FIMBank well on the road to recovery

During its recent Annual General Meeting, the Chairman of the FIMBank Group, Dr John C. Grech, explained the background to the Group’s performance last year.  “Following the most difficult year in the Group’s history”, said Dr Grech, “the priorities for then newly-appointed CEO Murali Subramanian and his strongly reinforced management team were to give stability to the business, the reinforcement of the governance and risk structures, and the gradual re-building of the portfolios to a sustainable level.”

FIMBank’s Chairman stated that “The Group has succeeded in overcoming the substantial impairments which marred the 2014 performance, whilst at the same time creating a revenue platform to generate value going forward.” Dr Grech added that “This is reflected in the results for 2015, which indicate that the FIMBank Group is on the right track.”

Together with my colleagues in the management team, we intend to ensure that FIMBank will continue to respond with agility to the changes in economic cycles across its international geographical presence, and to reposition itself as a growing profitable institution, through adequate returns and value creation to all its stakeholders.

Murali Subramanian, CEO, FIMBank p.l.c

During his presentation at the AGM, the FIMBank CEO explained that for the year ended 31 December 2015, the FIMBank Group registered a loss of USD7.1 million, a considerable improvement  when compared to a loss of USD45.2 million in 2014. Commenting on the way forward, FIMBank’s CEO stated that the key pillars of the turnaround will remain at the heart of the Group’s operations – an improved origination strategy across its various product offerings, a more harmonised global factoring strategy, continued focus to asset quality and loan recovery management, as well as cost efficiencies and resource optimisation. He stated that “Together with my colleagues in the management team, we intend to ensure that FIMBank will continue to respond with agility to the changes in economic cycles across its international geographical presence, and to reposition itself as a growing profitable institution, through adequate returns and value creation to all its stakeholders.”

Just more than a year ago, FIMBank was subject to an on-site inspection by the Malta Financial Services Authority. Taking place following the most difficult year in the Group’s history, during which FIMBank registered impairment events across various Group entities, it was no surprise that  the MFSA went on to apply limitations on geographic expansion and further investment in the Group’s network. The MFSA’s findings coincided with those emerging from a high-level internal evaluation of the situation at FIMBank. This subsequently led to the successful implementation of a consolidation strategy which addressed a number of the issues raised, primarily those related to the reinforcement of governance, risk structures and internal control capabilities. Significantly, confidence in the FIMBank Group’s performance, and the outlook for the future, are reflected in the Bank’s share price when compared to the low point registered a year ago. The share price which was USD 0.45 at the same time last year has seen a consistent increase resulting in the current USD 0.85.

The FIMBank Group provides a comprehensive range of banking and trade finance services and has successfully made its mark on the international factoring sector. The Bank forms part of the KIPCO Group, one of the largest diversified holding companies in the Middle East and North Africa.