Lombard chairman says Malta's people are its greatest asset
by Noel Grima
The chairman of Lombard Bank, Christian Lemmerich, who represents Credit Commercial de France on the Lombard Bank board of directors, admits to having become a great fan of Malta. Interviewed by The Malta Business Weekly, he said that apart from its excellent location, Malta's best asset was its people: the high level of education on the island, the ability of the majority of the Maltese to speak at least two or more languages, and the commitment with which the Maltese worked.
Malta, he said, was a place which had not yet attained its full strength and potential, and the abilities and opportunities of the Maltese had yet to be discovered and appreciated in Europe.
Mr Lemmerich said he was very satisfied with the outcome of Lombard's annual general meeting this week. He received very positive feedback from the bank's shareholders and customers regarding its performance. The bank's staff had worked very hard in the past year which was a very challenging one for them, he said. One added bonus they had to put up with was the changeover to a new IT system, a far greater task for a small bank than for a large one. The staff's commitment was outstanding and everyone got involved, from top to bottom. This was the reason why the bank's board decided to give each member of staff a millennium bonus of Lm100, a small token of appreciation under the circumstances.
The bank is and will remain a small player in the Maltese banking field, its market share is very small but Mr Lemmerich is convinced that small banks can always find a market niche for themselves and Lombard Bank can play the game very well.
The fact that a shareholder and a customer on Monday complimented the bank for being a bank with a human face meant a lot to him: it is the highest compliment that a customer could give to his bank.
Mr Lemmerich's background is private banking in Switzerland and great attention is paid there to see that a bank gives personal attention to its clients. It tries to find solutions for its customer's requirements. He said they did not want the bank to be a set of computers; Lombard Bank wanted to give a personalised service.
This is why, as he explained on Monday, the bank will not be opening more branches, not even in the south where there is a need.
Instead, last May the bank's board approved a comprehensive review of its corporate strategy. This strategy is three-pronged:
To balance its core banking activity with other financial services business where size and large resources are not essential.
To establish a unique market position differentiated by an emphasis on the highest quality service and standards of delivery.
To continue to develop a strong organisational framework with emphasis on training, professionalism and a positive culture and teamwork, thereby ensuring that those with a stake in the bank are equitably compensated for their commitment and contribution.
Mr Lemmerich's first contact with Malta goes back to 1991: he has followed Malta's development through the years. Initially, people had warned him that he would either hate Malta or fall in love with it. He admits to having fallen in love with Malta.
Apart from Malta's location and the high quality of the people, he also lists culture, dating back thousands of years and the country's legal system, which is very compatible with that of the European Union and the British legal system. For this reason, Malta is, in his opinion, not just a tourist destination but also a place which can provide financial services in a secure and orderly environment.
Mr Lemmerich has been greatly impressed with the local audit companies and their links to international audit companies. They also, he feels, contribute to Malta's increasing importance in the financial services field.
One particular attraction of Malta is that the authorities - ministries, the Central Bank of Malta and the MFSC for example - are very efficient and supportive. Malta is far ahead of other countries with regards to the way decisions are taken: in other European countries such decisions take far longer.
The task of putting Malta on the international map is not a matter for just one bank. But each investor is called to help in this task. Through CCF and its shareholding in the bank, Lombard Bank has become more international in its outlook. CCF has introduced certain products in the Maltese banking scene that have enabled Lombard Bank to do some international banking on a competitive basis.
In France, CCF is one of the most profitable local banks, and also one of the five largest banks. It has three foreign shareholders: Swiss Life, ING and KB, a Belgian firm. In the context of the increasing consolidation in the French banking sector and in the European banking sector too, CCF feels comfortable in remaining as it is: it has proved it can be very profitable.
But recently, press reports have indicated there is strong interest in the bank. ING has been reported in the media to want to take over the bank. Later on, it was reported that this offer was withdrawn.
This media speculation indicates that the bank is a very attractive bank which has many companies competing to take it over. It is not as if the bank is on its last legs and is willing to be sold. It shows the bank is profitable. For Lombard Bank, it is not a disadvantage to be associated with a bank which seems to be of such interest to other major players in the banking sector.
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