Issue link: https://maltatoday.uberflip.com/i/969423
maltatoday SUNDAY 15 APRIL 2018 39 This Week FIMBank and the Rights Issue to serve as springboard for future growth FIMBANK is a specialised trade finance bank- ing institution with a strong background in fac- toring and forfaiting solutions, with presence in various financial and trading centres across the globe. MaltaToday met the bank's Chief Risk Officer, Ronald Haverkorn to discuss the bank's progress following its recent announce- ment of a USD 7.7 million profit for 2017. He also discussed the bank's recently announced Rights Issue, an opportunity for existing FIM- Bank shareholders to increase their investment in FIMBank. 1) In June 2013, FIMBank was acquired by the KIPCO Group of Kuwait. What role did KIPCO play in the progress registered by the Bank? The year 2013 saw Burgan Bank (Kuwait) and United Gulf Bank (Bahrain), two highly reputable financial institutions forming part of the Kuwaiti conglomerate KIPCO Group, acquiring an 80 per cent stake in FIMBank. This development meant that FIMBank could strengthen its trade finance product suite, offer new financial products to its customers, ben- efit from enhanced funding resources, develop cross sell opportunities within the KIPCO group of companies and further strengthen the Group's operating performance. Burgan Bank in particular assisted FIMBank management in implementing its turnaround strategy by in- troducing measures to improve group govern- ance, strengthen risk management processes, and develop a set of specific risk frameworks around its main products. From a funding perspective, in 2015 we saw a capital injec- tion by Burgan Bank through a subordinated debt issuance and additional backstop liquid- ity support. This put FIMBank on a course for an adjusted business strategy, permitting us to reinforce our asset quality and diversification, and target higher income levels. 2) The Bank has recently reported a net profit of USD 7.7 million for 2017, up from a profit of USD 5.4 million for 2016. What are the key elements which continue to improve and sustain shareholder value? These positive financial results are a direct consequence of our perseverance in imple- menting a transformation strategy aimed at consolidating a value-creation model of growth and superior returns. Throughout 2017, we further enhanced our revenue generation approach and product offering, benefiting from the risk management and recovery pro- gramme we have been undertaking for the past two years, whilst optimising our capital and funding resources. It is primarily due to these sustained measures that we have been able to improve FIMBank Group's performance over the past months. Meanwhile, an enhanced as- set origination process, as well as product dif- ferentiation, remain at the core of our agenda. Moreover, we have made significant strides in the implementation of client-centric coverage models, cross-sell initiatives across the differ- ent Group segments, and the use of hubs in key markets, particularly in the MENA region. FIMBank will continue to enhance its service offering by providing bespoke services to our international customers. 3) In recent news, FIMBank announced a Rights Issue that will raise a total amount of capital of approximately USD115 million. What is the purpose for this Rights Issue? The proceeds will be utilised to strengthen FIMBank's already strong capitalisation and to support the Group's growth opportuni- ties. Furthermore, the net proceeds will also be utilised to extinguish the sum of USD 50,000,000 borrowed by FIMBank under a Subordinated Loan Agreement with Burgan Bank. This Rights Issue will allow FIMBank to grow its loan portfolio across all operat- ing units positively impacting our revenues and overall risk diversification. Essentially, after restructuring and further defining our risk appetite, the Bank is again poised for growth. The significant capital increase re- flects the shareholders belief in the future of the Group. 4) FIMBank has recently been investing in new technologies to provide superior client delivery. How has FIMBank Direct improved the Bank's efficiency and customer proposition? FIMBank Direct is a significant milestone in the Bank's journey towards ensuring the op- timal level of customer service. It extends the Bank's reach beyond the standard banking hours and geographical presence limitations. It is also effective in helping us increase our op- erational efficiencies, reduce transaction costs, while enabling us to introduce new products to our customers. Moreover, FIMBank Direct is equipped with state-of-the-art authentication software compliant with future EU directives, thus providing the end user with peace of mind in terms of security and data protection. 5) Following recent successes and a strategy aimed at generating further growth what is the outlook for the Bank? The FIMBank Group has clearly been evolving into a stronger banking institution in the last few years, based on talented hu- man capital, reinforced risk framework and sound business principle. FIMBank will con- tinue to enhance its service delivery across its core pillars, including trade finance, factoring and forfaiting. This will be achieved through best-in-class-risk management and refined governance practice. We are confident that the Rights Issue will be a key milestone to achieve this and also serve as a springboard for future growth, propelling the Group into a new phase of its development. Exciting shows, family fun at Gozo's Science in the Citadel GASANMAMO Insurance has recent- ly supported the organisation of two separate and different musical concerts which were held in March, in Valletta and Mdina respectively. The first rep- resentation, which was held at St John's Co-Cathedral in Valletta, was an out- standing rendition of Messa da Requi- em performed by the St Paul Chamber Ensemble. The second concert La Pas- sione di Cristo was presented by The Malta Police Band and held at the Met- ropolitan Cathedral of St Paul in Mdina. Messa da Requiem took place on Fri- day, 16th March and it is the latest or- chestral work written by HE Chev Mro Mark Agius, one of the most talented musicians and composers to emerge recently in Malta. The concert was held in collaboration with the St John Co-Cathedral Foundation, under the distinguished patronage of Archbishop Emeritus Mgr Pawl Cremona. The tal- ented young violinist Eric Bugeja led the orchestra. La Passione di Cristo was performed by the Malta Police Band on Saturday, 24th March under the direction of Senior Superintendent, Mro, Anthony Cassar. The sacred concert, included reflections connected with Holy Week, and was under the distinct patronage of the President of Malta, Marie-Lou- ise Coleiro Preca. During this concert there was also the participation of the Amadeus Chamber Choir, the Malta Police Band, guest musicians together with soprano Ruth Sammut Casingena, tenor Brian Cefai, organist Chris Rolè and harpist Esmeralda Galea Camilleri. This concert was in aid of Id-Dar tal- Providenza. "We are honoured to support these types of musical representations in Malta and our commitment remains the same, to offer our help and assis- tance to ensure that we have the high- est level of excellence in music with the best participants. Besides it's even more significant to note that through these type of sponsorships, our company is also helping local entities, such as Dar tal-Providenza, that are constantly do- ing invaluable work to our local com- munity and help those in need," said Julian Mamo, Managing Director at GasanMamo Insurance. THIS year's Science in the Citadel, Gozo's own FREE science festival, takes place on Saturday 28th April from 10am to 8pm. As well as family fun and exciting science shows, experiments, in- stallations, children's workshops and a full pro- gramme of lectures all day, NEW this year is our Business and Careers Incubator. Here, visitors can find out what it takes to make a career in science or technology or to take a great idea to market. On hand there will be experts in fields such as digital games, genetics, science communication, pharmacology and transport to explain what it's like to do their job; an extensive Fantastic Jour- neys display showing the varied paths all our con- tributors took to get to their current career; and a group of young and serial digital entrepreneurs with some of their investment contacts who will be debating whether an Innovation Brain or a Business Brain is most important in starting a business here. This year we want people to carry on engaging with science and technology after the event and to take Science OUTSIDE the Citadel! For more information contact sitcitadel@gmail. com or Colleen Bower – Organiser – on colleen- bower@btinternet.com or our facebook site htt- ps://www.facebook.com/ScienceInTheCitadel/ Musical concerts in aid of Dar tal-Providenza