The FIMBank Group yesterday announced an after-tax profit of USD6.1 million for the first six months of 2018, an increase of 47 percent on the USD4.1 million registered during the same period in 2017. These figures emerge from the publication of the Group’s Interim Financial Statements for 2018, which were approved at a meeting of its Board of Directors on the 14th August 2018.

During the period under review, net operating results, that is operating revenues less operating costs, more than tripled, from USD2.7 million to USD9.8 million, as the Group improved its revenues by USD4.4 million and reduced its costs by USD2.7 million. This was a contribution of many factors, including increased volumes and better yields on its product offering, reduced cost of funds as the Group was more selective in its funding sources and successful implementation of measures in managing costs.

Following the successful completion of the USD105 million Rights Issue concluded in May 2018, the Group’s equity at 30th June stands at USD274 million, with the CET1 ratio at 16.7%. At the end of the reporting period, Total Consolidated Assets stood at USD1.95 billion, an increase of 19 percent over the USD1.64 billion reported at end-2017, while Total Consolidated Liabilities stood at USD1.67 billion, or 14 percent more than the USD1.47 billion reported at end 2017.

Commenting on the financial results, FIMBank Group CEO Murali Subramanian explained, “The results for the first six months of 2018 are a manifestation of FIMBank’s performing fundamentals and its realisation of a sustainable platform for further success. The Group has been successful in turning its business around, generating profitability and providing a platform for growth over the last twelve quarters.” Mr Subramanian also highlighted the strong improvement in the Group’s core performance, explaining that this has occurred across the key operational pillars, covering business and revenue generation, risk management and expense management.

“Notwithstanding the economic situation around the world,” Subramanian adds. “The Group’s origination efforts have been stepped up, growing client assets and demonstrating a strong pipeline of business across the different products and geographies within which it operates. As a result, core income generation has rebounded on the back of increased volumes, 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/income ratios both in absolute and relative terms. According to the CEO, “as much as origination and business development remain a priority for the Group, the focus on asset quality and acceptable risk levels has remained critically important, resulting in improved provision coverage on delinquent loans, with recovery efforts continuing to yield expected results.” He anticipates that the approach adopted so far will continue evolving: “in the months ahead, the Group will exploit its strong expertise and improved operating culture to grow across its diversified product offering.”

FIMBank Group Chairman John C. Grech expressed the satisfaction of the Board with the results of the first half of 2018. He stated that, “FIMBank’s positive performance, which has now extended into its third year, has a very specific provenance. It is the direct consequence of a strategic shift in focus successfully tuned to changing market conditions. Accomplished with extremely sound planning and copious amounts of hard work and perseverance by our strong management team, ably led by CEO Murali Subramanian, 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.