Fibank 2024 Q2 review

• Fibank’s 2024 Q2 unconsolidated net profit dropped over 45% YoY to EUR 9m. This happened despite the 15.7% YoY growth in Net Interest Income to EUR 102m and the 13.2% increase in the Net fee and commission income to EUR 40m. The major decreases in Other net operating income (by EUR 21.8m) and Allowance for impairment (by EUR 15m) wiped off the benefit of the grown business.
• The decrease in Other net operating income by EUR 22.9m (a loss in debt instruments) is almost identical to the decrease of EUR 22.65m in Investments in securities in the Balance sheet, sub account “Enterprises”. Seems that this is part of the exposure to SG Group, which we mentioned in previous reports, which is getting written off after the agreement in Q4 2023. The allowance for impairment is part of the path to optimize the loan portfolio.
• Total operating income dropped marginally by 0.9% YoY to EUR 130m. The business generally grew noticeably (both interest and fees). However, the decrease in the exposure to the bonds from SG Group and restructuring of the loan portfolio took its toll resulting in the decrease in Net profit.
• The gross sum of overdue loans with delay of over 90 days was EUR 318m, which was a 14% decline from its Q2 2023 level of 370mln.
• The total capital ratio (22.27%) and CET 1 ratio (18.91%) remained comfortably above requirements.
• Gross loans portfolio added 11.9% to EUR8bn as corporate loans grew at 11.6% YoY (representing 61.6% of the portfolio). From retail loans, which represent 35.5% of the portfolio, the mortgages and the consumer loans contributed to the push, where the former had a slightly bigger effect.
• The loan portfolio as per the business line:
• The ratios were calculated using data from the previous year of the deals as indicative of the available information at the time of the negotiations.
  

  Fibank value (‘000) using Price / Equity ratio	EUR	996 777
  Fibank value (‘000) using Price / Assets ratio	EUR	1 111 162
  Fibank value (‘000) using Price / (Net Interest & Fee Income) ratio (TTM)	EUR	1 238 832
  Fibank unadjusted fair value (‘000), “lowest of” rule	EUR	996 777

   

   

   

   

   

  The above value is similar to current NAV.

  • Market based approach
    • Share price (02/08/2024):                      EUR 2.47
    • Shares outstanding:                                   149,084,800
    • Market cap (Valuation, ‘000):        EUR 368,239

  The analysis suggests a substantial hidden fair value reserve over the current market cap valuation.

Full report can be downloaded here.