Libra Bank profit drops eight-fold due to network expansion costs

Network expansion costs have reduced Libra Bank's profit eight-fold, to €13,328 in the first half of 2008.

The bank is focused on liberal professions and has been targeted for takeover by several Spanish banks. Profitability increased 125 percent in July, to some €30,000. The bank posted profit in excess of €870,000 in 2007, after three consecutive years of losses.

Libra Bank had a market share of 0.3 percent in terms of assets at the end of 2007. Its market share advanced 9.5 percent in H1 2008, to €123 million.

Of total loans, 35.4 percent were for liberal profession clients (physicians, pharmacists, accountants, architects, psychologists) and 46 percent to small and medium-sized companies. Deposits were worth €128 million in H1, some 6 percent lower than in the first six months of 2007.

The number of clients increased 47.8 percent on the liberal profession segment, to 7,076 clients on 30 June 2008. The bank will continue to focus on increasing productivity this year.

Business Standard