FIMBank Maintains Stable Outlook and Growth Potential, Fitch Ratings Affirms

28.09.2023

FIMBank Group Chief Executive Officer, Adrian Gostuski, has welcomed the latest announcement from Fitch Ratings, which affirmed FIMBank’s Long-Term Issuer Default Rating (IDR) at ‘B’, with a Stable Outlook, and Viability Rating (VR) at ‘b’. The rating agency issued its report on Friday 22nd September, based on a comprehensive assessment of FIMBank’s strategy, performance, risk management, funding, and liquidity.

According to Fitch Ratings, FIMBank has been progressing well with its balance-sheet de-risking while reducing the complexity of its organisational structure, which should free up capital for growth, including in the Maltese corporate segment. Fitch Ratings also expects FIMBank to improve its performance in the coming years, by leveraging its expertise and geographically diversified business scope. The credit rating agency praised FIMBank’s tightening of its underwriting standards, which have strengthened its credit risk and control framework.

Fitch Ratings also noted that FIMBank is primarily funded by customer deposits, which have accounted for an average of two-thirds of the total funding over the past five years, and that the short-term nature of the Bank’s balance sheet, reflecting its trade finance focus, underpins its liquidity. Fitch Ratings also highlighted the challenges and uncertainties that the global economy faces, such as stubborn inflation, high interest rates, risks from credit tightening, trade restrictions and regulatory challenges, which are expected to influence merchandise trade flows going forward.

Mr Gostuski stated that “Despite the challenging market conditions, we have created an encouraging upward trend in our performance over the first six months of 2023. We are confident that we have the skills, resources, market position and scale to overcome the challenges and uncertainties that the global economy faces. We are committed to delivering value to our shareholders, customers and partners”. He concluded by stating “This latest announcement from Fitch Ratings re-affirming our rating further validates the business strategy that we have been successfully implementing over the years."

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