Last Updated on Tuesday, 13 August, 2019 at 6:17 pm by Christian Keszthelyi
FIMBank Group’s pretax profit grew by 38% to US$9.6m (approximately €8.5m) in the first six months of 2019, as compared to US$7m (approximately €6.2m) registered during the same period in 2018, according to a press statement published by the group.
The Board of Directors will not recommend an interim dividend for the period under review, the press statement says.
Total consolidated assets dropped by 5% to US$1.77b (approximately €1.5b) on 30 June 2019, compared to US$1.87b (approximately €1.6b) at end of 2018. The total consolidated liabilities were also down by 7% to US$1.48b (approximately €1.3b), compared to US$1.59b (approximately €1.4b) reported at the end of the previous year. Nevertheless, deposits from corporate and retail clients increased by US$65m (approximately €58m).
During the period under review, the group’s net operating income saw a marginal decrease of 2% during January-June, going up from US$28.3m (approximately €25.2m) to US$27.8m (approximately €24.8m).
The net interest income increased by 19% to US$16m (approximately €14.2m), as improvements in the liability structure of the group offset the reduction in interest income resulting from lower asset levels, the press statement explains.
Net impairment charges for the first six months of 2019 amounted to US$0.6m (approximately €535,980), compared to the US$2.1m (approximately €1.8m) charged in 2018 due to the group maintaining adequate coverage on non-performing exposures identified last year. In 2019, net impairments are inclusive of the successful recovery of a fully provided exposure, amounting to US$3m (approximately €2.6m), the press statement adds.
Transformation of ‘critical’ importance
“The group has successfully completed a derisking exercise of its main portfolios, aimed at strengthening its varied exposures across the different products and geographical presences, thereby reducing concentrations, and ensuring sustained growth in the years to come. This has led to a short-term reduction in the size of the balance sheet, as key portfolios have readjusted their client and market profile, refining structuring and increasing risk mitigation,” said Murali Subramanian, CEO of FIMBank Group.
Group Chairman John C. Grech tagged FIMBank’s performance as “positive”, which he says now extended into its fourth year, and comes in the context of a “critically important transformation of the underlying portfolios of the group during this period, the result of which places FIMBank in a position of strength, as it makes its business model fundamentals even more attractive.”
Moreover, Mr Grech added that FIMBank’s expertise in structuring transactions across the trade-related product portfolio, together with the ability of its people to pursue and maintain the building of business partnerships with the bank’s diverse client base, stayed key to FIMBank’s reputation.
“We will remain vigilant on risk, controls and governance in order to ensure that the expansion of the business is executed in a sustainable way. FIMBank has sufficient business pipeline, funding, and resource structures in place to support this path,” said Mr Grech.
“Under the leadership of CEO Murali Subramanian and his management team, with the right mix of talent and focus on client delivery, and operating within a risk-balanced approach, we are confident of FIMBank’s ability to generate higher value and returns for the benefit of all stakeholders,” Mr Grech added.
The aforementioned figures have been approved at a meeting of the group’s Board of Directors on 8 August 2019.