Lombard Bank Malta Plc

Board/Management Information • May 20, 2013

COMPANY ANNOUNCEMENT

The following is a Company Announcement issued by Lombard Bank Malta plc pursuant to the Malta Financial Services Authority Listing Rules.

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Interim Directors' Statement

Lombard Bank Malta plc (the Bank) announces that during the Financial Period commencing 1 January 2013 up to the date of this Announcement, no material events and/or transactions have taken place that would have an impact on the financial position of the Bank or the Group, such that would require special mention, disclosure or announcement pursuant to the applicable Listing Rules.

The backdrop to the period under review continued to be characterised by a contraction in the economic performance of the euro area, this being mainly attributed to a decrease in both private consumption as well as investment. The question of stability of the financial system has been given particular prominence since the beginning of the year with emphasis being placed on maintaining adequate capital buffers and prudent business and liquidity management practices.

The local economy remains relatively resilient to these uncertainties with economic trends showing little signs of slowdown notwithstanding this was a period when general elections were held.

The level of Loans and Advances showed no significant changes from that at FYE2012 while the Loan to Deposit ratio remained within expected parameters. Interest expense showed a favourable variance, which translated to a positive operating income when compared to the same period last year. Encouraging trends were also evident in fee and commission income earned.

The Bank continues to adopt a rigorous policy of provisioning in respect of its loans and advances portfolio. Such provisioning is undertaken in strict compliance with international standards and regulatory requirements. This may result in an increase in provisioning levels while operational profitability stands ahead of the corresponding period last year.

Both the Liquidity Ratio as well as the Capital Adequacy Ratio stood well in excess of regulatory requirements. Furthermore, the Bank continues to practice its policy of not holding exposures to financial instruments issued by non-Maltese sovereign or corporate entities. Looking forward the Bank is confident of another robust financial performance while maintaining strong balance sheet fundamentals.

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By order of the Board

20 May 2013