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FIMBank Announces Positive Half-Yearly Results

20.08.2021

FIMBank Group’s financial results for the first six months of 2021 are in line with its strategy of adjusting to the new economic realities generated by the ongoing COVID-19 pandemic. The Group reported a profit before tax of USD2.3 million for the six months ending 30 June 2021, a better outcome when compared to the Group’s results during the same six-month period in 2020, which had resulted in a USD15.2 million loss before tax.

During the period under review, the Group’s net operating income increased by 16 per cent, from USD19.2 million to USD22.1 million. Net interest income was 23 per cent lower, at USD12.7 million, as central banks continue to maintain low interest rate policies, designed to counter the impact of the COVID-19 pandemic. Net fees and commission rose by 18 per cent to USD5.8 million, as the Group’s business volumes picked up and new transactions were recorded. Operating expenses for the six months under review stood at USD20.8 million, up by 12 per cent from the same period last year, mainly due to Euro and US Dollar exchange rate fluctuations.

As at 30 June 2021, Total Consolidated Assets stood at USD1.86 billion, an increase of USD112 million over the same 2020 period, while Total Consolidated Liabilities stood at USD1.62 billion, an increase of nine per cent or USD140 million, when compared to USD1.48 billion for the same period in 2020. At the end of June 2021, the Group’s CET1 and CAR ratios both stood at 18.4 per cent, well above the regulatory requirements.

Commenting on the financial results, FIMBank Group Chief Executive Officer Adrian Gostuski stated that “The Group’s positive performance during the first six months of this year indicates that the key components of a revitalisation strategy put into place and launched in the middle of a pandemic which has shaken the world and the global economy are guiding the Group in the right direction. Having weathered this extended period of great turbulence, we believe that the Group can rely on this tried and tested strategy to continue delivering core business growth while progressing in the recovery efforts of non-performing loans.”

Mr Gostuski explained that the Group was successful in resolving several recoveries of non-performing legacy cases, highlighting the fact that no other material assets were classified as being non-performing during this period. He stated that “Building on the progress of the first half of the year, the Bank will pursue further decreases in the non-performing asset portfolio, while keeping sight of potential new business opportunities. For the medium term, a Fitch Ratings upgrade remains at the core of the Group’s agenda.”

The FIMBank CEO also stated that “As the pandemic pushed through the first half of the year, the Group continued to maintain a level of liquidity significantly above the regulatory minima, as a safety measure to mitigate against potential shocks. During this period, we further strengthened our relationship with our correspondent banks, as well as with our long-standing customers. Going forward we will remain focused on customer-centricity allowing FIMBank to take its customer experience to an enhanced level and generate long term value.”

FIMBank Group Chairman Dr John C. Grech stated that “Based on the results of the first six months of 2021, the Board is confident that this trend can be sustained throughout the rest of the year. We will build on our strengths and ongoing successes to ensure value creation to all FIMBank stakeholders, and to reap the benefits of the solid work undertaken by the whole team located across the globe during the past critical months.”

As regards the immediate outlook for the FIMBank Group, Dr Grech stated that “Like other financial institutions we continue to face risks due to the prolongation of the COVID-19 pandemic as well as Malta’s greylisting, however during the rest of 2021, the Group will maintain its course and continue to pursue its strategy focused on preserving portfolio quality and the sustainability of revenue. This is expected to lead to the delivery of further positive performance.”

Meanwhile, FIMBank’s Board of Directors will not be recommending an interim dividend for the period under review.