FIMBank plc – Interim Results
Following last week's article detailing the performance of the S&P 500 index in 2025, it is worth devoting time to review the developments across the European equity markers in my last article of the year.
Financial Performance
On 19 August 2026, FIMBank plc published its interim financial statements covering the six-month period ended 30 June 2026.
Net interest income climbed by 31% to USD27.1 million (H1 2025: USD20.6 million) as interest income increased by 19.4% (or USD6.51 million) to USD40.0 million while interest expense remained broadly unchanged at USD12.9 million. The company explained that the improvement reflects higher average balances across trade finance, real estate lending and trading assets, which offset the decline in benchmark interest rates.
Non-interest income streams translated into a loss of USD2.88 million (H1 2025: USD2.31 million loss) as net trading results swung to a loss of USD2.67 million from a profit of USD1.56 million, mainly on the back of foreign exchange losses, while net fee and commission income turned into a net expense of USD0.37 million on higher forfaiting-related costs. In contrast, the fair value decline on the Group’s legacy unlisted fund investments narrowed sharply to USD0.32 million from USD4.50 million in the comparable period last year.
Credit quality continued to improve, with the Group registering net impairment reversals of USD0.44 million compared to net impairment losses of USD0.18 million in the first half of 2025. The Non-Performing Loan ratio eased further to 1.73% from 1.90% at the end of 2025.
Operating income rose by 36% to USD24.6 million compared to USD18.1 million in the same period last year.
Total operating costs were 6.6% higher at USD20.3 million, reflecting higher regulatory fees, staff costs and professional fees. Since the growth in income outweighed the higher costs, the cost-to-income ratio improved considerably to 84.1% compared to 104.1% in H1 2025.
Overall, FIMBank reported a pre-tax profit of USD4.29 million compared to the pre-tax loss of USD0.93 million in H1 2025. After accounting for a tax charge of USD1.47 million, the continuing operations generated a profit of USD2.82 million (H1 2025: loss of USD2.26 million). Adding the USD0.39 million profit from the discontinued Egyptian factoring business and deducting a minimal amount attributable to non-controlling interests, the net profit for the period attributable to shareholders of FIMBank amounted to USD3.21 million (H1 2025: loss of USD1.82 million).
The Statement of Financial Position as at 30 June 2026, when compared to the corresponding figures as at 31 December 2025, shows that total assets contracted by 5.1% (or USD69.2 million) to USD1.29 billion. The Group’s principal assets include loans and advances to customers of USD430 million, trading assets of USD372 million representing the Group’s forfaiting portfolio, loans and advances to banks of USD138 million and a listed bond portfolio of USD103 million. A further USD59.6 million is classified as held for sale in connection with the planned disposal of Egypt factoring business.
Total liabilities declined by 6.1% (or USD72.2 million) to USD1.11 billion, largely reflecting an 8.5% decrease in amounts owed to customers to USD777 million (31 December 2025: USD849 million). Meanwhile, amounts owed to institutions and banks grew by 3.9% to USD231 million.
Shareholders’ funds advanced by 1.7% to USD187 million as the profit for the period and a USD1.15 million fair value gain on financial investments outweighed a USD1.29 million reduction in the currency translation reserve. This translates into a net asset value per share of USD0.358 (31 December 2025: USD0.352).
FIMBank ended the period with a Total Capital Ratio of 19.8% (31 December 2025: 19.3%), comfortably above the regulatory minimum requirement of 15.48%.
Outlook
In their commentary, the Directors explained that during the second half of 2026 the Group will continue to pursue disciplined growth in its core commercial activities, with particular emphasis on optimising capital deployment, improving risk-adjusted returns and converting existing business opportunities into sustainable revenue growth.
The Directors added that the proposed acquisition of FIMBank by Jordan Kuwait Bank remains subject to the required regulatory approvals, while the Group remains focused on progressing the disposal of Egypt factoring business, which is expected to release capital and management capacity.
The article contains public information only and is published solely for informational purposes. It should not be construed as a solicitation or an offer to buy or sell any securities or related financial instruments. No representation or warranty, either expressed or implied, is provided in relation to the accuracy, completeness or reliability of the information contained herein, nor is it intended to be a complete statement or summary of the securities, markets or developments referred to in this article. Rizzo, Farrugia & Co. (Stockbrokers) Ltd (“Rizzo Farrugia”) is under no obligation to update or keep current the information contained herein. Since the buying and selling of securities by any person is dependent on that person’s financial situation and an assessment of the suitability and appropriateness of the proposed transaction, no person should act upon any recommendation in this article without first obtaining investment advice. Rizzo Farrugia, its directors, the author of this article, other employees or clients may have or have had interests in the securities referred to herein and may at any time make purchases and/or sales in them as principal or agent. Furthermore, Rizzo Farrugia may have or have had a relationship with or may provide or has provided other services of a corporate nature to companies herein mentioned. Stock markets are volatile and subject to fluctuations which cannot be reasonably foreseen. Past performance is not necessarily indicative of future results. Foreign currency rates of exchange may adversely affect the value, price or income of any security mentioned in this article. Neither Rizzo Farrugia, nor any of its directors or employees accepts any liability for any loss or damage arising out of the use of all or any part of this article. Additional information can be made available upon request from Rizzo, Farrugia & Co. (Stockbrokers) Ltd., Airways House, Fourth Floor, High Street, Sliema SLM 1551. Telephone: +356 2258 3000; Email: info@rizzofarrugia.com; Website: www.rizzofarrugia.com © 2021 Rizzo, Farrugia & Co. (Stockbrokers) Ltd. All rights reserved. This article may not be reproduced or redistributed, in whole or in part, without the written permission of Rizzo Farrugia. Moreover, Rizzo Farrugia accepts no liability whatsoever for the actions of third parties in this respect.
This article was produced by Edward Rizzo, Director at Rizzo Farrugia, which is a company licensed to undertake investment services in Malta by the MFSA under the Investment Services Act, Cap. 370 of the Laws of Malta and a member of the Malta Stock Exchange. The company’s registered address is at Airways House, Fourth Floor, High Street, Sliema SLM 1551, Malta.
The article contains public information only and is published solely for informational purposes. It should not be construed as a solicitation or an offer to buy or sell any securities or related financial instruments. No representation or warranty, either expressed or implied, is provided in relation to the accuracy, completeness or reliability of the information contained herein, nor is it intended to be a complete statement or summary of the securities, markets or developments referred to in this article. Rizzo, Farrugia & Co. (Stockbrokers) Ltd (“Rizzo Farrugia”) is under no obligation to update or keep current the information contained herein. Since the buying and selling of securities by any person is dependent on that person’s financial situation and an assessment of the suitability and appropriateness of the proposed transaction, no person should act upon any recommendation in this article without first obtaining investment advice. Rizzo Farrugia, its directors, the author of this article, other employees or clients may have or have had interests in the securities referred to herein and may at any time make purchases and/or sales in them as principal or agent. Furthermore, Rizzo Farrugia may have or have had a relationship with or may provide or has provided other services of a corporate nature to companies herein mentioned. Stock markets are volatile and subject to fluctuations which cannot be reasonably foreseen. Past performance is not necessarily indicative of future results. Foreign currency rates of exchange may adversely affect the value, price or income of any security mentioned in this article. Neither Rizzo Farrugia, nor any of its directors or employees accepts any liability for any loss or damage arising out of the use of all or any part of this article. Additional information can be made available upon request from Rizzo, Farrugia & Co. (Stockbrokers) Ltd., Airways House, Fourth Floor, High Street, Sliema SLM 1551. Telephone: +356 2258 3000; Email: info@rizzofarrugia.com; Website: www.rizzofarrugia.com © 2021 Rizzo, Farrugia & Co. (Stockbrokers) Ltd. All rights reserved. This article may not be reproduced or redistributed, in whole or in part, without the written permission of Rizzo Farrugia. Moreover, Rizzo Farrugia accepts no liability whatsoever for the actions of third parties in this respect.
This article was produced by Edward Rizzo, Director at Rizzo Farrugia, which is a company licensed to undertake investment services in Malta by the MFSA under the Investment Services Act, Cap. 370 of the Laws of Malta and a member of the Malta Stock Exchange. The company’s registered address is at Airways House, Fourth Floor, High Street, Sliema SLM 1551, Malta.