Fibank – 2025 individual results

2025 Individual Results

• Fibank’s 2025 unconsolidated net profit increased by 32.6% YoY to EUR 3m. This happened after 2.2% YoY growth in Net Interest Income to EUR 223m and the 5.7% increase in the Net fee and commission income to EUR 88.9m.
• While Net Income increased massively, it is not indicative of the way operations have gone for the last year. Total income from banking operations decreased by 4.8% to EUR 274.3mln and changes in Other Net Operating Income, Other Net Expenses and Allowance for Impairment resulted in the significant change of Net Income.
• Other Net Operating Income (which is negative) increased in nominal terms by 82% to EUR 50.8mln. The change came from increase in the negative value of held debt instruments. This is likely the result of the bond from SG Group, which the bank held and which we have discussed in earlier analysis but it is also likely that this is the last quarter, where the effect of this appears in the financials.
• Allowance for Impairment recorded changes in receivables from clients, which resulted in a decrease in Impairment of EUR 11.6mln.
• Other Net Expenses recorded a massive change going from nearly zero to positive EUR 35.4mln, which was solely the result of reevaluation of investment properties. Without just this change, Net Profit would be down by 46.7% to EUR 33.9mln.
• Gross loans portfolio added 5% to EUR 4.63bn. The greatest contributor was retail lending, where mortgages added EUR 200mln going up by 26.9% and consumer loans, which increased by 24.7% adding EUR 164mln. Corporate loans added a total of EUR 218mln, where key driver was large corporates adding EUR 130mln. Considering that the FED is unlikely to decrease interest rates till the end of the year, operating and focusing on retail lending would definitely give an edge in the following quarters. The growing Bulgarian mortgage market will also be a plus. A possible stopping factor would be the increased capital buffer requirements by the central bank, but that is expected to take effect in Q2 2027, which means that with the right strategy the bank can reap the benefits in the next 6 quarters.

Full report can be downloaded here.