FIMBank Group registered a profit of $5.3 million in 2016, compared to a loss of $7.1 million in 2015.
At December 31, 2016, total consolidated assets stood at $1.74 billion, a substantial increase of 21 per cent over the $1.44 billion reported at end 2015, while total consolidated liabilities stood at $1.57 billion, up by 24 per cent from $1.27 billion in 2015.
Operating income before net impairment for 2016 stood at $46.1 million, at par with 2015 levels. On the other hand, during the year in review, net interest income decreased by $7.6 million to $22 million.
Operating expenses decreased by $8.3 million, from $47 million to $38.7 million. Significantly, “as a result of energetic and consistent recovery efforts”, for the second year running net impairments saw a very significant decrease, this time by more than 70 per cent, to stand at $2.3 million, compared to $10.3 million in 2015. Meanwhile, the board of directors will not be recommending a dividend, however, subject to the regulator’s approval, the board will be recommending one for 80 Bonus Issue of Ordinary Shares by way of capitalisation of the share premium account.
According to FIMBank Group chairman John Grech, the 2016 financial results “are a vindication of our steadfast resolve to bring the group back on the road to profitability following the bleak performance of 2014”.
Operating expenses decreased by $8.3m from $47m
FIMBank Group CEO Murali Subramanian stated that the pillars for the successful turnaround of the group’s fortunes post-2014 included an improved origination strategy, the harmonisation of FIMBank’s product offering, exploring new product opportunities, developing a market-appropriate risk appetite, as well as the implementation of cost efficiencies across the whole group.
From an operational perspective, during 2016 the re-alignment and streamlining of FIMBank’s international factoring strategy “proceeded as planned”, with the ongoing restructuring of business units across the factoring network. FIMBank’s CEO highlighted the bank’s shipping, factoring as well as lending into selected real estate in Malta, as sectors expected to drive increasingly important revenue streams to the group. He also mentioned the group’s “successful approach to the retail depositor market, thanks to the diversification of our funding base and a reduction in the overall cost of funding”.