FIMBank plc - Interim Results

On 28 August 2025, FIMBank plc published its interim financial statements covering the six-month period ended 30 June 2025.

Net interest income dropped by 13.6% to USD23.7 million (H1 2024: USD27.4 million) as the 23.6% (or USD12.3 million) decline in gross interest income to USD39.6 million was partially offset by a 34.9% (or USD8.5 million) decrease in interest expense to USD15.9 million. The company explained that the declines were driven by both lower portfolio balances and reduced interest rates.

Non-interest income streams translated into a loss of USD2.32 million (H1 2024: USD0.48 million loss) mainly on the back of a USD4.50 million fair value decline in financial instruments carried at fair value. On the other hand, net trading income rebounded to a USD1.60 million profit from a USD0.95 million loss in the comparable period last year.

Furthermore, the financial performance was dented by a net impairment loss of USD1.40 million, which however is lower than the loss of USD2.00 million recorded in the first half of 2024.

As a result, operating income fell by 20% to USD20 million compared to USD25 million in the same period last year.

Meanwhile, total operating costs declined slightly by 2.0% to USD20.4 million. Nonetheless, the cost-to-income ratio worsened to 95.4% compared to 77.7% in H1 2024.

Overall, FIMBank reported a pre-tax loss of USD0.42 million compared to the pre-tax profit of USD4.02 million in H1 2024. After accounting for a tax charge of USD1.33 million and non-controlling interests of USD0.07 million, the net loss for the period under review attributable to shareholders of FIMBank amounted to USD1.82 million (H1 2024 profit: USD0.58 million).

The Statement of Financial Position as at 30 June 2025, when compared to the corresponding figures as at 31 December 2024, shows that total assets increased by 9.6% (or USD 110.3 million) to USD1.26 billion as the Group increased trading assets, loans, and financial investments. Total liabilities increased by 11.6% (or USD112.1 million) to USD1.07 billion with a notable increase in customer deposits to USD0.79 billion (31 December 2024: USD0.68 billion). The Group also added a new USD20 million subordinated loan qualifying as Tier 2 capital. Shareholders’ funds remained practically unchanged at USD182 million, which translates into a net asset value per share of USD0.350. FIMBank noted that its Capital Adequacy Ratio stood at 19.2% (31 December 2024: 21.3%), above regulatory requirements.

Rating Update

In June 2025, Fitch Ratings upgraded the Group’s rating to B+ (from B) with a Stable Outlook, providing external validation of the Group’s strategy, capital strength, and operational resilience.

Outlook

In their commentary, the Directors explained that consolidated assets for the first half of 2025 were lower compared to the first half of 2024, reflecting the Group’s cautious positioning ahead of the implementation of the Capital Requirements Directive VI and the Capital Requirements Regulation III. Consequently, portfolios were reduced in late 2024 in preparation for the updated regulatory framework. However, growth markedly increased towards the end of the first half of 2025, placing the Group in a position to benefit from higher income in the second half of 2025.