FIMBank plc - Interim Results

On 31 August 2023, FIMBank plc published its interim financial statements covering the six-month period ended 30 June 2023.

Net interest income surged by 30.0% to just under USD18.2 million (H1 2022: USD14.0) as the 68.6% (+USD14.6 million) growth in gross interest income to USD35.8 million outweighed the fact that interest expense more than doubled (+USD10.3 million) to increase to USD17.6 million driven by an improving interest rate environment.

Similarly, non-interest income grew by almost 25% to USD9.62 million (H1 2022: USD7.74 million) reflecting higher fee income generated from forfeiting assets, despite no dividend being received as opposed to the USD3.8 million received in the previous year.

On the other hand, the financial performance of FIMBank was dented by a net impairment loss of USD0.82 million albeit less than the loss of USD4.40 million recorded in the first half of 2022.

Meanwhile, total operating costs rose by 12.8% to USD21.0 million amidst the appreciation of the Euro against the US Dollar. Nonetheless, the cost-to-income ratio improved to 75.4% compared to 85.6% in H1 2022.

Overall, FIMBank reported a profit before tax of USD6.01 million compared to the pre-tax loss of USD1.26 million in H1 2022. After accounting for a tax charge of USD2.13 million and non-controlling interest of USD0.15 million, the Bank’s net profit for the period under review amounted to USD3.74 million.

The Statement of Financial Position as at 30 June 2023, when compared to the corresponding figures as at 31 December 2022, shows that total assets eased by 4.2% (or USD 68.4 million) to USD1.62 billion. Bank and customer loans (USD775.3 million) made up the largest portion of the assets whilst trading assets (USD420.1 million), Financial assets at amortised cost (USD184.9 million) and balances with the Central Bank of Malta (USD139.5 million) were also major components. Total liabilities contracted by 5.1% (or USD72.1 million) to USD1.42 billion driven by lower bank and customer deposits. Meanwhile, total equity increased by 1.8% (or USD3.57 million) to USD199.2 million reflecting lower accumulated losses and translating into a net asset value per share of USD0.382. From a capital perspective, FIMBank noted that at 19.1% (31 December 2022: 17.8%), its CET 1 and Capital Adequacy Ratio are 270 basis points above the regulatory requirement which includes the impact of an additional capital charge under the SREP Pillar II requirement set by the MFSA.


In their commentary, the Directors of FIMBank explained the balance sheet is more resilient due to lower legacy exposures and more sustainable revenue-generating capabilities. The balance sheet is favourably positioned for interest rate increases which are predicted in the second half of 2023. The Group predicts portfolio growth due to successful customer-centric operations which will be partly offset by regulatory requirements.  The directors concluded that the Group is in a good position to progress toward its strategic objectives due to its pool of highly skilled workers and ongoing investment in technology.