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FIMBank plc – Full-Year Results

Jonathan Falzon

April 10, 2025

10 April, 2025
5 min read
10 April, 2025
5 min read

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 9 April 2025, FIMBank plc published the Annual Report and Financial Statements for the year ended 31 December 2024.

Net interest income decreased by 6.2% to USD51.8 million (2023: USD55.2 million) as the increase in interest income (+USD1.8 million to USD97.3 million) was outweighed by the increase in interest expense (+USD5.2 million to USD45.5 million). The increase interest expenses were driven higher amounts owed to customers.

FIMBank reported an loss of USD0.63 million from its non-interest activities which however was lower than the USD3.65 million loss in 2023. The lower expense was driven by higher fee and commission income and lower net trading losses.

The financial performance was dented by net impairment losses of USD2.50 million, compared to an impairment of USD1.96 million in 2023. As a result, operating income amounted to USD48.7 million, which is minimally lower than the USD49.6 million figure recorded in the previous year.

Total operating costs fell by 7.8% to USD40.4 million (2023: USD43.8 million) due to lower administrative expenses.

Overall, FIMBank reported a profit before tax of USD8.32 million, which is 43.6% higher than the USD5.79 million reported in 2023. After accounting for a tax expense of USD8.17 million and a profit attributable to minority interests of USD0.03 million, the net profit attributable to shareholders amounted to USD0.12 million (2023: loss of USD0.03 million).

The Statement of Financial Position as at 31 December 2024 shows that total assets decreased by 27.5% (or USD435 million) to USD1.15 billion reflecting declines virtually across all assets. Total liabilities fell by 31.3% (or USD439 million) to USD0.96 billion, with amounts owed to customers declining to USD0.68 billion (31 December 2023: USD0.93 billion) and amounts owed to institutions and banks falling to USD0.24 billion (31 December 2023: USD0.41 billion). Shareholders’ funds advanced by 2.4% (or USD4.3 million) to USD183.1 million which translates into a net asset value per share of USD0.3505 (31 December 2023: USD0.3422).

FIMBank ended the year with a Total Capital Ratio of 21.3%, a Liquidity Coverage Ratio of 352% and a Net Stable Funding Ratio of 158%, all comfortably exceeding regulatory minimums. The Group also recorded a 2-percentage point year-on-year decline in the Non-Performing Loan (NPL) Ratio to 2.85%.

Outlook

In his commentary, the Chairman highlighted that looking ahead, the global economic outlook for 2025 remains challenging but with reasonable prospects for moderate growth across financial markets. The Chairman explained that the Group will focus on sustaining revenue growth through careful asset selection and disciplined capital allocation. Moreover, FIMBank will continue to streamline operations, driving cost efficiencies through process refinements and consolidations.

The Directors explained that to strengthen its capital base, the Bank received a USD20 million subordinated loan from its major shareholder in February 2025, qualifying as Tier 2 capital under the Capital Requirements Regulation. This injection will further reinforce the Group’s balance sheet and support its asset growth ambitions, reflecting the continued confidence and commitment of the major shareholder.

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.

On 9 April 2025, FIMBank plc published the Annual Report and Financial Statements for the year ended 31 December 2024.

Net interest income decreased by 6.2% to USD51.8 million (2023: USD55.2 million) as the increase in interest income (+USD1.8 million to USD97.3 million) was outweighed by the increase in interest expense (+USD5.2 million to USD45.5 million). The increase interest expenses were driven higher amounts owed to customers.

FIMBank reported an loss of USD0.63 million from its non-interest activities which however was lower than the USD3.65 million loss in 2023. The lower expense was driven by higher fee and commission income and lower net trading losses.

The financial performance was dented by net impairment losses of USD2.50 million, compared to an impairment of USD1.96 million in 2023. As a result, operating income amounted to USD48.7 million, which is minimally lower than the USD49.6 million figure recorded in the previous year.

Total operating costs fell by 7.8% to USD40.4 million (2023: USD43.8 million) due to lower administrative expenses.

Overall, FIMBank reported a profit before tax of USD8.32 million, which is 43.6% higher than the USD5.79 million reported in 2023. After accounting for a tax expense of USD8.17 million and a profit attributable to minority interests of USD0.03 million, the net profit attributable to shareholders amounted to USD0.12 million (2023: loss of USD0.03 million).

The Statement of Financial Position as at 31 December 2024 shows that total assets decreased by 27.5% (or USD435 million) to USD1.15 billion reflecting declines virtually across all assets. Total liabilities fell by 31.3% (or USD439 million) to USD0.96 billion, with amounts owed to customers declining to USD0.68 billion (31 December 2023: USD0.93 billion) and amounts owed to institutions and banks falling to USD0.24 billion (31 December 2023: USD0.41 billion). Shareholders’ funds advanced by 2.4% (or USD4.3 million) to USD183.1 million which translates into a net asset value per share of USD0.3505 (31 December 2023: USD0.3422).

FIMBank ended the year with a Total Capital Ratio of 21.3%, a Liquidity Coverage Ratio of 352% and a Net Stable Funding Ratio of 158%, all comfortably exceeding regulatory minimums. The Group also recorded a 2-percentage point year-on-year decline in the Non-Performing Loan (NPL) Ratio to 2.85%.

Outlook

In his commentary, the Chairman highlighted that looking ahead, the global economic outlook for 2025 remains challenging but with reasonable prospects for moderate growth across financial markets. The Chairman explained that the Group will focus on sustaining revenue growth through careful asset selection and disciplined capital allocation. Moreover, FIMBank will continue to streamline operations, driving cost efficiencies through process refinements and consolidations.

The Directors explained that to strengthen its capital base, the Bank received a USD20 million subordinated loan from its major shareholder in February 2025, qualifying as Tier 2 capital under the Capital Requirements Regulation. This injection will further reinforce the Group’s balance sheet and support its asset growth ambitions, reflecting the continued confidence and commitment of the major shareholder.