Fibank 2023 Q4 review

• Fibank’s 2023 unconsolidated net profit rose over 66% YoY to EUR 69m (EPS of EUR 5.32). The main reasons was the 36.6% rise in Net Interest Income to EUR 189mln, which managed to offset the drop in Other operating income from holding debt instruments. Additionally, OPEX was held under a tight leash, which grew over 5% with the big chunk in it, Administrative expenses growing just 2.7% to EUR 107.7m. The unavoidable rise in personnel expense, comprising over 40% of that account, was offset by the decrease in amortization of assets with the right to use.
• Total operating income was up 16.5% YoY to EUR 6m).
• Gross loans portfolio added 11.2% to BGN 3.85bn as corporate loans and retail loans, where each represent 34% of the portfolio, grew at 12.6% and 9.2%.
• The gross sum of overdue loans with delay of over 90 days was EUR 321m, which was a 21.8% decline from its 2022 level.
• The bank’s investment portfolio in securities decreased marginally, but the net interest income from debt instruments increased from BGN 24.5m to BGN 71m. It is possible that large portion of this is due to the developments with S.G. Group, a collection agency, from Q4 2023. In that quarter, Fibank requested that insolvency proceedings be initiated against 2 companies of the group- Financial Investment Company (the former name of S.G.Group) and Silver Project, which cumulatively owed ca. EUR 300m to the bank. The former is a loans collection agency, while the later is a fast loans lender. After a very public communication, an agreement was reached, which would “guarantee the obligations to the bank”.
• The total capital ratio (21.09%) and CET 1 ratio (17.60%) remained comfortably above requirements even though declining over the quarter.
• Fibank successfully issued perpetual, non-cumulative, uncollateralized, deeply subordinated, non-convertible notes in the amount of EUR 40 000 000 (forty million) („The New Issue“). With the funds from the New Issue the Bank has successfully repurchased the Old Issue (ISIN code BG2100008114), in accordance with the Bank’s strategy.

Full report can be downloaded here.