First Investment Bank AD – Q1 2025 Individual Results

First Investment Bank AD

Q1 2025 Individual Results

• Fibank’s Q1 2025 unconsolidated net profit increased nearly 139% YoY to EUR 8m. This happened after 9.8% YoY growth in Net Interest Income to EUR 56.6m and the 8.3% increase in the Net fee and commission income to EUR 20.7m. The major change in Other net operating income (by nearly EUR 13m) helped massively for the end result.
• The decrease in the main account in Other net operating income by EUR 15.3m (a loss in debt instrument, which are no longer there) are the after effect from the problem with SG Group described in previous reports. Additionally, the movement in Investments in Securities in the Balance Sheet seems to be from the restructuring of the asset portfolio – the bank has bought nearly EUR 12m BGN denominated and EUR 4.7m EUR denominated Bulgarian government bonds. Considering the higher rates, which the Ministry of Finance placed them on, this might be a great step for the short to mid term.
• Total operating income increased by 31% YoY to EUR 78.6m. The business generally grew steady (both interest and fees), but since Net Interest income and Net fee and commissions income grew by less than 10%, the real reason why operating income grew so much is that the saga from the SG Group funding fallout is behind.
• The gross sum of overdue loans with delay of over 90 days was EUR 236m, which was a 4.5% decline from its Q1 2024 level of 247mln.
• Gross loans portfolio added 3.9% to EUR 4.2bn. The greatest contributor was consumer loans, which grew 9% to represent 17.2% of the portfolio. Additionally, corporate banking was also helpful as both large corporates (2.6% growth) and SMEs (2.8% growth) were able to add the same amount at Consumer loans. However, considering corporate loans are more strategic from borrowers’ perspective (compared to consumer loans), we see a decline in the rise of those (previous quarterly review showed nearly double digit growth, while earlier in 2024 recorded growths were 10.5% (large corps) and 16.3% (SMEs). Global rising interest rates have a clear impact on the size of the portfolio.

Full report can be accessed here.