FIMBank Group has posted a modest profit of €135,887 (USD 149,989) for 2024, a slight improvement from its break-even result the previous year.

FIMBank is a leading provider of trade finance, factoring and forfaiting solutions, with a global presence in various important financial and trading centres.

The results, while modest from a net income perspective, reflect a 43 per cent increase in pre-tax profit to €7.5 million (USD 8.3 million), up from €5.5 million (USD 5.8 million) in 2023 – highlighting operational improvements and strategic discipline.

In his first year as Group CEO, Simon Jethro Lay steered the organisation through a year defined by inflation, geopolitical instability, and interest rate volatility. Mr Lay emphasised the underlying progress in cost control, portfolio quality, and operational efficiency.

Crucially, FIMBank maintained its zero material non-performing loan (NPL) record for the fifth consecutive year and reduced its NPL ratio to 2.85 per cent, down from 20 per cent in 2020 – underscoring its robust risk management and recovery efforts. Over €10 million (USD 12.1 million) was recovered from non-performing exposures during the year.

FIMBank's subsidiaries contributed significantly to group performance:

• London Forfaiting Company Ltd (LFC) delivered €10 million (USD 11.1 million) in pre-tax profit despite reduced trading assets, and returned €36 million (USD 40 million) in share capital to the parent company, strengthening group liquidity.
• India Factoring and Finance Solutions posted a 165 per cent surge in pre-tax profit to €3.9 million (USD 4.3 million), driven by digitalisation, portfolio diversification, and a successful loan recovery.
• Egypt Factors sustained profitability with €1.3 million (USD 1.4 million) in pre-tax profit, maintaining stable operations in a challenging economic climate.

Financial highlights

Despite a €3.1 million (USD 3.4 million) dip in net interest income, FIMBank reduced operating expenses by nearly €3.1 million (USD 3.4 million), thanks to lower legal fees and strategic transformation cost savings. Trading losses were more contained at €1.4 million (USD 1.5 million), significantly lower than 2023.

The group ended 2024 with a Total Capital Ratio (TCR) of 21.3 per cent, and liquidity indicators remained solid, with a Liquidity Coverage Ratio (LCR) of 352 per cent and Net Stable Funding Ratio (NSFR) of 158 per cent, comfortably exceeding regulatory requirements.

group assets declined by €393.4 million (USD 434.5 million) (27.5 per cent) to €1 billion (USD 1.15 billion), reflecting deliberate liquidity optimisation. A sizeable reduction in balances with the Central Bank of Malta, trading assets, and term loans contributed to this contraction. Nonetheless, average loan volumes to customers increased slightly – evidence of a focused lending strategy.

Investment, efficiency and ESG

In early 2025, FIMBank secured a €18.1 million (USD 20 million) subordinated loan from its majority shareholder to support asset growth. It also increased its investment in India Factoring to boost regulatory capital.

Digital transformation remains a key priority. The bank’s upgraded internet banking platform and the rollout of Euro Instant Payments – set to launch in early 2025 – demonstrate its customer-centric innovation.

On the ESG front, FIMBank continues to align with EU standards, and its CSR efforts in 2024 included cultural sponsorships, philanthropic donations, and sustainability initiatives to mark its 30th anniversary.