BusinessToday Previous Editions

3 NEWS 7.9.2023 Malta one of only seven EU countries to experience increased retail trade in July RETAIL trade in Malta increased by 3.5% in July when compared to the same month last year, figures released by Eu- rostat on Wednesday show. Malta was only one of seven EU coun- tries that experienced a year-on-year increase in retail trade. e EU's statistical agency reported that year-on-year retail sales in July de- creased by 1% in the euro area and 1.2% in the EU. On a monthly basis, retail trade in Malta increased by 0.5% in July when compared to the previous month. In the euro area in July 2023, com- pared with June 2023, the volume of retail trade decreased by 1.2% for auto- motive fuels, while it increased by 0.4% for food, drinks and tobacco and by 0.5% for non-food products. In the EU, the volume of retail trade decreased by 1.1% for automotive fu- els, while it increased by 0.2% for food, drinks and tobacco and by 0.6% for non- food products. Among Member States for which data are available, the largest monthly de- creases in the total retail trade volume were registered in Denmark and Ireland (both -2.3%), the Netherlands (-1.4%) and Luxembourg (-1.3%). e highest increases were observed in Portugal (+1.1%), Sweden (+1.0%) and Cyprus (+0.8%). Year-on-year In the euro area in July 2023, compared with July 2022, the volume of retail trade decreased by 3.4% for automotive fuels and by 2.2% for food, drinks and tobacco, while it grew by 1.1% for non- food products. In the EU, the retail trade volume de- creased by 3.9% for automotive fuels and by 2.4% for food, drinks and tobac- co, while it grew by 0.7% for non-food products. Among Member States, the largest yearly decreases in the total retail trade volume were registered in Slovenia (-16.3%), Estonia (-8.6%) and Hungary (-7.6%). e highest increases were ob- served in Spain (+8.6%), Cyprus (+8.0%) and Luxembourg (+6.9%). Retail trade in July up by 3.5% when compared to last year, Eurostat figures show FROM PAGE 1 e bank maintained an adequate cap- ital and liquidity position, with ratios above the regulatory requirements. e demand for general banking ser- vices, including commercial and retail credit, remained consistently strong. Loans and advances to customers rose to €719.9m contributing to a 22% increase in gross interest revenues of €16.3m. Treasury activity was also a significant contributor to the rise in interest income, in line with increased market interest rates. Customer deposits remained stable, just above one billion euro while inter- est payable rose by 10% to €3.6m. ese movements resulted in improved net interest income of €12.7m, an increase of 25%. advances to deposits ratio at 71.3% (FYE 2022: 70.6%), provided a healthy liquidity buffer, as the bank con- tinued to rely on a diversified funding base, which over the years has proven to be stable. Fee and commission income at €2.8m decreased by 8%, indicative of a more customer-oriented tariff. Group employee compensation and benefits rose by 2% in what continued to be a tight labour market compounded by inflationary pressures. Group operating costs generally remained under control. ese included a significant increase in expenses incurred by MaltaPost relat- ing to postal delivery services, without a compensatory increase in tariffs. e need for the Malta Communica- tions Authority, as the postal regulator, to react in a timely manner to Malta- Post's requests for fair and reasonable revisions of tariffs, remains critical. Expected credit losses (ECL) as de- fined and determined by International Financial Reporting Standard 9 (IFRS9) resulted in a charge of €1.9m in the first half of this year compared to a release of €12.1m taken in the corresponding previous year period. e reversal in 2022 was mainly at- tributable to a significant recovery on a commercial non-performing loan which had been largely provided for in previous years. e bank will continue to closely monitor its exposures, also taking into consideration the global un- certainty, not least the geopolitical cri- sis, economic conditions and increasing inflationary pressures. e outlook for rest of the year is posi- tive, as the Bank expects to benefit from increased economic activity and cus- tomer demand as well as continued cost controls. Lombard looks to end 2023 positively on increased activity and customer demand

• Cover