The Fimbank Group has announced that the bank has made a pre-tax profit of €8.67 million for the first half of 2019, which is an increase of 38% from the previous €6.32 million that was registered in the same period of the previous year.
These results have been made public by Fimbank Group’s Interim Financial Statements for 2019, figures which were approved by the board of the directors on August 8.
By the end of June, the total consolidated assets were valued at €1.6 billion, a 5% decrease from the €1.69 billion registered at the end of 2018. On the other hand, total consolidated liabilities were valued at €1.34 billion, which is a 7% decrease from the €1.44 billion that was recorded at the end of 2018.
Deposits from corporate and retail clients managed to increase significantly by €58.68 million.
Fimbank had a mixed start to 2019, with the group’s net operating income having a marginal decrease of 2%, taking the income from €25.55 million to €25.1 million. However, the net interest income managed to increase by a great deal, with the group registering a 19% increase, meaning that this net interest income stood at €14.44 million by the end of the first half of 2019. This was mainly brought about by improvements in the liability structure of the group, offsetting the decrease in interest income which was caused by lower asset levels.
By maintaining adequate coverage on non-performing exposures identified during 2018, the group managed to decrease its net impairment charges for the start of 2019, with this decreasing by €1.35 million by the end of the first half of 2019.
Speaking with regards to the financial results, Fimbank Group CEO Murali Subramanian said that the strong performance of the first half of 2019 indicated how the group’s risk-balanced business transformation was being successfully implemented.
Mr Subramanian added that Fimbank has “successfully completed a de-risking 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.”
He also added that “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.”
The positive results were praised even further, but this time from the group’s chairman, John Grech, stating that the extremely positive performance was a result 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,” adding that the bank’s business model became even more “attractive” due to this.
Mr Grech remained positive for the future, stating that the group “has sufficient business pipeline, funding and resource structures in place to support this path.”