FIMBank Group’s Consolidated Audited Financial Statements show that for the year ended 31 December 2019, the Group registered a pre-tax profit of USD7.3 million, compared to a profit of USD13 million in 2018.
The overall financial performance of the Group reflects the execution of a de-risking process resulting in short-term asset reductions positively improving the risk profile of the key portfolios, it said in a statement.
Following the conclusion of this process, the Group strengthened the structures of its credit transactions.
The period under review saw FIMBank absorbing most of the de-risking outcome in its core trade and commodity finance portfolio, with the consequent impact on interest and fee revenues. It is also important to mention that during the year, the Bank received dividend income from a subsidiary undertaking which reduced its accumulated losses to significant levels when compared to prior years.
The Group’s ‘Net operating income’ dropped by 13 per cent from USD58.7 million to USD51.3 million. Net interest income, net fees and dividend income combined together decreased by 14%, from USD56.5 million to USD48.4 million.
Revenues dropped due to "a combination of certain measures implemented by the Group and economic conditions. Despite having faced a challenging year, the Bank remains committed to its strategic focus and the transformation of the Group to one based on a culture of excellence, sustainable growth and long-term returns," FIMBank said.
“We have been prudent in addressing the challenges from a slowing economy and reducing trade finance momentum which may bring with it potential asset quality issues if we are not careful. This has meant slower growth, and more prudent provisions while focussing on strong governance” said Mr. Murali Subramanian, Chief Executive Officer of the FIMBank Group.