Chairman’s Statement to the Shareholders

29.04.2024

Dear Shareholder,

As we close off another fiscal year, I take this opportunity to share my reflections on the Bank’s journey throughout the past twelve months. Although the year brought about a number of challenges, we have once again demonstrated our resilience and commitment. The Bank’s unwavering focus towards value creation for its clients and stakeholders enabled it to charter its path to offset the various obstacles faced during the year. The year 2023 unfolded within a global backdrop marked by elevated inflation levels, posing significant challenges for governments, central banks, individuals, and businesses alike. The persistent conflict in Ukraine and escalating tensions in the Middle East as the year progressed were also main contributors to global uncertainty.

For the period ending 31 December 2023, the FIMBank Group recorded a significant turnaround, registering a pre-tax profit of USD5.8 million, an important development in comparison to the pre-tax loss of USD24.7 million in the previous year. Post-tax, the Bank achieved a break-even performance, resulting in a profit of USD7,674. During 2023, the Group experienced considerable financial shifts, underscored by a 20% increase in operating income, reaching USD54.8 million, supported by a favourable interest rate environment, alongside a 42% increase in net operating results to USD11.4 million. In line with our efforts across the past years, the Group maintained a commitment to asset quality with a notable reduction in net impairment losses and a decrease in the Non-Performing Loan Ratio. The turnaround that has been registered is a result of the ongoing recovery efforts undertaken over the past years as the team worked relentlessly to improve the quality of our portfolio. The dedication of our Bank's Management should not be underestimated. The role that they play is of crucial importance as we collectively strive towards the realisation of our financial objectives.

While Group results mark a considerable improvement and demonstrate that a well-executed plan of action is starting to yield sustainable results, it is crucial to convey that as Chairman, merely achieving break-even does not represent the slightest of our ambitions. With a strong foundation, supported by an international network of offices in four continents and an expert team dedicated to excellence, we are uniquely positioned to capitalise on our transformational efforts and achieve our aspirational goals. Looking ahead, we anticipate a promising 2024 with accelerated performance improvements.

FIMBank also deems investor relations to be of utmost importance. Our actions in this respect are characterised by transparency and honesty. Throughout the year, we have steadfastly upheld our commitment to actively engage with all our stakeholders. Central to our philosophy is the principle of forthrightness, ensuring that both positive developments and challenges are communicated in a realistic manner, in keeping with the professional standards expected of us.

It is with a sense of profound gratitude that I acknowledge the trust and loyalty our shareholders have shown us. I must extend special appreciation to our majority shareholder, the KIPCO Group, for their resolute and continued support over the years. Their consistent backing has been instrumental in helping us to navigate through the complexities of an ever-evolving landscape, providing encouragement as we continue to drive towards our strategic ambitions.

I wish to take this opportunity to express my gratitude and appreciation to former CEO Mr. Adrian Gostuski for his commitment to strengthening the foundation of the Bank, his dedication, and hard work during the last four years. His contribution will be remembered for years to come and serves as a lasting testament to his leadership. I take this occasion to congratulate and welcome Mr. Mohammed Louhab, following his recent appointment as Group Chief Executive Officer. I am confident that under the guidance of our new GCEO, the Bank will continue to build upon its solid foundations and progress further in achieving sustainable results and complete its turnaround.

In closing, I wish to express my gratitude and appreciation to the Directors, Management, and employees of the FIMBank Group. We remain grateful for their invaluable contribution and tireless efforts in executing our strategic objectives. Together, we have navigated another challenging year, and I am confident in our collective ability to embrace and capitalise on the opportunities that lie ahead.

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