Issue link: https://maltatoday.uberflip.com/i/1017392
maltatoday | WEDNESDAY • 22 AUGUST 2018 11 BUSINESS www.creditinfo.com.mt info@creditinfo.com.mt Tel: 2131 2344 Your Local Partner for Credit Risk Management Solutions Supporting you all the way THE FIMBank Group has an- nounced an after-tax profit of USD 6.1 million for the first six months of 2018, an increase of 47 percent on the USD 4.1 million registered during the same period in 2017. These figures emerge from the pub- lication of the Group's Interim Financial Statements for 2018, which were approved at a meeting of its Board of Direc- tors on 14 August 2018. During the period under re- view, net operating results, that is operating revenues less operating costs, more than tri- pled, from USD 2.7 million to USD 9.8 million, as the Group improved its revenues by USD 4.4 million and reduced its costs by USD 2.7 million. This was a contribution of many factors, including in- creased volumes and better yields on its product offering, reduced cost of funds as the Group was more selective in its funding sources and suc- cessful implementation of measures in managing costs. Following the successful completion of the USD 105 million Rights Issue conclud- ed in May 2018, the Group's equity at 30 June stands at USD 274 million, with the CET1 ratio at 16.7%. At the end of the reporting period, total consolidated assets stood at USD 1.95 billion, an in- crease of 19 percent over the USD 1.64 billion reported at end-2017, while total con- solidated liabilities stood at USD 1.67 billion, or 14 per- cent more than the USD 1.47 billion reported at end 2017. Commenting on the finan- cial results, FIMBank Group CEO Murali Subramanian stated that The results for the first six months of 2018 were a manifestation of FIMBank's performing fundamentals and its realisation of a sus- tainable platform for further success. "The Group has been suc- cessful in turning its business around, generating profitabil- ity and providing a platform for growth over the last twelve quarters," he said. Subramanian also highlight- ed the strong improvement in the Group's core perfor- mance, explaining that this has occurred across the key operational pillars, covering business and revenue gen- eration, risk management and expense management. "Notwithstanding the eco- nomic situation around the world", FIMBank's CEO said. "The Group's origination ef- forts have been stepped up, growing client assets and demonstrating a strong pipe- line of business across the different products and geog- raphies within which it oper- ates. As a result, core income generation has rebounded on the back of increased vol- umes, improved yields, and lower cost of funds." Subramanian also attributed the Group's positive half- yearly results to successful measures in managing costs, and to improving key cost/in- come ratios both in absolute and relative terms. "As much as origination and business development remain a priority for the Group, the focus on asset quality and acceptable risk levels has re- mained critically important, resulting in improved provi- sion coverage on delinquent loans, with recovery efforts continuing to yield expected results." He said that the approach adopted so far would continue evolving. "in the months ahead, the Group will exploit its strong expertise and improved oper- ating culture to grow across its diversified product offering," he said. FIMBank Group Chairman Dr John C. Grech expressed the satisfaction of the Board with the results of the first half of 2018. "FIMBank's positive perfor- mance, which has now ex- tended into its third year, has a very specific provenance. It is the direct consequence of a strategic shift in focus suc- cessfully tuned to changing market conditions," he said. "Accomplished with ex- tremely sound planning and copious amounts of hard work and perseverance by our strong management team, ably led by CEO Murali Subrama- nian, this successful drive has contributed to establishing the FIMBank Group as a more robust banking institution, based on business discipline, centrally-aligned operations, and effective management of enterprise risks." Meanwhile, FIMBank's Board of Directors will not be recommending an interim dividend for the period under review. For more information about FIMBank plc, please visit www.fimbank.com FIMBank announces half-yearly profit of USD 6.1 million During the period under review, net operating results more than tripled, from USD 2.7 million to USD 9.8 million • The Group improved its revenues by USD 4.4 million and reduced its costs by USD 2.7 million