent to which the Company has adopted the Code and the effective measures that the Board has taken to ensure compliance throughout the accounting period with those Principles.
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We are required to report on the Statement of Compliance by expressing an opinion as to whether, in light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have identified any material misstatements with respect to the information referred to in Capital Markets Rules 5.97.4 and 5.97.5, giving an indication of the nature of any such misstatements.
We are also required to assess whether the Statement of Compliance includes all the other information required to be presented as per Capital Markets Rule 5.97.
We are not required to, and we do not, consider whether the Board’s statements on internal control included in the Statement of Compliance cover all risks and controls, or form an opinion on the effectiveness of the Company’s corporate governance procedures or its risk and control procedures. |
In our opinion, the Statement of Compliance has been properly prepared in accordance with the requirements of the Capital Markets Rules issued by the Malta Financial Services Authority.
We have nothing to report to you in respect of the other responsibilities, as explicitly stated within the Other information section. |
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Remuneration report The Capital Markets Rules issued by the Malta Financial Services Authority require the directors to prepare a Remuneration report, including the contents listed in Appendix 12.1 to Chapter 12 of the Capital Markets Rules. |
We are required to consider whether the information that should be provided within the Remuneration report, as required in terms of Appendix 12.1 to Chapter 12 of the Capital Markets Rules, has been included. |
In our opinion, the Remuneration report has been properly prepared in accordance with the requirements of the Capital Markets Rules issued by the Malta Financial Services Authority. |
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Other matters prescribed by the Maltese Banking Act (Cap. 371) In terms of the requirements of the Maltese Banking Act (Cap. 371), we are also required to report whether: ● we have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of our audit; ● proper books of account have been kept by the Bank, so far as appears from our examination of those books; ● the Bank’s financial statements are in agreement with the books of account; ● in our opinion, and to the best of our knowledge and according to the explanations given to us, the financial statements give the information required by any law which may from time to time be in force in the manner so required. |
In our opinion: ● we have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of our audit; ● proper books of account have been kept by the Bank, so far as appears from our examination of those books; ● the Bank’s financial statements are in agreement with the books of account; and ● to the best of our knowledge and according to the explanations given to us, the financial statements give the information required by any law in force in the manner so required.
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Other matters on which we are required to report by exception We also have responsibilities under the Maltese Companies Act (Cap. 386) to report to you if, in our opinion adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us. We also have responsibilities under the Capital Markets Rules to review the statement made by the directors that the business is a going concern together with supporting assumptions or qualifications as necessary. |
We have nothing to report to you in respect of these responsibilities. |
Other matter – use of this report
Our report, including the opinions, has been prepared for and only for the Bank’s shareholders as a body in accordance with Article 179 of the Maltese Companies Act (Cap. 386) and for no other purpose. We do not, in giving these opinions, accept or assume responsibility for any other purpose or to any other person to whom this report is shown or into whose hands it may come save where expressly agreed by our prior written consent.
Appointment
We were first appointed as auditors of the Bank on 10 April 2010. Our appointment has been renewed annually by shareholder resolution representing a total period of uninterrupted engagement appointment of 15 years.
Fabio Axisa
Principal
For and on behalf of
PricewaterhouseCoopers
78, Mill Street
Zone 5, Central Business District
Qormi
Malta
16 April 2025