The Fimbank Group’s consolidated audited financial statements show that for the year ended December 31, 2018, the group registered an after-tax profit of $10.2 million, compared to an after-tax profit of $7.7 million in 2017.
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As disclosed in the preliminary statement of annual results published, during the year under review, net operating results more than tripled, from $6.5 million to $21.1 million, as the group improved its revenues by $9.9 million, and reduced its costs by $4.7 million. A 20 per cent increase in net revenues, from $48.8 million to $58.7 million, was generated on the back of both higher asset levels, as well as improved margins. During 2018, the group recognised a higher level of impairments when compared to 2017 due to a number of non-performing exposures. These are being addressed with recovery efforts already under way.
Fimbank Group CEO Murali Subramanian highlighted that: “The performance across the group in 2018 is underpinned by growth in the forfaiting, factoring, local real estate financing, and shipping businesses. London Forfaiting Company Ltd (LFC), reported its highest profit ever since being acquired by Fimbank in 2003. At the end of 2018, Egypt Factors had returned to its first full year of profit, since the acquisition of the company by the group in 2016.”
Subramanian stated that in 2018 his team vigorously pursued the further upgrading of Fimbank’s asset origination and product differentiation efforts. Further improvements in operational efficiencies also allowed it to continue making inroads into greater revenue generation, while optimising on its capital and funding resources.
“The past years have been marked by rapid changes in the nature of our business and the technology which supports it. During 2018, we were successful in keeping up with these developments, primarily by attracting and retaining the best talent, and by maintaining a leading edge in our information technology capabilities. Among others, in the year under review we embarked on the upgrading of the bank’s core system. This has significantly bolstered process efficiency, security, availability and a stronger capacity to support new business. As a result of various operational improvements, our staff can focus on servicing clients,” said Subramanian.
This year Fimbank celebrates its 25th anniversary
Fimbank Group chairman John C. Grech stated that: “The bank’s performance, despite the myriad challenges we faced throughout the year, reflects the resilience of our dynamic business model. It bolsters our commitment and resolve to respond to future challenges, ensuring sustainability for the years to come.”
The 2018 Rights Issue, leading to a cash injection of $105 million, enabled an increase of $225 million in total consolidated assets, which by December 31, 2018 had reached $1.87 billion, when compared to the $1.64 billion reported at end-2017. Total consolidated liabilities as at December 31, 2018 stood at $1.59 billion, up by $119 million from $1.47 billion at end-2017. The growth in liabilities was largely due to increases of $177 million in deposits from corporate and retail clients, offset by a marginal drop of $8 million from wholesale funding sources.
The Rights Issue, a significant milestone in the bank’s development allowed Fimbank to strengthen its capital base.
“This year, Fimbank celebrates its 25th year anniversary. The bank has developed a reputation for trustworthiness and reliability, as we continue building strong banking relationships with our varied clientele. When looking back at our achievements, we must highlight the importance and consistent support of all our stakeholders, without whom we would not have achieved such significant results across the years,” said Grech.
For 2019, the group is expected to continue evolving within rigorous parameters and frameworks, aimed to solidify its origination and risk processes, achieving growth at a sustainable pace.