FIMBank Announces Half-Yearly Pre-Tax Profit of USD 6 Million

01.09.2023

The FIMBank Group has announced a pre-tax profit of USD6.0 million for the first six months of 2023, countering a pre-tax loss of USD1.3 million registered during the same period in 2022. These figures were published in the Group’s Interim Financial Statements for 2023, approved by its Board of Directors on the 30 August 2023.

During the period under review, net income before impairment and trading results surged by 65%, rising from USD4.9 million to USD8.1 million. This was driven by the improving interest rate environment and higher fee income on forfaiting assets. Following a challenging year, all subsidiaries have surpassed the performance from the first half of the previous year. Group operating expenses rose by 13% to USD21.0 million, reflecting the consistent investment in regulatory compliance, human capital, and other strategic initiatives. The increase in expenses also reflect the persistent inflationary pressures and the appreciation of the Euro against the US dollar.

As of June 30, the Group’s equity stood at USD199.1 million, and both the Group's CET1 and CAR ratios stood at 19.1% (31 December 2022: 17.8%). Total Consolidated Assets decreased by 4.1% to USD1.62 billion, compared to USD1.69 billion at the end of 2022. Total Consolidated Liabilities were 5% lower, at USD1.42 billion, compared to USD1.49 billion at the end of 2022.

Commenting on the financial results, FIMBank Group CEO Adrian Gostuski said, “The first six months of 2023 showed an encouraging upward trend in our performance. We saw an increase in interest expenditure outpaced by an even larger rise in interest income, widening the interest margins, leading to a 30% increase in net interest income.” Mr. Gostuski added, “Our balance sheet is more resilient due to the successful reduction of legacy exposures and the enhancement of our sustainable revenue generating capabilities. The Group has consistently reaped the benefits of its prudent lending, as evidenced by the absence of new non-performing exposures during the period under review. Consequently, this has enabled our management team to nurture well-performing portfolios for sustained growth and to prioritise active recovery efforts.” He expects the current strategy to reap further benefits, stating that, “In the coming months, the Group will leverage its existing expertise and further optimise its operational efficiency and investment in technology.”

FIMBank Group Chairman Dr. John C. Grech expressed satisfaction with the results for the first half of 2023. He stated, “We are pleased to report a good performance, underscoring our commitment to strategic excellence. Following an exhaustive strategic review, we anticipate further advancements in operational efficiencies which will allow the Group to continue making inroads into greater revenue generation, while optimising on its capital and funding resources. While we will remain vigilant of the macro environment and uncertain economic outlook, we see significant opportunity to use our expertise, market reach and scale to drive better outcomes for our clients and results for our shareholders.”

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