The Fimbank Group returned to profitability for the first time since June 2014, with interim financial reports showing a profit after tax of $1.21 million for the period ending June 30, 2016, compared to a loss of $8.64 million for the same six-month period in 2015.
However, the board of directors will not be recommending an interim dividend.
At June 30, 2016, total consolidated assets stood at $1.60 billion, an increase of 11 per cent over end 2015, while total consolidated liabilities stood at $1.43 billion, up by 13 per cent.
During the period under review, operating income rose by 34 per cent, to $21.24 million by end-June 2016.
The group’s operating results before impairments, down by $3.01 million, were affected by lower margins attributable to various factors. The level of net impairments continued its steep descent during this period, down from $8.56 million to $0.19 million for the six months. There was also a marked decrease in operating expenses of $4.50 million, mainly reflecting an improved cost management discipline across the group.
Commenting on the financial results, Fimbank Group CEO Murali Subramanian stated that: “The positive financial results we have announced reflect our perseverance in implementing the turnaround strategy set out in 2015. This was founded on the need to improve our origination strategy, harmonise our product offering while looking at new product opportunities, a market-appropriate risk appetite, and cost efficiencies across the whole Group.
“These principles provided a platform from which Fimbank has been successfully stabilising its performance, growing its loan book and reversing the negative financial trend by returning a half-yearly profit.”
He also highlighted the group’s successful approach to the retail depositor market, thanks to the diversification of its funding base and a reduction in the overall cost of funding.
Chairman John Grech stressed that the achievements reported during this period “will serve to further reinvigorate our efforts, and focus our attention on registering further improvements across the different facets of the organisation, including asset origination, funding and capital management, risk and compliance, and ultimately, superior profitability and added value to all stakeholders.”
Grant Thornton partner wins
Grant Thornton’s managing partner Mark Bugeja was awarded as Malta’s Best Entrepreneur for 2016 in the field of consulting, advisory and audit. Organised by MBR Publication Ltd, Malta’s Best Entrepreneur of the Year Awards are now in their fifth year. Mr Bugeja joined the audit and investigations department of Grant Thornton’s audit and investigations department in 1987 and was admitted partner in 1993. He became managing partner in 2013.