FIMBank Plc

Annual / Quarterly Financial Statement • Mar 14, 2018

COMPANY ANNOUNCEMENT

The following is a Company Announcement issued by FIMBank p.l.c. ("FIMBank" or the "Bank") pursuant to the Malta Financial Services Authority Listing Rules 5.16 and 5.54:

Quote

The Board of Directors of FIMBank met in Malta on 13 March 2018 to approve the Consolidated Audited Financial Statements for the financial year ended 31 December 2017. A preliminary Statement of Results for the financial year ended 31 December 2017 is attached to this Company Announcement and has been made available for public viewing on the Company's website at www.fimbank.com.

The Board of Directors resolved that the Consolidated Audited Financial Statements be submitted for approval by the shareholders at the forthcoming Annual General Meeting to be held in Malta on 9 May 2018. At the General meeting, the Board of Directors will not be recommending a dividend.

Unquote

Andrea Batelli Company Secretary

14 March 2018

FIMBank p.l.c. Preliminary statement of annual results For the year ended 31 December 2017

general

review of performance

comparative information

income statements

financial position

outlook for 2018

dividends and reserves

income statements

	Group		Bank
		2016
	2017 USD	(restated) USD	2017 USD	2016 USD
Interest income	51,154,831	45,015,303	28,323,748	24,663,531
Interest expense	(26,225,818)	(23,051,984)	(17,738,857)	(16,542,171)
Net interest income	24,929,013	21,963,319	10,584,891	8,121,360
Fee and commission income	23,992,907	20,090,223	11,048,533	10,021,804
Fee and commission expense	(5,477,428)	(5,252,886)	(2,482,765)	(2,009,569)
Net fee and commission income	18,515,479	14,837,337	8,565,768	8,012,235
Net trading results	(1,807,839)	(3,645,603)	(3,140,286)	(1,063,498)
Net gain from other financial instruments carried at fair value	108,622	3,373,807	108,622	3,373,807
Net fair value gains on previously-held interests in equity-accounted
investees		771,654
Dividend income (Loss)/gain upon loss of control of	5,997,942	5,455,550	10,446,343	5,455,550
subsidiary undertaking	(656,661)	777,677
Fair value gain/(loss) on investment property	3,444,802	(15,355)
Other operating income	1,135,085	2,613,557	87,088	407.519
Operating income before net impairment	51,666,443	46,131,943	26,652,426	24,306,973
Net impairment reversal/(charge) on
financial assets	2,297,034	(2,299,116)	(767,889)	(2,311,574)
Operating income	53,963,477	43,832,827	25,884,537	21,995,399
Administrative expenses	(40,027,409)	(35,692,670)	(24,785,664)	(20,727,352)
Depreciation and amortisation	(2,260,523)	(2,901,249)	(922,457)	(869,126)
Total operating expenses	(42,287,932)	(38,593,919)	(25,708,121)	(21,596,478)
Operating profit	11,675,545	5,238,908	176,416	398,921
Share of results of associates
(net of tax)	8,893	(15,447)
Profit before tax	11,684,438	5,223,461	176,416	398,921
Taxation	(561,767)	618,149	(60,598)	(58,539)
Profit from continuing operations	11,122,671	5,841,610	115,818	340,382
Loss on discontinued operations	(3,395,976)	(474,974)
Profit for the year	7,726,695	5,366,636	115,818	340,382

income statements

	Group		Bank
		2016
	2017	(restated)	2017	2016
	USD	USD	USD	USD
Attributable to:
Equity holders of the bank	7,519,632	5,023,008	115,818	340,382
Non-controlling interests	207,063	343,628
Profit for the year	7,726,695	5,366,636	115,818	340,382
Profit per share
Basic profit per share (US cents)	2.40	1.62	0.04	0.11
Diluted profit per share (US cents)	2.40	1.62	0.04	0.11
Profit per share - continuing operations
Basic profit per share (US cents)	3.49	1.77	0.04	0.11
Diluted profit per share (US cents)	3.48	1.77	0.04	0.11

statements of profit or loss and other comprehensive income

	Group			Bank
		2016
	2017	(restated)	2017	2016
	USD	USD	USD	USD
Profit for the year	7,726,695	5,366,636	115,818	340,382
Other comprehensive income:
ltems that will not be reclassified to profit or loss:
Fair value reserve (property and equipment),
net of deferred tax	6,609,072
ltems that are, or may be, reclassified to profit or loss:
Foreign currency translation differences for
foreign operations	3,967,610	(1,025,145)
Fair value reserve (available-for-sale financial
assets), net of deferred tax	1,972,641	(1,481,612)	1,972,641	(1,481,612)
Total comprehensive income/(loss) for the year
	20,276,018	2,859,879	2,088,459	(1,141,230)
Attributable to:
Equity holders of the bank	20,068,955	2,516,251	2,088,459	(1,141,230)
Non-controlling interests	207,063	343,628
Total comprehensive income/(loss) for the year	20,276,018	2,859,879	2,088,459	(1,141,230)

statements of financial position

As at 31 December 2017

	Group		Bank
		2016
	2017	(restated)	2017	2016
	USD	USD	USD	USD
Assets
Balances with the Central Bank of
Malta, Treasury Bills and cash	208,171,299	33,193,245	208,147,513	33,165,601
Trading assets	252,509,144	379,397,964
Derivative assets held for risk
management	722,256	1,502,704	722,256	1,502,704
Financial assets designated at fair
value through profit or loss		17,799,900		17,799,900
Loans and advances to banks	226,092,934	454,362,226	203,552,663	438,799,241
Loans and advances to customers	566,361,530	426,612,356	581,529,952	589,579,473
Investments available-for-sale	261,244,798	327,076,529	261,244,798	327,075,827
Interests in equity-accounted
investees	5,561,181
Investments in subsidiaries			94,050,884	86,305,594
Non-current assets held for sale		1,161,332
Property and equipment	29,660,743	27,831,524	1,035,490	1,305,432
Investment property	16,238,869	6,932,960
Intangible assets and goodwill	11,984,948	11,701,935	2,736,599	2,467,630
Current tax assets	3,306,366	3,695,826	1,052,348	1,052,348
Deferred tax assets	41,023,245	41,882,687	23,303,267	23,335,459
Other assets	12,747,974	4,263,474	9,005,794	2,613,913
Prepayments and accrued income	7,776,171	7,031,898	7,054,755	6,148,570
Total assets	1,643,401,458	1,744,446,560	1,393,436,319	1,531,151,692
Liabilities and Equity
Liabilities
Derivative liabilities held for risk
management	722,922	8,816,410	723,454	8,834,092
Amounts owed to banks	493,192,846	528,939,251	393,247,791	426,137,477
Amounts owed to customers	847,198,005	948,710,544	815,812,570	915,367,604
Debt securities in issue	54,653,654	8,225,869
Subordinated liabilities	50,000,000	50,000,000	50,000,000	50,000,000
Current tax liabilities	357,509	1,437
Deferred tax liabilities	3,518,684	554,636
Other liabilities	829,197	569,758	793,060	535,339
Accruals and deferred income	20,034,283	20,917,768	7,818,090	7,422,362
Total liabilities	1,470,507,100	1,566,735,673	1,268,394,965	1,408,296,874
Equity
Share capital	157,265,562	155,239,263	157,265,562	155,239,263
Share premium	173,113	2,101,335	173,113	2,101,335
Reserve for general banking risks	608,284	764,792	608,284	764,792
Currency translation reserve	(2,747,913)	(6,715,522)
Fair value reserve	9,533,453	951,740	81,501	(1,891,140)
Other reserve	2,870,270	2,481,760	2,681,041	2,681,041
Retained earnings / (accumulated
losses)	6,901,064	(386,566)	(35,768,147)	(36,040,473)
Total equity attributable to equity
holders of the bank	174,603,833	154,436,802	125,041,354	122,854,818
Non-controlling interests	(1,709,475)	23,274,085
Total equity	172,894,358	177,710,887	125,041,354	122,854,818
Total liabilities and equity	1,643,401,458	1,744,446,560	1,393,436,319	1,531,151,692

statements of financial position

As at 31 December 2017

	Group		Bank
	2017 USD	2016 USD	2017 USD	2016 USD
Memorandum Items
Contingent liabilities	1,186,426	6,507,529	57,601,096	19,782,148
Commitments	353,893,273	186,030,894	254,253,843	120,282,416

For the year ended 31 December 2017

Group

		Attributable to equity shareholders of the Bank
	Share capital USD	Share premium USD	Reserve for general banking risks USD	Currency translation reserve USD	Fair value reserve USD	Other reserve USD	(Accumulated losses)/ Retained earnings USD	Total USD	Non- controlling interests USD	Total equity USD
At 1 January 2017 (restated)	155,239,263	2,101,335	764,792	(6,715,522)	951,740	2,481,760	(386,566)	154,436,802	23,274,085	177,710,887
Total comprehensive income Comprehensive income for the year Profit for the year							7,519,632	7,519,632	207,063	7,726,695
Other comprehensive income Change in fair value of available-for-sale assets Change in fair value of property and equipment Currency translation reserve				3,967,609	1,972,641 6,609,072			1,972,641 6,609,072 3,967,609	(118,923)	1,972,641 6,609,072 3,848,686
Total comprehensive income			-	3,967,609	8,581,713	-	7,519,632	20,068,954	88,140	20,157,094
Transactions with owners of the Bank Contributions and distributions lssue of new shares, net of transaction costs Bonus issue of shares	85,067 1,941,232	13,010 (1,941,232)						98,077		98,077
Changes in ownership interests Loss of control in subsidiaries									(25,071,700)	(25,071,700)
Total transactions with owners of the Bank	2,026,299	(1,928,222)	-	-	-	-	-	98,077	(25,071,700)	(24,973,623)
Transfer between reserves			(156,508)			388,510	(232,002)			-
As at 31 December 2017	157,265,562	173,113	608,284	(2,747,913)	9,533,453	2,870,270	6,901,064	174,603,833	(1,709,475)	172,894,358

For the year ended 31 December 2016

Group

	Attributable to equity shareholders of the Bank
	Share capital USD	Share premium USD	Reserve for general banking risks USD	Currency translation reserve USD	Fair value reserve USD	Other reserve USD	Accumulated losses) USD	Total USD	Non- controlling interests USD	Total equity USD
At 1 January 2016 (restated)	149,268,322	8,072,276	1,000,027	(5,690,377)	2,433,352	2,486,644	(5,644,809)	151,925,435	25,837,059	177,762,494
Total comprehensive income Comprehensive income for the year Profit for the year							5,023,008	5,023,008	343,628	5,366,636
Other comprehensive income Change in fair value of available-for-sale assets Currency translation reserve				(1,025,145)	(1,481,612)			(1,481,612) (1,025,145)	340,693	(1,481,612) (684,452)
Total comprehensive income			-	(1,025,145)	(1,481,612)	-	5,023,008	2,516,251	684,321	3,200,572
Transactions with owners of the Bank Contributions and distributions Issue of new shares, net of transaction costs Bonus issue of shares	5,970,941	(5,970,941)				(4,884)		(4,884)		(4,884)
Changes in ownership interests Change in non-controlling interests at subsidiaries Acquisition of non-controlling interests									(3,247,295)	(3,247,295)
Total transactions with owners of the Bank	5,970,941	(5,970,941)				(4,884)		(4,884)	(3,247,295)	(3,252,179)
Transfer between reserves			(235,235)				235,235			-
As at 31 December 2016 (restated)	155.239.263	2.101.335	764.792	(6.715.522)	951.740	2.481.760	(386,566)	154.436.802	23.274.085	177.710.887

For the year ended 31 December 2017

Bank

As at 31 December 2017	157,265,562	173,113	608,284	81,501	2,681,041	(35,768,147)	125,041,354
Transfer between reserves			(156,508)			156,508	-
Total transactions with owners of the Bank	2,026,299	(1,928,222)	-	-	-		98,077
Bonus issue of shares	1,941,232	(1,941,232)
Issue of new shares, net of transaction costs	85,067	13,010					98,077
Transactions with owners of the Bank Contributions and distributions
Total comprehensive income	-		l	1,972,641	l	115,818	2,088,459
Other comprehensive income Change in fair value of available-for-sale assets			-	1,972,641			1,972,641
Total comprehensive income Total comprehensive income for the year Profit for the year						115,818	115,818
At 1 January 2017	155,239,263	2,101,335	764,792	(1,891,140)	2,681,041	(36,040,473)	122,854,818
	Share capital USD	Share premium USD	Reserve for general banking risks USD	Fair value reserve USD	Other reserve USD	Accumulated losses USD	Total USD

For the year ended 31 December 2016

Bank

	Share capital USD	Share premium USD	Reserve for general banking risks USD	Fair value reserve USD	Other reserve USD	Accumulated osses USD	Total USD
At 1 January 2016	149,268,322	8,072,276	1,000,027	(409,528)	2,681,041	(36,616,090)	123,996,048
Total comprehensive income Total comprehensive income for the year Profit for the year						340,382	340,382
Other comprehensive income Change in fair value of available-for-sale assets				(1,481,612)			(1,481,612)
Total comprehensive income			-	(1,481,612)	l	340,382	(1,141,230)
Transactions with owners of the Bank Contributions and distributions Bonus issue of shares	5,970,941	(5,970,941)					l
Total transactions with owners of the Bank	5,970,941	(5,970,941)					l
Transfer between reserves			(235,235)			235,235	l
As at 31 December 2016	155.239.263	2.101.335	764.792	(1.891.140)		2.681.041 (36.040.473) 122.854.818

statements of cash flows

	Group		Bank
	2017	2016	2017	2016
	USD	USD	USD	USD
Cash flows from operating activities
Interest and commission receipts	69,434,270	58,296,267	41,196,846 (14,976,712)	32,048,919 10,702,723
Exchange (paid)/received Interest and commission payments	(14,908,684) (32,050,892)	16,445,346	(20,744,553)	(20,292,680)
Payments to employees and suppliers	(38,531,400)	(21,351,959)	(24,537,766)	(18,963,879)
		(36,929,887)
Operating profit before changes in operating
assets / liabilities	(16,056,706)	10,459,767	(19,062,185)	3,495,083
(Increase) / decrease in operating assets:
- Trading assets and financial assets at fair value
through profit or loss	133,999,936	(21,198,615)
- Loans and advances to customers and banks	(7,413,328)	(73,893,234)	35,758,424	(105,787,528)
- Other assets	(8,900,431)	(1,973,550)	(6,391,881)	(761,314)
Increase / (decrease) in operating liabilities: - Amounts owed to customers and banks
- Other liabilities	(117,953,924) 262,508	261,462,741 (2,892,277)	(148,395,307) 3/1,024	297,386,325 399,506
- Net advances from subsidiary companies			158,474,611	17,481,718
Net cash (absorbed by)/generated from
operating activities before income tax	(16,061,945)	171,964,832	20,754,686	212,213,790
Income tax (paid)/refunded	69,852	589,969	(60,598)	(1,113,256)
Net cash flows (used in)/from operating activities	(15,992,093)	172,554,801	20,694,088	211,100,534
Cash flows from investing activities
- Payments to acquire property and equipment	(363,629)	(626,032)	(195,368)	(307,742)
- Payments to acquire intangible assets	(763,786)	(1,719,375)	(/2/,136)	(1,672,306)
- Payments to acquire shares in subsidiary company			(10,304,042)	(6,359,342)
- Payments to acquire shares in equity-accounted
investees		(1,359,346)
- Payments to acquire shares in other investments		(25,317,000)		(25,317,000)
- Payments to acquire available-for-sale financial assets		(30,187,210)		(30,187,210)
- Proceeds on disposal of property and equipment	723,200	5,755,200	2,674	550,255
- Proceeds on disposal of intangible assets	24,037
- Proceeds on disposal of other investments	9,674,022		9,673,320
- Proceeds on disposal of investments held-to-maturity		7,800,000		7,800,000
- Proceeds on disposal of available-for-sale financial
assets	62,397,260		62,397,260
- Proceeds on disposal of financial assets at fair value
through profit or loss	17,870,000		17,870,000
- Receipt of dividend	5,759,405	5,455,550	10,207,806	5,455,550
Net cash flows from/(used in) investing activities	95,320,509	(40,198,213)	88,924,514	(50,037,795)
Increase in cash and cash equivalents c/f	79,328,416	132,356,588	109,618,602	161,062,739

statements of cash flows

	Group		Bank
	2017	2016	2017	2016
	USD	USD	USD	USD
Increase in cash and cash equivalents b/f	79,328,416	132,356,588	109,618,602	161,062,739
Cash flows from financing activities
- Issue of share capital	98,077		98,077
- Share issue costs		(4,884)
- Net movement in debt securities	46,427,785	(31,420,886)		(20,000,000)
Net cash flows from/(used in) financing activities	46,525,862	(37,425,770)	98,077	(20,000,000)
Increase in cash and cash equivalents	125,854,278	94,930,818	109,716,679	141,062,739
Analysed as follows:
- Effect of exchange rate changes on cash and cash
equivalents	20,583,682	(220,859)	12,457,343	263,035
- Net increase in cash and cash equivalents	105,270,596	95,151,677	97,259,336	140,799,704
Increase in cash and cash equivalents Cash and cash equivalents at beginning of year	125,854,278	94,930,818	109,716,679	141,062,739
	52,822,344	(42,108,474)	43,676,466	(97,386,273)
Cash and cash equivalents at end of year	178,676,622	52,822,344	153,393,145	43,676,466