Contents
Chairman’s statement to the shareholders
1
FIMBank group performance 2024
2
Directors’ report
6
Statement of compliance with the principles of good corporate governance
16
Remuneration report
27
Financial statements:
Statements of financial position
46
Statements of profit or loss
48
Statements of other comprehensive income
49
Statements of changes in equity
50
Statements of cash flows
54
Notes to the financial statements
56
Statement by the directors pursuant to capital markets rule 5.68
192
Schedules to the annual report
Statements of profit or loss – 5 year summary
193
Statements of financial position – 5 year summary
194
Cash flow statements – 5 year summary
195
Accounting ratios – 5 year summary
196
Directors and executive management
197
FIMBank Group Annual Report & Financial Statements 2024
1
Chairman’s statement to the shareholders
Dear Shareholder,
As we close another fiscal year, I take this opportunity to reflect on the progress, challenges, and strategic direction of FIMBank Group. Against a
backdrop of geopolitical uncertainties, global economic fluctuations, and shifting financial landscapes, the Group has remained resilient, focusing
on strengthening its position, driving operational improvements, and enhancing financial stability.
For the year ending 31 December 2024, FIMBank Group reported a pre-tax profit of USD8.3 million, reflecting a notable improvement over the
previous year’s USD5.8 million. However, after accounting for taxes, the Group's net profit stood at USD149,989, representing only a slight
improvement over the break-even figure of USD7,674 in 2023. Although this result still falls short of expectations, it underscores the Group’s ability
to maintain stability amid economic challenges. At the same time, it highlights the importance of reinforcing efforts to enhance profitability and
deliver long-term value to Shareholders.
While we acknowledge the efforts and tangible progress made, the financial results also underscore the challenges encountered during the year.
The economic environment in 2024 remained complex, with higher interest rates, inflationary pressures, and supply chain disruptions affecting
global markets. The persistence of conflicts in Ukraine and the Middle East, alongside volatility in financial markets, placed further strain on
businesses worldwide. Despite these adversities, FIMBank remained resilient, capitalising on selective opportunities while reinforcing its financial
and operational foundations.
Transparency and accountability remain at the core of FIMBank’s philosophy. We are committed to forthright communication with Shareholders,
ensuring that both challenges and achievements are addressed with integrity. I take this opportunity to extend my sincere gratitude to our majority
Shareholder, KIPCO Group, for their steadfast commitment and ongoing support. Their trust and strategic backing have been instrumental as we
drive forward our transformation and growth objectives.
Under the leadership of Group Chief Executive Officer, Mr. Simon Jethro Lay, the Bank remains focused on driving operational improvements,
enhancing efficiencies, and reinforcing financial discipline across the Group. A highly respected authority in trade finance, Mr. Lay brings decades of
industry expertise, a deep understanding of global financial markets, and a proven track record in risk management, forfaiting, and trade finance
solutions.
Having been part of the Group’s leadership team for many years, Mr. Lay knows the Group well. Since 2003, he has played a pivotal role in shaping
the growth and strategic direction of London Forfaiting Company Ltd. He later took on broader responsibilities within FIMBank, serving as Acting
CEO in 2015 and subsequently as Deputy CEO for nearly a decade, gaining invaluable insight into every aspect of the Bank’s operations. His hands-
on experience and deep institutional knowledge allow him to steer FIMBank with a clear vision and strong strategic focus.
I also wish to acknowledge the contributions of the Board of Directors, Management, and employees - the collective force behind the Bank’s
progress. Their commitment, expertise, and dedication have enabled us to navigate challenges while positioning the Bank for further growth and
innovation.
Looking ahead, the global economic outlook for 2025 remains challenging but with reasonable prospects for moderate growth across financial
markets. As interest rate environments evolve and geopolitical tensions persist, the need for agility, resilience, and forward-thinking strategies will
be more crucial than ever. As FIMBank enters 2025, our focus remains on sustaining revenue growth through careful asset selection and disciplined
capital allocation. We continue to streamline operations, driving cost efficiencies through process refinements and consolidations. Advancing our
digital capabilities remains a priority, ensuring our platforms and services evolve to meet client needs. At the same time, we are refining our risk
management framework to maintain a stable and well-diversified portfolio, positioning the Bank for long-term resilience and growth.
While challenges remain, I firmly believe that the decisive steps taken over the past few years have established a solid foundation for the future,
positioning the Bank for sustained progress and stability. Their steadfast support has enabled the Bank to execute its strategy with discipline. I also
extend my appreciation to our clients and partners for their trust, as well as to our employees and leadership team for their relentless dedication
and hard work.
Together, we have navigated challenges, embraced change, and worked diligently to fortify our institution. As we look ahead, I remain confident
that FIMBank Group will continue to adapt and evolve, further strengthening its position as a resilient and dynamic organisation, guided by our core
principles and values.
Signed by Dr. John C. Grech (Chairman) on 9 April 2025
FIMBank Group Annual Report & Financial Statements 2024
2
FIMBank group performance 2024
CEO’s message
As we reflect on the financial year ending 31 December 2024, I acknowledge that while our overall financial results may have fallen short of our
Shareholders’ expectations, they also highlight key areas of progress and positive momentum that positions us for sustainable growth. The Group
achieved a 43% increase in pre-tax profit, reaching USD8.3 million compared to USD5.8 million in the previous year. While post-tax profit stood at
USD149,989, reflecting the impact of ongoing challenges, our ability to drive substantial pre-tax growth highlights the resilience of our business
model and the effectiveness of our strategic initiatives.
Having taken over as Group Chief Executive Officer in the third quarter of 2024 (although I have been part of the organisation since 2003), I am fully
aware of the work that remains to be done, and the steps required to drive meaningful progress in delivering better financial results.
It is important to consider that our financial performance should be viewed in the appropriate context. While the reported figures may not yet fully
capture the impact of our ongoing transformation, the significant advancements achieved in risk management, operational efficiency, and business
stability should provide a stronger foundation for the future. These efforts are expected to position the Group for greater resilience and deliver
improved financial outcomes in the years ahead.
As mentioned, FIMBank Group recorded a post-tax profit of USD149,989, up from a break-even result of USD7,674 in 2023. Although tax provisions
continued to weigh on our net results, the Group's ability to sustain profitability in a challenging global economic environment reflects the
effectiveness of our strategic direction and disciplined risk management.
For the fifth consecutive year, the Group recorded no new material non-performing loans, demonstrating the impact of prudent risk management,
diversified portfolios, and robust recovery processes. A total of USD12.1 million was successfully recovered from non-performing clients, further
strengthening our asset quality and regulatory position. In addition, we wrote off certain fully provisioned exposures (refer to Note 4.2.1.5) where
recovery prospects were deemed remote, allowing us to reallocate resources towards more strategic initiatives.
Since my appointment as FIMBank Group CEO, I have witnessed first-hand the steadfast commitment and determination of our team. As we navigate
an increasingly complex global environment, we remain focused on maintaining a stable, scalable business model that positions us for future growth.
With the continued support of our Shareholders, we are well-equipped to drive sustained value and capitalise on opportunities within the global
banking space.
Last year marked a significant milestone for the Group, as FIMBank celebrated its 30
th
anniversary and London Forfaiting Company its 40
th
anniversary, reflecting decades of expertise in trade finance and financial services. These anniversaries reaffirm the trade finance expertise that is
embedded within our Group, the knowledge and cohesiveness of our people, and our long-standing commitment to the industry. As we look ahead,
we remain dedicated to honouring this legacy by evolving, innovating, and strengthening our position in global finance.
Overview of financial results
The Group’s financial performance in 2024 was driven mainly by effective cost reductions and continued efforts to maintain diversified revenue
generation. Net interest income declined slightly due to higher interest expenses; however, margins remained robust, reflecting effective portfolio
management and resilience in a changing rate environment. Net fee and commission income also improved.
Operating expenses were well contained, driven by effective cost reductions, lower legal fees, and improved operational processes - reflecting the
Group’s ongoing commitment to optimising operations and driving sustainable cost efficiency. Net trading losses were also well contained, declining
from previous year - reflecting improved market positioning and risk management practices.
The Group sustained a robust capital position, ending the year with a Total Capital Ratio (TCR) of 21.3%, well above the regulatory minimum
requirement. Liquidity levels maintained a strong capital position, with a Liquidity Coverage Ratio (LCR) of 352% and a Net Stable Funding Ratio
(NSFR) of 158%, both comfortably exceeding regulatory minimums. These indicators demonstrate the Group’s steadfast commitment in maintaining
financial stability and operational resilience in a challenging economic landscape.
FIMBank Group Annual Report & Financial Statements 2024
3
Business unit performance
Trade Finance
Trade Finance remained a core focus, within the Group maintaining a stable client base while selectively expanding in key markets. The Bank
continued the activity of streamlining processes and remained focused on improving service delivery while enhancing efficiency in handling trade
finance transactions. With a dedicated focus on supporting clients, operations were optimised to ensure faster processing times, better client
engagement, and improved transaction execution. The Malta Head Office and Dubai DIFC Branch played a pivotal role in servicing trade finance
clients, leveraging their strategic locations to provide tailored solutions, strengthen relationships, and enhance operational responsiveness in key
markets.
FIMBank is a recognised name in the international trade finance market, with a strong reputation built on expertise and reliability. We aim to
leverage this standing by positioning ourselves as specialists with deep knowledge of complex trade transactions and global trade flows, ensuring
we continue to provide tailored solutions that meet the evolving needs of our clients.
Corporate Finance
The Bank's Real Estate Finance unit has continued to support residential and commercial development projects in Malta, maintaining a stable and
well-performing portfolio since its establishment in 2016. Adopting a selective approach, the Bank has prioritised quality projects and nurtured long-
term relationships with clients it has been working with since inception. This strategy has reinforced its position as a trusted partner in the real
estate sector, ensuring steady growth through repeat business and carefully managed risk.
As a specialist bank, FIMBank’s Malta Business Banking unit offers a distinctive alternative to traditional lenders, leveraging its trade finance
expertise to provide tailored solutions that bridge conventional corporate banking with a dynamic, international trade-focused approach. This
unique blend of structured financing and trade finance thinking, positions the Bank as a strong partner for Maltese businesses seeking flexibility and
expertise beyond conventional banking models.
In 2024, the Bank made progress in expanding its Malta Business Banking offering, successfully onboarding established Maltese corporates across
various industries. The Bank has been actively providing working capital solutions, general banking facilities, and revolving loans, supporting the
financial needs of local businesses. This early progress highlights the opportunity for continued growth and diversification. It positions the Bank to
selectively expand its presence in Malta’s corporate sector while also exploring new avenues for sustainable growth and enhancing its portfolio in
a focused and strategic manner.
London Forfaiting Company Ltd (“LFC”)
LFC continued to build on its core strengths, demonstrating resilience, strategic discipline, and adaptability in a dynamic and evolving market. While
there was a decline in forfaiting assets held for trading towards the end of the year, the average exposure remained broadly in line with 2023 levels.
Despite a challenging macroeconomic landscape - including the continued geopolitical tensions arising from the Russia-Ukraine war, and market
uncertainties in the Middle East - the company reported a pre-tax profit of USD11.1 million. These results underscore LFC’s ability to prudently
navigate complex global challenges while delivering sustainable, risk-adjusted returns.
As a key subsidiary of FIMBank, LFC will continue to play an instrumental role in supporting the Group’s strategic objectives in the years ahead. Its
expertise in structured trade finance and established international presence provides a strong foundation for expanding global reach and enhancing
revenue diversification. With its disciplined approach to risk and portfolio management, LFC remains well-positioned to complement FIMBank’s
broader strategy, ensuring that selective market participation and credit fundamentals remain at the core of its operations. As the Group refines its
long-term vision, LFC’s role in delivering sustainable growth and reinforcing FIMBank’s position in trade finance will be increasingly significant.
India Factoring and Finance Solutions Private Ltd (“India Factoring”)
India Factoring remains a leading provider of factoring services in India, retaining its strong market position in supporting small and medium
enterprises with tailored working capital solutions. By providing clients with immediate liquidity, the subsidiary enables businesses to smooth cash
flow requirements, improve financial planning and optimise financial performance. The Entity has maintained a stable portfolio while continuing to
meet the financing needs of its clients.
India Factoring reported a pre-tax profit of USD4.3 million for 2024, representing more than a twofold increase over the previous year. The increase
reflects the impact of operational improvements, enhanced digital capabilities, and prudent risk management. The performance was further
supported by the successful recovery of a legacy non-performing loan. The Entity strategically diversified its portfolio across multiple sectors, with
a considerable portion of the portfolio supported by credit insurance, effectively managing sector-specific risks.
FIMBank Group Annual Report & Financial Statements 2024
4
India Factoring’s achievements during the year have also been recognised through industry awards, highlighting its strong market presence and
continued growth. These awards reflect its commitment to excellence in the factoring industry and its effective market engagement strategies,
reinforcing its position as a trusted financial partner for businesses in India. With a proven track record in factoring and trade finance, the Entity
remains well-positioned to expand its market reach and further enhance its service offering while maintaining a disciplined approach to credit and
portfolio management.
The Egyptian Company for Factoring S.A.E. (“Egypt Factors”)
Egypt Factors is a leading provider of factoring services in Egypt, recognised for its pioneering role in the industry and strong market position. As the
first licensed Egyptian company specialising in factoring, the subsidiary has established itself as a trusted partner for businesses seeking efficient
working capital solutions. It continues to support its clients by providing high-quality accounts payable solutions through reverse factoring, helping
them optimise cash flow and efficiently meet supplier obligations while aligning with buyer expectations.
In 2024, Egypt Factors maintained a stable invoice turnover, demonstrating its operational resilience amid a challenging economic landscape. The
Entity successfully secured external funding from multiple banking partners, further reinforcing its financial position and liquidity.
Despite having a reduced factoring portfolio, Egypt Factors delivered a solid performance, reporting a pre-tax profit of USD1.4 million, reflecting its
ability to adapt to market shifts while maintaining financial stability.
With its established reputation and extensive market expertise, Egypt Factors remains well-positioned to capture new opportunities and reinforce
its leadership in Egypt’s financial sector. The subsidiary will continue to focus on expanding its client base, strengthening relationships, and delivering
tailored financial solutions to support economic activity and business growth in the country.
Our people
At FIMBank, we know that the foundation and values of our success rests with our people. The dedication and commitment of our employees drive
the Bank’s ability to deliver high-quality, dynamic, and innovative financial services. Within an organisation like FIMBank, employees gain unique
exposure to international trade, and banking, broadening their horizons and developing a global perspective that sets them apart in the industry.
Each team member plays a crucial role in upholding our reputation for excellence and customer service, reinforcing FIMBank’s position as a trusted
institution. We remain committed to fostering a work environment that supports professional growth, collaboration, and engagement, equipping
our employees with the skills and experiences necessary to thrive in an increasingly interconnected financial landscape.
Environmental, social and governance (ESG) commitment
FIMBank recognises the importance of Environmental, Social, and Governance (ESG) principles and their growing role in the financial sector. As a
global institution, the Group acknowledges its influence on communities, business practices, and the environment. To support these efforts,
FIMBank continues to work with external specialists to implement an ESG framework that aligns with the European Union’s ESG objective. As the
ESG landscape evolves, FIMBank will continue to assess and refine its strategy in response to regulatory and market expectations.
Technology and digital advancements
FIMBank remains committed to enhancing its digital banking infrastructure, ensuring a seamless, secure, and efficient experience for its customers.
As part of this commitment, the Bank successfully upgraded its internet banking platform, FIMBank Direct, introducing enhanced functionalities,
improved accessibility, and a more intuitive user interface. These enhancements reflect the Bank’s focus on continuous innovation and customer-
centric improvements in digital banking services.
In line with its drive to modernise payment solutions, FIMBank worked throughout 2024 on a strategic project led by the IT team to launch Incoming
Euro Instant Payments in January 2025. This new service allows incoming Euro transactions to be processed in under 10 seconds, 24/7, including
weekends and public holidays. Aligned with the EU’s Instant Payments Regulation, it enables customers to receive transfers of up to Euro 100,000
almost instantly. The introduction of real-time payments significantly strengthens the Bank’s offering by enhancing cash flow efficiency for
businesses and providing individuals with immediate access to their funds.
Beyond these developments, FIMBank is actively upgrading and implementing new platforms across various business units, leveraging technology
to enhance efficiency and support its strategic growth objectives.
FIMBank Group Annual Report & Financial Statements 2024
5
Corporate social responsibility
FIMBank remains committed to supporting the community in which it operates, with 2024 marking a year of active engagement in cultural,
environmental, and philanthropic activities. As part of its 30
th
anniversary milestone, the Bank proudly supported the Sliema Arts Festival,
contributing to artistic projects that raised awareness on sea pollution and climate change. To commemorate this milestone, the Bank also planted
endemic trees in the Independence Gardens, in Sliema, reinforcing its commitment to sustainability, while a commemorative plaque was installed
to mark the occasion.
Further promoting Malta’s rich cultural heritage, FIMBank hosted a book launch event featuring two publications by Professor Victor Grech,
celebrating notable Maltese authors. All proceeds from the event were donated to local philanthropic organisations, Save and Support and Beating
Hearts Malta, reinforcing the Bank’s dedication to giving back to the community. In support of women in business, FIMBank partnered with SHE
Malta during Women’s Month, co-sponsoring a networking event that encouraged inclusivity and empowerment in entrepreneurship.
Throughout the year, the Bank also provided philanthropic support to various NGOs, further strengthening its role as a responsible corporate citizen
dedicated to fostering positive social impact. At FIMBank, we are committed to supporting the communities and countries where we operate,
contributing to their growth and development.
Our focus for 2025
In 2025, the Group will remain focused on revenue diversification, actively pursuing high-quality, good-yielding assets while fostering greater
collaboration and knowledge-sharing across business units. Expanding the balance sheet in a disciplined and sustainable manner will be a key
priority, ensuring that the business continues to generate value while maintaining a prudent risk appetite.
Operational efficiency will remain a key driver of long-term success. We will continue to streamline processes, reduce costs, and enhance
productivity, further solidifying the Group’s capacity to operate with agility and maintain the highest standards of service excellence. A more focused
approach to eliminating inefficiencies and optimising resources will fortify the Group’s operational framework, positioning us for sustained growth
and resilience. Investments in technology and digital enhancements will also play a crucial role in improving both customer experience and
operational resilience. Enhancing front-end digital platforms, increasing automation, and refining risk assessment models will ensure that the Group
remains agile and responsive to market developments, further strengthening its competitive edge.
Maintaining a robust risk management framework will remain a key priority, continuing the disciplined approach embedded in the Group’s risk
frameworks over the past years. The Group will uphold its selectivity in credit origination and sustain its focus on reducing non-performing loans.
Ensuring a strong risk-adjusted portfolio will reinforce financial stability and long-term resilience.
By prioritising asset growth, operational efficiency, digital transformation, and risk management, the Group will continue to build upon its
foundational strengths and position itself for sustainable success in 2025 and beyond. This strategic focus aligns with our commitment to delivering
long-term Shareholder value while adapting to the evolving market dynamics.
Concluding remarks
The progress made in 2024 reflects the hard work, resilience, and strategic initiatives undertaken across the Group. We recognise our strengths and
the challenges we face. The transformation efforts undertaken in recent years are delivering positive results, reinforcing the foundation for a
stronger and more sustainable institution. We are profoundly grateful for the steadfast support of our shareholders. Their continued confidence
fuels our commitment to enhancing shareholder value and propels us toward our strategic objectives. I extend my sincere gratitude to our
employees, Board of Directors, Shareholders, and clients for their commitment and trust. As we move forward into 2025, we remain focused on
fortifying our operational framework and driving sustainable growth. Together, we are poised to navigate the future with resilience, optimism and
creating lasting value for all stakeholders.
Signed by Mr. Simon Jethro Lay (Chief Executive Officer) on 9 April 2025
FIMBank Group Annual Report & Financial Statements 2024
6
Directors’ report
For the year ended 31 December 2024
The Directors present their report together with the Financial Statements of FIMBank p.l.c. (the “Bank”), and FIMBank Group of Companies (the
“Group”) for the year ended 31 December 2024. This report is prepared in accordance with Article 177 of the Companies Act, 1995 (Chapter 386,
Laws of Malta) (“the Companies Act”), including the further provisions as set out in the Sixth Schedule of the Companies Act.
Results for the year
For the year under review, the Group reported a profit after tax of USD149,989 (2023: USD7,674), while the Bank recorded a loss of USD3,203,686
(2023: profit of USD2,490,148).
Further information about the results are provided in the Statements of Profit or Loss and the Statements of Other Comprehensive Income on pages
48 and 49 and in the Review of Performance section within the Directors’ Report.
Group structure and principal activities
The Group comprises the Bank and its wholly owned subsidiaries, London Forfaiting Company Limited (“LFC”), FIM Property Investment Limited
(“FPI”), The Egyptian Company for Factoring S.A.E. (“Egypt Factors”), and FIMFactors B.V. (“FIMFactors”). LFC and FIMFactors are themselves parents
of a number of subsidiaries as set out in Note 26 to the Financial Statements. The Group is supervised on a consolidated basis by the Malta Financial
Services Authority (“MFSA”), while some of its subsidiaries and branches are subject to authorisation and regulation according to the respective
jurisdictions in which they operate.
A brief description of the activities in the Group follows (% shareholding follows after the name):
• The Bank is a public limited company registered under the laws of Malta and listed on the Malta Stock Exchange. It is licensed as a credit institution
under the Banking Act, 1994. The Bank is primarily engaged in international trade finance, real estate financing, factoring, and loan syndications,
The Bank has a branch registered with the Dubai International Finance Centre, United Arab Emirates, which is regulated by the Dubai Financial
Services Authority in the United Arab Emirates.
• LFC (100%) is registered in the United Kingdom as a private limited liability company. It was founded in 1984 and provides international trade
finance services, with particular focus on forfaiting business, through an international network of offices. Some of these offices have distinct
corporate status in the various jurisdictions where they are providing the service. LFC’s activities include the trading of bills of exchange,
promissory notes, loans, deferred payment letters of credit and the provision of other financial facilities to banks, corporates and companies.
On 23 May 2024, the directors of London Forfaiting Company Limited (“LFC”) resolved to reduce the issued share capital from
USD115,600,000 to USD75,600,000 by cancelling and extinguishing 40,000,000 of the issued ordinary shares of USD1.00 each in LFC,
each of which was fully paid up. This reduction in share capital is part of the strategic reorganisation of the Group.
• FPI (100%), registered in Malta, owns and manages FIMBank’s Head Office and other properties leased from third parties. FPI is responsible for
facility management activities and the leasing of commercial and office space within Mercury Tower to related parties and third-party tenants.
• Egypt Factors (100%), registered in Egypt, is active in providing factoring services to Egyptian companies.
• FIMFactors (100%), registered in the Netherlands, is the corporate vehicle for the Bank’s holdings in factoring subsidiaries and associated
companies. These are:
a. India Factoring and Finance Solutions (Private) Limited (88.16%), incorporated in Mumbai, India, is to carry out the business of factoring in
India. India Factoring is regulated by the Reserve Bank of India: and
b. BrasilFactors S.A. (50%), equity-accounted investee incorporated in São Paulo, Brazil, specialising in factoring services for small and medium-
sized enterprises. The remaining 50% is owned by Bank of China.
In 2024, FIM Business Solutions Limited (100%), a company incorporated under the Laws of Malta (Company Registration No. C36423), with its
registered address at Mercury Tower, the Exchange Financial & Business Centre, Elia Zammit Street, St. Julian’s, Malta STJ3155, was merged by
acquisition with the Bank. On 24 April 2024, the Registrar of Companies issued a Certificate of Registration as a Result of Amalgamation.
FIMBank Group Annual Report & Financial Statements 2024
7
Review of performance
In 2024, the Group continued to build on the solid foundation laid in 2023, a year that marked a pivotal turnaround in both operational and financial
performance. For the financial year ending 31 December 2024, the Group reported a pre-tax profit of USD8.3 million, a notable increase from USD5.8
million in the previous year. At a post-tax level, the Group remained marginally profitable, recording a net profit of USD149,989 (2023: USD7,674),
reflecting a significant recovery from losses in earlier years.
The operating results from the non-trading portfolio, which comprises the Group’s core operations, maintained the positive momentum of 2023,
contributing a solid USD52.7 million during the period.
This progress was underpinned by continued strategic focus and strong leadership. The Group maintained disciplined execution of its transformation
initiatives, prioritising value creation and long-term performance. During the year, it exited lower-yielding facilities to enable more effective resource
allocation. A targeted approach to asset build ensured alignment with profitability goals, while enhanced collaboration across teams improved
operational delivery and efficiency.
These efforts reinforced shareholder confidence and sustained stakeholder support. Improvements in liquidity management contributed to a
stronger net interest margin towards year-end, reflecting the impact of the Group’s proactive financial strategies.
Strategic balance sheet management preserved capital adequacy and liquidity strength, while responding effectively to evolving regulatory and
market conditions. A measured reduction in total assets and liabilities reflected a deliberate focus on liquidity optimisation.
Throughout 2024, the Group continued with a prudent approach to cost management, enhancing operational efficiency while continuing to invest
in technology to support innovation and future growth. This balanced approach, combined with sound financial oversight and risk management,
positions the Group well to navigate a changing economic and regulatory environment.
Net impairment losses remained steady at USD2.5 million, consistent with normalised levels achieved in 2023. This reflects a balanced approach to
risk, despite increases in Stage 1 and 2 provisions for performing clients by USD1.9 million and in Stage 3 provisions for current non-performing
clients by USD3.5 million. These were largely offset by provision reversals following write-offs and recoveries of non-performing exposures. The
Group maintained a strong focus on recovering its legacy portfolio, with ongoing efforts yielding tangible results. Notably, for the fourth consecutive
year, the Group reported no material non-performing exposures - highlighting the success of its sustained de-risking strategy, which has significantly
improved asset quality and strengthened regulatory metrics.
These strategic initiatives have enabled management to redirect resources towards recovery efforts and further reinforcement of the performing
portfolio. As a result, the Group recorded a 2% year-on-year decline in the Non-Performing Loan (NPL) Ratio, bringing it to 2.85% as at 31 December
2024. This represents a marked improvement from 2020, when the NPL Ratio stood at 20%, demonstrating the Group’s effectiveness in risk
mitigation and portfolio optimisation.
The Group sustained a robust capital position, ending the year with a Total Capital Ratio (TCR) of 21.3%, well above the regulatory minimum of
16.77%. This capital surplus enables the Group to pursue further asset origination opportunities in line with its risk appetite. In addition, the Group
maintained a strong liquidity profile, with an average Liquidity Coverage Ratio (LCR) of 352% and an average Net Stable Funding Ratio (NSFR) of
158%. Both ratios exceeded not only regulatory requirements but also the Group’s internal thresholds, reinforcing its resilience and capacity to
meet liquidity obligations.
Together, these metrics highlight the Group’s financial soundness and ongoing commitment to regulatory compliance and prudent risk
management.
FIMBank Group Annual Report & Financial Statements 2024
8
FIMBank p.l.c.
In 2024, the Bank remained focused on its transformation agenda, driving continued improvements in performance. A positive trend in interest
margin expansion was observed, supported by stronger pricing discipline and enhanced capital and balance sheet management. The introduction
of a structured management recharge to subsidiaries has improved performance accountability and operational efficiency across the Group. Efforts
to diversify the deposit base contributed to funding stability and reduced reliance on concentrated sources.
The Financial Institutions portfolio was managed prudently, with adjusted exposure limits and tenors aligned with the Bank’s risk appetite. Trade
Finance continued to be a core business line, with operational enhancements including updated risk frameworks, streamlined processes, technology
investments, and targeted employee development. These initiatives aim to improve service quality and overall efficiency. In response to evolving
market dynamics, the Bank renewed its focus on trade finance in selected African and Middle Eastern markets, leveraging internal expertise and a
well-established network to build a diversified portfolio.
The Bank also enhanced its real estate project financing capabilities and expanded its business banking offering to local corporates. It remains
committed to delivering tailored solutions across a range of sectors. Momentum in this area continues to build, with new facilities launched to
support the Maltese corporate sector.
London Forfaiting Company Limited
In light of the modest growth in global trade in 2024, LFC continued to record a healthy profit before tax of USD11.1 million in 2024 (2023: USD11.3
million). This achievement is noteworthy, given the impact on trade flows from the ongoing disruptions of the Russia-Ukraine conflict as well as the
conflict in the Middle East. During the year, LFC reduced its ‘Trading assets’ by 26.6% from USD374.2 million in 2023 to USD274.7 million in 2024, in
preparation for the implementation of new capital regulations, Basel 4, (Basle 3.1 in the UK) that became effective on 1 January 2025. The ability to
upscale and downscale its trading assets portfolio remains a key strength of LFC.
Operating income remained stable at USD20.6 million in 2024 (2023: USD20.6 million), while net impairment movements improved from a net
impairment charge of USD0.2 million in 2023 to a net reversal of USD0.3 million in 2024. However, this improvement was partially offset by a
decrease in operating expenses to USD9.2 million in 2024 (2023: USD9.5 million). LFC will continue to find efficiencies in its bases costs as well as
enhancing its returns to the parent company.
During the year, LFC returned USD40 million of its share capital to FIMBank plc as an indication of further supporting its parent company.
India Factoring and Finance Solutions (Private) Limited
India Factoring delivered a strong performance in 2024, surpassing its prior year profit before tax by USD2.7 million (165%) and closing the year at
USD4.3 million. This result reflects the entity’s continued operational strength, disciplined risk management, and effective execution of strategic
initiatives. The performance was further supported by the successful recovery of a legacy non-performing loan.
Export factoring continued to perform well, with negligible delinquencies over several years - reflecting the entity’s rigorous credit assessment and
monitoring practices. As at 31 December 2024, a significant portion of funded assets remained covered through import factors and credit insurance,
further limiting risk exposure.
India Factoring’s strong credit profile was reaffirmed with ratings upgrades in 2024. CARE Ratings upgraded its long-term rating to “BBB+ Stable”
and maintained the short-term rating at “A2”. Similarly, India Ratings (FITCH) upgraded the long-term rating to “BBB+ Stable” and retained the short-
term rating at “A2”. The company’s capital adequacy ratio remained comfortably above the regulatory minimum, underlining its financial strength
and readiness for growth.
Throughout the year, India Factoring continued to enhance its operations, including the rollout of advanced digital functionalities. The entity also
received multiple awards recognising excellence across various business areas, reinforcing its leadership and commitment to value creation.
The Egyptian Company for Factoring S.A.E.
In 2024, Egypt Factors maintained stable invoice turnover, reflecting operational resilience in a challenging economic environment. The company
successfully secured external funding from several banks, further strengthening its financial position. The removal of the government’s COVID-era
subsidised funding programme lifted previous constraints; however, the resulting improvement in net interest income was offset by higher funding
costs from the parent and a reduced factoring portfolio - following the flotation of the Egyptian Pound amid increased USD availability.
Despite these pressures, EGF remained profitable, reporting a pre- and post-tax profit of USD1.4 million, compared to USD1.9 million in 2023.
Specific provision charges remained minimal, indicating continued portfolio quality.
FIMBank Group Annual Report & Financial Statements 2024
9
Statements of profit or loss
For the financial period ending 31 December 2024, the Group reported a pre-tax profit of USD8.3 million, up from USD5.8 million in the previous
financial year. Similar to 2023, the Group closed the year above break-even, recording a profit of USD149,989 for 2024, compared to a marginal
profit of USD7,674 in 2023.
Group earnings per share were at US cents 0.02 (2023: negative US cents 0.01). The results for the year under review are summarised in the table
below, which should be read in conjunction with the explanatory commentary that follows:
Group
2024
2023
Movement
USD
USD
USD
Net interest income
51,847,584
55,249,865
(3,402,281)
Net fee and commission income/(expense)
733,118
(739,577)
1,472,695
Dividend income
-
40,228
(40,228)
Fair value loss on investment property
-
(1,398,978)
1,398,978
Other operating income
117,760
1,665,027
(1,547,267)
Operating results from non-trading portfolio
52,698,462
54,816,565
(2,118,103)
Operating expenses
(40,401,298)
(43,840,601)
3,439,303
Income before net impairment and net trading results
12,297,164
10,975,964
1,321,200
Net trading results
(1,475,879)
(3,220,869)
1,744,990
Net impairment losses
(2,501,376)
(1,960,888)
(540,488)
Profit before taxation
8,319,909
5,794,207
2,525,702
Taxation
(8,169,920)
(5,786,533)
(2,383,387)
Profit for the year
149,989
7,674
142,315
The Group reported 'Operating results from non-trading portfolio' of USD52.7 million, reflecting a decrease of USD2.1 million (3.9%) compared to
the previous year.
'Net interest income' (Refer to Note 8) saw a decline of USD3.4 million (6.2%) year on year, reaching USD51.8 million. This was primarily influenced
by changes in both interest income and interest expense. Interest income rose by USD1.8 million, driven by a USD3.9 million increase in interest
income on loans and advances to customers, owing to higher average balances. However, this was partially offset by a USD1.4 million decline in
interest income on trading assets due to lower holdings and a USD0.7 million reduction in interest income from financial investments as a result of
lower bond holdings. Meanwhile, interest expense increased by USD5.2 million, primarily due to an USD8.4 million rise in interest expenses on
amounts owed to customers, reflecting the impact of higher interest rates which are not directly linked to benchmark rates movements. This was
somewhat counterbalanced by a USD3.6 million reduction in interest expense on amounts owed to institutions, as lower balances were maintained
in these areas.
'Net fees and commission income' (Refer to Note 9) improved to USD0.7 million from a net expense of USD0.7 million in the prior year, reflecting a
positive movement of USD1.5 million.
This year, the Group did not receive any 'Dividend income' from unrelated parties and was not impacted by the 'Fair value loss on investment
property', which had resulted in a USD1.4 million loss in the previous year. 'Other operating income' decreased by USD1.5 million to USD0.1 million,
primarily due to fair value losses on unlisted sub-fund units classified under financial investments at fair value through profit or loss.
'Operating expenses' for the year under review amounted to USD40.4 million, reflecting a decrease of USD3.4 million (7.8%) compared to the
previous financial year. This reduction was driven by lower legal and other professional fees, as well as a reduced cash commitment to the depositor
compensation scheme due to lower balances in amounts owed to customers. Additionally, in the previous year, the Group had incurred expenses
related to the strategic transformation project undertaken in collaboration with a highly reputable advisory firm, as previously announced in past
publications.
The 'Net trading results' recorded a loss of USD1.5 million, an improvement from the USD3.2 million loss in the previous year. This includes a USD0.9
million loss (2023: USD0.9 million) from foreign exchange fluctuations and fair value movements on FX derivatives, as well as a USD0.5 million loss
(2023: USD2.3 million) from fair value changes in trading assets. In 2024, the loss was primarily driven by the impact of the lower interest rate
environment on the trading book at the Group’s subsidiary, LFC. In the prior year, the trading book was affected by the default of an asset, along
with the broader effects of conflicts in Ukraine and the Middle East, as well as monetary and fiscal policies in major markets.
FIMBank Group Annual Report & Financial Statements 2024
10
‘Net impairment losses’ remained in line with the normalised levels achieved in 2023, amounting to USD2.5 million, compared to USD2.0 million in
the previous year. The Group increased Stage 1 and Stage 2 provisions for performing clients by USD1.9 million, whereas last year it released USD0.7
million.
The Group wrote off USD4.7 million of non-performing exposures in 2024, down from USD59.7 million in 2023. The majority of these write-offs
were fully provided for in previous years, and in most cases, the Group still holds the option to enforce, sell, or transfer the credit to another entity.
Additionally, the Group recovered USD1.1 million in previously written-off debt, compared to USD0.6 million in 2023.
The Group reversed USD3.0 million of Stage 3 provisions, compared to USD56.4 million in 2023. Of this, USD6.6 million (2023: USD60.3 million) was
reversed due to write-offs or recoveries of non-performing exposures, while USD3.5 million (2023: USD3.9 million) was an increase in coverage for
legacy non-performing exposures and legal fees incurred during the recovery process.
These adjustments, along with other measures, contributed to a reduction in the NPL Ratio by approximately 2% during the review year, bringing it
down to 2.85% by December 2024. Over the past years, management has made significant efforts to lower the NPL Ratio from 20% in 2020.
In 2024, tax provisions across all Group entities totalled USD8.2 million, up from USD5.8 million in 2023. As the profitability of Group entities
increased, a portion of deferred tax assets was utilised, while some were reversed due to uncertainty regarding their utilisation before expiry. These
entities have conducted thorough assessments to ensure the recoverability of the remaining recognised deferred tax assets before their expiration,
where applicable.
Financial position
As of December 31, 2024, the Group’s Consolidated Assets stood at USD1.15 billion, reflecting a USD434.5 million decrease (27.5%) compared to
the previous year-end. This decline was driven by strategic efforts to optimise liquidity and maintain adequate capital buffers in line with regulatory
requirements. On average, the Group’s Consolidated Assets were 9% lower than the prior year’s average.
The decline in Consolidated Assets was broad-based, affecting multiple asset classes. Balances with the Central Bank of Malta and treasury bills (see
Note 18) decreased by USD218.8 million (62.0%) as the Group adjusted liquidity buffers to more cost-effective levels. Trading assets (see Note 20)
fell by USD99.4 million (26.6%), reflecting a measured approach to capital allocation in line with regulatory requirements. Loans and advances to
banks (see Note 21) decreased by USD56.4 million (36.9%) as part of strategic asset deployment across various jurisdictions. Financial investments
also saw a significant reduction, with amortised cost investments (see Note 25) declining by USD26.3 million (92.7%), while fair value through other
comprehensive income (FVOCI) investments (see Note 24) fell by USD20.5 million (14.6%), both due to matured bonds that were not replaced amid
lower liquidity needs. Financial investments at fair value through profit or loss (see Note 23) decreased by USD5.4 million (27.8%), primarily due to
the redemption of unlisted sub-fund units and equity shares. Loans and advances to customers (see Note 22) recorded only a minor net decrease
of USD3.4 million (0.8%), reflecting a USD39.7 million reduction in term loans, largely offset by a USD34.5 million increase in on-call and short-term
loans.
Despite the overall decline in year-end balances, average asset levels throughout the year showed a more moderate contraction. Balances with the
Central Bank of Malta and treasury bills declined by an average of USD55.5 million (21%), while trading assets saw an average reduction of USD38.4
million (10%). Loans and advances to banks decreased by an average of USD26.3 million (22%). Financial investments at amortised cost and FVOCI
declined by USD13.5 million (58%) and USD5.7 million (4%), respectively. Financial investments at FVTPL dropped by an average of USD1.2 million
(6%). However, loans and advances to customers increased by an average of USD16.0 million (4%), highlighting the Group’s continued emphasis on
this segment despite the overall reduction in assets.
The Group’s deferred tax asset declined from USD19.0 million to USD15.7 million (see Note 31), primarily due to utilisation and write-offs at the
subsidiary level. This reflects the application of deferred tax benefits against taxable income and a strategic reassessment of tax positions. A
comprehensive review of deferred tax assets and subsidiary investments reaffirmed the adequacy of their carrying amounts. The assessment
considered macroeconomic conditions, regulatory developments, and capital management strategies to ensure financial stability. Management also
evaluated strategic options for subsidiaries while optimising funding sources and enhancing revenue growth through operational efficiencies. A
thorough analysis of credit losses and recoveries reinforced the Group’s prudent risk management approach.
The Group recorded a decline in property, plant & equipment (PPE) and investment property. PPE decreased by USD1.6 million (see Note 27),
primarily due to depreciation charges and foreign exchange losses, while investment property fell by USD1.3 million (see Note 28), mainly impacted
by foreign exchange movements. As part of its regular asset review process, the Group conducted an internal valuation of investment property,
considering market trends, rental rates of comparable premium business centres, and economic conditions. This ensures alignment with both
market realities and the Group’s long-term strategic objectives.
FIMBank Group Annual Report & Financial Statements 2024
11
As of December 31, 2024, the Group’s Consolidated Liabilities amounted to USD0.96 billion, a USD438.9 million (31.3%) decrease, mirroring the
reduction in Consolidated Assets. This was driven by a USD255.6 million (27.3%) decline in amounts owed to customers (see Note 34), primarily due
to lower term deposits. Amounts owed to institutions and banks (see Note 33) decreased by USD171.4 million (41.5%), reflecting reduced
participation in Targeted Longer-Term Refinancing Operations (TLTROs) and other liquidity-providing measures with the European Central Bank, as
well as lower term loans and deposits from financial institutions. Debt securities in issue (see Note 35) also declined by USD11.7 million (42.4%).
These reductions align with the Group’s strategic focus on optimising its balance sheet and liquidity management.
Total Equity increased by USD4.3 million (2.4%) to USD183.6 million, primarily due to a USD5.2 million net fair value gain on financial investments
at FVOCI. As of 31 December, 2024, the Group’s CET1 and TCR ratios stood at 21.3% (2023: 18.2%).
Total Consolidated Commitments stood at USD132.2 million, down from USD147.8 million in 2023. These primarily comprised confirmed letters of
credit, documentary credits, commitments to purchase forfaiting assets, and undrawn credit facilities. Total Consolidated Contingent Liabilities
remained stable at USD31.0 million, compared to USD31.3 million in 2023, consisting mainly of outstanding guarantee obligations.
Principal risks and uncertainties
FIMBank is a banking group offering a suite of trade finance products across the different geographies it operates in, mainly emerging markets. The
risks associated with this business model are multiple and varied. Exposure to credit risk, liquidity risk, interest rate risk and foreign exchange risk
arises in the normal course of the Group’s business. As the Group is mainly engaged in cross-border trade finance transactions, the business
performance is also impacted by the overall performance of the world economy, in particular to the level of cross-border trade between countries
at varying stages of their economic development and which may not yet have achieved the level of stability of developed countries. This exposes
the Group to risks of political and economic changes including volatilities to commodity prices, exchange control regulation and difficulties in
preserving own legal rights.
Both FIMBank and its main Group entities are exposed to such risks in different degrees based on their size and complexity. FIMBank, as the parent
company, ensures that all Group entities adhere to the Group’s risk, governance and compliance frameworks as updated from time to time.
Further disclosures on the Group’s principal risks and uncertainties are provided in Note 4 of this Annual Report and the 2024 Pillar 3 Disclosures
Report published on the Bank’s website.
Outlook for 2025
The global economic outlook for 2025 remains stable but subdued, with growth expected to continue at a moderate pace. However, structural
challenges, policy uncertainty, and regional divergences could shape economic and trade dynamics in the coming year. Advanced economies are
experiencing mixed trends, with some markets showing resilience while others face headwinds from weak manufacturing, low consumer confidence,
and persistent energy price concerns. Emerging markets and developing economies are expected to maintain steady growth, although uncertainty
in trade policies and fiscal pressures may pose challenges. Inflation is gradually declining toward central bank targets, allowing for a more normalised
monetary policy environment, yet risks remain, including potential inflationary pressures in some markets and deflationary risks in others. For trade
finance, these dynamics underscore the importance of navigating shifting economic conditions, adapting to liquidity and interest rate movements,
and managing risks tied to global trade flows. Uneven recovery patterns across regions highlight the need for flexibility and strategic positioning to
support businesses in an evolving economic landscape.
In addition to broader economic trends, recent geopolitical developments continue to shape the global landscape. Trade tensions, including tariff
disputes and economic sanctions, are influencing supply chains and investment flows, adding uncertainty to global trade. Ongoing conflicts in various
regions, including Eastern Europe and the Middle East, have implications for energy markets, inflationary pressures, and investor sentiment. Shifts
in global alliances and policy decisions by major economies are further impacting trade agreements, financial markets, and commodity prices.
Climate-related disruptions and natural disasters also pose risks to economic stability, supply chain resilience, and food security. These factors
underscore the need for the Group to remain agile, assess geopolitical risks, and adapt to an evolving economic and political environment.
Against the backdrop of a stabilising yet subdued global economy, the Bank remains focused on executing its strategic vision while adapting to
evolving market conditions. The early months of 2025 have already demonstrated the tangible benefits of its ongoing transformation journey,
reinforcing confidence in its direction. With the backing of a strong and supportive shareholder base, the Bank is well-positioned to drive sustainable
growth and capitalise on emerging opportunities within the trade finance sector. However, recognising the scale of change required, the Bank
acknowledges that the journey is still in its early stages, and a disciplined, long-term approach will be essential.
FIMBank Group Annual Report & Financial Statements 2024
12
A key priority for the year ahead is asset growth across the Bank and all Group entities. This will be supported by a concerted effort to foster
collaboration and knowledge-sharing across business units, enhancing synergies and strengthening the Group’s collective capabilities. A proactive
approach to consolidating functions and streamlining operations will allow the Bank to remove inefficiencies, eliminate redundant processes, and
achieve cost efficiencies while maintaining a sharp focus on service excellence.
To strengthen its capital base, the Bank received a USD20 million subordinated loan from its major Shareholder in early 2025, qualifying as Tier 2
capital under the Capital Requirements Regulation. This injection will further reinforce the Group’s balance sheet and support its asset growth
ambitions, reflecting the continued confidence and commitment of the major Shareholder.
Operational improvements remain at the heart of the Bank’s strategy, with initiatives aimed at removing bottlenecks, empowering teams, and
optimising resource allocation. The consolidation of teams and departments is expected to yield greater agility and effectiveness, ensuring the Bank
remains responsive to market demands. Meanwhile, strategic business alliances will serve as a catalyst for expanding market reach and enhancing
the Bank’s value proposition. Subsidiaries, which hold significant growth potential, will continue to receive capital and funding support as needed,
reinforcing the Bank’s commitment to strengthening its regional and international footprint.
To achieve these goals, the Bank recognises the importance of attracting and retaining top talent while maintaining operational efficiency.
Investment in human capital, alongside efforts to enhance customer service and technical support, will be central to sustaining long-term success.
Building lasting client relationships through superior service delivery remains a core priority, reinforcing the Bank’s reputation as a trusted trade
finance partner. Additionally, ongoing enhancements to internal processes, the adoption of leaner structures, and the pursuit of efficiency gains will
underpin the Bank’s drive for greater productivity and cost-effectiveness.
As the global trade landscape evolves, the Bank remains resolute in its commitment to navigating challenges, seizing new opportunities, and
reinforcing its leadership in trade finance. The steps taken in 2025 will lay the foundation for a more resilient, agile, and growth-oriented institution,
well-equipped to support its clients in an increasingly complex economic environment.
The Group is well prepared for the implementation of the Capital Requirements Directive VI (CRD VI) and the Capital Requirements Regulation III
(CRR III), which form part of the broader EU banking package aimed at finalising the Basel III reforms and enhancing banking supervision and risk
management. Key changes introduced through these amendments include revised requirements on capital adequacy, market risk, and the
integration of environmental, social, and governance (ESG) risks into banks’ risk management frameworks. CRR III is generally applicable from 1
January 2025, with certain provisions effective from 9 July 2024.
In 2024, the Group engaged a reputable external advisory firm to support implementation efforts. In anticipation of the regulatory deadlines, the
Group accelerated its CRR III programme and conducted a comprehensive impact assessment, preceded by a detailed review of the CRD VI and CRR
III amendments. This review was supported by a series of workshops involving all relevant functions and subsidiaries. The expected impact on the
Total Capital Ratio (TCR) is non-significant. The engagement with the external advisory firm remains ongoing, as the Group continues its in-depth
analysis of the regulations and related guidelines.
Dividends and reserves
As none of the reserves are available for distribution, the Board of Directors will not be recommending the payment of a dividend to the Annual
General Meeting of Shareholders (2023: Nil).
Standard licence conditions and regulatory sanctions
During the year under review, no breaches of licence requirements occurred. Moreover, no regulatory sanctions were taken against the Bank.
Approvals at the annual general meeting of shareholders
The Bank convened its Annual General Meeting on 12 June 2024 and all statutory Ordinary Resolutions were approved.
FIMBank Group Annual Report & Financial Statements 2024
13
Shareholder register information pursuant to capital markets rule 5.64
The Directors refer to the following disclosures in terms of the Capital Markets Rule 5.64:
a. details of the structure of the share capital, the class of shares and the rights and obligations attached to it and the percentage of total share
capital that it represents are, unless otherwise stated in this report, disclosed in the Notes to the Financial Statements;
b. except as provided for by Article 41 of the Articles of Association of the Bank, or where the consent of the Supervisory Authority may be required,
there are no restrictions on the transfer of securities, or limitations on the holding of securities, or the need to obtain the approval of the Bank
or other holders of securities of the Bank for any such transfer or holding. Shareholders holding 5% or more of the share capital as at 31 December
2024 are as follows:
No of shares
% holding
United Gulf Holding Company B.S.C.
420,019,110
80.40%
Burgan Bank K.P.S.C.
44,394,499
8.50%
c. there is no share scheme in place which gives employees the rights to any form of control;
d. the Bank’s Articles of Association do not contain more stringent provisions than the ones contained in the Companies Act governing the changes
or variations in the rights attached to shares;
e. in terms of Article 12 of the Bank’s Articles of Association, the rights attached to any class of shares may be varied either with the consent in
writing of the holders of not less than 80% of the issued shares of that class or with the sanction of an extraordinary resolution passed at a
separate general meeting of the holders of shares of that class. The Banking Act requires the Bank to obtain the consent of the Supervisory
Authority (MFSA) to affect any material change in voting rights;
f. the rules and procedures governing the appointment and replacement of Board Members are provided by the Articles of Association and are
referred to in the Statement of Compliance with the Principles of Good Corporate Governance. Any amendments to the Articles shall be by
means of an extraordinary resolution in accordance with the provisions of Articles 90 and 91;
g. unless otherwise disclosed in this Annual Report, there are no significant agreements to which the Bank is a party and which take effect, alter or
terminate upon a change of control of the Bank following a takeover bid and the effects thereof; and
h. there are no agreements between the Bank and its Board Members or employees providing for compensation if they resign or are made
redundant without valid reason or if their employment ceases because of a takeover bid.
At as 31 December 2024, the Bank had no securities with special control rights in accordance with the Capital Markets Rule 5.64.4.
Events after the financial reporting date
Subordinated liabilities
In February 2025, the Bank received a subordinated loan of USD20,000,000 from a subsidiary of its ultimate parent. The loan carries a fixed interest
rate of 5.5%, is priced on an arm’s length basis, and has a contractual maturity of seven years. In the event of the Bank’s liquidation, dissolution, or
winding up, it will rank below the Bank’s unsubordinated, secured, and unsecured creditors. This loan qualifies as Tier 2 capital under the Capital
Requirements Regulation.
Investments in subsidiaries
In March 2025, the Bank made an additional investment of INR261,000,000 (USD3,012,817) in India Factoring and Finance Solutions Private Limited
(“India Factoring”). This investment is intended to support the further growth of the company and its ability to do this within the regulatory capital
requirements.
The Group has no other subsequent events to report.
FIMBank Group Annual Report & Financial Statements 2024
14
Going concern
As required by the Capital Markets Rule 5.62, upon due consideration of the Bank’s performance, financial position, capital adequacy and solvency,
the Directors confirm that, at the time of approving these Financial Statements, the Bank is capable of continuing to operate as a going concern for
the foreseeable future.
Directors
The Directors who served during the financial year, including any changes up to the publishing date of the Annual Report were:
John C. Grech (Chairman) CGC, BCC, BRIC
Masaud M.J. Hayat (Vice Chairman) BNRC
Edmond Brincat BAC, BNRC, BRIC, CGC
Erich Schumacher BRC Resigned on 24 April 2024
Hussain Abdul Aziz Lalani BAC, BRC, BRIC, BESG
Mohammed Louhab BCC, BESG, BRIC Retired on 1 August 2024
Rabih Soukarieh BCC
Samer Abbouchi BCC, BRC
Sunny Bhatia CGC, BNRC
Teuta Bakalli BAC, BRC, BESG
Simon Jethro Lay BRIC, BESG Regulatory approval obtained on 6 March 2025
Denotes membership of:
• Board Audit Committee (“BAC”)
• Board Credit Committee (“BCC”)
• Board Review and Implementation Committee (“BRIC”)
• Board Risk Committee (“BRC”)
• Corporate Governance Committee (“CGC”)
• Board Nomination and Remuneration Committee (“BNRC”)
• Board Environmental, Social and Governance Committee (“BESG”)
FIMBank Group Annual Report & Financial Statements 2024
15
Statement of responsibility
This Statement of responsibility is required in terms of the Capital Markets Rule 5.55.2 and set out in the form required by the Capital Markets Rules
5.67 to 5.69.
The Companies Act, 1995 (Chapter 386, Laws of Malta) requires the Directors of the Bank to prepare financial statements for each financial year
which give a true and fair view of the financial position of the Bank and the Group as at the end of the financial year and of the profit or loss of the
Bank and the Group for that period in accordance with the requirements of International Financial Reporting Standards as adopted by the EU.
The Directors are responsible for keeping proper accounting records which disclose with reasonable accuracy, at any time, the financial position of
the Bank and the Group and to enable them to ensure that the financial statements have been properly prepared in accordance with the provisions
of the Companies Act, 1995 (Chapter 386, Laws of Malta) and the Banking Act, 1994 (Chapter 371, Laws of Malta). The Directors also ensure that
the financial statements of the Group are prepared in accordance with Article 4 of the IAS Regulation.
The Directors are also responsible for safeguarding the assets of the Bank and the Group and hence for taking reasonable steps for the prevention
and detection of fraud and other irregularities.
The Directors, through oversight of Management, are responsible to ensure that the Bank and the Group establish and maintain internal controls
to provide reasonable assurance with regard to reliability of financial reporting, effectiveness and efficiency of operations and compliance with
applicable laws and regulations.
Management is responsible, with oversight from the Directors, to establish a control environment and maintain policies and procedures to assist in
achieving the objective of ensuring, as far as possible, the orderly and efficient conduct of the Bank’s business. This responsibility includes
establishing and maintaining controls pertaining to the Bank’s and the Group’s objective of preparing financial statements as required by the
Companies Act, 1995 (Chapter 386, Laws of Malta) and managing risks that may give rise to material misstatements in those financial statements.
In determining which controls to implement to prevent and detect fraud, Management considers the risks that the financial statements may be
materially misstated as a result of fraud.
Independent auditors
During 2024, PricewaterhouseCoopers (“PwC”) were appointed as statutory auditors of the Group and Bank at the Annual General Meeting which
was held on 12 June 2024. PwC have expressed their willingness to continue in office as auditors of the Bank and a resolution proposing their re-
appointment will be submitted at the forthcoming Annual General Meeting.
Approved by the Board of Directors and signed on its behalf by Dr. John C. Grech (Chairman) and Mr. Masaud M.J. Hayat (Vice Chairman) on 9
April 2025 as per Director’s Declaration on ESEF Annual Financial Report submitted in conjunction with the Annual Report and Financial
Statements 2024.
Registered Address
Mercury Tower
The Exchange Financial and Business Centre
Elia Zammit Street
St. Julian’s STJ 3155
Malta
FIMBank Group Annual Report & Financial Statements 2024
16
Statement of compliance with the principles of good
corporate governance
For the year ended 31 December 2024
Introduction
Pursuant to the requirements of Capital Markets Rules 5.94 et seq of the Malta Financial Services Authority (the “MFSA”), the Board of Directors
(the “Board” or “Directors”) of FIMBank p.l.c. hereby details the extent to which the Code of Principles of Good Corporate Governance (the
“Principles”), published as Appendix 5.1 to Chapter 5 of the Capital Markets Rules, have been adopted together with the effective measures taken
to ensure compliance with such Principles.
In relation to the requirement to state how the Bank has applied the main principles emanating from the Code of Principles of Good Corporate
Governance, the Bank has done so by complying with and taking cognisance of the associated provisions (that is, the supporting principles and Code
provisions), unless otherwise stated within this Statement of compliance with the principles of good corporate governance.
Part 1: Compliance with the principles
The Board firmly believes that strong corporate governance permits the Bank and the Group to benefit from greater transparency in its activities,
as well as in its relations with the market, thereby enhancing integrity and confidence. Although the Principles are not mandatory, the MFSA has
recommended that listed companies endeavour to adopt such Principles. The Board has considered this to be in the best interest of the Shareholders
because they commit the Directors, Management and employees of the Bank to internationally recognised standards of corporate governance.
Ultimate responsibility for good corporate governance remains with the Directors who have therefore resolved to adopt the Principles and endorse
them accordingly, except for those instances where particular circumstances exist that warrant non-adherence thereto, or at least postponement
for the time being.
The Board is committed to improve further its corporate governance standards which is an ongoing process.
Principle 1: Roles and responsibilities of the board
The Bank is headed by an effective Board which leads and controls the company. The Board of Directors’ terms of reference are included in the
relevant charter and can be summarised as follows:
The Board is responsible for the overall long-term direction of the Group, for setting its strategy and policies and ensuring that they are pursued
through good management practices. The Board carries out its responsibilities by:
a. exercising prudent and effective controls and ensuring that such controls are appropriately reviewed for effectiveness and monitored for
compliance on a regular basis;
b. determining the strategic aims and the organisational structure;
c. regularly reviewing Management performance and ensuring that the Group has the appropriate mix of financial and human resources to run
its business;
d. being conversant with relevant statutory and regulatory requirements;
e. ensuring that all Directors regularly attend meetings of the Board, agree on business objectives, financial plans and general parameters within
which the Board, the Board Committees and Management are to function;
f. ensuring that systems and controls are in place to mitigate significant business risks and that exposures are identified and properly managed;
g. setting appropriate business standards, codes of corporate governance and ethical behaviour for all Directors and employees, as well as
monitoring their performance;
h. appointing the Group Chief Executive Officer (“GCEO”) who is entrusted with day-to-day management of the Group and its operations, together
with members of Management; and
i. appointing Senior Management through the Board Nomination and Remuneration Committee.
Over the years, the Board has created a framework through which it effectively performs its functions and discharges its liabilities. The Board has
also established terms of reference and charters for the various Board Committees and the conduct of their meetings.
FIMBank Group Annual Report & Financial Statements 2024
17
The Members of the Board of Directors of the Bank bring to their office a mix of backgrounds and capabilities, ranging from business to financial
services. This ensures a good blend of expertise and experience. Moreover, the suitability of any individual to become a Director of the Bank is, in
the first place assessed by the Board Nomination and Remuneration Committee. As part of its work, this Committee is tasked with performing an
annual evaluation of the Board’s overall performance in addition to an evaluation on the performance of each individual Member. This includes an
evaluation of the knowledge and experience of each Member while also assessing their authorities and leadership skills. As a result, this Committee
screens individuals for the position of Director against the Bank’s requirements at the time. Subsequently, the proposal for an individual to become
a Director is assessed by the MFSA which reviews, inter alia, the individual’s competence to serve as Director against established ‘fit and proper’
criteria. In this connection, the individual is required to provide all information, including detailed personal and career information, as the competent
authorities may deem necessary. Upon appointment, new Directors receive general information about the Bank, its business and affairs, and queries
in this regard are in the first instance handled by the Company Secretary and/or the GCEO.
Principle 2: Roles and responsibilities of the chairman and of the chief executive officer
The roles of the Chairman and of the GCEO are completely separate from one another to ensure clear division of responsibilities at the head of the
Bank.
The Chairman is a non-executive officer who is selected from amongst the Directors. The Chairman is responsible for leading the Board and setting
its agenda, ensuring that the Directors receive precise, timely and objective information so that they can properly execute their duties, encouraging
their active engagement in meetings and issues brought before the Board and ensuring effective communication with Shareholders. The Chairman
also facilitates the effective contribution of Non-Executive Directors in particular and ensures constructive relations between Executive and Non-
executive Directors. As the Non-Executive Directors are not involved in the day-to-day running of the business, they can bring fresh perspectives
and contribute more objectively, in supporting as well as constructively challenging and monitoring the management team.
Whilst recognising that most Shareholder contact is with the Chief Executive Officer and the Head of Investor Relations, the Chairman maintains
sufficient contact with Shareholders to understand their issues and concerns.
The GCEO is the most Senior Executive of the Group and is appointed by the Board of Directors. He is responsible for leading Management in the
execution of the Bank’s strategy and running the day-to-day activities of the Group.
Principle 3: Board composition and appointment of directors
The Bank ensures that the Board is not so large as to be unwieldy. In this respect, the Board is of sufficient size that the balance of skills and
experience is appropriate for the requirements of the business and that changes to the Board’s composition can be managed without undue
disruption. The Board is composed of Executive and Non-Executive Directors, including independent non-executives. The Bank’s Articles of
Association (the “Articles”) contain detailed provisions (in Clauses 93 to 114) as to the manner of appointment and retirement of the Directors.
Directors hold office from the close of the Annual General Meeting at which they are appointed until the day of the consecutive Annual General
Meeting, at which they become eligible for re-election. The Articles also provide that the Chairman and Vice Chairman are to be appointed by the
Directors from amongst their number and shall hold office for a period of one year, unless otherwise decided by a simple majority of the Board. Any
Member may nominate an individual in the manner prescribed by the Articles, provided that such nomination is seconded by a Member or Members
who in aggregate hold at least twenty thousand shares between them.
As at the date of this Statement, the Directors and their respective first date of appointment to the Board, including identification as required by
Code Provision 3.2 for those Directors deemed independent as per the Capital Markets Rules, are as follows:
Director
Year when first
appointed
Notes
John C. Grech
2004
Chairman
Masaud M.J. Hayat
2013
Vice Chairman
Rabih Soukarieh
2013
Edmond Brincat
2017
Independent Director
Hussain Abdul Aziz Lalani
2017
Erich Schumacher
2022
Resigned on 24 April 2024.
Sunny Bhatia
2023
Mohammed Louhab
2023
Retired on 1 August 2024.
Teuta Bakalli
2024
Independent Director - Appointed on 3 April 2024. Approved by Regulator on 23 May 2024.
Samer Abbouchi
2024
Appointed on 26 April 2024. Approved by Regulator on 5 August 2024.
Simon Jethro Lay
2025
Executive Director - Appointed on 1 August 2024. Approved by Regulator on 6 March 2025.
FIMBank Group Annual Report & Financial Statements 2024
18
Other than for their involvement in Board Committees as described below, all Directors hold office in a non-executive capacity with the exception
of Mr. Simon Jethro Lay who has been appointed an Executive Director and the GCEO of the Bank for which regulatory approval was obtained on 6
March 2025.
The Board considered and resolved that all Directors meet the requisites for them to be deemed independent in view of the fact that all Directors
signed a written declaration of independence prior to the publication on this Annual Report. This decision was based on the representations given
by the individual Directors, including those with a shareholding in the Bank or associated with entities having a shareholding in the Bank or who
have served on the Board for more than twelve consecutive years, which does not in any way impair these Directors’ ability to consider appropriately
the issues which are brought before the Board. In terms of Principle 3.4, each Director has confirmed in writing to the Board that he/she undertook:
• to maintain in all circumstances his/her independence of analysis, decision and action;
• not to seek or accept any unreasonable advantages that could be considered as compromising his/her independence; and
• to clearly express his/her opposition in the event that he/she finds that a decision of the Board may harm the Bank.
Another written declaration of independence shall be signed by all the Directors in April 2025. In addition to the declaration provided, the Board
considers such Directors to bring a sufficiently balanced character and frame of mind to their duties and judgment that they are consequently
deemed to be independent. The Bank monitors that each Director limits the number of any directorships held in other companies. The Bank
considers that the Directors have sufficient time to perform their duties and responsibilities in terms of law. The management body of the Group is
deemed to be the Board of Directors, which is appointed in accordance with the Bank’s Articles of Association.
As at 31 December 2024, the Board of Directors consisted of:
Director
Number of directorships
held (including FIMBank
p.l.c. and its subsidiaries)
Notes
John C. Grech
4
Chairman
Masaud M. J. Hayat
1
Vice Chairman
Edmond Brincat
10
Independent Director
Hussain Abdul Aziz Lalani
1
Rabih Soukarieh
1
Samer Abbouchi
1
Appointed on 26 April 2024. Approved by Regulator on 5 August 2024.
Simon Jethro Lay
1
Executive Director - Appointed on 1 August 2024. Approved by Regulator on 6 March 2025.
Sunny Bhatia
1
Teuta Bakalli
4
Independent Director - Appointed on 3 April 2024. Approved by Regulator on 23 May 2024.
Directorships having an executive or non-executive role held within the same group have been counted as a single directorship.
Principles 4 and 5: Duties and proceedings of directors
The Board ensures that its level of power is known by all Directors and the Senior Management of the Bank. The Board also ensures that any
delegation of responsibilities and functions are clear and unequivocal. Independently of any powers and functions that the Directors may from time
to time validly delegate to Management, it remains a fundamental responsibility of Directors to monitor effectively the implementation of strategy
and policy by Management.
The Board of the Bank carries out its duties through a structure that starts with the strategy and policy formulated at meetings and subsequently
delegated to committees and Management for implementation and execution at various levels, both functional and operational.
In the first instance, the proceedings of Directors are regulated by the Bank’s Articles of Association. Meetings of the Board for any calendar year
are normally set at the last meeting of the preceding year, so that advance preparation and daily planning for the meetings can be made. Meetings
are held at least quarterly and are formally notified by the Company Secretary at least seven days before the meeting with the issuance of the
agenda for the forthcoming meeting. Occasionally, meetings are also called at short notice or on an ad hoc basis, in which case the Directors may
decide to waive the period of notice. The agenda is accompanied by such papers and documents as are necessary to inform Directors of issues
relating to their roles and responsibilities, and in particular of the decisions they are expected to take. During the year, all Directors were duly
notified of every meeting and given the notice period. With notices of meetings, the Directors are also served with Alternate Director Appointment
Forms which, in case of non-attendance, they are invited to complete and send to the Company Secretary prior to the meeting. The Board Review
and Implementation Committee was created in order for the Board to follow up with Management implementation of the resolutions passed during
Board Meetings.
FIMBank Group Annual Report & Financial Statements 2024
19
The Board held four meetings in 2024. All Members of the Board were present for all four meetings. Ms. Teuta Bakalli attended all meetings, one
meeting as an invitee and three meetings as an approved Member of the Board. Mr. Samer Abbouchi attended two meetings, one meeting as an
invitee and one meeting as an approved Member of the Board. Meetings include presentations by Management, whilst other information and
documentation is made available for perusal by the Directors at their request. Members of Senior Management attend Board Meetings by invitation
depending on the agenda content and relevance.
The Board also might request that the Meetings be attended by other employees or by professional advisors, as and when necessary. In all other
circumstances, the Directors are expected to play a full and constructive role in the Group’s affairs. As soon as possible after a Meeting, draft minutes
are circulated amongst the Members for their information. Minutes are then read and approved at the following Meeting. Directors are provided
with Board documents and can also be provided with all past minutes of Board and Committee Meetings upon request.
Board Meetings also serve as an opportunity to report on the progress and decisions of the Committees, covered under Principle 8. All Board
Committees are either a mix of Directors and Management (Board Review and Implementation Committee) or include the participation of
Management (Board Audit Committee, Board Nomination and Remuneration Committee, Corporate Governance Committee, Board Credit
Committee, Board Risk Committee and Board Environmental, Social and Governance Committee). Committees report to the Board on their activities
through their respective Chairman at each Board Meeting. Management reporting is also done directly to the Board at each Meeting, either by
means of an update presentation from the GCEO or usually through the Board Review and Implementation Committee. In any case, each Board
Meeting receives an update on the performance of the Bank and the Group, on known risk cases, litigation and potential problems, about key
strategic developments, including the progress of investees such as subsidiaries and joint ventures and key financial indicators that enable
performance to be measured against internal budgets, industry peers and prior financial periods.
All Directors have access to the advice and services of the Company Secretary, who is responsible to the Board for ensuring that board procedures
are complied with.
Principle 6: Information and professional development
Upon first appointment, all Directors are offered an introduction to the Bank and Group which includes a tailored induction and familiarisation by
the GCEO and the Company Secretary. This usually covers legal and statutory responsibilities as well as a good overview of the Group’s business and
activities. Access to the services of the Company Secretary and resources of the Bank, including where necessary, independent professional advice
at the Bank’s expense, are also available.
Training sessions have been held in 2024 in order for Directors to have the necessary knowledge on their duties and responsibilities and to be
informed on emerging risks, regulatory changes, and industry developments including but not limited to Environmental, Social, and Governance
(ESG), Digital Operational Resilience Act (DORA) and Compliance matters.
Moreover, the Board ensures that the GCEO maintains systems and procedures for the development and training of Management and employees
generally, in order to retain the best quality employees, optimise on Management and employee morale and to continue developing the succession
plan for Senior Management. The GCEO is responsible for the recruitment and appointment of Senior Management following the approval of the
Board Nomination and Remuneration Committee.
Principle 7: Evaluation of the board’s performance
Members of the Board of Directors are subject to comprehensive ‘fit and proper’ tests by the MFSA before they are formally cleared for appointment
to the Board. Annually, the Board also undertakes its own self-evaluation exercise.
Board Members complete a self-evaluation, to rate on a 5-point scale the performance of the Board in key areas covering Strategy, Business
Principles, Stakeholder Management, Risk Management and Internal Control, Performance and Measurement, Composition and Boardroom
Practice, Performance of Committees and Performance of individual Directors. Additionally, Directors quantify the hours dedicated to the Board as
a whole and to the individual Committees they are appointed to. Every Director also completes an evaluation form specifically intended to evaluate
the performance of the Committee, and the risk management aspect exercised by the respective Director when it comes to decision making.
The self-evaluation forms are then evaluated by the Board Nomination and Remuneration Committee (“BNRC”) as the Committee entrusted to
perform this function. The BNRC discusses with the Committee Chairman, who collectively are required to act on the results of the performance
evaluation process. The outcome would be to ascertain the strengths and to address the weaknesses of the Board and its Committees and to report
this to the Board itself and, where appropriate, to report it at the Annual General Meeting. This exercise began in 2013 and has been repeated
annually ever since.
In addition to the self-evaluation of the Board and its Committees, the Bank also conducts a suitability assessment using the Skills Matrix Template
to Assess the Collective Suitability of the Members of the Management Body. The latest assessment as completed in June 2024 did not indicate that
any changes were required. The only changes in the membership composition were due to two direct replacements of Directors who resigned.
Details regarding the changes to Committee composition have been disclosed under Principle 8: Changes to committee memberships during 2024.
The last evaluations from Directors were requested in the last quarter of 2024 and were presented to the BNRC in April 2025.
FIMBank Group Annual Report & Financial Statements 2024
20
Principle 8: Board committees
The Bank’s Articles of Association establish that the Directors may delegate certain powers, authorities and discretions to any person and/or
Committee appointed by them. The composition of such Committees, as well as the participation of Directors in them, is decided upon by the Board.
Accordingly, the Board has established the following Committees:
• Board Review and Implementation Committee
• Board Audit Committee
• Board Risk Committee
• Assets Liabilities Committee
• Board Credit Committee
• Board Nomination and Remuneration Committee (further information can be found in the Remuneration Report on page 27)
• Corporate Governance Committee
• Board Environmental, Social and Governance Committee
Board review and implementation committee
The Board Review and Implementation Committee (“BRIC”) acts as the delegated authority by the Board in overseeing the activities and
management of the Group. The Board Review and Implementation Committee terms of reference are included in the Board Review and
Implementation Committee Charter.
The Members of the Board Review and Implementation Committee as at 31 December 2024 are the following:
John C. Grech (Chairman)
Hussain Abdul Aziz Lalani (Vice Chairman)
Edmond Brincat (Member)
Simon Jethro Lay (Non-Voting Member)
The Board Review and Implementation Committee met on nine occasions during 2024.
Board audit committee
The Board Audit Committee (“BAC”) assists the Board of Directors in fulfilling its supervisory and monitoring responsibilities, according to detailed
terms of reference included in the Board Audit Committee Charter and which reflect the requirements of the Capital Markets Rules, as well as
current best practices and recommendations of good corporate governance. The terms of reference of the Board Audit Committee, as detailed in
the Board Audit Committee Charter include:
• the monitoring of the financial reporting process, including the audit of the annual and consolidated accounts;
• the monitoring of the effectiveness of the Group’s internal control, internal audit, compliance and risk management systems;
• the maintenance of communication on such matters between the Board, Management, External Auditors, and the Internal Audit and Compliance
functions;
• the monitoring and reviewing of the External Auditor’s independence, and in particular, the provision of additional services to the Bank;
• the monitoring and reviewing of proposed transactions by the Group with related parties; and
• the performance of the Group’s Internal Audit and Compliance functions.
It is the responsibility of the Board Audit Committee to recommend the appointment of the Statutory Auditor in line with the Capital Markets Rules
5.127.6 and in accordance with Article 16 of the Statutory Audit Regulation. The Board Audit Committee also considers the nature of related party
transactions, vets and approves them. Both the Board Audit Committee’s and the Head of Internal Audit’s terms of reference clearly stipulate their
independence from other Board Committees and Management, and such independence is also acknowledged by external regulatory verification.
The Head of Internal Audit has direct access to the Board Audit Committee Chairman at all times and attends all meetings. The Group Chief
Compliance Officer also has direct access to the Board Audit Committee Chairman and attends all meetings. In addition, the composition of the
Members of the Board Audit Committee includes two individuals who are also Members of the Board Risk Committee.
The Members of the Board Audit Committee as at 31 December 2024 are the following:
Edmond Brincat (Chairman & Independent Director)
Hussain Abdul Aziz Lalani (Vice Chairman)
Teuta Bakalli (Member & Independent Director)
FIMBank Group Annual Report & Financial Statements 2024
21
In line with Capital Markets Rule 5.117.4, the Chairman of the Board Audit Committee is appointed by the Board of Directors. With reference to
Capital Markets Rule 5.117.3, which states that “at least one member of the audit committee shall be competent in accounting and/or auditing”,
the Bank notes that all Members of the Board Audit Committee are designated as competent in auditing and/or accounting as per the qualifications
listed hereunder.
Mr. Edmond Brincat joined the GO Group in 1999, part of the team entrusted to set up and launch Go Mobile, Malta’s second mobile operator and
in 2006 he was appointed as the Group’s Chief Financial Officer, a position he held until 31 January 2018. Between 2018 and 2023, Mr. Brincat
served as the CEO of SmartCity (Malta), a subsidiary of Dubai Holding LLC. Mr. Edmond Brincat obtained a Bachelor of Arts degree in accounts from
the University of Malta in 1991 and is a Certified Public Accountant and a Fellow of the Malta Institute of Accountants.
Mr. Hussain Abdul Aziz Lalani is the Chief Executive Officer of United Gulf Bank (“UGB”), Bahrain and has worked extensively with the Board of
Directors on advisory transactions in his previous capacity as UGB’s Chief Financial Officer. Mr. Hussain Abdul Aziz Lalani is a Chartered Accountant
and a Certified Information Systems Auditor and holds a Bachelor of Commerce degree from the University of Karachi, Pakistan.
Ms. Teuta Bakalli has over 20 years of experience in regulated financial markets including fintech, cleantech, asset management, insurance and
investment banking. Ms. Bakalli was the Chief Financial Officer of the eCommerce division of WorldPay Inc., and the European Chief Financial Officer
of Pepper Europe. She also held roles at Schroders, Credit Suisse First Boston and Barclays Capital before she joined Willis and Vanguard Europe as
a Financial Director. Ms. Bakalli has resided in the digital economy hotspot of Malta since 2016 where she founded Cleantech360, a company which
offers ESG strategy and business consulting to the cleantech industry. As part of her involvement in this sector, she has worked on numerous
renewables and sustainability projects, including those which leverage blockchain technology. Ms. Bakalli sits on several boards and is an ongoing
contributor to the ACCA (Global Accounting Body) and is a member of the Global Forum for Sustainability. She was admitted as a Fellow Chartered
Certified Accountant in 2005.
The Bank considers that the Committee Members as a whole have the relevant competence as required by the Capital Markets Rule 5.118, having
evaluated the balance of knowledge, skills, diversity and experience of the members of the Committee, thereby ensuring that they have the requisite
experience, personal abilities and integrity and that they adhere to sound professional practices.
All Members of the Board Audit Committee have signed a written declaration of independence. In effect, the Board of Directors of the Bank consider
these Members to be independent. Furthermore, the Committee Members as a whole, have the competence relevant to the sector in which the
Bank is operating.
The Board Audit Committee normally requests members of Management to attend its Meetings for selective items of the respective agenda.
The Board Audit Committee held ten meetings during 2024 and all Members were present for all ten meetings, except for Ms. Bakalli who started
attending meetings after her appointment in April 2024. The Group Head of Internal Audit was also invited to attend and attended all ten meetings.
The External Auditors were invited to nine Board Audit Committee Meetings and were only present for the agenda items which considered and
discussed the 2024 Statutory External Audit (two meetings in February 2024), 2023 Annual Report and Management Letter (two meetings in April
2024), Parent Statutory Reporting Audit Update (June 2024), Interim Report for the period ended 30 June 2024 (three meetings in August 2024) and
Statutory Audit for Financial Year ending 31 December 2024 (November 2024).
Board risk committee
The Board Risk Committee (“BRC”) is responsible for overseeing the Group’s risk management strategy, systems and policies, and for recommending
appropriate risk appetite parameters for approval by the Board of Directors. The Board Risk Committee is also responsible for the oversight of
operational, market, reputational and legal risk matters, as set out in further detail in Note 4.
Hussain Abdul Aziz Lalani (Chairman)
Teuta Bakalli (Member)
Samer Abbouchi (Member)
During 2024, the Board Risk Committee met on eleven occasions.
Assets liabilities committee
The Assets Liabilities Committee (“ALCO”) is a decision-making body responsible for allocating the Group’s assets and liabilities to meet the Group’s
risk and profitability objectives.
The Assets Liabilities Committee is composed of representatives of Senior Management, vested with the power to make decisions. As at 31st
December 2024, the voting members of the Assets Liabilities Committee were the following:
Simon Jethro Lay (Chairman)
Zbigniew Makula (Vice-Chairman)
Ronald Haverkorn (Member)
Juraj Beno (Member)
Modesto Luengo (Member)
FIMBank Group Annual Report & Financial Statements 2024
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Mr. Jason Zammit (Head of Corporate Finance Malta & Marketing), Mr. Chris Trapani (Head of Cash Management & Central Customer Services), Ms.
Tiziri Hamidouche (Deputy Head of Treasury), Ms. Corinne Lanfranco (Head of Financial Institutions & Deposits), Mr. Simon Vickery (Head of Non-
Credit Risk Management) and Mr. Clinton Bonnici (ALCO Secretary) are permanent invitees of the ALCO.
During 2024, the Assets Liabilities Committee met on six occasions.
Board credit committee
The Board Credit Committee (“BCC”) is a Committee appointed by the Board of Directors of FIMBank. The Board Credit Committee is directly
responsible and accountable to the Board. The Board may delegate any of its authorities and powers in relation to the BCC to the Board Risk
Committee. The Board Credit Committee main powers and duties are to:
• review credit applications and approve credit limits and specific transactions, up to the legal lending limit of the Bank and within the guidelines
specified in the Group’s Credit Policy and Procedures; and
• review and consider for approval country limit applications, within the guidelines specified in the Group’s Credit Policy and Procedures.
The Board Credit Committee Members as at 31 December 2024 are the following:
John C. Grech (Chairman)
Rabih Soukarieh (Vice Chairman)
Samer Abbouchi (Member)
Mr. Simon Jethro Lay (GCEO) and Mr. Modesto Luengo (GCRO) are permanent invitees of the Board Credit Committee.
During 2024, the Board Credit Committee met on two occasions. This notwithstanding the Board Credit Committee approved via circulation
transactions which did not require a physical meeting for the purpose of assessment of the relevant credit lines.
Nomination and remuneration committee
The Board Nomination and Remuneration Committee (“BNRC”) is currently composed of three members, one of whom is an independent Director.
The Board Nomination and Remuneration Committee is governed by the BNRC’s Charter as may be amended by the Board in line with the relevant
laws and regulations. The Charter establishes the authority and responsibilities conferred by the Board to the Board Nomination and Remuneration
Committee in line with Appendix 5.1 (8) (A) & (B) of the Code of Principles of Good Corporate Governance. The responsibilities of the Board
Nomination and Remuneration Committee include having oversight, informing, updating and deciding and/or making recommendations to the
Board on all matters regarding nomination and remuneration. These include:
• presenting recommendations to the Board regarding nomination to the Board’s membership in accordance with approved policies, standards,
and nomination regulations for the Board’s membership;
• performing an annual review of the needs required with regard to suitable skills for Board membership and performing an annual review of the
Board of Directors’ structure and presenting recommendations on the changes which can be performed in accordance with the Bank’s strategy;
• performing an annual evaluation of the Board’s overall performance and the performance of each Member and the Board Committees;
• conducting as and when required, including on an annual basis, suitability assessments of prospective/appointed Directors, officers holding a
senior management position and key function holders;
• preparing/reviewing the Group Remuneration Policy and the Directors Remuneration Policy in line with applicable regulations and legislation
and the principles of good corporate governance;
• overseeing the implementation and compliance with the Group Remuneration Policy and the Directors Remuneration Policy;
• assessing the mechanisms adopted to ensure that the remuneration process properly takes into account all types of risks, liquidity and capital
levels and that it promotes sound and effective risk management and is in line with the business strategy, objectives, corporate culture and
values, risk culture and long-term interest of the institution;
• monitoring the level and structure of Directors’ Remuneration by reviewing and updating when necessary, the individual remuneration to be
attributed to Directors, ensuring that they are consistent with the Directors Remuneration Policy as approved by the Annual General Meeting;
• devising appropriate and annually reviewing remuneration packages which are: fair; equitable, gender neutral and in line with industry
benchmarks and the long-term interests of the Bank as needed to attract, retain and motivate Directors, the GCEO and Executives that hold the
knowledge, skills and abilities to lead the FIMBank Group;
• approving on an annual basis, the Group’s individual distribution of salary increases, promotions and bonuses, as may be recommended by the
GCEO;
• preparing a Remuneration Report for inclusion in the Annual Report; and,
• reviewing and assessing at least annually the adequacy of the BNRC Charter and confirming that all the responsibilities set out in the Charter
have been duly executed.
Details regarding the Remuneration Policy and remuneration related matters have been disclosed under the Remuneration Policy and Remuneration
Report on page 27.
FIMBank Group Annual Report & Financial Statements 2024
23
The Board Nomination and Remuneration Committee Members as at 31 December 2024 are the following:
Masaud M.J. Hayat (Chairman)
Edmond Brincat (Vice Chairman)
Sunny Bhatia (Member)
Dr. John C. Grech (FIMBank Chairman) and Mr. Simon Jethro Lay (GCEO) are non-voting, permanent invitees of the Board Nomination and
Remuneration Committee.
During 2024, the Board Nomination and Remuneration Committee met on six occasions with all Members attended the meetings.
Corporate governance committee
The purpose of the Corporate Governance Committee (“CGC”) is to review the Bank’s internal delegations, policies and procedures to ensure
compliance with legislative and regulatory requirements and alignment to industry’s best practice.
The Corporate Governance Committee Members as at 31 December 2024 are the following:
John C. Grech (Chairman)
Sunny Bhatia (Vice Chairman)
Edmond Brincat (Member)
During 2024, the Corporate Governance Committee met on four occasions.
Board environmental, Sscial and governance committee
The Board Environment, Social and Governance Committee ("BESG") is responsible for assisting the Board in setting the Bank’s Environmental Social
and Governance (“ESG”) policies and strategy, and to follow-up on the Bank’s execution of these, via periodic reviews, as well as to enhance the
effectiveness of the Board’s supervision over any matters relating to ESG. The Board Environmental, Social and Governance Committee terms of
reference are included in the Board Environmental, Social and Governance Committee Charter.
The Members of the Board Environmental, Social and Governance Committee as at 31 December 2024 are the following:
Teuta Bakalli (Chairperson)
Hussain Abdul Aziz Lalani (Member)
Simon Jethro Lay (Member)
The Board Environment, Social and Governance Committee met on four occasions (Quarterly) during 2024.
Changes to committee membership during 2024
Mr. Erich Schumacher resigned, resulting in him no longer being a member of the Board Risk Committee.
Mr. Mohammed Louhab retired, resulting in him no longer being a member of the Board Credit Committee, the Board Environment, Social and
Governance Committee and the Board Review and Implementation Committee.
Mr. Edmond Brincat is no longer member of the Board Environmental, Social and Governance Committee and was thereafter appointed member of
the Board Review and Implementation Committee and the Corporate Governance Committee.
Mr. Samer Abbouchi was thereafter appointed member of the Board Credit Committee and the Board Risk Committee.
Ms. Teuta Bakalli was thereafter appointed member of the Board Audit Committee and the Board Risk Committee and the Chairperson of the Board
Environmental, Social and Governance Committee.
Mr. Simon Jethro Lay was thereafter appointed member of the Board Review and Implementation Committee and the Board Environmental, Social
and Governance Committee.
FIMBank Group Annual Report & Financial Statements 2024
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Principles 9 and 10: Commitment to institutional shareholders, an informed market and
transparency in dealings by directors, management and staff
The Chairman arranges for all Directors including the Chairmen of all the Committees to be available to answer questions at the Annual General
Meeting. All eligible Shareholders are served with a notice to attend the Annual General Meeting, which is held normally during the first half of the
year. The notice contains all the resolutions proposed for approval by the Annual General Meeting and, as necessary, notes accompanying such
resolutions. Pursuant to the Companies Act, notices are delivered to Shareholders at least fourteen clear days before the date of the Annual General
Meeting. Advance notification of the resolutions proposed for approval is also given by way of a Company Announcement as soon as these are
decided and approved, normally at the same Board Meeting that approves the Annual Report and Financial Statements. The Board also considers
the Annual Report to be an effective document which, in addition to the statutory disclosures, contains detailed information about the Group’s
performance. Moreover, the Board ensures that the Annual General Meeting serves as a medium at which information is communicated to
Shareholders in a transparent and accountable manner. Additionally, the Bank holds meetings from time to time with financial intermediaries and
financial market practitioners to disseminate information about the Group’s progress, activities and financial performance. These meetings are
usually organised to follow the publication of the half yearly and annual financial results as well as in connection with other Group developments
and events. Procedures are in place to resolve conflicts between minority shareholders and controlling shareholders.
The Board complies with the provisions of the Bank’s Memorandum and Articles of Association, as well as all legislation, rules and regulations that
require it to maintain a fair and informed market in the Bank’s equity securities. It discharges its obligations by having in place, formal procedures
for dealing with potentially price-sensitive information and ensuring the proper conduct of its officers and employees in that regard. Regular contact
with Shareholders and the general market is maintained through Company Announcements, which are issued in conformity with the obligations
arising from the Capital Markets Rules. During 2024 the Bank issued fifteen announcements.
The Board also complies with the provisions of the Bank’s Articles of Association insofar as minority rights are concerned. In accordance with Article
65 of the Bank’s Articles of Association, minority Shareholders may convene an Extraordinary General Meeting, in the same manner, as nearly as
possible, as that in which meetings may be convened by the Directors.
The Bank also maintains a presence on the web through www.fimbank.com which, includes an informative and comprehensive Investor Relations
section that contains, amongst other things, all Company Announcements, Annual General Meeting information and regulated information.
The FIMBank Financial Instruments Internal Code of Dealing which has been drawn up in accordance with the requirements of the Capital Markets
Rules contains dealings restriction guidelines and reporting procedures to be observed by Directors, Management and employees when dealing, or
prospecting to deal, in the Bank’s equity securities. Directors, Management and employees are also notified by the Company Secretary of their
obligations to observe the restricted ‘time-windows’ accompanying the publication of half yearly and annual financial results during which no
dealings in the Bank’s equity securities are allowed.
Control by any Shareholder, whether direct or indirect, and any potential abuse thereof, is regulated by the Banking Act and Rules issued thereunder.
The Act and such Rules provide mechanisms for, and obligations on, persons intending to acquire control, as well as on all Directors and
Management, to notify and report to the Supervisory Authorities in such eventuality. There are additional obligations on Directors in terms of the
Capital Markets Rules and there is good communication in place between the Management, the Company Secretariat and the Board to ensure that
any issues are flagged and acted upon appropriately.
Principle 11: Conflicts of interest
Directors' primary responsibility is to act in the interest of the Bank and its Shareholders as a whole irrespective of who appointed them to the
Board. While the overall tone for instilling a strong culture about the proper management of conflicts of interest is set at the top, situations of
potential conflicts of interest with Board Members are in the first instance specifically regulated by Clauses 119 and 120 of the Bank’s Articles of
Association. In terms of the Articles of Association, in the event of a conflict-of-interest situation, real or potential, arising in connection with any
matter, the interest has to be declared. In particular, the Director concerned refrains from taking part in proceedings relating to the matter and his
vote is excluded from the count of the decision. The minutes of Board Meetings, as well as those of Board Committees, invariably shall include a
suitable record of such declaration and of the action taken by the individual Director concerned. In the event that such steps do not eliminate the
grounds for conflict then the Director should consider resigning. Similar arrangements apply to Management in the course of the conduct of their
duties at Board Committees. Besides, where Directors and Management have related party involvements, these are reported and it is an integral
part of the Board Audit Committee’s terms of reference to provide oversight on related party transactions.
FIMBank Group Annual Report & Financial Statements 2024
25
The number of shares held in the Bank by Directors directly in their name as at 31 December 2024 is as follows:
John C. Grech (Chairman) * 1,760,000
Edmond Brincat Nil
Hussain Abdul Aziz Lalani * Nil
Masaud M.J. Hayat (Vice Chairman) * Nil
Rabih Soukarieh * Nil
Samer Abbouchi * Nil
Sunny Bhatia * Nil
Teuta Bakalli Nil
Simon Jethro Lay Nil
‘ * ‘ Aside from these direct interests in the shareholding of the Bank, these Directors are considered to be associated with companies that hold a
beneficial interest in the Bank’s shareholding. No Shareholder is entitled to any automatic right to nominate or appoint a Director on the Board.
Details of outstanding loans, guarantees or similar facilities made available to related parties or beneficial interests thereof, including Directors, are
disclosed in Note 23 of the Notes to the Financial Statements.
Principle 12: Corporate social responsibility
The Board of Directors and Executive Management of the Bank recognise that social, environmental, and ethical conduct are critical to both the
Bank’s reputation and the well-being of the communities in which it operates. Corporate Social Responsibility (“CSR”) forms a cornerstone of the
Bank’s culture, reflecting its commitment to people, the environment, and ethical governance. The Bank’s CSR strategy is firmly rooted in its core
values and reflects its dedication to clients, employees, shareholders, and the communities in which it operates. The Bank actively contributes to
social and environmental development while championing sustainable practices and cultural preservation. These efforts underscore its broader
mission to integrate responsibility into every aspect of its operations.
The Bank places significant emphasis on operating ethically and fostering a workplace that supports equal opportunities, professional growth, and
a healthy work-life balance for its employees. It invests in learning and development programs, ensuring that employees not only excel in their roles
but also embody the highest ethical standards. Open communication and inclusivity are at the heart of the Bank’s culture, promoting a sense of
shared purpose and trust throughout the organisation. In its interactions with the community, the Bank is committed to initiatives that enhance
social progress and environmental stewardship. By regularly reviewing its operations, infrastructure, and procurement policies, the Bank seeks to
minimise its carbon footprint and reduce its environmental impact. Through these commitments, the Bank strives to create long-term value for its
stakeholders while contributing meaningfully to a sustainable and inclusive future. Further details about the CSR initiatives undertaken by the Group
in 2024 are provided in the GCEO’s Message to Shareholders.
Part 2: Non-compliance with the principles
Principle 2.3: Chairman and chief executive
The existing Chairman of the Board of Directors is not an independent member in terms of the Capital Markets Rules. This notwithstanding, the
Bank considers the non-compliance with this Principle not to be of concern in view of the fact that Dr. John C. Grech has signed a written declaration
whereby he has declared that he undertakes to maintain in all circumstances his independence of analysis, decision and action, not to seek or accept
any unreasonable advantages that could be considered as compromising his independence and to clearly express his opposition in the event that
he finds that a decision of the Board may harm the Bank.
FIMBank Group Annual Report & Financial Statements 2024
26
Principle 4: Succession policy for directors
Capital Markets Rule 4.2.7 calls on the Directors to develop a succession policy for the future composition of the Board, and ‘particularly the
executive component thereof, for which the Chairman should hold key responsibility’. The BNRC, discussed Directors’ succession planning during its
August meeting. This discussion revolved around an updated market assessment as presented by the BNRC Secretary, after reviewing the global
employment market via internet-based searches. The market research was guided by the following criteria:
• international experience and experience in multi-cultural environments;
• having held a mix of senior management roles in the financial services;
• having held leadership roles;
• IT and/or ESG experience; and
• diversity in particular gender diversity.
The BNRC also discussed the findings from this market assessment and concluded that there are a number of valid profiles both locally and overseas,
that suit the aforementioned criteria.
Principle 8: Nomination and remuneration committee
The manner in which the Directors are nominated for appointment follows the procedure set out in the Articles of Association, i.e. any nomination
must be seconded by a Member or Members who in the aggregate holds at least 20,000 shares. This process is also rendered public with an
announcement in the Maltese press, usually in the first quarter of the financial year and in good time before the Annual General Meeting, which
allows at least ten business days for any nomination to be made to the Company Secretary.
The current Chairman of the BNRC is not an independent member in terms of the Capital Markets Rules, as set out in terms of Principle 8.A.1 of the
Code of Principles of Good Corporate Governance. This notwithstanding, the Bank considers the non-compliance with this Principle not to be of
concern in view of the fact that the Chairman of the BNRC has signed a written declaration whereby he has declared that he undertakes to maintain
in all circumstances his independence of analysis, decision and action. Furthermore, the Vice Chairman of the BNRC is deemed to be an Independent
Director in terms of the Capital Market Rules.
Internal control
The Board is ultimately responsible for the identification and evaluation of key risks applicable to the different areas of the business of the Group,
and for ensuring that proper systems of internal control are in place. The Board has delegated Management with the task of creating an effective
control environment to the highest possible standards. The Internal Audit function performs periodic audits to specifically test compliance with
policies, standards and procedures and the effectiveness of the internal control environment within the Group. To ensure the effectiveness of the
internal systems of control the Head of Internal Audit reviews and tests such systems independently from Management, adopting a risk-based
approach. The Internal Auditor reports to the Board Audit Committee, however, the Chairman of the Board of Directors is copied with all Internal
Audit Reports issued.
The Board has identified key features within the Group’s environment of internal controls to ensure compliance with the Principles. The
Management is responsible for the identification and evaluation of key risks applicable to the respective areas of business. The Board receives
regular reports from Management giving detailed and comprehensive analysis of financial and operational performance, including variance analysis
between budgeted and actual figures, activities and prospects.
Capital markets rule 5.97.5 and rule 5.97.8
Capital Markets Rule 5.97.5 and Rule 5.97.8 are not applicable. Whilst Capital Markets Rule 5.97.5 is not applicable, this information is found in the
Directors’ Report.
It is also hereby declared that the contents of the Directors’ Report and of this Statement of Compliance with the Principles of Good Corporate
Governance cover the requirements of the provisions of Capital Markets Rule 5.97.
Approved by the Board of Directors and signed on its behalf by Dr. John C. Grech (Chairman) and Mr. Masaud M.J. Hayat (Vice Chairman) on 9
April 2025 as per Director’s Declaration on ESEF Annual Financial Report submitted in conjunction with the Annual Report and Financial
Statements 2024.
FIMBank Group Annual Report & Financial Statements 2024
27
Remuneration report
For the year ended 31 December 20 24
This section incorporates the Statement of the Board Nomination and Remuneration Committee and the Directors’ Remuneration Report as required
by Chapters 5 and 12 of the Capital Markets Rules, respectively.
Statement of the board nomination and remuneration committee (as per
section 8 of the code of principles of good corporate governance, appendix 5.1 of the capital
market rules)
Terms of reference and membership
The Board Nomination and Remuneration Committee (“BNRC”) is responsible for ensuring that the Directors and Executive Management of FIMBank
have the appropriate mix of skills, qualifications and experience necessary to fulfil their supervisory and management responsibilities. The BNRC
also reviews the remuneration of the Board of Directors and that of Executive Management on an annual basis and ensures that it is in line with the
EBA Guidelines on Sound Remuneration Policies EBA/GL/2022/04, Banking Rule 21 on Remuneration Policies and Practices and principles of good
governance.
From 1 January 2024 up to the Annual General Meeting (“AGM”) held on 12 June 2024, the BNRC was composed of three members: Mr. Masaud
M.J. Hayat (Chairperson); Mr. Edmond Brincat (Vice-Chairperson and Independent Director); and Mr. Sunny Bhatia (Member). As at 31 December
2024, the BNRC composition remained unchanged. The BNRC has two permanent invitees, namely the Chairperson of the Board and the Group
Chief Executive Officer (“GCEO”). Dr. John C. Grech, in his capacity as Chairperson of the Board, attended all the BNRC meetings held in 2024. Mr.
Mohammed Louhab, who held the position of GCEO and Executive Director until 1 August 2024, attended the BNRC meetings of April, May and June
2024. Mr. Simon Jethro Lay, in his capacity as Executive Director and GCEO with effect from 1 August 2024 (as per company announcement dated
2 August 2024 and regulatory approval announcement dated 12 March 2025), attended the BNRC meetings of August and December 2024. The
Group Chief Human Resources Officer (“GCHRO”) acted as Board Committee Secretary.
Meetings
Members Attended
Masaud M.J. Hayat (Chairperson) 6
Edmond Brincat (Vice Chairperson & Independent Director) 6
Sunny Bhatia (Member) 6
The Committee met six times during the period under review with all Members attending all the meetings.
The following matters were discussed and, or determined:
a. group appointed Directors;
b. chairperson’s role and performance;
c. Directors’ remuneration;
d. Board of Directors evaluation, Director’s self-assessment and Board Committees self-assessment;
e. composition of Board Committees;
f. appointment of Executive Director with GCEO responsibilities;
g. BNRC Charter: annual review and checklist;
h. implementation of Internal Audit recommendations;
i. Group Remuneration Policy and Directors’ Remuneration Policy;
j. GCEO, Executive Management, Key Function Holders and subsidiary CEO’s performance;
k. Executive Management: recruitment, appointments, performance, promotions, succession and remuneration;
l. Group salary review, promotions, bonus allocation and out of cycle increases/payments;
m. succession planning for all entities;
n. annual market assessment related to Board succession planning;
o. control functions: independence, recruitment, succession and performance;
p. Remuneration Policy Statement, Statement of the BNRC, Directors’ Remuneration Report as per Capital Market Rules 12.26k, and Pillar 3
Disclosures inclusive of the Identified Staff List;
q. appointment of Group Chief Operations Officer (“GCOO”) and Group Chief Internal Audit (“GCIA”);
r. appointment of Group Chief Commercial Officer on acting basis;
s. suitability assessment and succession of the Board, the GCEO and the Key Function Holders;
t. appointment of independent non-executive Directors; and
u. Human Resources Policies.
FIMBank Group Annual Report & Financial Statements 2024
28
Remuneration statement
The BNRC has the role of making recommendations to the Board of Directors on remuneration. Decisions taken by the BNRC are presented by the
BNRC Chairperson to the Board. The guiding principle, as outlined in the Group Remuneration Policy and the Directors’ Remuneration Policy, is that
the remuneration structure is such that it attracts, develops and retains a high-performing workforce while remaining aligned to FIMBank’s long-
term strategy, risk appetite, sustainable performance, good corporate governance, regulatory compliance, corporate values and long-term value
creation for shareholders.
Across FIMBank, remuneration is based on the below principles:
• sound and effective risk management to discourage risk-taking that exceeds the Bank’s risk appetite;
• non-discriminatory practices, consistent with the acknowledged principles of diversity as listed in FIMBank’s Diversity Policy. This includes the
principle that remuneration is gender neutral and thus all employees, independently of their gender are equally remunerated for work of equal
value. True merit determines all remuneration related decisions;
• internal equity, with the application of fair distinction based on individual employee performance;
• external parity through an annual alignment exercise with local compensation data to ensure that the Bank’s remuneration packages are
competitive and in line with industry standards; and
• affordability and sustainability, ensuring that the remuneration policy is in line with the Bank’s business strategy, business objectives, values and
long-term interests and incorporates measures to avoid conflicts of interest.
Remuneration policy
The Group Remuneration Policy is aligned with the principles emanating from the EU’s Capital Requirements Directive (“CRD”), particularly in
relation to the monitoring of Identified Staff. As a basis for the compilation of the list of Identified Staff, the Bank refers to:
• the Commission Delegated Regulation (EU) 2021/923 (“MRT Regulation”);
• the EBA Guidelines on Sound Remuneration Policies (EBA/GL/2021/04) (“EBA Remuneration Guidelines”) as transposed into Banking Rule 21 on
Remuneration Policies and Practices (BR/21/2022) (“Banking Rule 21”); and
• Article 92(3) of Directive 2013/36/EU (“CRD IV"), as amended from time to time, including by Directive (EU) 2019/878 (“CRD V”) and as
transposed into Banking Rule 21.
Identified Staff are employees who in their role and as part of their responsibilities are material risk takers (meaning that their professional activities
have a material impact on the Bank’s risk profile). The MRT Regulation establishes the qualitative and quantitative criteria to identify staff who are
material risk takers.
The Bank’s Identified Staff includes the Management Body in its Management or supervisory function and/or Senior Managers. The Management
Body in its management function includes the GCEO, the Deputy CEO and Officers of the Bank who hold the grade of Executive Vice President or
higher at FIMBank p.l.c. (the “Executive Management”). The Management Body in its supervisory function comprises the Directors of the Bank’s
Board of Directors. In relation to majority owned subsidiaries of the Bank, only the respective Chief Executive Officers (“CEOs”) are considered to
be Identified Staff, as they represent the sole function reporting directly to the GCEO.
The GCEO is appointed on a definite term contract which may vary from a one-year definite term contract to a three-year definite term contract.
The contract may be renewed for further definite term periods. Currently, the Executive Director holds the position of GCEO. Members of the
Executive Management of the Bank are engaged on either a definite or an indefinite contract with varying notice periods, all of which are in line
with locally applicable legislation. Directors in their Supervisory function are approved for appointment by the AGM and pursuant to appointment
letters issued by the Company Secretary following regulatory approval, where applicable. Their appointment is for a period of one year or otherwise,
as it may be renewed at the subsequent AGM of the Bank. Directors appointed in the interim between one AGM and another, are always subject to
regulatory approval and their appointment expires at the first upcoming AGM, unless it is renewed by the same AGM.
The contracts of Directors and Executive Management do not include provisions for termination payments and other payments linked to early
termination, except for those required by law.
During 2024, the Group Remuneration Policy was subject to a number of minor amendments, including updates to reflect current naming
conventions and references, refinements to certain policy clauses to further clarify their application and deletion of outdated references.
FIMBank Group Annual Report & Financial Statements 2024
29
Remuneration structure for non-executive directors
The total package payable to Non-Executive Directors consists of a fixed fee which is supplemented by additional fees payable inter alia with respect
to any memberships and/or chairpersonships of the different Board Committees. The fees also vary between Independent and Non-Independent
Directors. Board directorship fees to remunerate the Independent Directors are higher than those of Non-Independent Directors. This is mainly for
two reasons: the additional responsibility that Independent Directors have due to their required independence and because they do not receive any
other remuneration for employment positions within the KIPCO Group. The fees are reviewed annually in line with market conditions and the
maximum allocated budget requires the approval of the AGM of the Bank.
Remuneration structure for executive directors and executive management
The remuneration structure of Executive Directors and Executive Management (together referred to as the “Executives”) comprises both fixed and
variable remuneration and is intended to attract, develop and retain a high-performing workforce while remaining aligned to FIMBank’s long-term
strategy, risk appetite, sustainable performance, good corporate governance, regulatory compliance, corporate values and long-term value creation
for shareholders. All compensation structures including those of the branches and the subsidiaries of FIMBank located in third countries are aligned
with the requirements emanating from the CRD unless local legislation in the respective jurisdiction mandates otherwise.
The BNRC ensures that while its remuneration practices are compliant with existing EU/Maltese Directives and Regulations, including CRD and the
Capital Requirements Regulation (“CRR”), the remuneration packages reflect industry benchmarks. This makes it possible for the Bank to attract
and retain Executives with the right qualities and skills for the proper management of the Bank as well as the proper execution of the strategy as
laid down by the Board of Directors. Unless the current economic scenario changes materially, no new significant changes to the Group
Remuneration Policy are envisaged for the financial year ending 31 December 2025.
The remuneration components for Executives are:
• fixed remuneration (including fringe benefits); and
• variable remuneration.
These components are combined to ensure an appropriate and balanced remuneration package that reflects the employee’s grade and professional
activity. Executives are not entitled to discretionary supplementary pension or early retirement schemes. The following tables describe the element
and purpose of Executives’ compensation and how each element operates, as well as the maximum opportunity of each element and any applicable
performance measures.
FIMBank Group Annual Report & Financial Statements 2024
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Fixed remuneration
Element and purpose of
remuneration
Operation
Maximum opportunity
Performance measures
Base salary
To provide the basis of
market-competitive overall
remuneration package. It
provides a fixed
remuneration which is
sufficient to recruit and
retain individuals of the
necessary calibre.
This is determined by:
a. the role and grade of the individual director;
b. the base salary structure for other employees across
FIMBank; and
c. external factors such as economic conditions and
market.
The base salary of Executives engaged on indefinite contracts is
reviewed annually or when required to include any statutory
payments.
The fixed remuneration component of Executives engaged on
definite or fixed-term contracts is as stipulated in the contract
of employment and compensation therein is reviewed if and
when the definite contract is renewed for a further term/s. The
Executive is entitled to any newly introduced statutory
payments or adjustments to existing ones.
When and where applicable the base salary of the Deputy CEO may also
include annual increases. These are recommended by the GCEO and require
approval by the BNRC, including the effective date.
No salary increases will be awarded when the Deputy CEO joins after
September of the preceding year or when the Deputy CEO is rated ‘1’ in the
appraisal.
Exceptional increases for the Deputy CEO during the year, require the
recommendation of the GCHRO and GCEO to BNRC and thereafter a priori
approval of the BNRC. Employment contracts may contain anniversary
payments whereby, at fixed annual intervals, amounts are paid to the
individual Executives, as applicable. Such payments also require the a priori
approval of the BNRC.
The salary of the GCEO is reviewed by the BNRC if and when the definite
contract is renewed for a further term/s.
Exceptional one-time payments may be paid to Executives for working on
specific projects during/outside office hours which go beyond the
employee’s role.
The base salary does not vary
according to performance of the
individual, the entity and
FIMBank or results achieved.
This is according to the FIMBank
pay structure which is approved
annually by the BNRC.
Deviations from the pay
structure are subject to a priori
approval by BNRC.
Fixed allowances and
benefits
To ensure business
continuity and assist
Executives in carrying out
their duties efficiently.
The benefits may include different cash allowances and/or non-
cash benefits as detailed in the respective contract of
employment and/or as may be applicable depending on the role
of the individual and the employing entity.
When and where applicable, the base salary is supplemented by fixed
benefits. These may commence either on employment and/or after
probation, as determined in the respective contract of employment and/or
as may be applicable depending on the role of the individual and the
employing entity.
N/A
FIMBank Group Annual Report & Financial Statements 2024
31
Variable remuneration
Element and purpose of
remuneration
Operation
Maximum opportunity
Performance measures
Performance bonus
To motivate Executives in
maximising individual,
departmental and FIMBank’s
performance.
Executives may be entitled to a performance bonus. Employee
performance is measured in the interim and annual
performance appraisal which is detailed in the Bank’s
Performance Management Policy and Procedure. If the variable
remuneration to be awarded amounts to more than €50,000 in
one calendar year or this represents more than one third of
his/her annual remuneration, at least 50% of the variable
remuneration should be paid in shares. Note that this
restriction on total annual variable remuneration would not
apply in the case that a derogation is applicable (see ‘Other
Requirements: Derogation’ on page 36).
Executives who join after September of the preceding year or who are rated
‘1’ will not be considered for any variable compensation.
Deferred performance bonus may be awarded at the discretion of the
BNRC. Such bonus would be linked to a 3-year vesting period.
Any Performance Bonus is dependent on the performance rating of the
Executive, the team’s performance, the entity and FIMBank’s performance.
The individual rating is based on the Executive’s overall performance which
is centred on core behaviours and performance targets. In term of core
behaviours, all employees including Identified Staff, as defined in the Group
Remuneration Policy, are assessed for leadership, people management,
personal effectiveness, creativity, innovation, holistic approach, teamwork,
communication and company values.
A performance bonus relates to
the Executive’s performance as
defined in the multiyear
assessment where applicable
and the cash component is
awarded once yearly, generally
by April.
Exceptional bonus
To motivate Executives in
maximising individual,
departmental and FIMBank’s
performance.
Executives may be entitled to an exceptional bonus to reward
remarkable performance in the individual’s role which goes
beyond the individual’s call of duty.
Exceptional bonuses up to 15% of fixed remuneration for the Deputy CEO
are approved by the GCEO and GCHRO and are ratified a posteriori by the
BNRC. Exceptional bonuses in excess of 15% of fixed remuneration for the
Deputy CEO and exceptional bonuses for the GCEO require the a priori
approval of the BNRC.
N/A
FIMBank Group Annual Report & Financial Statements 2024
32
Variable remuneration (continued)
Element and purpose of
remuneration
Operation
Maximum opportunity
Performance measures
Retention bonus
To ensure business continuity
and assist Executives in
carrying out their duties
efficiently.
Executives may, in addition to the performance bonus, be
entitled to a retention bonus on condition that the employee
remains in employment for a period of 12 months or more
from the date of award as defined in the retention addendum
to the contract of employment.
Retention bonuses up to 15% of fixed remuneration for the Deputy CEO are
approved by the GCEO and GCHRO and are ratified a posteriori by the
BNRC. Retention bonuses in excess of 15% of fixed remuneration for the
Deputy CEO and any retention bonuses for the GCEO require the a priori
approval of the BNRC.
Retention bonuses may be paid only in exceptional circumstances such as,
for example and without limitation, in the case of a restructuring, wind-
down, after a change in control or to ensure the completion of major
projects. Retention bonuses will not be awarded merely to compensate for
performance-related remuneration not paid as a result of insufficient
performance or FIMBank’s financial situation. Moreover, Retention
Bonuses shall only be awarded if no reasons exist that lead to a situation
where the Retention Bonus shall not be awarded, e.g. material compliance
breaches, misconduct or other failures of that staff member. Retention
bonuses to Executives must be justified based on, amongst other things,
the following factors:
a. concerns relating to the risk that certain Executives may choose to
leave FIMBank;
b. the reasons why the retention of that Executive is crucial for FIMBank;
c. the consequences if the relevant Executive leaves FIMBank; and
d. whether the amount of the awarded Retention Bonus is necessary and
proportionate to retain the targeted Executive.
The retention bonus is considered in the calculation of the ratio between
the variable and fixed components of remuneration following one of the
methods specified in Banking Rule 21 and shall be established in line with
applicable legislation.
N/A
FIMBank Group Annual Report & Financial Statements 2024
33
Variable remuneration (continued)
Element and purpose of
remuneration
Operation
Maximum opportunity
Performance measures
Severance payments
To close the employment
relationship in case of
redundancy, termination by
the employer and/or of a
potential legal dispute.
Severance payments may include redundancy payments. In
the below situations, additional payments made because of
the early termination of a contract shall be considered as
severance payments:
a. FIMBank terminates the employment contract of the
Executive because of failure of the institution;
b. FIMBank needs to terminate the employment contract
following a material reduction of FIMBank’s activities in
which the Executive was active in or where business
areas are acquired by FIMBank without the option for
current employees to stay employed in the acquired
entity; and
c. FIMBank and an Executive agree on a settlement in case
of a potential or actual employment dispute, to avoid a
decision on a settlement by the courts.
Any severance payments for the Deputy CEO, other than notice related
payments or gardening leave have to be reviewed and approved by the
GCHRO, Group Chief Risk Officer (“CRO”), Group Chief Compliance Officer
(“GCCO”) and the GCEO. This with a view to ensuring that the Bank is acting
in compliance with prevailing rules and regulations and does not reward
failure. Failure is defined as situations where an Executive is no longer
considered as meeting appropriate standards of fitness and propriety
and/or is responsible for actions which result in significant losses for
FIMBank and/or acts contrary to internal rules, values or procedures based
on intent or gross negligence. Any severance payment to the GCEO requires
the a priori approval of the BNRC.
Unless stipulated by local regulation, the maximum severance payment
awarded may be of a maximum of three months’ base salary. Severance
packages in excess of the equivalent of three months’ base salary would
require the a priori approval of the BNRC.
In the event that this is extended, such extended amount would be
considered as part of the variable remuneration component for the year it
was awarded. However, it would not be taken into account for the purpose
of the calculation of the ratio of fixed to variable remuneration if it meets
the definition set out in paragraph 181 of Banking Rule 21.
N/A
FIMBank Group Annual Report & Financial Statements 2024
34
Variable remuneration (continued)
Element and purpose of
remuneration
Operation
Maximum opportunity
Performance measures
Guaranteed/Sign-on
bonus
To motivate Executives in
maximising individual,
departmental and FIMBank’s
performance.
FIMBank may pay out a guaranteed bonus in the first year of
employment, if applicable. Such sign-on bonus for the first
year of employment will require the approval of the BNRC.
A guaranteed bonus is exceptional and can only occur where the institution
has a sound capital base.
FIMBank does not pay out or promise to pay out any guaranteed variable
remuneration. In exceptional cases, FIMBank may at employment stage
agree to disburse a sign-on bonus. Such sign-on bonus requires the a priori
approval of the BNRC and is disbursed on a one-time conditional basis
during the first year of employment. In the event that this is awarded, such
amount would be considered as part of the variable remuneration
component for the financial year during which it was awarded. However, it
is not to be taken into account for the purpose of the calculation of the ratio
between the fixed and variable components of the total remuneration for
the first performance period if the probationary period initiates prior to the
first performance period.
The sign-on bonus is exceptional and can only occur where FIMBank has a
sound capital base. It will only be awarded once to the same single
employee and cannot be awarded again if the same employee receives a
new contract from the same Group entity or another entity with the scope
of consolidation of the Group.
The sign-on bonus may be awarded either in cash or in instruments.
N/A
FIMBank Group Annual Report & Financial Statements 2024
35
Variable remuneration (continued)
Element and purpose of
remuneration
Operation
Maximum opportunity
Performance measures
Buy-out compensation of
previous employment
contract
FIMBank may pay a buy-out compensation of a previous
employment contract in the first year of employment, if
applicable. Such buy-out compensation will require the
approval of the BNRC.
FIMBank may, in exceptional circumstances (where the deferred variable
remuneration of a new Executive was reduced or revoked by the previous
employer because of the termination of the contract), pay a buy-out
compensation to on-board a new Executive. Such bonus would require the
a priori approval of the BNRC and is disbursed on a one-time conditional
basis during the first year of employment.
The buy-out compensation is exceptional and can only occur where
FIMBank has a sound capital base.
N/A
BNRC decisions are determined by the guidelines set by the Board of Directors when reviewing the Group budget. In line with Article 135-139 of Banking Rule 21 (BR21/2022) issued by the Malta Financial
Services Authority, the Bank ensures that any variable remuneration awarded is not detrimental to its sound and strong capital base. In the unlikely event that the soundness of the capital base may be at risk,
this will be escalated and presented to the BNRC.
The variable remuneration awarded to Executives is also subject to the below provisions emanating from the Directors’ Remuneration Policy:
Clawback and malus
Any variable remuneration extended by FIMBank to any of its Executives is subject to clawback and malus. These are defined in Banking Rule 21 as follows:
• malus means an arrangement that permits the institution to reduce the value of all or part of deferred variable remuneration based on ex post risk adjustments
before it has vested; and
• clawback means an arrangement under which the staff member has to return ownership of an amount of variable remuneration paid in the past years or which
has already vested to the institution under certain conditions.
Malus will be capable of being applied in respect of deferred elements of variable remuneration at any time during the applicable deferral period. Clawback will apply
during the period of four years from the date of award or until the end of the applicable retention period, as applicable. FIMBank reserves the right to apply clawback
and malus on 100% of bonus paid and/or deferred, in the case of gross misconduct as defined in the Disciplinary Policy and in the event that conditions stipulated in
the performance targets in the subsequent two years are not met.
FIMBank Group Annual Report & Financial Statements 2024
36
Variable remuneration (continued)
Total maximum variable
remuneration
The total annual variable remuneration for Executives is capped at 100% of total fixed annual remuneration for each individual. This cap may be increased up to a
maximum of 200% to total fixed annual remuneration provided the following conditions are fulfilled:
• the shareholders shall approve a higher ratio based on a detailed recommendation giving reasons for and the scope of the approval sought, including the number
of staff affected, their functions and the expected impact of such variable remuneration on the requirement that the relevant FIMBank entities maintain a sound
capital base;
• the shareholders approve such variable remuneration award or awards by a majority of at least 66%, with at least 50% of the shares or equivalent ownership
rights being represented or, failing that, acting by a majority of 75% of the ownership rights represented;
• the relevant FIMBank entity shall notify all shareholders that the approval shall be sought and shall provide a reasonable notice period in advance;
• the FIMBank entity shall promptly inform its regulator of any recommendation to its shareholders to operate within the proposed 200% ratio and the reasons for
this, and shall in such submission demonstrate that the higher ratio of variable remuneration does not conflict with FIMBank’s obligations under the applicable
legislation, particularly in respect of own funds obligations;
• the FIMBank entity shall promptly inform its regulator of the decisions taken by the shareholders to approve the proposed higher maximum ratio; and
• staff members directly concerned with the proposed higher maximum ratio shall not be permitted to exercise, directly or indirectly, any voting rights they may
have in respect of the approval of any proposal relating to this ratio.
Payment of deferred bonus in case of
loss
In case FIMBank incurs a loss in a financial year, in the interest of strengthening the capital base and getting FIMBank back in good standing, payment or otherwise of
any deferred bonus will be decided by the BNRC. Such bonuses may be further deferred in the interest of sustainability.
Reassessment of performance
Every year, before paying out the deferred part of cash or the vesting of deferred instruments, a reassessment of the performance and, if necessary, an ex-post risk
adjustment shall be applied to align variable remuneration to additional risks that have been identified or materialised after the award. This also applies where multi-
year accrual periods are used.
Other requirements: Derogation
By virtue of Paragraph 20 of Banking Rule 21, given that a) the Bank does not meet the definition of a large institution as defined in Article 4(1) of the CRR; and b) the
value of the Bank’s assets over the four-year period immediately preceding the current financial year is less than €5 billion, the following requirements emanating
from Article 94 of CRD V are not deemed to be applicable to the Bank, namely:
a. the principle that a minimum of 50% of any variable remuneration shall consist of shares; and
b. the principle that at least 40% of variable remuneration is deferred over a period of not less than 4 to 5 years.
FIMBank Group Annual Report & Financial Statements 2024
37
Information on remuneration in terms of code provision 8.A.5 of the MFSA capital
markets rules
The Annual General Meeting of Shareholders approves the maximum annual aggregate remuneration which the Directors may receive for the
holding of their office. At the Annual General Meeting held on 12 June 2024, the Shareholders approved the maximum aggregate emoluments of
the Non-Executive Directors for the financial year ended 31 December 2024 amounting to USD450,000 (2023: USD450,000). Executive Directors are
only remunerated as employees and do not receive any Directors’ fees. Directors, in their capacity as Directors of the Bank, are not entitled to profit
sharing, share options or pension benefits. The total fees paid specifically for Board of Directors Meetings for the financial year ended 31 December
2024 amounted to USD143,941, which is included as part of the total payments received by Non-Executive Directors disclosed below.
For 2024, the total remuneration awarded to Non-Executive Directors by the Bank was:
• fixed remuneration USD334,417
• variable remuneration Nil
• executive share options Nil
• fringe benefits USD400
The fixed annual remuneration is inclusive of remuneration with respect to Committee/s memberships. In this respect, the Directors’ emoluments
are within the limit approved by the Annual General Meeting of 12 June 2024.
For 2024, the total remuneration awarded to the GCEO, Deputy CEO and Executive Management by the Bank was:
• fixed remuneration USD2,501,645
• variable remuneration * USD393,831
• executive share options granted Nil
• fringe benefits USD636,161
' * ’ Variable remuneration represents the amounts attributable to the GCEO, Deputy CEO and Executive Management in respect of performance
year 2024.
Additional disclosures on the governance process related to the variable portion of remuneration have been made under the Directors’
Remuneration Report and under the Section discussing the Remuneration Policy of the 2024 Pillar 3 Disclosures Report published on the Bank’s
website.
From 1 January 2024 until his resignation on 1 August 2024, Mr. Mohammed Louhab held the position of GCEO and Executive Director. Effective 1
August 2024, Mr. Simon Jethro Lay, who served as Deputy CEO until 31 July 2024, was appointed GCEO and Executive Director (as per company
announcement dated 2 August 2024 and subsequent regulatory approval announcement dated 12 March 2025).
None of the Directors received any fees for holding the office of Director by the Bank's parent entities or any other related undertakings in respect
of services rendered to the FIMBank Group, except for Mr. Mohammed Louhab. In 2024, Mr. Mohammed Louhab received USD89,737 from United
Gulf Holdings (“UGH”) as arrears for the services he rendered to the FIMBank Group in 2023, during his tenure as Non-Executive Director, prior to
being appointed Executive Director of FIMBank Board of Directors. In this respect, the Directors believe that the requirements emanating from
paragraph (c) of Appendix 12.1 of the Capital Markets Rules, which requires the disclosure of “any remuneration from any undertaking belonging
to the same group where the term group means parent undertaking and all its subsidiary undertakings” applies at the level of FIMBank p.l.c., the
Bank's parent entity, and its subsidiary undertakings respectively, taking cognisance of their role as Directors of the Bank. Accordingly, no disclosure
in respect of their remuneration for any services which they might be providing at parent entity level is being made within this report.
FIMBank Group Annual Report & Financial Statements 2024
38
Directors’ remuneration report (as per capital market rules 12.26K)
This Report is being included with the purpose of providing the level of transparency as required with effect from reporting year 2020, following the
enactment of Directive EU2017/828 (often referred to as “SRDII”) and the consequential changes to the Capital Markets Rules, more specifically
Chapter 12 which deals with shareholders’ rights. The amounts disclosed reflect the Directors’ Remuneration Policy (“Policy”) as approved by the
Annual General Meeting held on 12 June 2024 and published on the Bank’s website (refer to the policy in full on
https://www.fimbank.com/en/remuneration-policy). The result of the vote at the Annual General Meeting when the Policy was last approved was
430,208,301 votes in favour, 53,248,881 “as he prefers” votes, 22,883 votes against, and 6,408,424 abstentions, and was implemented without
making any derogations and/or deviations from the procedure for the implementation of the Remuneration Policy as defined in Chapter 12 of the
Capital Markets Rules.
The Policy is effective for three years since the date of approval and will therefore be subject to another approval in the 2027 Annual General
Meeting. Nevertheless, the Policy is reviewed annually to reflect any new regulatory requirements or changes in Policy. Any material amendments
are approved by the BNRC prior to being submitted to the General Meeting for its binding vote.
During 2024, the Policy was updated to incorporate the following enhancements (which were approved in the Annual General Meeting dated
12 June 2024 as per above):
• Inclusion of additional detail to further align the Policy with the applicable regulatory framework;
• Refinement of references to improve consistency across the Policy;
• Clarification of the governance process relating to the approval of deviations from the Policy; and
• Revisions to the performance measures applicable to Non-Executive Directors’ remuneration.
In terms of the requirements within Appendix 12.1 of the Capital Markets Rules, the following sub-sections of the Directors’ Remuneration Report
present the total remuneration paid to each Director in respect of the financial year ended 31 December 2024 (analysed further between fixed and
variable remuneration), as well as the annual change of remuneration of the Executive Directors, of the Bank’s performance and of average
remuneration on a full-time equivalent basis of the Bank’s employees (other than Directors) over the four most recent financial years.
Non-executive directors
The Bank’s approach to remuneration is that of ensuring that the Bank is able to attract and retain talented and high performing Directors by
recognising, valuing and fairly rewarding their contributions while remaining aligned to the Bank’s long-term strategy, risk appetite, sustainable
performance and corporate values.
The total remuneration of each individual Director is detailed in the following tables. Non-Executive Directors only receive fixed fees for directorship
services. Consequently, the percentage split between fixed and variable should be taken as 100% vs 0%.
For information about the general performance and events of material importance of the Bank refer to the Statements of Profit or Loss and the
Statements of Other Comprehensive Income on pages 48 and 49 and in the Review of Performance section within the Director’s Report. These did
not impact the total remuneration of Non-Executive Directors.
The Non-Executive Directors did not receive any base salary, variable remuneration or compensation in respect of extraordinary items and pension
contributions during the financial year ended 31 December 2024. In addition, Non-Executive Directors are not entitled to profit-sharing
arrangements, share options, shares or pension benefits.
FIMBank Group Annual Report & Financial Statements 2024
39
Non-executive directors’ remuneration
Difference
Difference
Difference
Difference
Name of director
2024
2023
2022
2021
2024 vs
2023
2023 vs
2022
2022 vs
2021
2021 vs
2020
Notes
USD
USD
USD
USD
%
%
%
%
John C. Grech
* 101,150
100,891
100,400
101,032
0.3
0.5
(0.6)
2.8
No change in fee structure in 2024. The minimal increase between
2023 and 2024 is due to the fact that Dr. Grech was appointed as
Chairperson of the BCGC on 1 May 2023, which is a position which
was still held as at 31 December 2024. In this respect, Dr. Grech
received a full year of remuneration in 2024 but a partial
remuneration in 2023.
Masaud M.J. Hayat
19,750
19,750
19,750
17,000
-
-
16.2
(17.1)
No change in fee structure in 2024.
Edmond Brincat
62,500
51,356
46,000
47,333
21.7
11.6
(2.8)
1.6
The increase of 21.7% in remuneration compared to 2023 is due to
the change in fee structure following the adjustment in
committees' composition effective 1 July 2024. In this respect,
during 2024, Mr. Brincat was appointed as Member to the BCGC
and the BRIC while relinquishing his role as Member and
Chairperson of the BESG (which role was held by Mr. Brincat since
1 August 2023). The increase in remuneration is therefore linked to
the change in responsibilities occurring in 2024.
Erich Schumacher
6,750
19,000
11,083
NA
(14.7)
-
NA
NA
No change in fee structure in 2024. Mr. Schumacher resigned from
his role as Director within the BoD with effect from 24 April 2024
following his appointment as GCOO. In this respect, the relative
decrease in fees compared to 2023, after taking into consideration
the annualisation of fees to reflect the fact that Mr Schumacher was
a Director for only a portion of 2024, is primarily due to a marginally
lower number of Board and BRC meetings Mr. Schumacher
attended until his date of resignation.
‘ * ’ The remuneration of Non-Executive Directors comprises fees only, except for the case of the Chairperson of the Board of Directors whose total emoluments for 2024 comprise USD100,750 in fees and USD400
in fringe benefits.
FIMBank Group Annual Report & Financial Statements 2024
40
Non-executive directors’ remuneration (continued)
Difference
Difference
Difference
Difference
Name of director
2024
2023
2022
2021
2024 vs
2023
2023 vs
2022
2022 vs
2021
2021 vs
2020
Notes
USD
USD
USD
USD
%
%
%
%
Hussain Abdul Aziz Lalani
44,750
39,417
36,750
36,750
13.5
7.3
-
5.4
No change in fee structure in 2024. The increase of 13.5% in remuneration
compared to 2023 is due to the fact that Mr. Lalani was appointed as
Member to the BESG Committee on 1 September 2023, a position which
was still held as at 31 December 2024. In this respect, Mr. Lalani received a
full year of remuneration in 2024 but a partial remuneration in 2023.
Rabih Soukarieh
27,000
27,000
24,750
23,000
-
9.1
7.6
(11.9)
No change in fee structure in 2024.
Samer Abbouchi
15,083
NA
NA
NA
NA
NA
NA
NA
Fees represent services rendered from 1 June 2024 when Mr. Abbouchi was
appointed to the BoD and BRC. On 1 October 2024, Mr. Abbouchi was also
appointed to the BCC.
Sunny Bhatia
27,000
11,250
NA
NA
-
NA
NA
NA
No change in fee structure in 2024. The increase is due to Mr. Bhatia
receiving the full annual fee for the reporting year, whereas in 2023, he
received a partial fee following his appointment as a Member to the BoD,
BNRC and BCGC on 23 August 2023. The annualisation of fees paid to Mr.
Bhatia in 2023 would result in fees which are in line with those paid in
respect of 2024.
Teuta Bakalli
30,834
NA
NA
NA
NA
NA
NA
NA
Fees represent services rendered from 23 May 2024 when Ms. Bakalli was
appointed to the BoD, BRC, BAC and BCGC. On 1 July 2024, Ms. Bakalli was
also appointed as a Member and Chairperson of the BESG, while
relinquishing her role as Member of the BCGC.
In addition to the presented fees, Directors Dr. John C. Grech, Mr. Hussain Abdul Aziz Lalani and Mr. Samer Abbouchi were also awarded remuneration for their services as Directors on the LFC Board of Directors.
The fees awarded are: Dr. John C. Grech (Chairperson) USD10,000, Mr. Hussain Abdul Aziz Lalani USD10,000 and Mr. Samer Abbouchi USD6,667.
FIMBank Group Annual Report & Financial Statements 2024
41
Non-executive directors’ remuneration (continued)
The positions held by the Bank’s Non-Executive Directors during the financial year ended 31 December 2024 are presented hereunder:
Name of director
Position
John C. Grech
Non-Executive Director, Chairperson FIMBank BoD, Chairperson LFC BoD, Chairperson BRIC, Chairperson BCC, Chairperson CGC, Permanent Invitee BNRC
Masaud M.J. Hayat
Non-Executive Director, Vice Chairperson BoD, Chairperson BNRC
Edmond Brincat
Independent Non-Executive Director, Member BoD, Chairperson BAC, Chairperson BESG (up to 30 June 2024), Vice Chairperson BNRC, Member BCGC, Member BRIC
Erich Schumacher
Up to 24 April 2024: Non-Executive Director, Member BoD, Member BRC, Member LFC BoD
Hussain Abdul Aziz Lalani
Non-Executive Director, Member BoD, Chairperson BRC, Vice Chairperson BAC, Vice Chairperson BRIC, Vice Chairperson BESG, Vice Chairperson LFC BoD
Rabih Soukarieh
Non-Executive Director, Member BoD, Vice Chairperson BCC
Samer Abbouchi
Non-Executive Director, Member BoD, Vice Chairperson BRC, Member BCC, Member LFC BoD
Sunny Bhatia
Non-Executive Director, Member BoD, Vice Chairperson BCGC, Member BNRC
Teuta Bakalli
Independent Non-Executive Director, Member BoD, Member BCGC (up to 30 June 2024), Chairperson BESG, Member BAC, Member BRC
FIMBank Group Annual Report & Financial Statements 2024
42
Executive directors and deputy chief executive officer
In accordance with Capital Markets Rules 12.2A, the disclosure of information in terms of Capital Markets Rules 12.26K and Appendix 12.1 to Chapter 12 of the Capital Markets Rules is applicable in respect of
remuneration payable to the GCEO and the Deputy CEO.
From 1 January 2024 until his resignation on 1 August 2024, Mr. Mohammed Louhab held the position of GCEO and Executive Director. Effective 1 August 2024, Mr. Simon Jethro Lay, who served as Deputy CEO
until 31 July 2024, was appointed GCEO and Executive Director (as per company announcement dated 2 August 2024 and subsequent regulatory approval announcement dated 12 March 2025). In addition, Mr.
Lay also held the position of CEO of London Forfaiting Company (“LFC”) throughout the financial year ended 31 December 2024.
The following tables present information in respect of remuneration received by the outgoing GCEO and Executive Director (Mr. Mohammed Louhab) and newly appointed GCEO and Executive Director (Mr.
Simon Jethro Lay). Mr. Mohammed Louhab did not receive any remuneration from the Bank’s subsidiaries, whereas Mr. Simon Jethro Lay received remuneration from LFC, where he holds the position of CEO of
this subsidiary of the Bank.
Fixed remuneration
Variable remuneration
Name of executive
Base salary
Fees
* Fringe benefits
One-year variable
Multi-year variable
Total
remuneration
Proportion of fixed and
variable remuneration
relative to total remuneration
USD
USD
USD
USD
USD
USD
USD
Mohammed Louhab
270,768
-
103,211
NA
NA
373,979
100%: 0.0%
Simon Jethro Lay
575,741
-
146,677
326,305
-
1,048,723
68.9%: 31.1%
‘ * ‘ The amount in respect of Mr. Mohammed Louhab includes: travel, accommodation, car, parking, mobile, pension plan allowances, health, and personal accident and life insurance cover, as well as an amount
of USD9,759 relating to relocation flights and other related costs. The amount in respect of Mr. Simon Jethro Lay includes: pension plan allowance and health and life insurance cover.
The variable remuneration awarded to Mr. Simon Jethro Lay in respect of performance year 2024 reflects his overall performance as CEO of LFC, Deputy CEO of FIMBank (until 31 July 2024) and GCEO and
Executive Director of FIMBank (with effect from 1 August 2024). In determining the variable remuneration, his performance was assessed by the BNRC against specific goals related to financials as well as other
criteria, namely service/client delivery; risk and control; leadership and people management; market position; and project and initiatives. On the basis of this assessment, the BNRC approved the aforementioned
performance bonus awarded to Mr. Simon Jethro Lay. This is in view of Mr. Lay’s material contribution in ensuring that LFC continues to be a profit-making entity for the FIMBank Group in 2024 and for his
initiatives in the strategic transformation of the Bank. No variable remuneration was awarded to Mr. Mohammed Louhab in respect of the financial year ended 31 December 2024.
In accordance with the Group’s Remuneration Policy, no deferral requirements are applicable to the variable remuneration awarded for the financial year ended 31 December 2024. In addition, the variable
remuneration is payable in cash and, accordingly, no share-based remuneration was awarded to Mr. Simon Jethro Lay. There were no circumstances warranting severance payments during the reporting year.
Finally, none of the variable remuneration awarded in respect of the financial year ended 31 December 2024 or the preceding financial years were reclaimed or adjusted, neither in the form of malus nor in the
form of clawback.
FIMBank Group Annual Report & Financial Statements 2024
43
Executive directors and deputy chief executive officer (continued)
An analysis of the annual change of remuneration paid to Executive Directors and the Deputy CEO over the last four financial years is presented hereunder:
* Difference
* Difference
* Difference
* Difference
Name of executive
2024
2023
2022
2021
2024 vs 2023
2023 vs 2022
2022 vs 2021
2021 vs 2020
Notes
USD
USD
USD
USD
%
%
%
%
Simon Jethro Lay
1,048,723
906,433
713,281
873,468
15.7
27.1
(18.3)
20.1
The increase in the remuneration of Mr. Lay of USD142,290
or 15.7% is primarily attributable to remuneration received
for his new duties as GCEO and Executive Director from 1
August 2024 onwards. Prior to this, Mr. Lay served in his
capacity as Deputy CEO. The overall increase also reflects
higher variable remuneration rewarded in 2024 compared
to 2023.
Mohammed Louhab **
373,979
56,565
NA
NA
-
NA
NA
NA
Mr. Louhab was appointed GCEO and Executive Director
with effect from 1 December 2023. For the purpose of
calculating the annual percentage change between 2023
and 2024, the remuneration received in 2024 (excluding
relocation/repatriation payments and cost of living
allowances) in his capacity as GCEO and Executive Director
was annualised to reflect the cessation of his duties
effective 1 August 2024. Annualised total remuneration
would amount to USD562,168 in 2023 and 2024 (excluding
one-time relocation payment. In this respect, the annual
percentage change in remuneration compared to 2023 was
effectively nil.
‘ * ‘ Differences also include fluctuation in rate of exchange from GBP to USD.
‘ ** ‘ Prior to his appointment as GCEO and Executive Director with effect from 1 December 2023, Mr. Louhab held the position of Non-Executive Director. In this respect, the amounts included in the table above
only reflect the remuneration awarded to Mr. Louhab in his capacity as GCEO and Executive Director to enable a better comparison in view of the fact that the remuneration structure for Executive Directors and
Non-Executive Directors is different.
FIMBank Group Annual Report & Financial Statements 2024
44
Executive directors and deputy chief executive officer (continued)
The positions held by the Bank’s Executive Directors and Deputy CEO during the financial year ended 31 December 2024 are presented hereunder:
Name of executive
Position
Simon Jethro Lay
Up to 31 July 2024: Deputy CEO
With effect from 1 August 2024: GCEO and Executive Director (as per company announcement dated 2 August 2024 and regulatory approval announced on 12 March 2025),
Member of the BoD, Member BESG, Non-Voting Member BRIC and BCC, Chairperson ALCO, Chairperson NCIC, Chairperson MCC, Chairperson TC, Member ITSC, Member ORMC,
Member ERPC, Member LFC BoD;
During 2024 he continued to serve as LFC CEO
Mohammed Louhab
Up to 1 August 2024: GCEO and Executive Director FIMBank, Member BCC, Member BESG, Non-Voting Member BRIC, Chairperson ALCO, Chairperson NCIC, Chairperson MCC,
Chairperson TC, Member ERPC, Member ITSC, Member ORMC, Permanent Invitee MGC and MESG, Member LFC BoD
Company performance and average remuneration of the bank’s employees
In terms of the requirements within Appendix 12.1 of the Capital Markets Rules, the following tables present the annual change of the Bank’s performance and of average remuneration on a full-time equivalent
basis of the Bank’s employees (other than directors) over the four most recent financial years.
Performance indicators
2024
2023
2022
2021
Difference
2024 vs 2023
Difference
2023 vs 2022
Difference
2022 vs 2021
Difference
2021 vs 2020
USD
USD
USD
USD
%
%
%
%
Profit before net impairment and tax
2,391,977
6,290,495
4,206,308
3,237,112
(62.0)
49.5
29.9
155.6
Net (loss)/profit for the period
(3,203,686)
2,490,148
(22,010,084)
(663,219)
(228.7)
111.3
(3,218.7)
98.8
Gross non-performing assets
12,886,098
20,605,923
94,001,953
119,068,469
* 37.5
* 78.1
* 21.1
* 31.7
‘ * ‘ Percentages in respect of FIMBank’s performance are being shown as positive given that the figures denote improvements in these metrics.
Average remuneration on full-time equivalent basis of employee
2024
2023
2022
2021
Difference
2024 vs 2023
Difference
2023 vs 2022
Difference
2022 vs 2021
Difference
2021 vs 2020
USD
USD
USD
USD
%
%
%
%
Employees of the Bank
78,876
74,684
77,158
79,792
5.6
(3.2)
(3.3)
5.2
FIMBank Group Annual Report & Financial Statements 2024
45
Denotes membership of:
• FIMBank Board of Directors (“BoD”)
• Board Audit Committee (“BAC”)
• Board Corporate Governance Committee (“BCGC”)
• Board Credit Committee (“BCC”)
• Board Environment, Social and Governance Committee (“BESGC”)
• Board Nomination and Remuneration Committee (“BNRC”)
• Board Review and Implementation Committee (“BRIC”)
• Board Risk Committee (“BRC”)
• Asset Liabilities Committee (“ALCO”)
• Management Credit Committee (“MCC”)
• Management Environmental, Social and Governance Committee (“MESG”)
• Emerging Risk and Provisioning Committee (“ERPC”)
• IT Steering Committee (“ITSC”)
• Operational Risk Management Committee (“ORMC”)
• Non-Credit Insurance Committee (“NCIC”)
• Transformation Committee (“TC”)
The Directors’ Remuneration Report for 2023 was approved at the Annual General Meeting held on 12 June 2024 with the Resolution being passed
by 430,208,301 votes in favour, 53,248,881 “as he prefers” votes, 22,883 votes against and 6,408,424 abstentions. There were no issues raised on
the Report during the said Annual General Meeting.
This Directors’ Remuneration Report in terms of Chapter 12 of the Capital Markets Rules is being put forward to an advisory vote of the 2025 Annual
General Meeting in accordance with the requirements of the Capital Markets Rule 12.26 L.
In accordance with Capital Markets Rule 12.26N, the contents of the Directors’ Remuneration Report within this Remuneration Report have been
reviewed by the external auditor to ensure compliance with the requirements emanating from Appendix 12.1 of the Capital Markets Rules.
FIMBank Group Annual Report & Financial Statements 2024
46
Statements of financial position
For the year ended 31 December
Group | Bank | ||||
2024 | 2023 | 2024 | 2023 | ||
Note | USD | USD | USD | USD | |
Assets | |||||
Balances with the Central Bank of Malta, treasury bills and cash | 18 | 134,179,290 | 352,997,057 | ||
Derivative assets held for risk management | 19 | 1,464,641 | 812,609 | ||
Trading assets | 20 | - | - | ||
Loans and advances to banks | 21 | 90,098,124 | 114,325,243 | ||
Loans and advances to customers | 22 | 517,783,911 | 618,118,225 | ||
Financial investments at fair value through profit or loss | 23 | 13,958,450 | 19,329,840 | ||
Financial investments at fair value through other comprehensive income | 24 | 120,265,095 | 140,755,780 | ||
Financial investments at amortised cost | 25 | 2,073,906 | 28,399,073 | ||
Investments in subsidiaries | 26 | 116,182,573 | 157,687,573 | ||
Property and equipment | 27 | 1,916,689 | 2,994,784 | ||
Investment property | 28 | - | - | ||
Intangible assets | 30 | 2,906,773 | 2,624,736 | ||
Current tax assets | - | - | |||
Deferred tax assets | 31 | 15,004,834 | 15,004,834 | ||
Other assets | 32 | 9,312,395 | 7,747,110 | ||
Total assets | 1,025,146,681 | 1,460,796,864 | |||
Liabilities and equity | |||||
Liabilities | |||||
Derivative liabilities held for risk management | 19 | 1,165,387 | 626,476 | ||
Amounts owed to institutions and banks | 33 | 168,729,126 | 333,498,402 | ||
Amounts owed to customers | 34 | 679,691,057 | 951,166,330 | ||
Debt securities in issue | 35 | - | - | ||
Current tax liabilities | - | - | |||
Deferred tax liabilities | 31 | - | - | ||
Provision for liabilities and charges | 36 | 211,125 | 90,135 | ||
Other liabilities | 37 | 8,584,443 | 10,633,538 | ||
Total liabilities | 858,381,138 | 1,296,014,881 | |||
Equity | |||||
Called-up share capital | 38 | 261,221,882 | 261,221,882 | ||
Share premium | 38 | 858,885 | 858,885 | ||
Currency translation reserve | 38 | ( | ( | - | - |
Fair value reserve | 38 | ( | (12,195,204) | (17,382,450) | |
Other reserve | 38 | 2,681,041 | 2,681,041 | ||
Accumulated losses | 38 | ( | ( | (85,801,061) | (82,597,375) |
Total equity attributable to equity holders of the Group | 166,765,543 | 164,781,983 | |||
Non-controlling interests | 39 | - | - | ||
Total equity | 166,765,543 | 164,781,983 | |||
Total liabilities and equity | 1,025,146,681 | 1,460,796,864 |
FIMBank Group Annual Report & Financial Statements 2024
47
Statements of financial position
For the year ended 31 December
Group | Bank | ||||
2024 | 2023 | 2024 | 2023 | ||
Note | USD | USD | USD | USD | |
Memorandum items | |||||
Contingent liabilities | 40 | 30,960,840 | 42,331,477 | ||
Commitments | 41 | 111,629,563 | 100,220,087 |
The official middle rate of exchange issued by the European Central Bank between US Dollar and Euro as at 31 December 2024 was 1.0389 (2023:
1.1050).
The Notes on pages 56 to 191 are an integral part of these Financial Statements.
The Financial Statements on pages 46 to 191 were approved and authorised for issue by the Board of Directors on 9 April 2025.
Approved by the Board of Directors and signed on its behalf by Dr. John C. Grech (Chairman) and Mr. Masaud M.J. Hayat (Vice Chairman) on 9
April 2025 as per Director’s Declaration on ESEF Annual Financial Report submitted in conjunction with the Annual Report and Financial
Statements 2025.
FIMBank Group Annual Report & Financial Statements 2024
48
Statements of profit or loss
For the year ended 31 December
Group | Bank | ||||
2024 | 2023 | 2024 | 2023 | ||
Note | USD | USD | USD | USD | |
Interest income | 8 | 54,480,196 | 52,818,308 | ||
Interest expense | 8 | ( | ( | (35,797,670) | (33,156,902) |
Net interest income | 8 | 18,682,526 | 19,661,406 | ||
Fee and commission income | 9 | 3,785,269 | 3,116,178 | ||
Fee and commission expense | 9 | ( | ( | (1,163,931) | (1,206,187) |
Net fee and commission income/(expense) | 9 | ( | 2,621,338 | 1,909,991 | |
Net trading results | 10 | ( | ( | (534,483) | (921,644) |
Net (loss)/gain from equity investments measured at fair value through profit or loss | 11 | ( | (718,609) | 768,541 | |
Dividend income | 12 | 6,000,000 | 12,221,863 | ||
Impairment charge in respect of investments in subsidiaries | 26 | (1,500,000) | - | ||
Net changes in fair value of investment property | 28 | ( | - | - | |
Other operating income | 13 | 194,273 | 328,330 | ||
Other operating expenses | 14 | ( | ( | - | (24,531) |
Operating income before credit losses | 24,745,045 | 33,943,956 | |||
Net movement in expected credit losses and other credit impairment charges | 4 | ( | ( | (3,180,417) | (2,993,592) |
Operating income | 21,564,628 | 30,950,364 | |||
Administrative expenses | 15 | ( | ( | (21,010,359) | (24,824,525) |
Depreciation and amortisation | 27/30 | ( | ( | (2,842,709) | (2,828,936) |
Total operating expenses | ( | ( | (23,853,068) | (27,653,461) | |
Profit/(Loss) before tax | (2,288,440) | 3,296,903 | |||
Taxation | 16 | ( | ( | (915,246) | (806,755) |
Profit/(Loss) for the year | (3,203,686) | 2,490,148 | |||
Profit/(Loss) for the year attributable to: | |||||
Equity holders of the Group | ( | (3,203,686) | 2,490,148 | ||
Non-controlling interests | 39 | - | - | ||
(3,203,686) | 2,490,148 | ||||
Earnings per share | |||||
Basic earnings per share (US cents) | 17 | ( |
The Notes on pages 56 to 191 are an integral part of these Financial Statements.
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Statements of other comprehensive income
For the year ended 31 December
Group | Bank | ||||
2024 | 2023 | 2024 | 2023 | ||
USD | USD | USD | USD | ||
Profit/(Loss) for the year | (3,203,686) | 2,490,148 | |||
Other comprehensive income: | |||||
Items that will not be reclassified subsequently to profit or loss: | |||||
Properties: | |||||
- | Surplus arising on revaluation of properties | - | - | ||
- | Income tax | ( | - | - | |
- | - | ||||
Items that are or may be reclassified subsequently to profit or loss: | |||||
Foreign operations - foreign currency translation differences | ( | ( | - | - | |
Debt instruments at fair value through other comprehensive income: | |||||
- | Fair value gains | 5,187,246 | 8,119,386 | ||
5,187,246 | 8,119,386 | ||||
Other comprehensive income, net of tax | 5,187,246 | 8,119,386 | |||
Other movements in comprehensive income | - | - | |||
Total comprehensive income | 1,983,560 | 10,609,534 | |||
Total comprehensive income attributable to: | |||||
Equity holders of the Group | 1,983,560 | 10,609,534 | |||
Non-controlling interests | - | - | |||
1,983,560 | 10,609,534 | ||||
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Statements of changes in equity
For the year ended 31 December 2024
Group
Called-up | Currency | Attributable to equity holders of the Group | Non- | |||||||
share | Share | translation | Fair value | Other | Accumulated | controlling | Total | |||
capital | premium | reserve | reserve | reserve | losses | Total | interests | equity | ||
USD | USD | USD | USD | USD | USD | USD | USD | USD | ||
Balance at 1 January 2024 | ( | ( | ( | |||||||
Total comprehensive income | ||||||||||
Profit for the year | ||||||||||
Other comprehensive income: | ||||||||||
- | Debt instruments at fair value through other | |||||||||
comprehensive income – fair value gains, net of tax | ||||||||||
- | Foreign operations – foreign currency translation | |||||||||
Differences | ( | ( | ( | ( | ||||||
Total other comprehensive income | ( | ( | ||||||||
Total comprehensive income | ( | |||||||||
Balance at 31 December 2024 | ( | ( |
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Statements of changes in equity
For the year ended 31 December 2023
Group
Called-up | Currency | Attributable to equity holders of the Group | Non- | |||||||
share | Share | translation | Fair value | Other | Accumulated | controlling | Total | |||
capital | premium | reserve | reserve | reserve | losses | Total | interests | equity | ||
USD | USD | USD | USD | USD | USD | USD | USD | USD | ||
Balance at 1 January 2023 | ( | ( | ( | |||||||
Total comprehensive income | ||||||||||
(Loss)/Profit for the year | ( | ( | ||||||||
Other comprehensive income: | ||||||||||
- | Debt instruments at fair value through other | |||||||||
comprehensive income – fair value gains, net of tax | ||||||||||
- | Surplus arising on revaluation of properties, net of tax | |||||||||
- | Foreign operations – foreign currency translation | |||||||||
differences | ( | ( | ( | ( | ||||||
Total other comprehensive income | ( | ( | ||||||||
Other movements in comprehensive income | ||||||||||
Total comprehensive income | ( | ( | ||||||||
Balance at 31 December 2023 | ( | ( | ( |
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52
Statements of changes in equity
For the year ended 31 December 2024
Bank
Called-up
share
capital
Share
premium
Fair value
reserve
Other
reserve
Accumulated
losses
Total
equity
USD
USD
USD
USD
USD
USD
Balance at 1 January 2024
261,221,882
858,885
(17,382,450)
2,681,041
(82,597,375)
164,781,983
Total comprehensive income
Loss for the year
-
-
-
-
(3,203,686)
(3,203,686)
Other comprehensive income:
- Debt investments at fair value through other comprehensive income – fair value gains, net of tax
-
-
5,187,246
-
-
5,187,246
Total other comprehensive income
-
-
5,187,246
-
-
5,187,246
Total comprehensive income
-
-
5,187,246
-
(3,203,686)
1,983,560
Balance at 31 December 2024
261,221,882
858,885
(12,195,204)
2,681,041
(85,801,061)
166,765,543
FIMBank Group Annual Report & Financial Statements 2024
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Statements of changes in equity
For the year ended 31 December 2023
Bank
Called-up
share
capital
Share
premium
Fair value
reserve
Other
reserve
Accumulated
losses
Total
equity
USD
USD
USD
USD
USD
USD
Balance at 1 January 2023
261,221,882
858,885
(25,501,836)
2,681,041
(85,087,523)
154,172,449
Total comprehensive income
Profit for the year
-
-
-
-
2,490,148
2,490,148
Other comprehensive income:
- Debt investments at fair value through other comprehensive income – fair value gains, net of tax
-
-
8,119,386
-
-
8,119,386
Total other comprehensive income
-
-
8,119,386
-
-
8,119,386
Total comprehensive income
-
-
8,119,386
-
2,490,148
10,609,534
Balance at 31 December 2023
261,221,882
858,885
(17,382,450)
2,681,041
(82,597,375)
164,781,983
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Statements of cash flows
For the year ended 31 December
Group | Bank | ||||
2024 | 2023 | 2024 | 2023 | ||
USD | USD | USD | USD | ||
Cash flows from operating activities | |||||
Interest and commission receipts | 57,122,686 | 52,462,009 | |||
Interest and commission payments | ( | ( | (38,459,787) | (27,268,050) | |
Payments to employees and suppliers | ( | ( | (21,709,008) | (24,275,402) | |
Operating profit/(loss) before changes in operating | |||||
assets/liabilities | (3,046,109) | 918,557 | |||
Decrease/(Increase) in operating assets: | |||||
- | Loans and advances to banks and customers | 110,243,934 | 91,123,276 | ||
- (Decrease)/Increase in operating liabilities: | Other assets | ( | ( | (2,063,793) | (632,506) |
- | Amounts owed to institutions, banks and customers | ( | ( | (426,610,162) | (18,089,097) |
- | Other liabilities | ( | 517,580 | 351,181 | |
- Cash flows (used in)/from trading assets: | Net inflows from balances with subsidiary companies | - | - | 36,012,891 | 46,022,425 |
- | Payments to acquire trading assets | ( | ( | (9,900,000) | - |
- Net cash (used in)/from operating activities | Proceeds on settlement of trading assets | 10,046,076 | - | ||
before income tax | ( | (284,799,583) | 119,693,836 | ||
Income tax paid | ( | ( | (915,246) | (806,755) | |
Net cash flows (used in)/from operating activities | ( | (285,714,829) | 118,887,081 | ||
Cash flows from investing activities | |||||
Payments to acquire financial investments at amortised cost | ( | - | (13,440,236) | ||
Payments to acquire treasury bills at amortised cost | ( | ( | (31,587,228) | (288,263,020) | |
Payments to acquire property and equipment | ( | ( | (284,181) | (34,872) | |
Payments to acquire intangible assets | ( | ( | (1,149,354) | (490,433) | |
Proceeds on redemption of financial investments at fair value through profit or loss | 3,607,970 | 249,464 | |||
Proceeds on maturity of financial investments at fair value through other comprehensive income | 17,882,889 | 13,745,002 | |||
Proceeds on maturity of financial investments at amortised cost | 26,429,022 | - | |||
Proceeds on maturity and disposals of treasury bills | |||||
at amortised cost | 156,492,976 | 288,934,098 | |||
Proceeds on cancellation of shares of a subsidiary company | - | - | 40,000,000 | - | |
Proceeds on merger by acquisition of a subsidiary company | - | - | 3,487 | - | |
Proceeds on disposal of property and equipment | - | 27,500 | |||
Receipt of dividends | 6,000,000 | 7,221,863 | |||
Net cash flows from investing activities | 217,395,581 | 7,949,366 | |||
(Decrease)/Increase in cash and cash equivalents c/f | ( | (68,319,248) | 126,836,447 |
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Statements of cash flows
For the year ended 31 December
Group | Bank | |||||
2024 | 2023 | 2024 | 2023 | |||
USD | USD | USD | USD | |||
(Decrease)/Increase in cash and cash equivalents b/f | ( | (68,319,248) | 126,836,447 | |||
Cash flows (used in)/from financing activities | ||||||
– | Proceeds on issue of debt securities | - | - | |||
– | Payments to settle debt securities | ( | ( | - | - | |
– | Payments of lease liabilities | ( | ( | (1,732,785) | (1,450,567) | |
Net cash flows (used in)/from financing activities | ( | (1,732,785) | (1,450,567) | |||
Effect of net exchange gains/(losses) attributable to assets and | liabilities | ( | 9,801,806 | (7,268,046) | ||
(Decrease)/Increase in cash and cash equivalents | ( | (60,250,227) | 118,117,834 | |||
Analysed as follows: | ||||||
– | Effect of exchange rate changes on cash and cash equivalents | ( | (11,971,656) | 3,401,372 | ||
– | Net (decrease)/increase in cash and cash equivalents | ( | (48,278,571) | 114,716,462 | ||
(Decrease)/Increase in cash and cash equivalents | ( | (60,250,227) | 118,117,834 | |||
Cash and cash equivalents at beginning of year | ( | 127,729,732 | 9,611,898 | |||
Cash and cash equivalents at end of year | 67,479,505 | 127,729,732 | ||||
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Notes to the financial statements
For the year ended 31 December 20 24
1
Reporting entity
24
Financial investments at fair value through
2
Basis of preparation
other comprehensive income
3
Material accounting policies
25
Financial investments at amortised cost
4
Financial risk review
26
Investments in subsidiaries
5
Fair values of financial instruments
27
Property and equipment
6
Classification of financial assets and liabilities
28
Investment property
7
Operating segments
29
Leases
8
Net interest income
30
Intangible assets
9
Net fee and commission income/(expense)
31
Deferred taxation
10
Net trading results
32
Other assets
11
Net (loss)/gain from equity investments measured
33
Amounts owed to institutions and banks
at fair value through profit or loss
34
Amounts owed to customers
12
Dividend income
35
Debt securities in issue
13
Other operating income
36
Provision for liabilities and charges
14
Other operating expenses
37
Other liabilities
15
Administrative expenses
38
Equity
16
Taxation
39
Non-controlling interests
17
Earnings per share
40
Contingent liabilities
18
Balances with the Central Bank of Malta,
41
Commitments
treasury bills and cash
42
Cash and cash equivalents
19
Derivatives held for risk management
43
Related parties
20
Trading assets
44
Capital commitments
21
Loans and advances to banks
45
Other commitments
22
Loans and advances to customers
46
Subsequent events
23
Financial investments at fair value through profit or loss
47
Ultimate parent company
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Notes to the financial statements
For the year ended 31 December 20 24
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Group | Bank | ||||
2024 | 2023 | 2024 | 2023 | ||
USD | USD | USD | USD | ||
Balances with the Central Bank of Malta, treasury bills and cash | 134,192,217 | 353,010,186 | 134,179,290 | 352,997,057 | |
Loans and advances to banks | 96,457,392 | 152,814,948 | 90,098,124 | 114,325,243 | |
Loans and advances to customers | 427,976,723 | 431,342,074 | 517,783,911 | 618,118,225 | |
Financial investments at fair value through other comprehensive income | 120,265,095 | 140,755,780 | 120,265,095 | 140,755,780 | |
Financial investments at amortised cost | 2,073,906 | 28,399,073 | 2,073,906 | 28,399,073 | |
Other assets | 6,804,541 | 5,007,323 | 6,603,179 | 4,457,961 | |
Off-balance sheet: | |||||
- | Guarantees | 27,628,498 | 28,025,274 | 27,632,552 | 39,074,998 |
- | Commitments | 132,205,442 | 147,803,707 | 111,629,563 | 100,220,087 |
947,603,814 | 1,287,158,365 | 1,010,265,620 | 1,398,348,424 |
Group | Bank | |||
2024 | 2023 | 2024 | 2023 | |
USD | USD | USD | USD | |
Derivative assets held for risk management | 1,464,641 | 715,713 | 1,464,641 | 812,609 |
Trading assets | 274,733,298 | 374,177,108 | - | - |
Financial investments at fair value through profit or loss | 13,958,450 | 19,329,840 | 13,958,450 | 19,329,840 |
290,156,389 | 394,222,661 | 15,423,091 | 20,142,449 |
FIMBank Group Annual Report & Financial Statements 2024
83
Grading | 12-month weighted-average PD | External rating |
Grades 1 to 4- low risk | 0.20% | Aaa-Baa3 |
Grades 5+ to 5- fair risk | 1.55% | Ba1-Ba3 |
Grades 6+ to 7 high risk | 4.72% | B1-Caa2 |
Grades 7- to 8- substandard | 24.28% | Caa3-Ca |
Grades 9 to 10 doubtful/loss | 100.00% | C |
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2024 | |||||
12-month PD | Stage 1 | Stage 2 | Stage 3 | Total | |
ranges | USD | USD | USD | USD | |
Balances with the Central Bank of Malta, treasury bills and cash | |||||
Grades 1 to 4- low risk | 0.07% - 0.08% | 134,243,880 | - | - | 134,243,880 |
134,243,880 | - | - | 134,243,880 | ||
Loss allowance | (51,663) | - | - | (51,663) | |
Carrying amount | 134,192,217 | - | - | 134,192,217 | |
Loans and advances to banks | |||||
Grades 1 to 4- low risk | 0.08% - 0.69% | 72,295,044 | - | - | 72,295,044 |
Grades 5+ to 5- fair risk | 0.47% - 0.93% | 2,354,093 | - | - | 2,354,093 |
Grades 6+ to 7 high risk | 0.93% - 5.04% | 17,565,219 | 4,422,889 | - | 21,988,108 |
92,214,356 | 4,422,889 | - | 96,637,245 | ||
Loss allowance | (164,312) | (15,541) | - | (179,853) | |
Carrying amount | 92,050,044 | 4,407,348 | - | 96,457,392 | |
Loans and advances to customers | |||||
Grades 1 to 4- low risk | 0.05% - 0.94% | 27,475,262 | 196,197 | - | 27,671,459 |
Grades 5+ to 5- fair risk | 0.44% - 3.21% | 108,933,392 | 10,854,764 | - | 119,788,156 |
Grades 6+ to 7 high risk | 1.81% - 21.37% | 202,202,614 | 17,186,096 | - | 219,388,710 |
Grade 7- to 8- substandard | 11.81% - 17.10% | 40,527,255 | 24,054,932 | - | 64,582,187 |
Grade 9 to 10 doubtful/loss | 100% | - | - | 13,685,866 | 13,685,866 |
379,138,523 | 52,291,989 | 13,685,866 | 445,116,378 | ||
Loss allowance | (2,432,221) | (4,560,632) | (10,146,802) | (17,139,655) | |
Carrying amount | 376,706,302 | 47,731,357 | 3,539,064 | 427,976,723 | |
Financial investments at fair value through other comprehensive income | |||||
Grades 1 to 4- low risk | 0.02% - 0.46% | 120,265,095 | - | - | 120,265,095 |
Carrying amount at fair value | 120,265,095 | - | - | 120,265,095 | |
Loss allowance | (77,794) | - | - | (77,794) | |
Financial investments at amortised cost | |||||
Grades 1 to 4- low risk | 0.05% | 2,073,927 | - | - | 2,073,927 |
2,073,927 | - | - | 2,073,927 | ||
Loss allowance | (21) | - | - | (21) | |
Carrying amount | 2,073,906 | - | - | 2,073,906 | |
Guarantees | |||||
Grades 1 to 4- low risk | 0.41% - 0.78% | 225,193 | - | - | 225,193 |
Grades 5+ to 5- fair risk | 0.42% - 3.08% | 22,211,817 | 4,436 | - | 22,216,253 |
Grades 6+ to 7 high risk | 1.44% - 18.38% | 4,341,934 | 14,036 | - | 4,355,970 |
Grades 7- to 8- substandard | 19.78% | - | 831,082 | - | 831,082 |
Carrying amount | 26,778,944 | 849,554 | - | 27,628,498 | |
Loss allowance | (12,602) | - | - | (12,602) | |
Commitments | |||||
Grades 1 to 4- low risk | 0.08% - 0.94% | 23,279,472 | - | - | 23,279,472 |
Grades 5+ to 5- fair risk | 0.5% - 3.04% | 58,783,397 | 4,158,425 | - | 62,941,822 |
Grades 6+ to 7 high risk | 1.4% - 19.57% | 33,710,268 | 11,235,027 | - | 44,945,295 |
Grade 7- to 8- substandard | 19.55% | 1,038,853 | - | - | 1,038,853 |
Carrying amount | 116,811,990 | 15,393,452 | - | 132,205,442 | |
Loss allowance | (457,971) | (4,650) | - | (462,621) |
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2023 | |||||
12-month PD | Stage 1 | Stage 2 | Stage 3 | Total | |
ranges | USD | USD | USD | USD | |
Balances with the Central Bank of Malta, treasury bills and cash | |||||
Grades 1 to 4- low risk | 0.03% - 0.44% | 336,709,471 | - | - | 336,709,471 |
Grades 5+ to 5- fair risk | 0.36% | 16,384,741 | - | - | 16,384,741 |
353,094,212 | - | - | 353,094,212 | ||
Loss allowance | (84,026) | - | - | (84,026) | |
Carrying amount | 353,010,186 | - | - | 353,010,186 | |
Loans and advances to banks | |||||
Grades 1 to 4- low risk | 0.18% - 0.71% | 57,774,145 | - | - | 57,774,145 |
Grades 5+ to 5- fair risk | 0.39% - 1.36% | 28,897,955 | - | - | 28,897,955 |
Grades 6+ to 7 high risk | 1.03% - 5.33% | 61,678,406 | 4,373,226 | - | 66,051,632 |
Grade 7- to 8- substandard | 2.45% | - | 330,800 | - | 330,800 |
148,350,506 | 4,704,026 | - | 153,054,532 | ||
Loss allowance | (229,755) | (9,829) | - | (239,584) | |
Carrying amount | 148,120,751 | 4,694,197 | - | 152,814,948 | |
Loans and advances to customers | |||||
Grades 1 to 4- low risk | 0.09% - 0.96% | 14,877,147 | 8,532 | - | 14,885,679 |
Grades 5+ to 5- fair risk | 0.47% - 7.58% | 106,621,284 | 16,552,944 | - | 123,174,228 |
Grades 6+ to 7 high risk | 1.34% - 19.01% | 193,343,710 | 14,192,197 | - | 207,535,907 |
Grade 7- to 8- substandard | 11.65% - 23.98% | 33,480,002 | 44,064,180 | - | 77,544,182 |
Grade 9 to 10 doubtful/loss | 100% | - | - | 27,115,371 | 27,115,371 |
348,322,143 | 74,817,853 | 27,115,371 | 450,255,367 | ||
Loss allowance | (1,992,933) | (3,235,201) | (13,685,159) | (18,913,293) | |
Carrying amount | 346,329,210 | 71,582,652 | 13,430,212 | 431,342,074 | |
Financial investments at fair value through other comprehensive income | |||||
Grades 1 to 4- low risk | 0.03% - 0.5% | 140,755,780 | - | - | 140,755,780 |
Carrying amount at fair value | 140,755,780 | - | - | 140,755,780 | |
Loss allowance | (83,233) | - | - | (83,233) | |
Financial investments at amortised cost | |||||
Grades 1 to 4- low risk | 0.02% - 0.46% | 18,758,990 | - | - | 18,758,990 |
Grades 5+ to 5- fair risk | 2.25% | 9,771,244 | - | - | 9,771,244 |
28,530,234 | - | - | 28,530,234 | ||
Loss allowance | (131,161) | - | - | (131,161) | |
Carrying amount | 28,399,073 | - | - | 28,399,073 | |
Guarantees | |||||
Grades 1 to 4- low risk | 0.14% - 0.96% | 239,527 | - | - | 239,527 |
Grades 5+ to 5- fair risk | 0.42% - 2.99% | 24,272,567 | - | - | 24,272,567 |
Grades 6+ to 7 high risk | 1.48% - 18.65% | 3,483,111 | 30,069 | - | 3,513,180 |
Carrying amount | 27,995,205 | 30,069 | - | 28,025,274 | |
Loss allowance | (7,501) | (50) | - | (7,551) | |
Commitments | |||||
Grades 1 to 4- low risk | 0.16% - 0.78% | 40,457,254 | - | - | 40,457,254 |
Grades 5+ to 5- fair risk | 1.16% - 3.15% | 40,310,914 | 1,235,036 | - | 41,545,950 |
Grades 6+ to 7 high risk | 1.83% - 10.76% | 54,509,463 | 11,291,040 | - | 65,800,503 |
Carrying amount | 135,277,631 | 12,526,076 | - | 147,803,707 | |
Loss allowance | (78,764) | (3,543) | - | (82,307) |
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92
2024 | |||||
12-month PD | Stage 1 | Stage 2 | Stage 3 | Total | |
ranges | USD | USD | USD | USD | |
Balances with the Central Bank of Malta, treasury bills and cash | |||||
Grades 1 to 4- low risk | 0.07% - 0.08% | 134,230,953 | - | - | 134,230,953 |
134,230,953 | - | - | 134,230,953 | ||
Loss allowance | (51,663) | - | - | (51,663) | |
Carrying amount | 134,179,290 | - | - | 134,179,290 | |
Loans and advances to banks | |||||
Grades 1 to 4- low risk | 0.08% - 0.69% | 69,444,715 | - | - | 69,444,715 |
Grades 5+ to 5- fair risk | 0.47% | 514,486 | - | - | 514,486 |
Grades 6+ to 7 high risk | 0.93% - 1.95% | 15,894,835 | 4,422,889 | - | 20,317,724 |
85,854,036 | 4,422,889 | - | 90,276,925 | ||
Loss allowance | (163,260) | (15,541) | - | (178,801) | |
Carrying amount | 85,690,776 | 4,407,348 | - | 90,098,124 | |
Loans and advances to customers | |||||
Grades 1 to 4- low risk | 0.08% - 0.94% | 295,464,276 | - | - | 295,464,276 |
Grades 5+ to 5- fair risk | 0.5% - 3.04% | 65,347,585 | 9,513,551 | - | 74,861,136 |
Grades 6+ to 7 high risk | 1.81% - 21.37% | 126,138,895 | 16,885,557 | - | 143,024,452 |
Grade 7- to 8- substandard | 11.81% - 17.10% | 23,873 | 7,016,575 | - | 7,040,448 |
Grade 9 to 10 doubtful/loss | 100.00% | - | - | 12,886,098 | 12,886,098 |
486,974,629 | 33,415,683 | 12,886,098 | 533,276,410 | ||
Loss allowance | (1,935,067) | (4,116,527) | (9,440,905) | (15,492,499) | |
Carrying amount | 485,039,562 | 29,299,156 | 3,445,193 | 517,783,911 | |
Financial investments at fair value through other comprehensive income | |||||
Grades 1 to 4- low risk | 0.02% - 0.46% | 120,265,095 | - | - | 120,265,095 |
Carrying amount at fair value | 120,265,095 | - | - | 120,265,095 | |
Loss allowance | (77,794) | - | - | (77,794) | |
Financial investments at amortised cost | |||||
Grades 1 to 4- low risk | 0.05% | 2,073,927 | - | - | 2,073,927 |
2,073,927 | - | - | 2,073,927 | ||
Loss allowance | (21) | - | - | (21) | |
Carrying amount | 2,073,906 | - | - | 2,073,906 | |
Guarantees | |||||
Grades 1 to 4- low risk | 0.41% - 0.78% | 229,247 | - | - | 229,247 |
Grades 5+ to 5- fair risk | 0.42% - 3.08% | 22,211,817 | 4,436 | - | 22,216,253 |
Grades 6+ to 7 high risk | 1.44% - 18.38% | 4,341,934 | 14,036 | - | 4,355,970 |
Grade 7- to 8- substandard | 19.78% | - | 831,082 | - | 831,082 |
Carrying amount | 26,782,998 | 849,554 | - | 27,632,552 | |
Loss allowance | (12,606) | - | - | (12,606) | |
Commitments | |||||
Grades 1 to 4- low risk | 0.08% - 0.94% | 5,283,377 | - | - | 5,283,377 |
Grades 5+ to 5- fair risk | 0.5% - 3.04% | 58,783,396 | 4,158,425 | - | 62,941,821 |
Grades 6+ to 7 high risk | 1.4% - 19.57% | 31,130,485 | 11,235,027 | - | 42,365,512 |
Grade 7- to 8- substandard | 19.55% | 1,038,853 | - | - | 1,038,853 |
Carrying amount | 96,236,111 | 15,393,452 | - | 111,629,563 | |
Loss allowance | (193,869) | (4,650) | - | (198,519) |
FIMBank Group Annual Report & Financial Statements 2024
93
2023 | |||||
12-month PD | Stage 1 | Stage 2 | Stage 3 | Total | |
ranges | USD | USD | USD | USD | |
Balances with the Central Bank of Malta, treasury bills and cash | |||||
Grades 1 to 4- low risk | 0.03% - 0.44% | 336,696,342 | - | - | 336,696,342 |
Grades 5+ to 5- fair risk | 0.36% | 16,384,741 | - | - | 16,384,741 |
353,081,083 | - | - | 353,081,083 | ||
Loss allowance | (84,026) | - | - | (84,026) | |
Carrying amount | 352,997,057 | - | - | 352,997,057 | |
Loans and advances to banks | |||||
Grades 1 to 4- low risk | 0.18% - 0.71% | 34,600,459 | - | - | 34,600,459 |
Grades 5+ to 5- fair risk | 0.39% - 1.36% | 21,922,395 | - | - | 21,922,395 |
Grades 6+ to 7 high risk | 1.16% - 5.33% | 53,314,041 | 4,373,226 | - | 57,687,267 |
Grade 7- to 8- substandard | 2.45% | - | 330,800 | - | 330,800 |
109,836,895 | 4,704,026 | - | 114,540,921 | ||
Loss allowance | (205,849) | (9,829) | - | (215,678) | |
Carrying amount | 109,631,046 | 4,694,197 | - | 114,325,243 | |
Loans and advances to customers | |||||
Grades 1 to 4- low risk | 0.14% - 0.96% | 326,508,825 | - | - | 326,508,825 |
Grades 5+ to 5- fair risk | 0.47% - 7.58% | 76,001,131 | 15,899,916 | - | 91,901,047 |
Grades 6+ to 7 high risk | 1.34% - 19.01% | 171,722,482 | 13,149,304 | - | 184,871,786 |
Grade 7- to 8- substandard | 15.00% - 21.07% | - | 7,017,657 | - | 7,017,657 |
Grade 9 to 10 doubtful/loss | 100% | - | - | 20,605,923 | 20,605,923 |
574,232,438 | 36,066,877 | 20,605,923 | 630,905,238 | ||
Loss allowance | (2,749,760) | (2,641,065) | (7,396,188) | (12,787,013) | |
Carrying amount | 571,482,678 | 33,425,812 | 13,209,735 | 618,118,225 | |
Financial investments at fair value through other comprehensive income | |||||
Grades 1 to 4- low risk | 0.03% - 0.5% | 140,755,780 | - | - | 140,755,780 |
Carrying amount at fair value | 140,755,780 | - | - | 140,755,780 | |
Loss allowance | (83,233) | - | - | (83,233) | |
Financial investments at amortised cost | |||||
Grades 1 to 4- low risk | 0.02% - 0.46% | 18,758,990 | - | - | 18,758,990 |
Grades 5+ to 5- fair risk | 2.25% | 9,771,244 | - | - | 9,771,244 |
28,530,234 | - | - | 28,530,234 | ||
Loss allowance | (131,161) | - | - | (131,161) | |
Carrying amount | 28,399,073 | - | - | 28,399,073 | |
Guarantees | |||||
Grades 1 to 4- low risk | 0.39% - 0.96% | 11,289,250 | - | - | 11,289,250 |
Grades 5+ to 5- fair risk | 0.42% - 2.99% | 24,272,567 | - | - | 24,272,567 |
Grades 6+ to 7 high risk | 1.48% - 18.65% | 3,483,112 | 30,069 | - | 3,513,181 |
Carrying amount | 39,044,929 | 30,069 | - | 39,074,998 | |
Loss allowance | (7,778) | (50) | - | (7,828) | |
Commitments | |||||
Grades 1 to 4- low risk | 0.16% - 0.78% | 6,727,973 | - | - | 6,727,973 |
Grades 5+ to 5- fair risk | 1.16% - 3.15% | 40,310,914 | 1,235,036 | - | 41,545,950 |
Grades 6+ to 7 high risk | 1.83% - 10.76% | 40,655,124 | 11,291,040 | - | 51,946,164 |
Carrying amount | 87,694,011 | 12,526,076 | - | 100,220,087 | |
Loss allowance | (78,764) | (3,543) | - | (82,307) |
FIMBank Group Annual Report & Financial Statements 2024
94
2024 | ||||
Stage 1 | Stage 2 | Stage 3 | Total | |
USD | USD | USD | USD | |
Loans and advances to banks | ||||
Current | 92,214,356 | 2,509,549 | - | 94,723,905 |
Overdue < 30 days | - | 1,913,340 | - | 1,913,340 |
Total gross carrying amount | 92,214,356 | 4,422,889 | - | 96,637,245 |
Loans and advances to customers | ||||
Current | 318,777,405 | 30,192,218 | - | 348,969,623 |
Overdue < 30 days | 60,361,118 | 21,667,765 | - | 82,028,883 |
Overdue between 30 and 90 days | - | 432,006 | - | 432,006 |
Overdue > 90 days | - | - | 13,685,866 | 13,685,866 |
Total gross carrying amount | 379,138,523 | 52,291,989 | 13,685,866 | 445,116,378 |
2023 | ||||
Stage 1 | Stage 2 | Stage 3 | Total | |
USD | USD | USD | USD | |
Loans and advances to banks | ||||
Current | 143,786,835 | 4,704,026 | - | 148,490,861 |
Overdue < 30 days | 4,563,671 | - | - | 4,563,671 |
Total gross carrying amount | 148,350,506 | 4,704,026 | - | 153,054,532 |
Loans and advances to customers | ||||
Current | 286,929,554 | 38,938,409 | - | 325,867,963 |
Overdue < 30 days | 61,392,589 | 31,308,055 | - | 92,700,644 |
Overdue between 30 and 90 days | - | 4,571,389 | - | 4,571,389 |
Overdue > 90 days | - | - | 27,115,371 | 27,115,371 |
Total gross carrying amount | 348,322,143 | 74,817,853 | 27,115,371 | 450,255,367 |
2024 | ||||
Stage 1 | Stage 2 | Stage 3 | Total | |
USD | USD | USD | USD | |
Loans and advances to banks | ||||
Current | 85,854,036 | 2,509,549 | - | 88,363,585 |
Overdue < 30 days | - | 1,913,340 | - | 1,913,340 |
Total gross carrying amount | 85,854,036 | 4,422,889 | - | 90,276,925 |
Loans and advances to customers | ||||
Current | 449,881,376 | 12,434,905 | - | 462,316,281 |
Overdue < 30 days | 37,093,253 | 20,980,778 | - | 58,074,031 |
Overdue > 90 days | - | - | 12,886,098 | 12,886,098 |
Total gross carrying amount | 486,974,629 | 33,415,683 | 12,886,098 | 533,276,410 |
FIMBank Group Annual Report & Financial Statements 2024
95
2023 | ||||
Stage 1 | Stage 2 | Stage 3 | Total | |
USD | USD | USD | USD | |
Loans and advances to banks | ||||
Current | 105,273,224 | 4,704,026 | - | 109,977,250 |
Overdue < 30 days | 4,563,671 | - | - | 4,563,671 |
Total gross carrying amount | 109,836,895 | 4,704,026 | - | 114,540,921 |
Loans and advances to customers | ||||
Current | 547,798,597 | 22,954,067 | - | 570,752,664 |
Overdue < 30 days | 26,433,841 | 8,644,572 | - | 35,078,413 |
Overdue between 30 and 90 days | - | 4,468,238 | - | 4,468,238 |
Overdue > 90 days | - | - | 20,605,923 | 20,605,923 |
Total gross carrying amount | 574,232,438 | 36,066,877 | 20,605,923 | 630,905,238 |
Group | ||
2024 | 2023 | |
USD | USD | |
Trading assets | ||
Rated A- to A+ | 2,006,599 | 22,310,275 |
Rated BBB+ or below | 124,681,473 | 242,218,978 |
Unrated | 148,045,226 | 109,647,855 |
Carrying amount | 274,733,298 | 374,177,108 |
FIMBank Group Annual Report & Financial Statements 2024
96
Non-credit impaired | Credit impaired | |||||||
Stage 1 | Stage 2 | Stage 3 | Total | |||||
Gross carrying | Allowance | Gross carrying | Allowance | Gross carrying | Allowance | Gross carrying | Allowance | |
amount | for ECL | amount | for ECL | amount | for ECL | amount | for ECL | |
Loans and advances to customers | USD | USD | USD | USD | USD | USD | USD | USD |
Balance at 1 January | 348,322,143 | (1,992,933) | 74,817,853 | (3,235,201) | 27,115,371 | (13,685,159) | 450,255,367 | (18,913,293) |
Transfer to Stage 1 | 8,117,042 | (163,525) | (8,117,042) | 163,525 | - | - | - | - |
Transfer to Stage 2 | (12,550,486) | 44,257 | 12,550,486 | (44,257) | - | - | - | - |
Transfer to Stage 3 | - | - | (826,664) | 14,774 | 826,664 | (14,774) | - | - |
Net remeasurement of loss allowance arising from stage transfers | - | (19,442) | - | 12,541 | - | (305,675) | - | (312,576) |
Changes in risk parameters | - | 83,145 | - | (1,502,211) | - | (3,574,526) | - | (4,993,592) |
New financial assets originated or purchased and further lending | 432,469,819 | (1,470,719) | 18,556,170 | (144,706) | 40,221 | (40,221) | 451,066,210 | (1,655,646) |
Financial assets that have been repaid or partially repaid | (382,567,759) | 1,079,287 | (39,828,212) | 174,762 | (8,149,871) | 3,699,466 | (430,545,842) | 4,953,515 |
Write-offs | - | - | - | - | (4,672,416) | 3,279,949 | (4,672,416) | 3,279,949 |
Foreign exchange and other movements | (14,652,236) | 7,709 | (4,860,602) | 141 | (1,474,103) | 494,138 | (20,986,941) | 501,988 |
Balance at 31 December | 379,138,523 | (2,432,221) | 52,291,989 | (4,560,632) | 13,685,866 | (10,146,802) | 445,116,378 | (17,139,655) |
ECL change for the period | 1,773,638 | |||||||
Assets written off | (4,672,416) | |||||||
Change in expected credit losses excluding effect of write-offs | (2,898,778) | |||||||
Recoveries | 1,056,082 | |||||||
Foreign exchange and other movements | (501,988) | |||||||
Change in expected credit losses and other credit impairment charges | (2,344,684) |
Twelve months ended 31 | ||||
As at 31 December 2024 | December 2024 | |||
Net movement in | ||||
Gross carrying/ | Allowance | expected credit losses and other | ||
Nominal amount | for ECL | credit impairment charges | ||
USD | USD | USD | ||
Balances with Central Bank of Malta, treasury bills and cash | 134,243,880 | (51,663) | 32,363 | |
Loans and advances to banks | 96,637,245 | (179,853) | 59,731 | |
Loans and advances to customers | 445,116,378 | (17,139,655) | (2,344,684) | |
Financial investments at amortised cost | 2,073,927 | (21) | 131,140 | |
Off-balance sheet | ||||
– | Guarantees | 27,628,498 | (12,602) | (5,051) |
– | Commitments | 132,205,442 | (462,621) | (380,314) |
Summary of financial instruments to which the impairment requirements in IFRS 9 are applied in income statement | 837,905,370 | (17,846,415) | (2,506,815) | |
Financial investments at fair value through other comprehensive income | 120,265,095 | (77,794) | 5,439 | |
Total allowance for ECL/Total income statement ECL charge | (17,924,209) | (2,501,376) |
FIMBank Group Annual Report & Financial Statements 2024
97
Non-credit impaired | Credit impaired | |||||||
Stage 1 | Stage 2 | Stage 3 | Total | |||||
Gross carrying | Allowance | Gross carrying | Allowance | Gross carrying | Allowance | Gross carrying | Allowance | |
amount | for ECL | amount | for ECL | amount | for ECL | amount | for ECL | |
Loans and advances to customers | USD | USD | USD | USD | USD | USD | USD | USD |
Balance at 1 January | 332,452,354 | (1,807,610) | 124,620,784 | (3,738,804) | 102,531,826 | (69,530,493) | 559,604,964 | (75,076,907) |
Transfer to Stage 1 | 6,971,978 | (126,023) | (6,971,978) | 126,023 | - | - | - | - |
Transfer to Stage 2 | (832,499) | 3 | 832,499 | (3) | - | - | - | - |
Net remeasurement of loss allowance arising from stage transfers | - | (42,479) | - | (3,462) | - | - | - | (45,941) |
Changes in risk parameters | - | (190,907) | - | 263,929 | - | (1,113,923) | - | (1,040,901) |
New financial assets originated or purchased and further lending | 408,211,815 | (1,489,020) | 45,065,103 | (209,007) | 54,684 | (38,406) | 453,331,602 | (1,736,433) |
Financial assets that have been repaid or partially repaid | (403,901,641) | 1,662,934 | (87,356,483) | 299,504 | (16,812,662) | 1,394,348 | (508,070,786) | 3,356,786 |
Write-offs | - | - | (65,007) | 26,711 | (59,663,556) | 56,149,594 | (59,728,563) | 56,176,305 |
Foreign exchange and other movements | 5,420,136 | 169 | (1,307,065) | (92) | 1,005,079 | (546,279) | 5,118,150 | (546,202) |
Balance at 31 December | 348,322,143 | (1,992,933) | 74,817,853 | (3,235,201) | 27,115,371 | (13,685,159) | 450,255,367 | (18,913,293) |
ECL change for the period | 56,163,614 | |||||||
Assets written off | (59,728,563) | |||||||
Change in expected credit losses excluding effect of write-offs | (3,564,949) | |||||||
Recoveries | 639,395 | |||||||
Foreign exchange and other movements | 546,202 | |||||||
Change in expected credit losses and other credit impairment charges | (2,379,352) |
Twelve months ended 31 | ||||
As at 31 December 2023 | December 2023 | |||
Net movement in | ||||
Gross carrying/ | Allowance | expected credit losses and other | ||
Nominal amount | for ECL | credit impairment charges | ||
USD | USD | USD | ||
Balances with Central Bank of Malta, treasury bills and cash | 353,094,212 | (84,026) | 34,021 | |
Loans and advances to banks | 153,054,532 | (239,584) | 202,536 | |
Loans and advances to customers | 450,255,367 | (18,913,293) | (2,379,352) | |
Financial investments at amortised cost | 28,530,234 | (131,161) | (91,474) | |
Off-balance sheet | ||||
– | Guarantees | 28,025,274 | (7,551) | 36,224 |
– | Commitments | 147,803,707 | (82,307) | 194,813 |
Summary of financial instruments to which the impairment requirements in IFRS 9 are applied in income statement | 1,160,763,326 | (19,457,922) | (2,003,232) | |
Financial investments at fair value through other comprehensive income | 140,755,780 | (83,233) | 42,344 | |
Total allowance for ECL/Total income statement ECL charge | (19,541,155) | (1,960,888) |
FIMBank Group Annual Report & Financial Statements 2024
98
Non-credit impaired | Credit impaired | |||||||
Stage 1 | Stage 2 | Stage 3 | Total | |||||
Gross carrying | Allowance | Gross carrying | Allowance | Gross carrying | Allowance | Gross carrying | Allowance | |
amount | for ECL | amount | for ECL | amount | for ECL | amount | for ECL | |
Loans and advances to customers | USD | USD | USD | USD | USD | USD | USD | USD |
Balance at 1 January | 574,232,438 | (2,749,760) | 36,066,877 | (2,641,065) | 20,605,923 | (7,396,188) | 630,905,238 | (12,787,013) |
Transfer to Stage 2 | (10,513,718) | 20,800 | 10,513,718 | (20,800) | - | - | - | - |
Net remeasurement of loss allowance arising from stage transfers | - | - | - | 20,737 | - | - | - | 20,737 |
Changes in risk parameters | - | 915,593 | - | (1,469,666) | - | (3,372,617) | - | (3,926,690) |
New financial assets originated or purchased and further lending | 285,368,787 | (1,315,820) | 9,610,643 | (16,845) | 40,221 | (40,221) | 295,019,651 | (1,372,886) |
Financial assets that have been repaid or partially repaid | (342,169,821) | 1,194,120 | (21,337,893) | 11,112 | (5,876,002) | 1,176,694 | (369,383,716) | 2,381,926 |
Write-offs | - | - | - | - | (1,161,683) | - | (1,161,683) | - |
Foreign exchange and other movements | (19,943,057) | - | (1,437,662) | - | (722,361) | 191,427 | (22,103,080) | 191,427 |
Balance at 31 December | 486,974,629 | (1,935,067) | 33,415,683 | (4,116,527) | 12,886,098 | (9,440,905) | 533,276,410 | (15,492,499) |
ECL change for the period | (2,705,486) | |||||||
Assets written off | (1,161,683) | |||||||
Change in expected credit losses excluding effect of write-offs | (3,867,169) | |||||||
Recoveries | 793,350 | |||||||
Foreign exchange and other movements | (191,427) | |||||||
Change in expected credit losses and other credit impairment charges | (3,265,246) |
Twelve months ended 31 | ||||
As at 31 December 2024 | December 2024 | |||
Net movement in | ||||
Gross carrying/ | Allowance | expected credit losses and other | ||
Nominal amount | for ECL | credit impairment charges | ||
USD | USD | USD | ||
Balances with Central Bank of Malta, treasury bills and cash | 134,230,953 | (51,663) | 32,363 | |
Loans and advances to banks | 90,276,925 | (178,801) | 36,877 | |
Loans and advances to customers | 533,276,410 | (15,492,499) | (3,265,246) | |
Financial investments at amortised cost | 2,073,927 | (21) | 131,140 | |
Off-balance sheet | ||||
– | Guarantees | 27,632,552 | (12,606) | (4,778) |
– | Commitments | 111,629,563 | (198,519) | (116,212) |
Summary of financial instruments to which the impairment requirements in IFRS 9 are applied in income statement | 899,120,330 | (15,934,109) | (3,185,856) | |
Financial investments at fair value through other comprehensive income | 120,265,095 | (77,794) | 5,439 | |
Total allowance for ECL/Total income statement ECL charge | (16,011,903) | (3,180,417) |
FIMBank Group Annual Report & Financial Statements 2024
99
Non-credit impaired | Credit impaired | |||||||
Stage 1 | Stage 2 | Stage 3 | Total | |||||
Gross carrying | Allowance | Gross carrying | Allowance | Gross carrying | Allowance | Gross carrying | Allowance | |
amount | for ECL | amount | for ECL | amount | for ECL | amount | for ECL | |
Loans and advances to customers | USD | USD | USD | USD | USD | USD | USD | USD |
Balance at 1 January | 620,988,500 | (1,730,647) | 72,447,468 | (2,562,047) | 93,835,376 | (64,068,223) | 787,271,344 | (68,360,917) |
Transfer to Stage 1 | 18,021 | - | (18,021) | - | - | - | - | - |
Transfer to Stage 2 | (832,479) | 3 | 832,479 | (3) | - | - | - | - |
Net remeasurement of loss allowance arising from stage transfers | - | - | - | (3,462) | - | - | - | (3,462) |
Changes in risk parameters | - | (859,172) | - | (156,717) | - | 121,343 | - | (894,546) |
New financial assets originated or purchased and further lending | 337,283,426 | (1,372,156) | 27,933,694 | (11,111) | 54,684 | (38,406) | 365,271,804 | (1,421,673) |
Financial assets that have been repaid or partially repaid | (396,312,437) | 1,212,212 | (65,168,753) | 65,564 | (15,182,710) | 1,280,426 | (476,663,900) | 2,558,202 |
Write-offs | - | - | (65,007) | 26,711 | (59,583,023) | 56,069,062 | (59,648,030) | 56,095,773 |
Foreign exchange and other movements | 13,087,407 | - | 105,017 | - | 1,481,596 | (760,390) | 14,674,020 | (760,390) |
Balance at 31 December | 574,232,438 | (2,749,760) | 36,066,877 | (2,641,065) | 20,605,923 | (7,396,188) | 630,905,238 | (12,787,013) |
ECL change for the period | 55,573,904 | |||||||
Assets written off | (59,648,030) | |||||||
Change in expected credit losses excluding effect of write-offs | (4,074,126) | |||||||
Recoveries | 102,086 | |||||||
Foreign exchange and other movements | 760,390 | |||||||
Change in expected credit losses and other credit impairment charges | (3,211,650) |
Twelve months ended 31 | ||||
As at 31 December 2023 | December 2023 | |||
Net movement in | ||||
Gross carrying/ | Allowance | expected credit losses and other | ||
Nominal amount | for ECL | credit impairment charges | ||
USD | USD | USD | ||
Balances with Central Bank of Malta, treasury bills and cash | 353,081,083 | (84,026) | 34,021 | |
Loans and advances to banks | 114,540,921 | (215,678) | 202,093 | |
Loans and advances to customers | 630,905,238 | (12,787,013) | (3,211,650) | |
Financial investments at amortised cost | 28,530,234 | (131,161) | (91,474) | |
Off-balance sheet | ||||
– | Guarantees | 39,074,998 | (7,828) | 67,596 |
– | Commitments | 100,220,087 | (82,307) | (36,522) |
Summary of financial instruments to which the impairment requirements in IFRS 9 are applied in income statement | 1,266,352,561 | (13,308,013) | (3,035,936) | |
Financial investments at fair value through other comprehensive income | 140,755,780 | (83,233) | 42,344 | |
Total allowance for ECL/Total income statement ECL charge | (13,391,246) | (2,993,592) |
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2024 | |||
Stage 2 | Stage 3 | Total | |
USD | USD | USD | |
At 1 January | 8,111,785 | 9,806,442 | 17,918,227 |
Additions | 3,238,881 | 4,241,696 | 7,480,577 |
Recovered | (718,162) | (1,983,986) | (2,702,148) |
Written off | - | (349,478) | (349,478) |
At 31 December | 10,632,504 | 11,714,674 | 22,347,178 |
Loss allowances | - | (8,657,780) | (8,657,780) |
2023 | |||
Stage 2 | Stage 3 | Total | |
USD | USD | USD | |
At 1 January | 273,947 | 12,150,683 | 12,424,630 |
Additions | 7,855,466 | 234,957 | 8,090,423 |
Recovered | (17,628) | (2,539,684) | (2,557,312) |
Written off | - | (39,514) | (39,514) |
At 31 December | 8,111,785 | 9,806,442 | 17,918,227 |
Loss allowances | - | (6,482,231) | (6,482,231) |
2024 | |||
Stage 2 | Stage 3 | Total | |
USD | USD | USD | |
At 1 January | 8,111,785 | 8,880,352 | 16,992,137 |
Additions | 3,238,881 | 4,241,696 | 7,480,577 |
Recovered | (718,162) | (1,611,533) | (2,329,695) |
At 31 December | 10,632,504 | 11,510,515 | 22,143,019 |
Loss allowances | - | (8,453,622) | (8,453,622) |
2023 | |||
Stage 2 | Stage 3 | Total | |
USD | USD | USD | |
At 1 January | 273,947 | 9,973,632 | 10,247,579 |
Additions | 7,855,466 | 2,325 | 7,857,791 |
Recovered | (17,628) | (976,829) | (994,457) |
Written off | - | (118,777) | (118,777) |
At 31 December | 8,111,785 | 8,880,351 | 16,992,136 |
Loss allowances | - | (5,673,547) | (5,673,547) |
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Year-on-year change | ||||||
Country: Malta | 2025 | 2026 | 2027 | 2028 | 2029 | |
Equity: MSE index, year-on-year | Base | 16.3% | 9.5% | 9.4% | 7.0% | 5.4% |
Upside | 24.1% | 11.3% | 8.4% | 6.1% | 5.0% | |
Downside | -7.4% | 11.3% | 15.3% | 10.3% | 6.2% | |
Real GDP growth rate | Base | 4.8% | 5.2% | 3.4% | 2.9% | 2.7% |
Upside | 7.9% | 4.7% | 3.1% | 2.6% | 2.6% | |
Downside | -1.1% | 5.8% | 4.6% | 3.0% | 2.7% | |
Unemployment rate | Base | 3.2% | 3.1% | 3.1% | 3.0% | 3.0% |
Upside | 3.2% | 3.1% | 3.0% | 3.0% | 3.0% | |
Downside | 3.3% | 3.5% | 3.4% | 3.3% | 3.2% | |
Country: Germany | 2025 | 2026 | 2027 | 2028 | 2029 | |
Equity: DAX index, year-on-year | Base | 0.9% | 2.3% | 3.3% | 3.1% | 2.9% |
Upside | 8.7% | 3.2% | 2.1% | 1.1% | 2.7% | |
Downside | -34.6% | 11.5% | 19.8% | 13.7% | 5.3% | |
Real GDP growth rate | Base | 1.0% | 1.5% | 1.8% | 1.0% | 0.9% |
Upside | 3.7% | 1.2% | 1.6% | 1.0% | 0.9% | |
Downside | -4.3% | 2.0% | 2.8% | 1.1% | 0.8% | |
Unemployment rate | Base | 6.5% | 5.9% | 5.6% | 5.6% | 5.6% |
Upside | 5.6% | 5.2% | 5.2% | 5.4% | 5.5% | |
Downside | 7.8% | 7.4% | 6.4% | 6.1% | 6.0% | |
Country: India | 2025 | 2026 | 2027 | 2028 | 2029 | |
Equity: Sensex index, year-on-year | Base | 2.0% | 3.1% | 6.4% | 7.4% | 7.0% |
Upside | 11.3% | 2.7% | 4.6% | 5.9% | 6.4% | |
Downside | -31.4% | 17.2% | 18.6% | 12.5% | 8.0% | |
Real GDP growth rate | Base | 6.1% | 6.4% | 6.6% | 6.7% | 6.4% |
Upside | 8.1% | 7.6% | 7.0% | 6.7% | 6.4% | |
Downside | -2.5% | 5.3% | 7.1% | 7.6% | 7.1% | |
Unemployment rate | Base | 7.0% | 7.2% | 7.3% | 7.2% | 7.1% |
Upside | 6.6% | 6.7% | 7.0% | 7.0% | 7.0% | |
Downside | 9.3% | 10.0% | 8.6% | 7.7% | 7.3% | |
Exchange rate, INR per USD | Base | 83.85 | 86.20 | 86.75 | 87.90 | 87.58 |
Upside | 82.47 | 84.92 | 85.46 | 86.59 | 86.27 | |
Downside | 88.08 | 91.11 | 91.70 | 92.91 | 92.57 | |
Country: Egypt | 2025 | 2026 | 2027 | 2028 | 2029 | |
Equity: EGX 30 index, year-on-year | Base | -1.5% | 0.0% | 5.0% | 3.9% | 3.2% |
Upside | 11.2% | -3.6% | 2.4% | 2.2% | 3.1% | |
Downside | -41.0% | 21.7% | 22.4% | 11.0% | 5.1% | |
Real GDP growth rate | Base | 4.6% | 5.3% | 5.7% | 5.4% | 5.1% |
Upside | 7.2% | 5.3% | 5.7% | 5.4% | 5.1% | |
Downside | -0.5% | 5.4% | 6.6% | 6.2% | 5.5% | |
Unemployment rate | Base | 7.2% | 7.4% | 7.5% | 7.6% | 7.7% |
Upside | 6.8% | 7.1% | 7.4% | 7.6% | 7.7% | |
Downside | 9.1% | 9.0% | 8.4% | 8.0% | 7.9% |
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31 December 2024 (continued)
Country: United Arab Emirates | 2025 | 2026 | 2027 | 2028 | 2029 | |
Equity: ADX general index, year-on-year | Base | -3.2% | -0.7% | 5.6% | 4.9% | 4.5% |
Upside | 4.2% | -1.9% | 4.5% | 4.2% | 4.5% | |
Downside | -38.3% | 18.4% | 11.6% | 8.5% | 6.9% | |
Unemployment rate | Base | 2.6% | 2.4% | 2.4% | 2.3% | 2.3% |
Upside | 1.9% | 2.1% | 2.4% | 2.3% | 2.3% | |
Futures price: NYMEX light sweet crude | Downside | 3.4% | 2.8% | 2.6% | 2.4% | 2.4% |
oil, USD per barrel | Base | 70.97 | 66.31 | 66.24 | 67.25 | 67.83 |
Upside | 75.84 | 69.36 | 67.52 | 68.43 | 69.08 | |
Downside | 52.14 | 57.06 | 63.44 | 64.69 | 65.84 |
Year-on-year change | ||||||
Country: Germany | 2024 | 2025 | 2026 | 2027 | 2028 | |
Equity: DAX index, year-on-year | Base | 8% | 2% | 3% | 3% | 2% |
Upside | 15% | 6% | 4% | 2% | 1% | |
Downside | -29% | 29% | 14% | 5% | 2% | |
Real GDP growth rate | Base | 1% | 2% | 2% | 1% | 1% |
Upside | 3% | 2% | 2% | 1% | 1% | |
Downside | -5% | 2% | 3% | 2% | 1% | |
Unemployment rate | Base | 0% | -3% | -2% | -2% | -2% |
Upside | -8% | -2% | 1% | 0% | -1% | |
Downside | 18% | 3% | -11% | -8% | -4% | |
Country: Malta | 2024 | 2025 | 2026 | 2027 | 2028 | |
Equity: MSE index, year-on-year | Base | 9% | 12% | 13% | 11% | 8% |
Upside | 22% | 9% | 12% | 9% | 7% | |
Downside | -22% | 31% | 26% | 13% | 9% | |
Real GDP growth rate | Base | 4% | 4% | 3% | 3% | 3% |
Upside | 7% | 4% | 3% | 3% | 3% | |
Downside | -3% | 5% | 4% | 3% | 3% | |
Unemployment rate | Base | 25% | -1% | -4% | 0% | 0% |
Upside | 24% | -3% | -4% | 0% | 0% | |
Downside | 40% | 1% | -13% | 0% | 1% | |
Country: India | 2024 | 2025 | 2026 | 2027 | 2028 | |
Equity: Sensex index, year-on-year | Base | 11% | 7% | 7% | 8% | 7% |
Upside | 19% | 6% | 8% | 6% | 6% | |
Downside | -26% | 22% | 19% | 12% | 6% | |
Real GDP growth rate | Base | 7% | 6% | 6% | 6% | 6% |
Upside | 9% | 7% | 7% | 6% | 6% | |
Downside | -2% | 5% | 7% | 7% | 7% | |
Unemployment rate | Base | 1% | 0% | -1% | -1% | -1% |
Upside | -4% | 0% | 1% | 0% | 0% | |
Downside | 34% | 5% | -15% | -11% | -5% | |
Exchange rate, INR per USD | Base | -1% | 1% | 0% | 0% | 1% |
Upside | -3% | 1% | 0% | 0% | 1% | |
Downside | 4% | 1% | 0% | 0% | 1% |
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31 December 2023 (continued)
Country: Egypt | 2024 | 2025 | 2026 | 2027 | 2028 | |
Equity: EGX 30 index, year-on-year | Base | 14% | 6% | 6% | 4% | 3% |
Upside | 30% | 3% | 4% | 1% | 2% | |
Downside | -34% | 33% | 24% | 11% | 4% | |
Real GDP growth rate | Base | 4% | 6% | 5% | 5% | 5% |
Upside | 7% | 6% | 5% | 5% | 5% | |
Downside | -1% | 6% | 6% | 6% | 5% | |
Unemployment rate | Base | 3% | 0% | 2% | 2% | 1% |
Upside | -3% | 1% | 5% | 4% | 1% | |
Downside | 29% | -3% | -6% | -4% | -2% | |
Country: Italy | 2024 | 2025 | 2026 | 2027 | 2028 | |
Equity: FTSE MIB index, year-on-year | Base | 8% | 9% | 11% | 6% | 4% |
Upside | 17% | 9% | 9% | 4% | 4% | |
Downside | -28% | 30% | 23% | 9% | 4% | |
Unemployment rate | Base | 3% | 3% | 1% | 0% | 0% |
Upside | 0% | 2% | 2% | 1% | 1% | |
Downside | 35% | 4% | -6% | -5% | -3% | |
Real GDP growth rate | Base | 1% | 2% | 2% | 2% | 1% |
Upside | 3% | 2% | 2% | 2% | 1% | |
Downside | -5% | 2% | 3% | 2% | 1% |
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2024 | ||||
Upside | Base case | Downside | Probability- | |
weighted | ||||
USD | USD | USD | USD | |
Loans and advances to customers | ||||
Gross exposure | 445,116,378 | 445,116,378 | 445,116,378 | 445,116,378 |
Loss allowance | 15,234,246 | 15,461,212 | 16,345,585 | 15,591,838 |
2023 | ||||
Upside | Base case | Downside | Probability- | |
weighted | ||||
USD | USD | USD | USD | |
Loans and advances to customers | ||||
Gross exposure | 450,255,367 | 450,255,367 | 450,255,367 | 450,255,367 |
Loss allowance | 16,996,812 | 17,728,585 | 21,341,671 | 16,971,332 |
2024 | ||||
Upside | Base case | Downside | Probability- | |
weighted | ||||
USD | USD | USD | USD | |
Loans and advances to customers | ||||
Gross exposure | 533,276,410 | 533,276,410 | 533,276,410 | 533,276,410 |
Loss allowance | 13,765,901 | 14,007,285 | 15,301,639 | 14,256,583 |
2023 | ||||
Upside | Base case | Downside | Probability- | |
weighted | ||||
USD | USD | USD | USD | |
Loans and advances to customers | ||||
Gross exposure | 630,905,238 | 630,905,238 | 630,905,238 | 630,905,238 |
Loss allowance | 9,477,335 | 10,049,349 | 13,187,940 | 10,845,052 |
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Gross carrying | Shipping | Insurance | Total | Net uncovered | ||||
amount | Cash | Property | Guarantees | mortgages | cover | collateral | amount | |
USD | USD | USD | USD | USD | USD | USD | USD | |
Loans and advances to customers | ||||||||
Stage 1 | 348,322,143 | 26,402,184 | 69,988,324 | 79,334,188 | 29,500,000 | 21,643,209 | 226,867,905 | 121,454,238 |
Stage 2 | 74,817,853 | 4,368,835 | 8,784,388 | 2,805,735 | - | 9,955 | 15,968,913 | 58,848,940 |
Stage 3 | 27,115,371 | 1,155,046 | 3,119,493 | - | - | - | 4,274,539 | 22,840,832 |
450,255,367 | 31,926,065 | 81,892,205 | 82,139,923 | 29,500,000 | 21,653,164 | 247,111,357 | 203,144,010 | |
Commitments | ||||||||
Stage 1 | 135,277,631 | 2,028,970 | 59,157,272 | 25,758,372 | - | - | 86,944,614 | 48,333,017 |
Stage 2 | 12,526,076 | 7,406,256 | 2,892,495 | - | - | - | 10,298,751 | 2,227,325 |
Stage 3 | - | - | - | - | - | - | - | - |
Guarantees | 147,803,707 | 9,435,226 | 62,049,767 | 25,758,372 | - | - | 97,243,365 | 50,560,342 |
Stage 1 | 27,995,205 | 10,028,880 | - | - | - | - | 10,028,880 | 17,966,325 |
Stage 2 | 30,069 | - | - | - | - | - | - | 30,069 |
Stage 3 | - | - | - | - | - | - | - | - |
28,025,274 | 10,028,880 | - | - | - | - | 10,028,880 | 17,996,394 |
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Gross carrying | Shipping | Insurance | Total | Net uncovered | ||||
amount | Cash | Property | Guarantees | mortgages | cover | collateral | amount | |
Loans and advances to customers | USD | USD | USD | USD | USD | USD | USD | USD |
Stage 1 | 486,974,629 | 5,705,226 | 76,662,321 | 32,153,141 | - | 6,675,147 | 121,195,835 | 365,778,794 |
Stage 2 | 33,415,683 | 474,510 | 19,063,669 | - | - | 450,000 | 19,988,179 | 13,427,504 |
Stage 3 | 12,886,098 | - | 1,250,102 | - | - | - | 1,250,102 | 11,635,996 |
533,276,410 | 6,179,736 | 96,976,092 | 32,153,141 | - | 7,125,147 | 142,434,116 | 390,842,294 | |
Commitments | ||||||||
Stage 1 | 96,236,111 | 650,375 | 62,247,577 | 8,066,034 | - | - | 70,963,986 | 25,272,125 |
Stage 2 | 15,393,452 | 7,406,256 | 5,067,549 | - | - | - | 12,473,805 | 2,919,647 |
Stage 3 | - | - | - | - | - | - | - | - |
Guarantees | 111,629,563 | 8,056,631 | 67,315,126 | 8,066,034 | - | - | 83,437,791 | 28,191,772 |
Stage 1 | 26,782,998 | 9,729,563 | 1,589,304 | - | - | - | 11,318,867 | 15,464,131 |
Stage 2 | 849,554 | 849,554 | - | - | - | - | 849,554 | - |
Stage 3 | - | - | - | - | - | - | - | - |
27,632,552 | 10,579,117 | 1,589,304 | - | - | - | 12,168,421 | 15,464,131 |
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Gross carrying | Shipping | Insurance | Total | Net uncovered | ||||
amount | Cash | Property | Guarantees | mortgages | cover | collateral | amount | |
Loans and advances to customers | USD | USD | USD | USD | USD | USD | USD | USD |
Stage 1 | 574,232,438 | 26,402,184 | 69,988,324 | 24,727,608 | 29,500,000 | 13,537,521 | 164,155,637 | 410,076,801 |
Stage 2 | 36,066,877 | 4,368,835 | 8,784,388 | 563,079 | - | 2,925 | 13,719,227 | 22,347,650 |
Stage 3 | 20,605,923 | 1,155,046 | 3,119,493 | - | - | - | 4,274,539 | 16,331,384 |
630,905,238 | 31,926,065 | 81,892,205 | 25,290,687 | 29,500,000 | 13,540,446 | 182,149,403 | 448,755,835 | |
Commitments | ||||||||
Stage 1 | 87,694,011 | 2,028,970 | 59,157,272 | 17,558,372 | - | - | 78,744,614 | 8,949,397 |
Stage 2 | 12,526,076 | 7,406,256 | 2,892,495 | - | - | - | 10,298,751 | 2,227,325 |
Stage 3 | - | - | - | - | - | - | - | - |
Guarantees | 100,220,087 | 9,435,226 | 62,049,767 | 17,558,372 | - | - | 89,043,365 | 11,176,722 |
Stage 1 | 39,044,929 | 10,397,443 | - | - | - | - | 10,397,443 | 28,647,486 |
Stage 2 | 30,069 | - | - | - | - | - | - | 30,069 |
Stage 3 | - | - | - | - | - | - | - | - |
39,074,998 | 10,397,443 | - | - | - | - | 10,397,443 | 28,677,555 |
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Group | Bank | ||||
2024 | 2023 | 2024 | 2023 | ||
USD | USD | USD | USD | ||
Balances with the Central Bank of Malta, | treasury bills and cash | ||||
– | Europe | 134,192,217 | 353,010,186 | 134,179,290 | 352,997,057 |
134,192,217 | 353,010,186 | 134,179,290 | 352,997,057 | ||
Trading assets | |||||
– | Europe | 15,503,975 | 31,828,756 | - | - |
– | Sub-Saharan Africa | 132,814,796 | 139,775,814 | - | - |
– | Middle East and North Africa (MENA) | 27,490,373 | 110,850,563 | - | - |
– | Commonwealth of Independent States (CIS) region | 20,083,995 | 16,246,223 | - | - |
– | Others | 78,840,159 | 75,475,752 | - | - |
274,733,298 | 374,177,108 | - | - | ||
Loans and advances to banks | |||||
– | Europe | 22,465,207 | 34,656,678 | 21,394,650 | 33,749,056 |
– | Sub-Saharan Africa | 10,060,051 | 45,171,224 | 10,060,051 | 45,171,224 |
– | Commonwealth of Independent States (CIS) region | - | 330,624 | - | 330,624 |
– | Middle East and North Africa (MENA) | 10,992,094 | 19,113,436 | 9,863,372 | 11,463,939 |
– | Others | 52,940,040 | 53,542,986 | 48,780,051 | 23,610,400 |
96,457,392 | 152,814,948 | 90,098,124 | 114,325,243 | ||
Loans and advances to customers | |||||
– | Europe | 171,257,671 | 155,078,652 | 308,392,051 | 370,179,082 |
– | Sub-Saharan Africa | 2,265,041 | 52,698,508 | - | 51,842,806 |
– | Middle East and North Africa (MENA) | 127,422,992 | 133,279,528 | 80,245,938 | 101,208,100 |
– | Others | 127,031,019 | 90,285,386 | 129,145,922 | 94,888,237 |
427,976,723 | 431,342,074 | 517,783,911 | 618,118,225 | ||
Financial investments at fair value through profit or loss | |||||
– | Europe | 13,958,450 | 18,688,853 | 13,958,450 | 18,688,853 |
– | Middle East and North Africa (MENA) | - | 640,987 | - | 640,987 |
Financial investments at fair value through other | comprehensive income | 13,958,450 | 19,329,840 | 13,958,450 | 19,329,840 |
– | Europe | 120,265,095 | 140,755,780 | 120,265,095 | 140,755,780 |
120,265,095 | 140,755,780 | 120,265,095 | 140,755,780 | ||
Financial investments at amortised cost | |||||
– | Europe | 2,073,906 | 18,754,079 | 2,073,906 | 18,754,079 |
– | Middle East and North Africa (MENA) | - | 9,644,994 | - | 9,644,994 |
2,073,906 | 28,399,073 | 2,073,906 | 28,399,073 | ||
Guarantees | |||||
– | Europe | 26,960,857 | 27,605,515 | 26,964,911 | 38,655,239 |
– | Middle East and North Africa (MENA) | 667,641 | 419,759 | 667,641 | 419,759 |
27,628,498 | 28,025,274 | 27,632,552 | 39,074,998 | ||
Commitments | |||||
– | Europe | 77,398,295 | 72,422,491 | 77,398,146 | 72,422,491 |
– | Sub-Saharan Africa | 25,149,384 | 39,544,662 | 22,573,654 | 9,759,120 |
– | Middle East and North Africa (MENA) | 29,657,763 | 22,752,586 | 11,657,763 | 17,752,586 |
– | Others | - | 13,083,968 | - | 285,890 |
132,205,442 | 147,803,707 | 111,629,563 | 100,220,087 | ||
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Group | Bank | ||||
2024 | 2023 | 2024 | 2023 | ||
Balances with the Central Bank of Malta, treasury bills and cash | USD | USD | USD | USD | |
– | Financial intermediation | 129,007,716 | 221,758,441 | 128,994,789 | 221,745,312 |
– | Public administration | 5,184,501 | 131,251,745 | 5,184,501 | 131,251,745 |
134,192,217 | 353,010,186 | 134,179,290 | 352,997,057 | ||
Trading assets | |||||
– | Industrial raw materials | 61,161,310 | 37,734,232 | - | - |
– | Shipping and transportation | 177,596 | 351,497 | - | - |
– | Wholesale and retail trade | 36,773,889 | 16,995,057 | - | - |
– | Financial intermediation | 94,067,479 | 239,193,354 | - | - |
– | Public administration | 82,553,024 | 68,654,187 | - | - |
– | Other services | - | 11,248,781 | - | - |
274,733,298 | 374,177,108 | - | - | ||
Loans and advances to banks | |||||
– | Financial intermediation | 96,457,392 | 152,814,948 | 90,098,124 | 114,325,243 |
96,457,392 | 152,814,948 | 90,098,124 | 114,325,243 | ||
Loans and advances to customers | |||||
– | Industrial raw materials | 193,753,742 | 183,171,375 | 35,845,467 | 55,658,839 |
– | Shipping and transportation | 388,528 | 966,513 | 388,528 | 673,989 |
– | Wholesale and retail trade | 106,561,751 | 127,745,154 | 69,001,030 | 95,547,769 |
– | Financial intermediation | 41,543,071 | 52,927,880 | 320,569,034 | 383,386,425 |
– | Real estate activities | 54,487,870 | 46,908,035 | 82,460,317 | 77,308,258 |
– | Other services | 31,241,761 | 19,623,117 | 9,519,535 | 5,542,945 |
427,976,723 | 431,342,074 | 517,783,911 | 618,118,225 | ||
Financial investments at fair value through profit or loss | |||||
– | Financial intermediation | 13,906,093 | 19,277,483 | 13,906,093 | 19,277,483 |
– | Other services | 52,357 | 52,357 | 52,357 | 52,357 |
13,958,450 | 19,329,840 | 13,958,450 | 19,329,840 | ||
Financial investments at fair value through other comprehensive income | |||||
– | Shipping and transportation | 5,045,848 | 5,304,461 | 5,045,848 | 5,304,461 |
– | Financial intermediation | 25,136,046 | 39,578,149 | 25,136,046 | 39,578,149 |
– | Public administration | 90,083,201 | 95,873,170 | 90,083,201 | 95,873,170 |
120,265,095 | 140,755,780 | 120,265,095 | 140,755,780 | ||
Financial investments at amortised cost | |||||
– | Financial intermediation | - | 17,060,289 | - | 17,060,289 |
– | Public administration | 2,073,906 | 11,338,784 | 2,073,906 | 11,338,784 |
2,073,906 | 28,399,073 | 2,073,906 | 28,399,073 | ||
Guarantees | |||||
– | Industrial raw materials | 10,646,552 | 8,129,749 | 10,646,552 | 8,129,749 |
– | Wholesale and retail trade | 368,564 | 368,564 | 368,564 | 368,564 |
– | Financial intermediation | 16,317,133 | 16,155,043 | 16,321,187 | 27,204,767 |
– | Real estate activities | 130,714 | 3,351,702 | 130,714 | 3,351,702 |
– | Other services | 165,535 | 20,216 | 165,535 | 20,216 |
27,628,498 | 28,025,274 | 27,632,552 | 39,074,998 | ||
Commitments | |||||
– | Industrial raw materials | 20,910,119 | 39,245,995 | 20,910,118 | 28,382,235 |
– | Wholesale and retail trade | 22,178,153 | 20,733,217 | 22,178,153 | 20,733,217 |
– | Financial intermediation | 44,679,422 | 53,686,665 | 24,107,598 | 16,966,805 |
– | Real estate activities | 37,717,249 | 27,988,824 | 37,717,249 | 27,988,824 |
– | Other services | 6,720,499 | 6,149,006 | 6,716,445 | 6,149,006 |
132,205,442 | 147,803,707 | 111,629,563 | 100,220,087 | ||
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Gross nominal | Between 6 | ||||||||
Carrying | inflow/ | Less than | Between 1 | Between 3 | months | Between 1 | More than | ||
amount | (outflow) | 1 month | & 3 months | & 6 months | & 1 year | & 5 years | 5 years | No maturity | |
USD | USD | USD | USD | USD | USD | USD | USD | USD | |
Assets | |||||||||
Balances with the Central Bank of Malta, treasury bills and cash | 134,192,217 | 134,212,439 | 126,535,462 | - | - | - | - | - | 7,676,977 |
Trading assets | 274,733,298 | 295,127,546 | 19,109,688 | 64,468,906 | 72,745,542 | 55,684,685 | 82,572,065 | 546,660 | - |
Derivative assets held for risk | |||||||||
management | 1,464,641 | 1,464,641 | 818,015 | 353,351 | 293,275 | - | - | - | - |
Loans and advances to banks | 96,457,392 | 96,958,434 | 83,200,272 | 4,063,684 | - | 980,289 | 8,714,189 | - | - |
Loans and advances to customers | 427,976,723 | 452,485,607 | 149,388,743 | 99,512,653 | 57,178,150 | 53,647,809 | 83,661,916 | 9,096,336 | - |
Financial investments at fair value through profit or loss | 13,958,450 | 13,958,450 | - | - | - | - | - | - | 13,958,450 |
Financial investments at fair value through OCI | 120,265,095 | 125,587,411 | - | - | 12,564,841 | 16,313,499 | 35,209,825 | 61,499,246 | - |
Financial investments at amortised cost | 2,073,906 | 2,077,254 | 2,077,254 | - | - | - | - | - | - |
Other assets | 6,964,808 | 6,964,808 | 6,964,808 | - | - | - | - | - | - |
Total assets | 1,078,086,530 | 1,128,836,590 | 388,094,242 | 168,398,594 | 142,781,808 | 126,626,282 | 210,157,995 | 71,142,242 | 21,635,427 |
Liabilities | |||||||||
Derivative liabilities held for risk | |||||||||
management | (1,109,346) | (1,109,346) | (572,635) | (319,787) | (216,924) | - | - | - | - |
Amounts owed to institutions | |||||||||
and banks | (241,193,331) | (244,364,400) | (181,695,974) | (20,794,611) | (9,767,275) | (23,474,999) | (8,631,541) | - | - |
Amounts owed to customers | (679,118,749) | (683,122,975) | (382,133,856) | (195,234,488) | (61,750,961) | (28,631,820) | (15,371,850) | - | - |
Debt securities in issue | (15,851,701) | (15,992,195) | (5,340,911) | (5,328,407) | (5,322,877) | - | - | - | - |
Other liabilities | (18,691,243) | (18,976,425) | (15,802,700) | (117,309) | (458,801) | (442,946) | (2,154,669) | - | - |
Total liabilities | (955,964,370) | (963,565,341) | (585,546,076) | (221,794,602) | (77,516,838) | (52,549,765) | (26,158,060) | - | - |
Liquidity gap | (197,451,834) | (53,396,008) | 65,264,970 | 74,076,517 | 183,999,935 | 71,142,242 | |||
Cumulative liquidity gap | (197,451,834) | (250,847,842) | (185,582,872) | (111,506,355) | 72,493,580 | 143,635,822 |
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Gross nominal | Between 6 | ||||||||
Carrying | inflow/ | Less than | Between 1 | Between 3 | months | Between 1 | More than | ||
amount | (outflow) | 1 month | & 3 months | & 6 months | & 1 year | & 5 years | 5 years | No maturity | |
USD | USD | USD | USD | USD | USD | USD | USD | USD | |
Assets | |||||||||
Balances with the Central Bank of Malta, treasury bills and cash | 134,179,290 | 134,199,512 | 126,535,462 | - | - | - | - | - | 7,664,050 |
Derivative assets held for risk | |||||||||
management | 1,464,641 | 1,464,641 | 818,015 | 353,351 | 293,275 | - | - | - | - |
Loans and advances to banks | 90,098,124 | 90,590,259 | 76,845,879 | 4,063,684 | - | 966,507 | 8,714,189 | - | - |
Loans and advances to customers | 517,783,911 | 579,416,217 | 56,911,771 | 86,995,842 | 247,061,871 | 23,102,821 | 95,908,805 | 69,435,107 | - |
Financial investments at fair value through profit or loss | 13,958,450 | 13,958,450 | - | - | - | - | - | - | 13,958,450 |
Financial investments at fair value through OCI | 120,265,095 | 125,587,411 | - | - | 12,564,841 | 16,313,499 | 35,209,825 | 61,499,246 | - |
Financial investments at amortised cost | 2,073,906 | 2,077,254 | 2,077,254 | - | - | - | - | - | - |
Other assets | 6,676,958 | 6,676,958 | 6,676,958 | - | - | - | - | - | - |
Total assets | 886,500,375 | 953,970,702 | 269,865,339 | 91,412,877 | 259,919,987 | 40,382,827 | 139,832,819 | 130,934,353 | 21,622,500 |
Liabilities | |||||||||
Derivative liabilities held for risk | |||||||||
management | (1,165,387) | (1,165,387) | (628,676) | (319,787) | (216,924) | - | - | - | - |
Amounts owed to institutions | |||||||||
and banks | (168,729,126) | (168,839,409) | (154,933,608) | (368,222) | (289,376) | (4,616,662) | (8,631,541) | - | - |
Amounts owed to customers | (679,691,057) | (683,700,956) | (382,564,210) | (195,280,979) | (61,852,097) | (28,631,820) | (15,371,850) | - | - |
Other liabilities | (8,584,443) | (8,610,227) | (8,040,535) | (2,069) | (224,760) | (21,707) | (321,156) | - | - |
Total liabilities | (858,170,012) | (862,315,978) | (546,167,029) | (195,971,057) | (62,583,157) | (33,270,189) | (24,324,547) | - | - |
Liquidity gap | (276,301,690) | (104,558,180) | 197,336,830 | 7,112,638 | 115,508,272 | 130,934,353 | |||
Cumulative liquidity gap | (276,301,690) | (380,859,870) | (183,523,040) | (176,410,402) | (60,902,130) | 70,032,223 |
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Gross nominal | Between 6 | ||||||||
Carrying | inflow/ | Less than | Between 1 | Between 3 | months | Between 1 | More than | ||
amount | (outflow) | 1 month | & 3 months | & 6 months | & 1 year | & 5 years | 5 years | No maturity | |
USD | USD | USD | USD | USD | USD | USD | USD | USD | |
Assets | |||||||||
Balances with the Central Bank of Malta, treasury bills and cash | 352,997,057 | 353,058,099 | 232,384,309 | 63,022,868 | 33,015,391 | 16,239,560 | - | - | 8,395,971 |
Derivative assets held for risk | |||||||||
management | 812,609 | 812,609 | 700,782 | 99,879 | - | 11,948 | - | - | - |
Loans and advances to banks | 114,325,243 | 115,441,453 | 58,455,595 | 38,126,895 | 7,875,752 | 1,729,230 | 9,253,981 | - | - |
Loans and advances to customers | 618,118,225 | 648,124,541 | 116,830,361 | 102,597,981 | 256,609,008 | 78,137,786 | 64,540,764 | 29,408,641 | - |
Financial investments at fair value through profit or loss | 19,329,840 | 19,329,840 | - | - | - | - | - | - | 19,329,840 |
Financial investments at fair value through OCI | 140,755,780 | 147,651,397 | 5,103,566 | - | - | 12,903,183 | 55,835,883 | 73,808,765 | - |
Financial investments at amortised cost | 28,399,073 | 32,497,878 | - | 2,458,798 | 5,653,384 | 9,513,458 | 14,872,238 | - | - |
Other assets | 4,619,670 | 4,619,670 | 4,619,670 | - | - | - | - | - | - |
Total assets | 1,279,357,497 | 1,321,535,487 | 418,094,283 | 206,306,421 | 303,153,535 | 118,535,165 | 144,502,866 | 103,217,406 | 27,725,811 |
Liabilities | |||||||||
Derivative liabilities held for risk | |||||||||
management | (626,476) | (626,476) | (455,055) | (86,901) | - | (84,520) | - | - | - |
Amounts owed to institutions | |||||||||
and banks | (333,498,402) | (334,541,899) | (241,844,225) | (57,762,015) | (22,436,754) | (3,867,403) | (8,631,502) | - | - |
Amounts owed to customers | (951,166,330) | (959,014,206) | (451,792,246) | (189,778,254) | (174,979,244) | (131,667,636) | (10,796,826) | - | - |
Other liabilities | (10,633,538) | (10,671,057) | (9,096,790) | (3,985) | (3,985) | (771,505) | (773,761) | (21,031) | - |
Total liabilities | (1,295,924,745) | (1,304,853,637) | (703,188,316) | (247,631,155) | (197,419,983) | (136,391,064) | (20,202,089) | (21,031) | - |
Liquidity gap | (285,094,033) | (41,324,734) | 105,733,552 | (17,855,899) | 124,300,777 | 103,196,375 | |||
Cumulative liquidity gap | (285,094,033) | (326,418,767) | (220,685,215) | (238,541,114) | (114,240,337) | (11,043,962) |
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Between 6 | ||||||
Less than | Between 1 | Between 3 | months | Carrying | ||
1 month | & 3 months | & 6 months | & 1 year | Total | amount | |
USD | USD | USD | USD | USD | USD | |
Derivatives | ||||||
Inflows | 62,584,964 | 8,259,115 | 16,748,022 | 5,922,922 | 93,515,023 | |
Outflows | (63,026,888) | (8,366,750) | (17,316,023) | (6,000,000) | (94,709,661) | |
(441,924) | (107,635) | (568,001) | (77,078) | (1,194,638) | 1,109,346 |
Between 6 | ||||||
Less than | Between 1 | Between 3 | months | Carrying | ||
1 month | & 3 months | & 6 months | & 1 year | Total | amount | |
USD | USD | USD | USD | USD | USD | |
Derivatives | ||||||
Inflows | 10,056,599 | 32,325,281 | 2,424,485 | 14,862,818 | 59,669,183 | |
Outflows | (10,030,539) | (32,445,437) | (2,432,018) | (14,901,056) | (59,809,050) | |
26,060 | (120,156) | (7,533) | (38,238) | (139,867) | 626,476 |
Between 6 | ||||||
Less than | Between 1 | Between 3 | months | Carrying | ||
1 month | & 3 months | & 6 months | & 1 year | Total | amount | |
USD | USD | USD | USD | USD | USD | |
Derivatives | ||||||
Inflows | 62,584,964 | 8,290,380 | 16,748,022 | 5,922,922 | 93,546,288 | |
Outflows | (63,026,888) | (8,454,056) | (17,316,023) | (6,000,000) | (94,796,967) | |
(441,924) | (163,676) | (568,001) | (77,078) | (1,250,679) | 1,165,387 |
Between 6 | ||||||
Less than | Between 1 | Between 3 | months | Carrying | ||
1 month | & 3 months | & 6 months | & 1 year | Total | amount | |
USD | USD | USD | USD | USD | USD | |
Derivatives | ||||||
Inflows | 10,056,599 | 32,325,281 | 2,424,485 | 14,862,818 | 59,669,183 | |
Outflows | (10,030,539) | (32,445,437) | (2,432,018) | (14,901,056) | (59,809,050) | |
26,060 | (120,156) | (7,533) | (38,238) | (139,867) | 626,476 |
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In reporting | Other | ||||
All amounts are expressed in USD | currency | EUR | INR | currencies | Total |
Assets | |||||
Balances with the Central Bank of Malta, treasury bills and cash | 3,523 | 134,183,833 | - | 4,861 | 134,192,217 |
Trading assets | 163,208,780 | 111,158,974 | - | 365,544 | 274,733,298 |
Loans and advances to banks | 69,283,478 | 22,167,773 | 2,779,632 | 2,226,509 | 96,457,392 |
Loans and advances to customers | 177,323,570 | 179,743,478 | 42,666,886 | 28,242,789 | 427,976,723 |
Financial investments at fair value through profit or loss | 52,358 | 13,906,092 | - | - | 13,958,450 |
Financial investments at fair value through other comprehensive income | 25,173,723 | 95,091,372 | - | - | 120,265,095 |
Financial investments at amortised cost | 2,073,906 | - | - | - | 2,073,906 |
Other assets | 1,859,267 | 4,144,818 | 883,745 | 76,978 | 6,964,808 |
Liabilities | |||||
Amounts owed to institutions and banks | (191,595,367) | (14,389,768) | (13,518,899) | (21,689,297) | (241,193,331) |
Amounts owed to customers | (59,413,142) | (617,988,208) | (567,282) | (1,150,117) | (679,118,749) |
Debt securities in issue | - | (15,851,701) | - | - | (15,851,701) |
Other liabilities | (9,644,775) | (4,596,711) | (2,217,744) | (2,232,013) | (18,691,243) |
Net on balance sheet financial position | 178,325,321 | (92,430,048) | 30,026,338 | 5,845,254 | 121,766,865 |
Notional amount of derivative instruments held for risk management | (21,813,537) | 60,791,642 | (32,115,838) | (6,862,267) | |
Net foreign exchange exposure | (31,638,406) | (2,089,500) | (1,017,013) |
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In reporting | Other | ||||
All amounts are expressed in USD | currency | EUR | INR | currencies | Total |
Assets | |||||
Balances with the Central Bank of Malta, treasury bills and cash | 26,008,194 | 326,995,938 | 25 | 6,029 | 353,010,186 |
Trading assets | 200,298,343 | 171,679,279 | - | 2,199,486 | 374,177,108 |
Loans and advances to banks | 68,308,035 | 66,654,529 | 12,882,667 | 4,969,717 | 152,814,948 |
Loans and advances to customers | 190,371,780 | 185,303,365 | 24,412,566 | 31,254,363 | 431,342,074 |
Financial investments at fair value through profit or loss | 52,358 | 18,636,495 | - | 640,987 | 19,329,840 |
Financial investments at fair value through other comprehensive income | 36,432,839 | 104,322,941 | - | - | 140,755,780 |
Financial investments at amortised cost | 16,517,720 | 2,236,359 | - | 9,644,994 | 28,399,073 |
Other assets | 142,137 | 3,827,124 | 1,099,918 | 149,440 | 5,218,619 |
Liabilities | |||||
Amounts owed to institutions and banks | (331,446,875) | (52,596,240) | (9,792,313) | (18,735,503) | (412,570,931) |
Amounts owed to customers | (55,716,559) | (873,460,598) | (1,606) | (5,560,179) | (934,738,942) |
Debt securities in issue | - | (27,543,864) | - | - | (27,543,864) |
Other liabilities | (8,688,932) | (7,270,725) | (2,502,551) | (1,309,407) | (19,771,615) |
Net on balance sheet financial position | 142,279,040 | (81,215,397) | 26,098,706 | 23,529,927 | 110,422,276 |
Notional amount of derivative instruments held for risk management | 20,808,471 | 31,636,970 | (30,024,203) | (22,421,238) | |
Net foreign exchange exposure | (49,578,427) | (3,925,497) | 838,689 |
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In reporting | Other | |||
All amounts are expressed in USD | currency | EUR | currencies | Total |
Assets | ||||
Balances with the Central Bank of Malta, treasury bills and cash | - | 134,179,125 | 165 | 134,179,290 |
Loans and advances to banks | 67,567,735 | 21,310,259 | 1,220,130 | 90,098,124 |
Loans and advances to customers | 210,299,169 | 300,816,039 | 6,668,703 | 517,783,911 |
Financial investments at fair value through profit or loss | 52,358 | 13,906,092 | - | 13,958,450 |
Financial investments at fair value through other comprehensive income | 25,173,723 | 95,091,372 | - | 120,265,095 |
Financial investments at amortised cost | 2,073,906 | - | - | 2,073,906 |
Other assets | 2,498,034 | 4,163,721 | 15,203 | 6,676,958 |
Liabilities | ||||
Amounts owed to institutions and banks | (160,028,860) | (8,696,684) | (3,582) | (168,729,126) |
Amounts owed to customers | (59,792,501) | (619,425,991) | (472,565) | (679,691,057) |
Other liabilities | (3,796,466) | (4,262,497) | (525,480) | (8,584,443) |
Net on balance sheet financial position | 84,047,098 | (62,918,564) | 6,902,574 | 28,031,108 |
Notional amount of derivative instruments held for risk management | (21,813,537) | 60,791,642 | (6,862,267) | |
Net foreign exchange exposure | (2,126,922) | 40,307 |
In reporting | Other | |||
All amounts are expressed in USD | currency | EUR | currencies | Total |
Assets | ||||
Balances with the Central Bank of Malta, treasury bills and cash | 26,004,091 | 326,989,945 | 3,021 | 352,997,057 |
Loans and advances to banks | 47,335,276 | 65,971,956 | 1,018,011 | 114,325,243 |
Loans and advances to customers | 244,372,334 | 361,849,371 | 11,896,520 | 618,118,225 |
Financial investments at fair value through profit or loss | 52,358 | 18,636,495 | 640,987 | 19,329,840 |
Financial investments at fair value through other comprehensive income | 36,432,839 | 104,322,941 | - | 140,755,780 |
Financial investments at amortised cost | 16,517,720 | 2,236,359 | 9,644,994 | 28,399,073 |
Other assets | 127,420 | 4,382,043 | 110,207 | 4,619,670 |
Liabilities | ||||
Amounts owed to institutions and banks | (280,898,394) | (52,596,240) | (3,768) | (333,498,402) |
Amounts owed to customers | (75,093,701) | (875,641,852) | (430,777) | (951,166,330) |
Other liabilities | (2,028,658) | (8,524,723) | (80,157) | (10,633,538) |
Net on balance sheet financial position | 12,821,285 | (52,373,705) | 22,799,038 | (16,753,382) |
Notional amount of derivative instruments held for risk management | 20,808,471 | 31,636,970 | (22,421,238) | |
Net foreign exchange exposure | (20,736,735) | 377,800 |
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Reporting date | ||||
Average rate | mid-spot rate | |||
2024 | 2023 | 2024 | 2023 | |
1 EUR | 1.0828 | 1.0813 | 1.0389 | 1.1050 |
1 INR | 0.0120 | 0.0121 | 0.0117 | 0.0120 |
Group | Profit or | Bank | Profit or | |
Equity | loss | Equity | loss | |
USD | USD | USD | USD | |
2024 | ||||
EUR | (2,495,503) | (2,495,503) | (148,884) | (148,884) |
INR | (86,400) | - | (2,248,109) | (2,248,109) |
Other currencies | 101,190 | 101,190 | 2,821 | 2,821 |
2023 | ||||
EUR | (3,457,974) | (3,457,974) | (1,295,848) | (1,295,848) |
INR | (230,138) | - | (2,101,694) | (2,101,694) |
Other currencies | 64,841 | 64,841 | 27,202 | 27,202 |
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Between | Between | Not subject to | ||||||
Less than | Between | Between | 6 months | 1 & 5 | More than | interest rate | ||
1 month | 1 & 3 months | 3 & 6 months | & 1 year | years | 5 years | risk | Total | |
USD | USD | USD | USD | USD | USD | USD | USD | |
Assets | ||||||||
Balances with the Central Bank of Malta, treasury bills and cash | 134,175,556 | - | - | - | - | - | 16,661 | 134,192,217 |
Trading assets | 44,321,330 | 75,168,149 | 52,279,367 | 31,275,053 | 70,833,342 | 408,461 | 447,596 | 274,733,298 |
Loans and advances to banks | 83,186,831 | 3,727,341 | - | 981,008 | 7,869,997 | - | 692,215 | 96,457,392 |
Loans and advances to customers | 267,587,430 | 124,410,859 | 20,583,500 | 10,233,575 | 3,541,540 | - | 1,619,819 | 427,976,723 |
Financial investments at fair value through other comprehensive income | - | - | 12,485,597 | 16,237,787 | 34,265,728 | 56,890,339 | 385,644 | 120,265,095 |
Financial investments at amortised cost | 1,999,420 | - | - | - | - | - | 74,486 | 2,073,906 |
531,270,567 | 203,306,349 | 85,348,464 | 58,727,423 | 116,510,607 | 57,298,800 | 3,236,421 | 1,055,698,631 | |
Liabilities | ||||||||
Amounts owed to institutions and banks | (195,082,463) | (22,708,027) | (7,500,000) | (5,832,264) | (8,517,194) | - | (1,553,383) | (241,193,331) |
Amounts owed to customers | (373,784,583) | (193,508,272) | (60,885,765) | (27,121,692) | (14,784,853) | - | (9,033,584) | (679,118,749) |
Debt securities in issue | (5,194,266) | (5,194,266) | (5,194,266) | - | - | - | (268,903) | (15,851,701) |
(574,061,312) | (221,410,565) | (73,580,031) | (32,953,956) | (23,302,047) | - | (10,855,870) | (936,163,781) | |
Interest sensitivity gap | (42,790,745) | (18,104,216) | 11,768,433 | 25,773,467 | 93,208,560 | 57,298,800 | (7,619,449) | |
Cumulative gap | (60,894,961) | (49,126,528) | (23,353,061) | 69,855,499 | 127,154,299 | 119,534,850 |
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Between | Between | Not subject to | ||||||
Less than | Between | Between | 6 months | 1 & 5 | More than | interest rate | ||
1 month | 1 & 3 months | 3 & 6 months | & 1 year | years | 5 years | risk | Total | |
USD | USD | USD | USD | USD | USD | USD | USD | |
Assets | ||||||||
Balances with the Central Bank of Malta, treasury bills and cash | 240,701,293 | 63,022,868 | 33,015,391 | 16,239,560 | - | - | 31,074 | 353,010,186 |
Trading assets | 80,639,382 | 193,032,230 | 64,490,802 | 26,217,441 | 9,257,253 | - | 540,000 | 374,177,108 |
Loans and advances to banks | 94,213,686 | 37,935,502 | 7,885,432 | 2,680,135 | 8,360,926 | - | 1,739,267 | 152,814,948 |
Loans and advances to customers | 291,462,685 | 13,914,819 | 110,025,707 | 8,687,579 | 4,092,834 | 2,149,494 | 1,008,956 | 431,342,074 |
Financial investments at fair value through other comprehensive income | 4,985,000 | - | - | 12,644,664 | 54,601,339 | 67,942,320 | 582,457 | 140,755,780 |
Financial investments at amortised cost | - | 2,392,239 | 14,593,174 | 9,152,734 | 1,985,111 | - | 275,815 | 28,399,073 |
712,002,046 | 310,297,658 | 230,010,506 | 75,622,113 | 78,297,463 | 70,091,814 | 4,177,569 | 1,480,499,169 | |
Liabilities | ||||||||
Amounts owed to institutions and banks | (283,644,872) | (81,653,270) | (32,099,448) | (3,867,403) | (8,517,194) | - | (2,788,744) | (412,570,931) |
Amounts owed to customers | (427,615,143) | (186,247,544) | (170,838,046) | (109,646,533) | (26,698,463) | - | (13,693,213) | (934,738,942) |
Debt securities in issue | (5,443,771) | (10,729,398) | (11,049,724) | - | - | - | (320,971) | (27,543,864) |
(716,703,786) | (278,630,212) | (213,987,218) | (113,513,936) | (35,215,657) | - | (16,802,928) | (1,374,853,737) | |
Interest sensitivity gap | (4,701,740) | 31,667,446 | 16,023,288 | (37,891,823) | 43,081,806 | 70,091,814 | (12,625,359) | |
Cumulative gap | 26,965,706 | 42,988,994 | 5,097,171 | 48,178,977 | 118,270,791 | 105,645,432 |
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Between | Between | Not subject to | ||||||
Less than | Between | Between | 6 months | 1 & 5 | More than | interest rate | ||
1 month | 1 & 3 months | 3 & 6 months | & 1 year | years | 5 years | risk | Total | |
USD | USD | USD | USD | USD | USD | USD | USD | |
Assets | ||||||||
Balances with the Central Bank of Malta, treasury bills and cash | 134,175,556 | - | - | - | - | - | 3,734 | 134,179,290 |
Loans and advances to banks | 76,840,553 | 3,727,341 | - | 968,211 | 7,869,997 | - | 692,022 | 90,098,124 |
Loans and advances to customers | 294,363,354 | 154,718,115 | 29,218,511 | 34,667,059 | 1,732,381 | - | 3,084,491 | 517,783,911 |
Financial investments at fair value through other comprehensive income | - | - | 12,485,597 | 16,237,787 | 34,265,728 | 56,890,339 | 385,644 | 120,265,095 |
Financial investments at amortised cost | 1,999,420 | - | - | - | - | - | 74,486 | 2,073,906 |
507,378,883 | 158,445,456 | 41,704,108 | 51,873,057 | 43,868,106 | 56,890,339 | 4,240,377 | 864,400,326 | |
Liabilities | ||||||||
Amounts owed to institutions and banks | (154,366,529) | - | - | (4,604,197) | (8,517,194) | - | (1,241,206) | (168,729,126) |
Amounts owed to customers | (375,590,618) | (193,552,423) | (60,985,306) | (27,121,692) | (14,784,853) | - | (7,656,165) | (679,691,057) |
(529,957,147) | (193,552,423) | (60,985,306) | (31,725,889) | (23,302,047) | - | (8,897,371) | (848,420,183) | |
Interest sensitivity gap | (22,578,264) | (35,106,967) | (19,281,198) | 20,147,168 | 20,566,059 | 56,890,339 | (4,656,994) | |
Cumulative gap | (57,685,231) | (76,966,429) | (56,819,261) | (36,253,202) | 20,637,137 | 15,980,143 |
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Between | Between | Not subject to | ||||||
Less than | Between | Between | 6 months | 1 & 5 | More than | interest rate | ||
1 month | 1 & 3 months | 3 & 6 months | & 1 year | years | 5 years | risk | Total | |
USD | USD | USD | USD | USD | USD | USD | USD | |
Assets | ||||||||
Balances with the Central Bank of Malta, treasury bills and cash | 240,701,293 | 63,022,868 | 33,015,391 | 16,239,560 | - | - | 17,945 | 352,997,057 |
Loans and advances to banks | 56,876,233 | 37,935,502 | 7,879,420 | 1,733,848 | 8,360,926 | - | 1,539,314 | 114,325,243 |
Loans and advances to customers | 452,436,857 | - | 156,471,975 | 5,281,294 | - | 2,149,494 | 1,778,605 | 618,118,225 |
Financial investments at fair value through other comprehensive income | 4,985,000 | - | - | 12,644,664 | 54,601,339 | 67,942,320 | 582,457 | 140,755,780 |
Financial investments at amortised cost | - | 2,392,239 | 14,593,174 | 9,152,734 | 1,985,111 | - | 275,815 | 28,399,073 |
754,999,383 | 103,350,609 | 211,959,960 | 45,052,100 | 64,947,376 | 70,091,814 | 4,194,136 | 1,254,595,378 | |
Liabilities | ||||||||
Amounts owed to institutions and banks | (239,953,166) | (56,599,448) | (22,099,448) | (3,867,403) | (8,517,194) | - | (2,461,743) | (333,498,402) |
Amounts owed to customers | (449,500,336) | (186,247,544) | (170,838,046) | (109,776,533) | (26,698,463) | - | (8,105,408) | (951,166,330) |
(689,453,502) | (242,846,992) | (192,937,494) | (113,643,936) | (35,215,657) | - | (10,567,151) | (1,284,664,732) | |
Interest sensitivity gap | 65,545,881 | (139,496,383) | 19,022,466 | (68,591,836) | 29,731,719 | 70,091,814 | (6,373,015) | |
Cumulative gap | (73,950,502) | (54,928,036) | (123,519,872) | (93,788,153) | (23,696,339) | (30,069,354) |
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Parallel | Short rates | Short rates | ||||
Parallel up | down | up | down | Steepener | Flattener | |
USD | USD | USD | USD | USD | USD | |
Sensitivity of equity to interest rate | ||||||
movements | ||||||
Group | (7,306,782) | 3,552,582 | (1,603,126) | 396,874 | (1,953,472) | 149,469 |
Group (incl. trading book) | (10,932,647) | 5,819,914 | (5,190,952) | 2,514,034 | (685,791) | (1,925,540) |
Bank | (7,714,856) | 3,966,945 | (2,141,459) | 943,312 | (1,525,959) | (70,262) |
Sensitivity of net interest income to interest rate movements | ||||||
Group | (3,727,994) | 1,171,399 | N/A | N/A | N/A | N/A |
Group (incl. trading book) | (1,706,917) | (1,224,407) | N/A | N/A | N/A | N/A |
Bank | (1,911,200) | (440,606) | N/A | N/A | N/A | N/A |
Parallel | Short rates | Short rates | ||||
Parallel up | down | up | down | Steepener | Flattener | |
USD | USD | USD | USD | USD | USD | |
Sensitivity of equity to interest rate | ||||||
movements | ||||||
Group | (7,487,322) | 4,281,044 | (80,259) | (338,276) | (3,885,533) | 1,154,989 |
Group (incl. trading book) | (9,333,056) | 5,418,460 | (2,186,933) | 1,129,388 | (2,929,820) | (322,506) |
Bank | (7,517,131) | 4,408,833 | (93,716) | (143,029) | (3,788,942) | 1,099,473 |
Sensitivity of net interest income to interest rate movements | ||||||
Group | (4,682,140) | 2,340,881 | N/A | N/A | N/A | N/A |
Group (incl. trading book) | (369,710) | (1,672,173) | N/A | N/A | N/A | N/A |
Bank | (671,968) | 335,984 | N/A | N/A | N/A | N/A |
USD | INR | |||
EUR in basis points | in basis points | in basis points | ||
Parallel up | +200 | +200 | +400 | |
Parallel down | -200 | -200 | -400 | |
Short rates up | +250 | +300 | +500 | |
Short rates down | -250 | -300 | -500 | |
Steepener | short rates down | -250 | -300 | -500 |
long rates down | +100 | +150 | +300 | |
Flattener | short rates up | +250 | +300 | +500 |
long rates down | -100 | -150 | -300 |
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Group | Bank | |||
2024 | 2023 | 2024 | 2023 | |
USD | USD | USD | USD | |
Financial investments at fair value through profit or loss | 13,958,450 | 19,329,840 | 13,958,450 | 19,329,840 |
Financial investments at fair value through other comprehensive income | 120,265,095 | 140,755,780 | 120,265,095 | 140,755,780 |
Trading assets | 274,733,298 | 374,177,108 | - | - |
Group | Bank | |||
Impact on other | Impact on other | |||
Impact on pre- | components of | Impact on pre- | components of | |
tax profit | equity | tax profit | equity | |
USD | USD | USD | USD | |
2024 | 28,869,175 | 12,026,510 | 1,395,845 | 12,026,510 |
2023 | 39,350,695 | 14,075,578 | 1,932,984 | 14,075,578 |
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Level 1 | Level 2 | Level 3 | Total | |||
Note | USD | USD | USD | USD | ||
Assets | ||||||
Derivative assets held for risk management: | ||||||
– | foreign exchange | 19 | - | 1,464,641 | - | 1,464,641 |
Trading assets | 20 | - | - | 274,733,298 | 274,733,298 | |
Financial investments at fair value through profit or loss | 23 | - | - | 13,958,450 | 13,958,450 | |
Financial investments at fair value through other comprehensive income | 24 | 120,265,095 | - | - | 120,265,095 | |
Liabilities | ||||||
Derivative liabilities held for risk management: | ||||||
– | foreign exchange | 19 | - | 1,109,346 | - | 1,109,346 |
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Level 1 | Level 2 | Level 3 | Total | |||
Note | USD | USD | USD | USD | ||
Assets | ||||||
Derivative assets held for risk management: | ||||||
– | foreign exchange | 19 | - | 715,713 | - | 715,713 |
Trading assets | 20 | - | - | 374,177,108 | 374,177,108 | |
Financial investments at fair value through profit or loss | 23 | - | - | 19,329,840 | 19,329,840 | |
Financial investments at fair value through other comprehensive income | 24 | 140,755,780 | - | - | 140,755,780 | |
Liabilities | ||||||
Derivative liabilities held for risk management: | ||||||
– | foreign exchange | 19 | - | 626,476 | - | 626,476 |
Level 1 | Level 2 | Level 3 | Total | |||
Note | USD | USD | USD | USD | ||
Assets | ||||||
Derivative assets held for risk management: | ||||||
– | foreign exchange | 19 | - | 1,464,641 | - | 1,464,641 |
Financial investments at fair value through profit or loss | 23 | - | - | 13,958,450 | 13,958,450 | |
Financial investments at fair value through other comprehensive income | 24 | 120,265,095 | - | - | 120,265,095 | |
Liabilities | ||||||
Derivative liabilities held for risk management: | ||||||
– | foreign exchange | 19 | - | 1,109,346 | - | 1,109,346 |
– | interest rate | 19 | - | 56,041 | - | 56,041 |
Level 1 | Level 2 | Level 3 | Total | |||
Note | USD | USD | USD | USD | ||
Assets | ||||||
Derivative assets held for risk management: | ||||||
– | foreign exchange | 19 | - | 715,713 | - | 715,713 |
– | interest rate | 19 | - | 96,896 | - | 96,896 |
Financial investments at fair value through profit or loss | 23 | - | - | 19,329,840 | 19,329,840 | |
Financial investments at fair value through other comprehensive income | 24 | 140,755,780 | - | - | 140,755,780 | |
Liabilities | ||||||
Derivative liabilities held for risk management: | ||||||
– | foreign exchange | 19 | - | 626,476 | - | 626,476 |
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Financial investments | |||
Trading | at fair value through | ||
assets | profit or loss | Total | |
USD | USD | USD | |
Balance at 1 January 2024 | 374,177,108 | 19,329,840 | 393,506,948 |
Total gains/(losses) in profit or loss | 1,017,282 | (718,609) | 298,673 |
Purchases | 879,020,797 | - | 879,020,797 |
Settlements and redemptions | (970,314,190) | (3,607,970) | (973,922,160) |
Write-offs | (2,650,000) | - | (2,650,000) |
Effects of movement in exchange rates | (6,517,699) | (1,044,811) | (7,562,510) |
Balance at 31 December 2024 | 274,733,298 | 13,958,450 | 288,691,748 |
Financial investments | |||
Trading | at fair value through | ||
assets | profit or loss | Total | |
USD | USD | USD | |
Balance at 1 January 2023 | 444,583,661 | 18,179,220 | 462,762,881 |
Total (losses)/gains in profit or loss | (3,304,340) | 768,541 | (2,535,799) |
Purchases | 772,551,650 | - | 772,551,650 |
Settlements and redemptions | (847,048,996) | (249,464) | (847,298,460) |
Effects of movement in exchange rates | 7,395,133 | 631,543 | 8,026,676 |
Balance at 31 December 2023 | 374,177,108 | 19,329,840 | 393,506,948 |
Financial investments | |||
Trading | at fair value through | ||
assets | profit or loss | Total | |
USD | USD | USD | |
Balance at 1 January 2024 | - | 19,329,840 | 19,329,840 |
Total gains/(losses) in profit or loss | 146,076 | (718,609) | (572,533) |
Purchases | 9,900,000 | - | 9,900,000 |
Settlements and redemptions | (10,046,076) | (3,607,970) | (13,654,046) |
Effects of movement in exchange rates | - | (1,044,811) | (1,044,811) |
Balance at 31 December 2024 | - | 13,958,450 | 13,958,450 |
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143
Financial investments | |
at fair value through | |
profit or loss | |
USD | |
Balance at 1 January 2023 | 18,179,220 |
Total gains in profit or loss | 768,541 |
Redemptions | (249,464) |
Effects of movement in exchange rates | 631,543 |
Balance at 31 December 2023 | 19,329,840 |
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146
Mandatorily | Fair value | ||||
at fair value through other | Total | ||||
through | comprehensive | Amortised | carrying | ||
profit or loss | income | cost | amount | ||
USD | USD | USD | USD | ||
Balances with the Central Bank of Malta, treasury bills and cash | - | - | 134,192,217 | 134,192,217 | |
Derivative assets held for risk management | 1,464,641 | - | - | 1,464,641 | |
Trading assets | 274,733,298 | - | - | 274,733,298 | |
Loans and advances to banks | - | - | 96,457,392 | 96,457,392 | |
Loans and advances to customers | - | - | 427,976,723 | 427,976,723 | |
Financial investments at fair value through profit or loss | 13,958,450 | - | - | 13,958,450 | |
Financial investments at fair value through other comprehensive income | - | 120,265,095 | - | 120,265,095 | |
Financial investments at amortised cost | - | - | 2,073,906 | 2,073,906 | |
Total financial assets | 290,156,389 | 120,265,095 | 660,700,238 | 1,071,121,722 | |
Derivative liabilities held for risk management | 1,109,346 | - | - | 1,109,346 | |
Amounts owed to institutions and banks | - | - | 241,193,331 | 241,193,331 | |
Amounts owed to customers | - | - | 679,118,749 | 679,118,749 | |
Debt securities in issue | - | - | 15,851,701 | 15,851,701 | |
Total financial liabilities | 1,109,346 | - | 936,163,781 | 937,273,127 | |
Mandatorily | Fair value | ||||
at fair value through other | Total | ||||
through | comprehensive | Amortised | carrying | ||
profit or loss | income | cost | amount | ||
USD | USD | USD | USD | ||
Balances with the Central Bank of Malta, treasury bills and cash | - | - | 353,010,186 | 353,010,186 | |
Derivative assets held for risk management | 715,713 | - | - | 715,713 | |
Trading assets | 374,177,108 | - | - | 374,177,108 | |
Loans and advances to banks | - | - | 152,814,948 | 152,814,948 | |
Loans and advances to customers | - | - | 431,342,074 | 431,342,074 | |
Financial investments at fair value through profit or loss | 19,329,840 | - | - | 19,329,840 | |
Financial investments at fair value through other comprehensive income | - | 140,755,780 | - | 140,755,780 | |
Financial investments at amortised cost | - | - | 28,399,073 | 28,399,073 | |
Total financial assets | 394,222,661 | 140,755,780 | 965,566,281 | 1,500,544,722 | |
Derivative liabilities held for risk management | 626,476 | - | - | 626,476 | |
Amounts owed to institutions and banks | - | - | 412,570,931 | 412,570,931 | |
Amounts owed to customers | - | - | 934,738,942 | 934,738,942 | |
Debt securities in issue | - | - | 27,543,864 | 27,543,864 | |
Total financial liabilities | 626,476 | - | 1,374,853,737 | 1,375,480,213 | |
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Mandatorily | Fair value | ||||
at fair value through other | Total | ||||
through | comprehensive | Amortised | carrying | ||
profit or loss | income | cost | amount | ||
USD | USD | USD | USD | ||
Balances with the Central Bank of Malta, treasury bills and cash | - | - | 134,179,290 | 134,179,290 | |
Derivative assets held for risk management | 1,464,641 | - | - | 1,464,641 | |
Loans and advances to banks | - | - | 90,098,124 | 90,098,124 | |
Loans and advances to customers | - | - | 517,783,911 | 517,783,911 | |
Financial investments at fair value through profit or loss | 13,958,450 | - | - | 13,958,450 | |
Financial investments at fair value through other comprehensive income | - | 120,265,095 | - | 120,265,095 | |
Financial investments at amortised cost | - | - | 2,073,906 | 2,073,906 | |
Total financial assets | 15,423,091 | 120,265,095 | 744,135,231 | 879,823,417 | |
Derivative liabilities held for risk management | 1,165,387 | - | - | 1,165,387 | |
Amounts owed to institutions and banks | - | - | 168,729,126 | 168,729,126 | |
Amounts owed to customers | - | - | 679,691,057 | 679,691,057 | |
Total financial liabilities | 1,165,387 | - | 848,420,183 | 849,585,570 | |
FIMBank Group Annual Report & Financial Statements 2024
Operating segments
The Group has five significant reportable segments (trade finance, forfaiting, factoring, real estate and treasury) which are represented
by different Group entities. Further information on the Group’s key business lines is set out in Note 4.2.1.2.
Information regarding the results of each reportable segment is included below. Performance is measured based on segment profit
before tax, as included in the internal management reports that are reviewed by Executive Management. Executive Management is
further defined in the Remuneration Report. Segment profit is used to measure performance as Management believes that such
information is the most relevant in evaluating the results of certain segments relative to other entities that operate within these
industries.
Information about operating segments
Group – 2024
| Trade | ||||||
| finance | Forfaiting | Factoring | Real estate | Treasury | Total | |
USD | USD | USD | USD | USD | USD | |
External revenue | ||||||
Net interest income/(expense) | 7,948,889 | 20,808,528 | 17,690,782 | 8,094,780 | (695,278) | 53,847,701 |
| Net fee and commission | ||||||
| income/(expense) | 1,597,259 | 385,059 | (2,236,845) | 350,575 | 786,386 | 882,434 |
Net trading and other operating income/(expense) | 605,986 | (419,499) | 66,394 | 54,634 | (1,119,619) | (812,104) |
10,152,134 | 20,774,088 | 15,520,331 | 8,499,989 | (1,028,511) | 53,918,031 | |
| Reportable segment profit/ | ||||||
| (loss) before income tax | 675,780 | 11,105,922 | 4,955,101 | (190,796) | (2,111,296) | 14,434,711 |
Reportable segment assets | 62,251,071 | 278,557,068 | 271,311,696 | 103,458,445 | 654,326,409 | 1,369,904,689 |
Reportable segment liabilities | 15,860,868 | 198,745,632 | 174,321,513 | 410,893 | 826,661,619 | 1,216,000,525 |
Group – 2023
| Trade | ||||||
| finance | Forfaiting | Factoring | Real estate | Treasury | Total | |
USD | USD | USD | USD | USD | USD | |
External revenue | ||||||
Net interest income | 8,027,712 | 23,257,486 | 18,746,955 | 5,930,069 | 13,355 | 55,975,577 |
| Net fee and commission | ||||||
| income/(expense) | 3,902,911 | (393,872) | (2,163,995) | 300,218 | (1,962,677) | (317,415) |
Net trading and other operating income/(expense) | 233,279 | (2,292,693) | 85,731 | 445 | (981,868) | (2,955,106) |
12,163,902 | 20,570,921 | 16,668,691 | 6,230,732 | (2,931,190) | 52,703,056 | |
| Reportable segment profit/ | ||||||
| (loss) before income tax | 1,209,019 | 11,332,596 | 1,790,819 | (987,684) | (6,446,263) | 6,898,487 |
Reportable segment assets | 123,677,975 | 415,141,901 | 276,454,596 | 85,607,287 | 963,029,764 | 1,863,911,523 |
Reportable segment liabilities | 15,217,052 | 297,671,485 | 170,250,754 | 4,698,615 | 1,240,765,441 | 1,728,603,347 |
148
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149
2024 | 2023 | |
USD | USD | |
Revenues | ||
Total revenue for reportable segments | 53,918,031 | 52,703,056 |
Consolidation adjustments | (2,326,607) | 1,601,200 |
Other net revenue for non-reportable segments | (368,841) | (2,708,560) |
Consolidated revenue | 51,222,583 | 51,595,696 |
Profit or loss | ||
Total profit for reportable segments | 14,434,711 | 6,898,487 |
Other losses | (5,519,550) | (5,468,106) |
8,915,161 | 1,430,381 | |
Effect of other consolidation adjustments on segment results | (595,252) | 4,363,826 |
Consolidated profit before tax | 8,319,909 | 5,794,207 |
2024 | 2023 | |
USD | USD | |
Assets | ||
Total assets for reportable segments | 1,369,904,689 | 1,863,911,523 |
Other assets | 283,719,567 | 341,480,700 |
1,653,624,256 | 2,205,392,223 | |
Effect of other consolidation adjustments on segment financial position | (507,464,289) | (624,708,259) |
Consolidated assets | 1,146,159,967 | 1,580,683,964 |
Liabilities | ||
Total liabilities for reportable segments | 1,216,000,525 | 1,728,603,347 |
Other liabilities | 59,448,688 | 63,385,906 |
1,275,449,213 | 1,791,989,253 | |
Effect of other consolidation adjustments on segment financial position | (312,937,185) | (390,602,421) |
Consolidated liabilities | 962,512,028 | 1,401,386,832 |
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Consolidated revenue | ||
2024 | 2023 | |
USD | USD | |
Malta | 3,147,678 | 2,268,827 |
India | 14,454,505 | 11,542,591 |
Egypt | 8,134,035 | 8,459,326 |
Turkey | 5,611,866 | 7,663,662 |
Other countries (individually less than 10%) | 19,874,499 | 21,661,290 |
51,222,583 | 51,595,696 |
Non-current assets | ||
2024 | 2023 | |
USD | USD | |
Malta | 44,979,865 | 48,060,047 |
India | 437,925 | 647,296 |
Egypt | 375,971 | 558,072 |
Other countries (individually less than 10%) | 1,615,602 | 801,439 |
47,409,363 | 50,066,854 |
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Group | Bank | |||
2024 | 2023 | 2024 | 2023 | |
USD | USD | USD | USD | |
Interest income | ||||
On balances with the Central Bank of Malta and amounts owed to institutions | 5,554,771 | 4,342,713 | 5,554,771 | 4,342,713 |
On treasury bills purchased at a discount | 1,976,673 | 3,477,300 | 1,976,673 | 3,477,300 |
On loans and advances to banks | 4,143,612 | 3,867,664 | 3,344,929 | 3,090,962 |
On loans and advances to customers | 45,883,832 | 41,969,565 | 18,946,325 | 18,141,501 |
On loans and advances to subsidiary companies | - | - | 23,328,266 | 21,893,224 |
On trading assets | 38,599,740 | 39,962,687 | 167,946 | - |
On financial investments at fair value through other comprehensive income | 665,587 | 702,406 | 665,587 | 702,406 |
On financial investments at amortised cost | 495,699 | 1,170,202 | 495,699 | 1,170,202 |
97,319,914 | 95,492,537 | 54,480,196 | 52,818,308 | |
Interest expense | ||||
On amounts owed to institutions | 5,089,551 | 8,680,808 | 5,089,551 | 8,680,808 |
On amounts owed to other banks | 9,411,166 | 9,576,451 | 831,987 | 3,088,051 |
On amounts owed to customers | 29,734,073 | 21,304,973 | 29,734,073 | 21,304,973 |
On debt securities in issue | 1,106,910 | 545,041 | - | - |
On amounts owed to subsidiary companies | - | - | 102,852 | 22,361 |
On lease liability owed to third parties (Note 29) | 130,630 | 134,203 | 11,778 | 45 |
On lease liability owed to subsidiary companies (Note 29) | - | - | 27,429 | 59,468 |
Other interest expense | - | 1,196 | - | 1,196 |
45,472,330 | 40,242,672 | 35,797,670 | 33,156,902 | |
Net interest income | 51,847,584 | 55,249,865 | 18,682,526 | 19,661,406 |
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Group | Bank | |||
2024 | 2023 | 2024 | 2023 | |
USD | USD | USD | USD | |
Fee and commission income | ||||
Business introductions and other services provided | ||||
in respect of trading assets | 2,543,845 | 2,021,134 | 1,427 | - |
Issuance and confirmation of letters of credit | 1,783,255 | 1,663,966 | 1,783,255 | 1,663,966 |
Issuance and confirmation of letters of credit | ||||
to subsidiary companies | - | - | 38,709 | - |
Issuance of guarantees and other fees and commissions | ||||
receivable in respect of real estate lending | 901,385 | 657,666 | 901,385 | 662,108 |
Payment fees and other bank charges | 868,582 | 903,116 | 868,386 | 721,538 |
Payment fees and other bank charges charged to subsidiary companies | - | - | 179,729 | 14,610 |
Administrative fees on factoring receivables | 851 | 971 | 851 | 963 |
Issuance of guarantees to subsidiary companies | - | - | 11,527 | 52,993 |
6,097,918 | 5,246,853 | 3,785,269 | 3,116,178 | |
Fee and commission expense | ||||
Commissions paid to correspondent factors | 2,306,168 | 2,320,383 | 200,762 | 227,988 |
Insurance fees in respect of factoring receivables | 1,195,861 | 774,977 | 637,473 | 638,628 |
Agent fees and other administrative fees | ||||
in respect of trading assets | 1,414,611 | 2,097,160 | 4,250 | - |
Issuance of guarantees and other fees payable | ||||
in respect of real estate lending | 78,042 | 135,017 | 78,042 | 135,017 |
Bank charges | 322,913 | 298,884 | 196,198 | 196,990 |
Other fees payable | 47,205 | 360,009 | 47,206 | 7,564 |
5,364,800 | 5,986,430 | 1,163,931 | 1,206,187 | |
Net fee and commission income/(expense) | 733,118 | (739,577) | 2,621,338 | 1,909,991 |
Group | Bank | |||
2024 | 2023 | 2024 | 2023 | |
USD | USD | USD | USD | |
Fair value movements on trading assets | (527,570) | (2,311,622) | 41,414 | - |
Fair value movements on derivatives held for risk management | (5,536,989) | (1,905,241) | (5,157,262) | (2,265,273) |
Net income from foreign exchange activities | 4,588,680 | 995,994 | 4,581,365 | 1,343,629 |
(1,475,879) | (3,220,869) | (534,483) | (921,644) |
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Group | Bank | |||
2024 | 2023 | 2024 | 2023 | |
USD | USD | USD | USD | |
Investment securities | ||||
Fair value movements on equity investments at fair value through profit or loss | (718,609) | 768,541 | (718,609) | 768,541 |
(718,609) | 768,541 | (718,609) | 768,541 |
Group | Bank | |||
2024 | 2023 | 2024 | 2023 | |
USD | USD | USD | USD | |
Dividend income from equity investments at fair value through profit or loss | - | 40,228 | - | 40,228 |
Dividend income from subsidiary companies | - | - | 6,000,000 | 12,181,635 |
- | 40,228 | 6,000,000 | 12,221,863 |
Group | Bank | |||
2024 | 2023 | 2024 | 2023 | |
USD | USD | USD | USD | |
Rental income from leased property (Note 29) | 1,056,126 | 840,123 | - | - |
Income receivable from subsidiary companies | - | - | 175,000 | 251,000 |
Other income | 24,634 | 80,894 | 19,273 | 77,330 |
1,080,760 | 921,017 | 194,273 | 328,330 |
Group | Bank | |||
2024 | 2023 | 2024 | 2023 | |
USD | USD | USD | USD | |
Property maintenance expenses | 244,391 | - | - | - |
Other expenses | - | 24,531 | - | 24,531 |
244,391 | 24,531 | - | 24,531 |
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Group | Bank | |||
2024 | 2023 | 2024 | 2023 | |
USD | USD | USD | USD | |
Personnel expenses (Note 15.2) | 24,411,482 | 25,176,736 | 12,948,719 | 13,743,575 |
Professional fees | 4,004,354 | 5,528,781 | 2,425,690 | 3,114,704 |
IT software and hardware maintenance | 4,352,921 | 3,924,983 | 3,286,044 | 3,332,988 |
Regulatory fees | 482,758 | 1,898,843 | 292,053 | 1,675,708 |
Travel and telecommunication costs | 717,515 | 1,051,094 | 477,254 | 562,172 |
Insurance | 501,500 | 532,452 | 329,902 | 334,609 |
Property and equipment maintenance | 725,632 | 516,835 | 32,227 | 82,948 |
Subscriptions to service providers | 443,818 | 409,804 | 306,568 | 292,488 |
Marketing and advertising expenses | 354,231 | 351,807 | 213,086 | 228,779 |
Recruitment and training | 192,571 | 178,902 | 89,261 | 108,379 |
Expenses relating to short-term leases and leases of low-value assets (Note 29) | 356,766 | 501,735 | 188,192 | 285,930 |
Expenses relating to short-term leases and leases of low-value assets – subsidiary companies (Note 29) | - | - | 30,386 | 22,830 |
Recharge of services provided by subsidiary companies | - | - | 201,676 | 803,001 |
Other administrative expenses | 308,912 | 592,292 | 189,301 | 236,414 |
36,852,460 | 40,664,264 | 21,010,359 | 24,824,525 |
Other assurance | Tax | Other | ||||||
Audit services | services | advisory services | non-audit services | |||||
2024 | 2023 | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | |
USD | USD | USD | USD | USD | USD | USD | USD | |
By the auditors of the parent | 460,305 | 464,972 | 137,529 | 3,259 | - | - | 12,258 | 125,907 |
By the auditors of subsidiary | ||||||||
companies | 526,031 | 604,282 | 56,685 | 34,661 | 10,916 | 9,240 | - | 5,154 |
Other assurance | Tax | Other | ||||||
Audit services | services | advisory services | non-audit services | |||||
2024 | 2023 | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | |
USD | USD | USD | USD | USD | USD | USD | USD | |
By the auditors of the parent | 447,434 | 325,967 | 137,529 | 3,259 | - | - | 12,258 | 125,907 |
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Group | Bank | |||
2024 | 2023 | 2024 | 2023 | |
USD | USD | USD | USD | |
Directors’ emoluments | 334,817 | 388,497 | 334,817 | 388,497 |
Staff costs: | ||||
wages, salaries and allowances | 22,872,239 | 23,510,705 | 12,161,546 | 12,900,801 |
defined contribution costs | 1,204,426 | 1,177,534 | 452,356 | 454,277 |
end of service compensation (Note 37) | - | 100,000 | - | - |
24,411,482 | 25,176,736 | 12,948,719 | 13,743,575 |
Group | Bank | |||
2024 | 2023 | 2024 | 2023 | |
No. of | No. of | No. of | No. of | |
employees | employees | employees | employees | |
Executive and senior managerial | 42 | 40 | 22 | 24 |
Other managerial, supervisory and clerical | 268 | 274 | 140 | 148 |
Other staff | 7 | 8 | - | - |
317 | 322 | 162 | 172 |
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Group | Bank | |||
2024 | 2023 | 2024 | 2023 | |
USD | USD | USD | USD | |
Current tax | (4,866,964) | (2,809,884) | (915,246) | (806,755) |
Deferred tax | (3,302,956) | (2,976,649) | - | - |
Taxation | (8,169,920) | (5,786,533) | (915,246) | (806,755) |
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Tax | |||
Before tax | (charge)/credit | Net of tax | |
USD | USD | USD | |
Items that are or may be reclassified subsequently to profit or loss | |||
Foreign currency translation differences for foreign operations | (986,428) | - | (986,428) |
(986,428) | - | (986,428) | |
Fair valuation of debt instruments: | |||
- Fair value movement | 5,192,685 | - | 5,192,685 |
- Movement in loss allowance | (5,439) | - | (5,439) |
5,187,246 | - | 5,187,246 | |
4,200,818 | - | 4,200,818 |
Tax | |||
Before tax | (charge)/credit | Net of tax | |
USD | USD | USD | |
Items that will not be reclassified subsequently to profit or loss | |||
Fair valuation of property | 1,314,568 | (34,308) | 1,280,260 |
1,314,568 | (34,308) | 1,280,260 | |
Items that are or may be reclassified subsequently to profit or loss | |||
Foreign currency translation differences for foreign operations | (621,862) | - | (621,862) |
(621,862) | - | (621,862) | |
Fair valuation of debt instruments: | |||
- Fair value movement | 8,161,730 | - | 8,161,730 |
- Movement in loss allowance | (42,344) | - | (42,344) |
8,119,386 | - | 8,119,386 | |
8,812,092 | (34,308) | 8,777,784 |
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Tax | ||||
Before tax | (charge)/credit | Net of tax | ||
USD | USD | USD | ||
Items that are or may be reclassified subsequently to profit or loss | ||||
Fair valuation of debt instruments: | ||||
- | fair value movement | 5,192,685 | - | 5,192,685 |
- | movement in loss allowance | (5,439) | - | (5,439) |
5,187,246 | - | 5,187,246 |
Tax | ||||
Before tax | (charge)/credit | Net of tax | ||
USD | USD | USD | ||
Items that are or may be reclassified subsequently to profit or loss | ||||
Fair valuation of debt instruments: | ||||
- | fair value movement | 8,161,730 | - | 8,161,730 |
- | movement in loss allowance | (42,344) | - | (42,344) |
8,119,386 | - | 8,119,386 |
Group | Bank | |||
2024 | 2023 | 2024 | 2023 | |
USD | USD | USD | USD | |
Profit/(Loss) before tax | 8,319,909 | 5,794,207 | (2,288,440) | 3,296,903 |
Tax (expense)/income using the domestic | ||||
income tax rate of 35% | (2,911,968) | (2,027,972) | 800,954 | (1,153,916) |
Tax effect of: | ||||
Non-deductible expenses | (19,776) | (126,599) | (4,045) | (3,578) |
Non-deductible impairment charge on investment in subsidiary | - | - | (525,000) | - |
Non-taxable income | - | - | 2,100,000 | 4,263,572 |
Unrecognised temporary differences | (6,257,745) | (4,539,628) | (2,613,986) | (3,304,036) |
Different tax rates in foreign jurisdictions | 1,019,504 | 907,507 | (673,169) | (608,797) |
Other | 65 | 159 | - | - |
Taxation | (8,169,920) | (5,786,533) | (915,246) | (806,755) |
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Group | ||
2024 | 2023 | |
USD | USD | |
Profit/(Loss) attributable to the equity holders of the Group | 119,426 | (30,812) |
Group | ||
2024 | 2023 | |
No. of shares | No. of shares | |
Weighted average number of ordinary shares during the year | 522,443,763 | 522,443,763 |
Group | Bank | |||
2024 | 2023 | 2024 | 2023 | |
USD | USD | USD | USD | |
Cash | 16,661 | 19,916 | 3,734 | 6,787 |
Balances with the Central Bank of Malta | 129,037,059 | 221,803,752 | 129,037,059 | 221,803,752 |
Treasury bills | 5,190,160 | 131,270,544 | 5,190,160 | 131,270,544 |
Loss allowance | (51,663) | (84,026) | (51,663) | (84,026) |
134,192,217 | 353,010,186 | 134,179,290 | 352,997,057 |
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Group | Bank | |||
2024 | 2023 | 2024 | 2023 | |
USD | USD | USD | USD | |
Derivative assets held for risk management: | ||||
foreign exchange | 1,464,641 | 715,713 | 1,464,641 | 715,713 |
interest rate | - | - | - | 96,896 |
1,464,641 | 715,713 | 1,464,641 | 812,609 | |
Derivative liabilities held for risk management: | ||||
foreign exchange | (1,109,346) | (626,476) | (1,109,346) | (626,476) |
interest rate | - | - | (56,041) | - |
(1,109,346) | (626,476) | (1,165,387) | (626,476) |
Carrying amount | Movement | Movement | Hedge | |||
in hedged | in fair | ineffectiveness | ||||
item | value of | recognised in | ||||
Derivative | Derivative | Nominal | recognised | hedging | income | |
assets | liabilities | amount | in OCI | instrument | statement | |
USD | USD | USD | USD | USD | USD | |
2024 | ||||||
Indian rupee denominated foreign exchange | 518,146 | - | 32,115,838 | 447,075 | 441,962 | (5,113) |
2023 | ||||||
Indian rupee denominated foreign exchange | - | 98,017 | 30,024,203 | (370,022) | (369,918) | 104 |
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Group | Bank | |||
2024 | 2023 | 2024 | 2023 | |
USD | USD | USD | USD | |
Unencumbered loans and advances to banks: | ||||
Repayable on call and at short notice | 60,315,627 | 51,126,590 | 55,720,208 | 20,893,167 |
Term loans and advances | 19,125,528 | 76,778,698 | 17,360,627 | 68,498,510 |
Pledged in favour of third parties | 17,196,090 | 25,149,244 | 17,196,090 | 25,149,244 |
Gross loans and advances to banks | 96,637,245 | 153,054,532 | 90,276,925 | 114,540,921 |
Loss allowance | (179,853) | (239,584) | (178,801) | (215,678) |
Net loans and advances to banks | 96,457,392 | 152,814,948 | 90,098,124 | 114,325,243 |
Group | Bank | |||
2024 | 2023 | 2024 | 2023 | |
USD | USD | USD | USD | |
Unencumbered loans and advances to customers: | ||||
Repayable on call and at short notice | 283,154,355 | 248,664,594 | 59,389,431 | 61,976,250 |
Term loans and advances | 161,617,109 | 201,313,207 | 161,617,109 | 201,313,207 |
Pledged in favour of third parties | 344,914 | 277,566 | 344,914 | 277,566 |
Loans and advances to subsidiary companies | - | - | 311,924,956 | 367,338,215 |
Gross loans and advances to customers | 445,116,378 | 450,255,367 | 533,276,410 | 630,905,238 |
Loss allowance on loans and advances to customers | (17,139,655) | (18,913,293) | (14,825,820) | (11,166,753) |
Loss allowance on loans and advances to subsidiary companies | - | - | (666,679) | (1,620,260) |
Net loans and advances to customers | 427,976,723 | 431,342,074 | 517,783,911 | 618,118,225 |
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Group | Bank | |||
2024 | 2023 | 2024 | 2023 | |
USD | USD | USD | USD | |
Debt instruments: | ||||
issued by the Government of Malta | 34,643,038 | 35,947,692 | 34,643,038 | 35,947,692 |
issued by foreign sovereigns | 43,079,221 | 55,328,079 | 43,079,221 | 55,328,079 |
issued by foreign corporates | 42,542,836 | 49,480,009 | 42,542,836 | 49,480,009 |
120,265,095 | 140,755,780 | 120,265,095 | 140,755,780 | |
Loss allowance | (77,794) | (83,233) | (77,794) | (83,233) |
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Group | Bank | |||
2024 | 2023 | 2024 | 2023 | |
USD | USD | USD | USD | |
Opening balance | 140,755,780 | 143,189,022 | 140,755,780 | 143,189,022 |
Redemptions | (17,882,889) | (13,745,002) | (17,882,889) | (13,745,002) |
Changes in fair value | 4,259,441 | 8,972,322 | 4,259,441 | 8,972,322 |
Amortisation of premium or discount | (737,067) | (949,593) | (737,067) | (949,593) |
Movement in accrued interest | (196,812) | (101,234) | (196,812) | (101,234) |
Effects of movement in exchange rate | (5,933,358) | 3,390,265 | (5,933,358) | 3,390,265 |
Closing balance | 120,265,095 | 140,755,780 | 120,265,095 | 140,755,780 |
Group | Bank | |||
2024 | 2023 | 2024 | 2023 | |
USD | USD | USD | USD | |
Debt instruments: | ||||
issued by foreign sovereigns | 2,073,927 | 13,792,757 | 2,073,927 | 13,792,757 |
issued by foreign corporates | - | 14,737,477 | - | 14,737,477 |
Loss allowance | (21) | (131,161) | (21) | (131,161) |
2,073,906 | 28,399,073 | 2,073,906 | 28,399,073 |
Group | Bank | |||
2024 | 2023 | 2024 | 2023 | |
USD | USD | USD | USD | |
Opening balance | 28,399,073 | 14,602,008 | 28,399,073 | 14,602,008 |
Acquisitions | - | 13,440,236 | - | 13,440,236 |
Redemptions and disposals | (26,429,022) | - | (26,429,022) | - |
Amortisation of premium or discount | 120,586 | 212,416 | 120,586 | 212,416 |
Movement in accrued interest | (201,328) | 258,339 | (201,328) | 258,339 |
Effects of movement in exchange rate | 53,457 | (22,452) | 53,457 | (22,452) |
Movement in loss allowance | 131,140 | (91,474) | 131,140 | (91,474) |
Closing balance | 2,073,906 | 28,399,073 | 2,073,906 | 28,399,073 |
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Country of | Nature of | Equity | ||||
Name of company | incorporation | business | interest | Bank | ||
2024 | 2023 | 2024 | 2023 | |||
IT services | % | % | USD | USD | ||
FIM Business Solutions Limited * | Malta | provider | - | 100 | - | 5,000 |
FIM Property Investment Limited | Malta | Property | 100 | 100 | 1,006,000 | 1,006,000 |
management | ||||||
London Forfaiting Company Limited ** | United Kingdom | Forfaiting | 100 | 100 | 72,966,435 | 112,966,435 |
The Egyptian Company for Factoring S.A.E. | Egypt | Factoring | 100 | 100 | 8,523,448 | 10,023,448 |
FIMFactors B.V. | Netherlands | Holding | 100 | 100 | 33,686,690 | 33,686,690 |
company | ||||||
116,182,573 | 157,687,573 |
Name of company | Country of incorporation | Nature of business | Equity interest | |
2024 | 2023 | |||
% | % | |||
London Forfaiting Americas Inc. | United States of America | Marketing | 100 | 100 |
London Forfaiting do Brasil Ltda. | Brazil | Marketing | 100 | 100 |
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Bank | ||
2024 | 2023 | |
USD | USD | |
At 1 January | 157,687,573 | 152,687,573 |
Additional investment in London Forfaiting Company Limited * | - | 5,000,000 |
Merger by acquisition of FIM Business Solutions Limited (refer to Note 26.1) | (5,000) | - |
Reduction of share capital in London Forfaiting Company Limited (refer to Note 26.1) | (40,000,000) | - |
Impairment of investment in The Egyptian Company for Factoring S.A.E. (refer to Note 26.3) | (1,500,000) | - |
At 31 December | 116,182,573 | 157,687,573 |
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Freehold | Right-of-use | Improvement | Computer | ||||
land | Buildings | assets | to premises | equipment | Others | Total | |
USD | USD | USD | USD | USD | USD | USD | |
Cost | |||||||
At 1 January 2023 | 6,482,521 | 18,607,781 | 4,346,868 | 1,333,068 | 5,454,692 | 3,126,051 | 39,350,981 |
Reclassification of land and buildings to investment property | (299,423) | (941,687) | - | - | - | - | (1,241,110) |
Fair value movement | (952,938) | (2,114,168) | - | - | - | - | (3,067,106) |
Additions | - | 28,314 | 74,604 | 1,863 | 70,684 | 53,985 | 229,450 |
Disposals | - | - | - | - | - | (85,639) | (85,639) |
Write-offs | - | - | - | (181,347) | (2,970,474) | (336,720) | (3,488,541) |
Derecognition of right-of-use asset upon termination of lease | - | - | (41,120) | - | - | - | (41,120) |
Effect of movement in exchange rates | 233,218 | 886,181 | 8,812 | (858) | 794 | 9,825 | 1,137,972 |
At 31 December 2023 | 5,463,378 | 16,466,421 | 4,389,164 | 1,152,726 | 2,555,696 | 2,767,502 | 32,794,887 |
At 1 January 2024 | 5,463,378 | 16,466,421 | 4,389,164 | 1,152,726 | 2,555,696 | 2,767,502 | 32,794,887 |
Additions | - | 185,315 | 1,881,237 | 24,598 | 284,365 | 64,063 | 2,439,578 |
Disposals | - | - | - | - | (6,039) | (13,346) | (19,385) |
Lease modifications that decrease the scope of the lease | - | - | (1,255) | - | - | - | (1,255) |
Derecognition of right-of-use asset upon termination of lease | - | - | (1,257,081) | - | - | - | (1,257,081) |
Effect of movement in exchange rates | (326,917) | (974,521) | (35,491) | (6,276) | (13,199) | (34,329) | (1,390,733) |
At 31 December 2024 | 5,136,461 | 15,677,215 | 4,976,574 | 1,171,048 | 2,820,823 | 2,783,890 | 32,566,011 |
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Freehold | Right-of-use | Improvement | Computer | ||||
land | Buildings | assets | to premises | equipment | Others | Total | |
USD | USD | USD | USD | USD | USD | USD | |
Depreciation | |||||||
At 1 January 2023 | - | 2,889,283 | 1,668,848 | 947,805 | 4,326,919 | 2,800,187 | 12,633,042 |
Charge for the year | - | 660,267 | 769,270 | 131,643 | 435,605 | 216,252 | 2,213,037 |
Release on disposals | - | - | - | - | - | (85,639) | (85,639) |
Write-offs | - | - | - | (160,686) | (2,970,474) | (335,926) | (3,467,086) |
Derecognition of right-of-use asset upon termination of lease | - | - | (41,120) | - | - | - | (41,120) |
Derecognition of depreciation upon revaluation of asset | - | (3,867,931) | - | - | - | - | (3,867,931) |
Effects of movement in exchange rates | - | 318,381 | 1,147 | (879) | (7,955) | (85,360) | 225,334 |
At 31 December 2023 | - | - | 2,398,145 | 917,883 | 1,784,095 | 2,509,514 | 7,609,637 |
At 1 January 2024 | - | - | 2,398,145 | 917,883 | 1,784,095 | 2,509,514 | 7,609,637 |
Charge for the year | - | 1,183,976 | 896,671 | 101,693 | 405,246 | 94,684 | 2,682,270 |
Release on disposals | - | - | - | - | (6,039) | (13,346) | (19,385) |
Derecognition of right-of-use asset upon termination of lease | - | - | (1,229,701) | - | - | - | (1,229,701) |
Effects of movement in exchange rates | - | - | (16,723) | (6,276) | (9,897) | (20,737) | (53,633) |
At 31 December 2024 | - | 1,183,976 | 2,048,392 | 1,013,300 | 2,173,405 | 2,570,115 | 8,989,188 |
Carrying amounts | |||||||
At 1 January 2023 | 6,482,521 | 15,718,498 | 2,678,020 | 385,263 | 1,127,773 | 325,864 | 26,717,939 |
At 31 December 2023 | 5,463,378 | 16,466,421 | 1,991,019 | 234,843 | 771,601 | 257,988 | 25,185,250 |
At 31 December 2024 | 5,136,461 | 14,493,239 | 2,928,182 | 157,748 | 647,418 | 213,775 | 23,576,823 |
Carrying amount had the assets been carried at cost | |||||||
At 31 December 2024 | 3,251,322 | 8,306,860 | 2,928,182 | 157,748 | 647,418 | 213,775 | 15,505,305 |
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Group (continued)
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Right-of-use | Improvement | Computer | |||
assets | to premises | equipment | Others | Total | |
USD | USD | USD | USD | USD | |
Cost | |||||
At 1 January 2023 | 4,190,791 | 710,821 | 4,586,581 | 2,040,315 | 11,528,508 |
Additions | 74,512 | 1,863 | 14,633 | 18,376 | 109,384 |
Disposals | - | - | - | (55,568) | (55,568) |
Write-offs | - | (181,347) | (2,970,474) | (336,720) | (3,488,541) |
At 31 December 2023 | 4,265,303 | 531,337 | 1,630,740 | 1,666,403 | 8,093,783 |
At 1 January 2024 | 4,265,303 | 531,337 | 1,630,740 | 1,666,403 | 8,093,783 |
Additions | 641,751 | 24,598 | 253,947 | 5,636 | 925,932 |
Lease modification that decrease | |||||
the scope of the lease | (1,255) | - | - | - | (1,255) |
Derecognition of right-of-use asset | |||||
upon termination of lease | (32,185) | - | - | - | (32,185) |
At 31 December 2024 | 4,873,614 | 555,935 | 1,884,687 | 1,672,039 | 8,986,275 |
Depreciation | |||||
At 1 January 2023 | 822,567 | 484,318 | 3,528,548 | 1,922,834 | 6,758,267 |
Charge for the year | 1,409,743 | 40,641 | 376,874 | 36,128 | 1,863,386 |
Release on disposals | - | - | - | (55,568) | (55,568) |
Write-offs | - | (160,686) | (2,970,474) | (335,926) | (3,467,086) |
At 31 December 2023 | 2,232,310 | 364,273 | 934,948 | 1,567,468 | 5,098,999 |
At 1 January 2024 | 2,232,310 | 364,273 | 934,948 | 1,567,468 | 5,098,999 |
Charge for the year | 1,542,846 | 36,957 | 367,337 | 28,252 | 1,975,392 |
Derecognition of right-of-use asset | |||||
upon termination of lease | (4,805) | - | - | - | (4,805) |
At 31 December 2024 | 3,770,351 | 401,230 | 1,302,285 | 1,595,720 | 7,069,586 |
Carrying amounts | |||||
At 1 January 2023 | 3,368,224 | 226,503 | 1,058,033 | 117,481 | 4,770,241 |
At 31 December 2023 | 2,032,993 | 167,064 | 695,792 | 98,935 | 2,994,784 |
At 31 December 2024 | 1,103,263 | 154,705 | 582,402 | 76,319 | 1,916,689 |
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Inter-relationship between key | ||||
Significant | Range of unobservable | unobservable inputs and fair | ||
Valuation technique | unobservable inputs | inputs per annum | value measurements | |
Rental value per | €286 to €553 | The higher the rate per square | ||
Office space | Investment income | square metre | (2023: €286 to €553) | metre the higher the fair value |
approach | Capitalisation rate | 6.25% | The higher the capitalisation rate | |
(2023: | 6.25%) | the lower the fair value | ||
Rental value per | €96 to €233 | The higher the rate per square | ||
Parking space | Investment income | square metre | (2023: €96 to €233) | metre the higher the fair value |
approach | Capitalisation rate | 7.0% | The higher the capitalisation rate | |
(2023: | 7.0%) | the lower the fair value | ||
Rental value per | €64 to €200 | The higher the rate per square | ||
Stores and ancillary | Investment income | square metre | (2023: €64 to €200) | metre the higher the fair value |
approach | Capitalisation rate | 7.0% to 8.0% | The higher the capitalisation rate | |
(2023: 7.0% to 8.0%) | the lower the fair value |
Magnitude of sensitivity | Impact (USD) | |
Shift in rental value per square metre | + 5% | 1,031,724 |
- 5% | (1,031,724) | |
Shift in capitalisation rate | - 50bps | 1,767,289 |
+ 50bps | (1,508,254) |
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Group | ||
2024 | 2023 | |
USD | USD | |
At 1 January | 22,257,617 | 21,637,065 |
Reclassification from ‘Property and equipment’ | - | 1,241,110 |
Fair value movement | - | (1,398,978) |
Effect of movement in exchange rates | (1,331,850) | 778,420 |
At 31 December | 20,925,767 | 22,257,617 |
Carrying amount | ||
Cost | 14,297,947 | 15,207,960 |
Cumulative fair value movements | 6,627,820 | 7,049,657 |
Carrying amount | 20,925,767 | 22,257,617 |
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Inter-relationship between key | ||||
Significant | Range of unobservable | unobservable inputs and fair | ||
Valuation technique | unobservable inputs | inputs per annum | value measurements | |
Rental value per | €286 to €553 | The higher the rate per square | ||
Office space | Investment income | square metre | (2023: €286 to €553) | metre the higher the fair value |
approach | Capitalisation rate | 6.25% | The higher the capitalisation rate | |
(2023: | 6.25%) | the lower the fair value | ||
Rental value per | €237 to €365 | The higher the rate per square | ||
Retail space | Investment income | square metre | (2023: €237 to €365) | metre the higher the fair value |
approach | Capitalisation rate | 6.25% to 6.75% | The higher the capitalisation rate | |
(2023: 6.25% to 6.75%) | the lower the fair value | |||
Rental value per | €64 to €200 | The higher the rate per square | ||
Stores and ancillary | Investment income | square metre | (2023: €64 to €200) | metre the higher the fair value |
approach | Capitalisation rate | 7.0% to 8.0% | The higher the capitalisation rate | |
(2023: 7.0% to 8.0%) | the lower the fair value |
Magnitude of sensitivity | Impact (USD) | |
Shift in rental value per square metre | + 5% | 1,046,276 |
- 5% | (1,046,276) | |
Shift in capitalisation rate | - 50bps | 1,769,098 |
+ 50bps | (1,512,624) |
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Group | Bank | |||
2024 | 2023 | 2024 | 2023 | |
USD | USD | USD | USD | |
Balance at 1 January | 1,991,019 | 2,678,020 | 2,032,993 | 3,368,224 |
Depreciation charge for the year | (896,671) | (769,270) | (1,542,846) | (1,409,743) |
Additions | 1,881,237 | 74,604 | 641,751 | 74,512 |
Lease modifications that decrease the scope of the lease | (1,255) | - | (1,255) | - |
Derecognition of right-of-use asset upon termination of lease | (27,380) | - | (27,380) | - |
Effect of movement in exchange rates | (18,768) | 7,665 | - | - |
Balance at 31 December | 2,928,182 | 1,991,019 | 1,103,263 | 2,032,993 |
Group | Bank | |||
2024 | 2023 | 2024 | 2023 | |
USD | USD | USD | USD | |
Balance at 1 January | 2,118,563 | 2,704,717 | 2,286,126 | 3,490,312 |
Additions | 1,881,237 | 74,604 | 641,751 | 74,512 |
Lease modifications that decrease the scope of the lease | (744) | - | (744) | - |
Derecognition of lease liability upon termination of lease | (28,451) | - | (28,451) | - |
Interest expense | 130,630 | 134,203 | 39,207 | 59,513 |
Payments | (1,103,468) | (830,369) | (1,732,785) | (1,450,567) |
Effect of movement in exchange rates | (113,034) | 35,408 | (59,684) | 112,356 |
Balance at 31 December | 2,884,733 | 2,118,563 | 1,145,420 | 2,286,126 |
FIMBank Group Annual Report & Financial Statements 2024
176
Group | Bank | |||
2024 | 2023 | 2024 | 2023 | |
USD | USD | USD | USD | |
Interest on lease liabilities (Note 8) | 130,630 | 134,203 | 39,207 | 59,513 |
Loss on lease modifications | 7,417 | - | 7,417 | - |
Expenses relating to short-term leases (Note 15) | 333,879 | 494,121 | 172,557 | 307,621 |
Expenses relating to leases of low-value assets, excluding | ||||
short-term leases of low-value assets (Note 15) | 22,887 | 7,614 | 46,021 | 1,139 |
Group | ||
2024 | 2023 | |
USD | USD | |
Less than one year | 875,597 | 614,380 |
Between one and five years | 2,398,426 | 1,540,060 |
Total | 3,274,023 | 2,154,440 |
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177
Group | Bank | |
USD | USD | |
Software | Software | |
Cost | ||
At 1 January 2023 | 12,098,878 | 12,029,804 |
Additions | 490,433 | 490,433 |
Write-offs | (2,844,202) | (2,844,202) |
Effects of movement in exchange rates | 277 | - |
At 31 December 2023 | 9,745,386 | 9,676,035 |
At 1 January 2024 | 9,745,386 | 9,676,035 |
Additions | 1,149,354 | 1,149,354 |
Effects of movement in exchange rates | 14,065 | - |
At 31 December 2024 | 10,908,805 | 10,825,389 |
Accumulated amortisation and impairment losses | ||
At 1 January 2023 | 9,002,024 | 8,929,951 |
Charge for the year | 963,300 | 965,550 |
Write-offs | (2,844,202) | (2,844,202) |
Effects of movement in exchange rates | 277 | - |
At 31 December 2023 | 7,121,399 | 7,051,299 |
At 1 January 2024 | 7,121,399 | 7,051,299 |
Charge for the year | 866,568 | 867,317 |
Effects of movement in exchange rates | 14,065 | - |
At 31 December 2024 | 8,002,032 | 7,918,616 |
Carrying amounts | ||
At 1 January 2023 | 3,096,854 | 3,099,853 |
At 31 December 2023 | 2,623,987 | 2,624,736 |
At 31 December 2024 | 2,906,773 | 2,906,773 |
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Group | Bank | |||
2024 | 2023 | 2024 | 2023 | |
USD | USD | USD | USD | |
Deferred tax assets | ||||
Tax effect of temporary differences relating to: | ||||
excess of capital allowances over depreciation | (388,322) | (512,806) | (432,790) | (562,820) |
expected credit loss allowances | 4,568,003 | 7,643,657 | 4,021,841 | 4,021,841 |
changes in fair value of financial instruments | 76,463 | 76,463 | 76,463 | 76,463 |
unabsorbed capital allowances | 622,026 | 622,026 | 622,026 | 622,026 |
unabsorbed tax losses | 10,779,755 | 11,168,547 | 10,702,539 | 10,758,727 |
lease liabilities | 704,559 | 374,928 | 400,897 | 800,144 |
right-of-use assets | (707,971) | (372,336) | (386,142) | (711,547) |
Total deferred tax assets | 15,654,513 | 19,000,479 | 15,004,834 | 15,004,834 |
Deferred tax liabilities | ||||
Tax effect of temporary differences relating to: | ||||
fair valuation of property and equipment | 2,337,574 | 2,486,352 | - | - |
fair valuation of investment property | 1,674,061 | 1,780,609 | - | - |
Total deferred tax liabilities | 4,011,635 | 4,266,961 | - | - |
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179
Effect of | ||||
Opening | Recognised in | movement in | Closing | |
balance | profit or loss | exchange rates | balance | |
USD | USD | USD | USD | |
2024 | ||||
Excess of capital allowances over depreciation | (512,806) | 125,853 | (1,369) | (388,322) |
Expected credit loss allowances | 7,643,657 | (3,038,924) | (36,730) | 4,568,003 |
Changes in fair values of financial instruments | 76,463 | - | - | 76,463 |
Unabsorbed capital allowances | 622,026 | - | - | 622,026 |
Unabsorbed tax losses | 11,168,547 | (384,275) | (4,517) | 10,779,755 |
Lease liabilities | 374,928 | 335,342 | (5,711) | 704,559 |
Right-of-use assets | (372,336) | (340,952) | 5,317 | (707,971) |
19,000,479 | (3,302,956) | (43,010) | 15,654,513 | |
2023 | ||||
Excess of capital allowances over depreciation | (680,857) | 168,240 | (189) | (512,806) |
Expected credit loss allowances | 8,932,627 | (1,270,510) | (18,460) | 7,643,657 |
Changes in fair values of financial instruments | 76,463 | - | - | 76,463 |
Unabsorbed capital allowances | 622,026 | - | - | 622,026 |
Unabsorbed tax losses | 13,051,158 | (1,888,237) | 5,626 | 11,168,547 |
Lease liabilities | 440,284 | (66,411) | 1,055 | 374,928 |
Right-of-use assets | (440,284) | 68,934 | (986) | (372,336) |
22,001,417 | (2,987,984) | (12,954) | 19,000,479 |
Opening | Recognised in | Closing | |
balance | profit or loss | balance | |
USD | USD | USD | |
2024 | |||
Excess of capital allowances over depreciation | (562,820) | 130,030 | (432,790) |
Expected credit loss allowances | 4,021,841 | - | 4,021,841 |
Changes in fair values of financial instruments | 76,463 | - | 76,463 |
Unabsorbed capital allowances | 622,026 | - | 622,026 |
Unabsorbed tax losses | 10,758,727 | (56,188) | 10,702,539 |
Lease liabilities | 800,144 | (399,247) | 400,897 |
Right-of-use assets | (711,547) | 325,405 | (386,142) |
15,004,834 | - | 15,004,834 | |
2023 | |||
Excess of capital allowances over depreciation | (735,325) | 172,505 | (562,820) |
Expected credit loss allowances | 6,896,077 | (2,874,236) | 4,021,841 |
Changes in fair values of financial instruments | 76,463 | - | 76,463 |
Unabsorbed capital allowances | 622,026 | - | 622,026 |
Unabsorbed tax losses | 8,145,593 | 2,613,134 | 10,758,727 |
Lease liabilities | 597,709 | 202,435 | 800,144 |
Right-of-use assets | (597,709) | (113,838) | (711,547) |
15,004,834 | - | 15,004,834 |
FIMBank Group Annual Report & Financial Statements 2024
180
Recognised in | Effect of | ||||
other | movement in | ||||
Opening | comprehensive | Recognised in | exchange | Closing | |
balance | income | profit or loss | rates | balance | |
USD | USD | USD | USD | USD | |
2024 | |||||
Changes in fair value of investment property | |||||
and property and equipment | 4,266,961 | - | - | (255,326) | 4,011,635 |
2023 | |||||
Changes in fair value of investment property | |||||
and property and equipment | 4,097,858 | 34,308 | (12,911) | 147,706 | 4,266,961 |
Group | Bank | |||
2024 | 2023 | 2024 | 2023 | |
USD | USD | USD | USD | |
Accounts receivable and prepayments | 5,471,505 | 5,273,208 | 3,893,388 | 4,004,424 |
Accrued income | 170,708 | 167,308 | 60,884 | 68,901 |
Indirect taxation receivable | 159,374 | 210,013 | 72,886 | 160,427 |
Cash pledged in favour of the Depositor Compensation Scheme | 2,975,052 | 2,811,005 | 2,975,052 | 2,811,005 |
Cash pledged in favour of the Single Resolution Fund | 418,818 | 445,474 | 418,818 | 445,474 |
Other assets | 1,892,665 | 254,052 | 1,891,367 | 256,879 |
11,088,122 | 9,161,060 | 9,312,395 | 7,747,110 |
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Group | Bank | |||
2024 | 2023 | 2024 | 2023 | |
USD | USD | USD | USD | |
Term deposits | 123,761,045 | 343,559,071 | 51,296,840 | 264,486,542 |
Repayable on demand | 117,432,286 | 69,011,860 | 117,432,286 | 69,011,860 |
241,193,331 | 412,570,931 | 168,729,126 | 333,498,402 |
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Group | Bank | |||
2024 | 2023 | 2024 | 2023 | |
USD | USD | USD | USD | |
Term deposits | 579,062,597 | 814,978,653 | 579,062,597 | 814,978,653 |
Repayable on demand | 100,056,152 | 119,760,289 | 98,672,997 | 114,172,044 |
Amounts owed to subsidiary companies | - | - | 1,955,463 | 22,015,633 |
679,118,749 | 934,738,942 | 679,691,057 | 951,166,330 |
Bank | ||||
2024 | 2023 | |||
USD | Interest rate per annum | USD | Interest rate per annum | |
Amounts owed to subsidiary companies: | ||||
subject to 0% interest rate | 420,708 | Not applicable | 19,789,279 | Not applicable |
subject to floating interest rate | 1,389,378 | overnight Euro short | 2,095,913 | overnight Euro short |
term rate (“ESTR”) | term rate (“ESTR”) | |||
subject to fixed interest rate | 145,377 | 3.15% - 3.50% | 130,441 | 2.5% |
1,955,463 | 22,015,633 |
Group | ||
2024 | 2023 | |
USD | USD | |
Opening balance | 27,543,864 | 15,451,068 |
Drawdowns | 36,290,304 | 38,142,327 |
Principal repayments | (46,301,439) | (26,893,950) |
Movement in accrued interest | (52,066) | 288,991 |
Effects of movement in exchange rate | (1,628,962) | 555,428 |
Closing balance | 15,851,701 | 27,543,864 |
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Group | Bank | |||
2024 | 2023 | 2024 | 2023 | |
USD | USD | USD | USD | |
Expected credit loss provision on guarantees | 12,602 | 7,551 | 12,602 | 7,551 |
Expected credit loss provision on guarantees | ||||
- subsidiary companies | - | - | 4 | 277 |
Expected credit loss provision on commitments | 462,621 | 82,307 | 198,508 | 82,307 |
Expected credit loss provision on commitments | ||||
- subsidiary companies | - | - | 11 | - |
Provision for restoration costs | 107,178 | 92,093 | - | - |
Other provisions | - | 54,263 | - | - |
582,401 | 236,214 | 211,125 | 90,135 |
Group | Bank | |||
2024 | 2023 | 2024 | 2023 | |
USD | USD | USD | USD | |
Creditors and accruals | 13,920,008 | 15,299,353 | 6,131,667 | 7,322,316 |
Deferred fee income | 762,834 | 1,124,775 | 207,604 | 442,924 |
Indirect taxation payable | 23,914 | 46,752 | - | - |
Lease liabilities (Note 29) | 2,884,733 | 2,118,563 | 1,145,420 | 2,286,126 |
Other liabilities | 1,099,754 | 1,182,172 | 1,099,752 | 582,172 |
18,691,243 | 19,771,615 | 8,584,443 | 10,633,538 |
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2024 | Group and Bank | 2023 | ||
Shares of 50 US cents | Shares of 50 US cents | |||
Shares | USD | Shares | USD | |
Authorised | ||||
Ordinary shares at 31 December | 1,000,000,000 | 500,000,000 | 1,000,000,000 | 500,000,000 |
Issued and fully paid up Ordinary shares at 31 December | 522,443,763 | 261,221,882 | 522,443,763 | 261,221,882 |
Group and Bank | ||
Ordinary shares | ||
2024 | 2023 | |
No of shares | No of shares | |
On issue at 1 January | 522,443,763 | 522,443,763 |
On issue at 31 December | 522,443,763 | 522,443,763 |
FIMBank Group Annual Report & Financial Statements 2024
185
India Factoring | |
Acquisition date | 31 March 2014 |
NCI percentage | 11.84% |
USD | |
Total assets | 172,740,434 |
Total liabilities | (135,970,676) |
Net assets | 36,769,758 |
Carrying amount of NCI | 534,525 |
Net revenue for the year | 6,772,671 |
Net revenue for the year allocated to NCI | 801,884 |
Profit for the year | 258,133 |
Profit allocated to NCI | 30,563 |
Net decrease in cash and cash equivalents | (7,535,970) |
India Factoring | |
Acquisition date | 31 March 2014 |
NCI percentage | 11.84% |
USD | |
Total assets | 129,328,698 |
Total liabilities | (91,715,879) |
Net assets | 37,612,819 |
Carrying amount of NCI | 519,162 |
Net revenue for the year | 5,853,429 |
Net revenue for the year allocated to NCI | 693,046 |
Profit for the year | 325,047 |
Profit allocated to NCI | 38,486 |
Net increase in cash and cash equivalents | 11,156,992 |
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186
Group | Bank | |||
2024 | 2023 | 2024 | 2023 | |
USD | USD | USD | USD | |
Payment commitments to the Depositor Compensation Scheme | 2,909,470 | 2,811,005 | 2,909,470 | 2,811,005 |
Payment commitments to the Single Resolution Fund | 418,818 | 445,474 | 418,818 | 445,474 |
Guarantees issued to banks | 14,105,930 | 14,687,080 | 14,105,930 | 14,687,080 |
Guarantees issued to customers | 13,522,568 | 13,338,194 | 13,522,568 | 13,338,194 |
Guarantees issued to subsidiary companies | - | - | 4,054 | 11,049,724 |
30,956,786 | 31,281,753 | 30,960,840 | 42,331,477 |
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187
Group | Bank | |||
2024 | 2023 | 2024 | 2023 | |
USD | USD | USD | USD | |
Commitments to purchase assets | ||||
Undrawn credit facilities | 89,945,159 | 72,943,304 | 89,945,159 | 72,943,304 |
Confirmed letters of credit | 15,749,873 | 10,217,120 | 15,749,724 | 10,217,120 |
Documentary credits | 5,934,680 | 17,059,663 | 5,934,680 | 17,059,663 |
Commitment to purchase assets | 20,575,730 | 77,003,510 | - | - |
Commitments to sell assets | ||||
Commitment to sell assets | - | (29,419,890) | - | - |
132,205,442 | 147,803,707 | 111,629,563 | 100,220,087 |
Group | Bank | |||
2024 | 2023 | 2024 | 2023 | |
USD | USD | USD | USD | |
Balances with the Central Bank of Malta, treasury bills | ||||
and cash | 129,053,721 | 221,812,510 | 129,040,793 | 221,799,380 |
Loans and advances to banks | 67,400,658 | 53,246,027 | 62,805,240 | 18,200,076 |
Amounts owed to institutions and banks | (154,994,489) | (162,015,093) | (124,366,528) | (112,269,724) |
Cash and cash equivalents at end of year | 41,459,890 | 113,043,444 | 67,479,505 | 127,729,732 |
Adjustment to reflect balances with contractual maturity of more than three months | (52,003,612) | (19,789,241) | (11,931,217) | 6,094,166 |
As per Statements of Financial Position | (10,543,722) | 93,254,203 | 55,548,288 | 133,823,898 |
Analysed as follows: | ||||
Balances with the Central Bank of Malta, treasury bills | ||||
and cash | 134,192,217 | 353,010,186 | 134,179,290 | 352,997,057 |
Loans and advances to banks | 96,457,392 | 152,814,948 | 90,098,124 | 114,325,243 |
Amounts owed to institutions and banks | (241,193,331) | (412,570,931) | (168,729,126) | (333,498,402) |
(10,543,722) | 93,254,203 | 55,548,288 | 133,823,898 |
FIMBank Group Annual Report & Financial Statements 2024
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Ultimate and immediate | Subsidiaries of ultimate | Subsidiaries of immediate | ||||
parent companies * | parent company ** | parent company *** | ||||
2024 | 2023 | 2024 | 2023 | 2024 | 2023 | |
USD | USD | USD | USD | USD | USD | |
Assets | ||||||
Loans and advances to customers | 20,477,047 | 21,917,150 | - | - | - | - |
Financial investments at amortised cost | - | 9,771,244 | - | - | - | - |
Liabilities | ||||||
Amounts owed to institutions | ||||||
and banks | - | - | - | - | 174,734 | 270,647 |
Amounts owed to customers | 30,755 | 30,830 | - | - | - | 2,433 |
Statements of profit or loss | ||||||
Interest income | 1,552,865 | 2,704,809 | - | - | - | - |
Interest expense | - | (8,389) | - | - | - | - |
Fee and commission income | 136 | 85 | 55 | - | 7,192 | 7,349 |
Fee and commission expense | - | (3,046) | - | - | (5,601) | - |
Net trading results | - | - | - | - | - | 144,018 |
Administrative expenses | - | - | (117,046) | - | (186,311) | (313,312) |
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Shareholder having significant | ||||
influence | Other related companies | |||
2024 | 2023 | 2024 | 2023 | |
USD | USD | USD | USD | |
Assets | ||||
Loans and advances to banks | 7,380 | 350,751 | - | - |
Loans and advances to customers | - | - | - | 30,000 |
Other assets | - | - | - | 1,431 |
Liabilities | ||||
Amounts owed to customers | - | - | 44,629 | 22,092 |
Other liabilities | - | - | 669 | 712 |
Statements of profit or loss | ||||
Interest income | - | - | 28,968 | 145,040 |
Fee and commission income | - | - | 575 | 20 |
Fee and commission expense | - | - | (16,305) | (15,829) |
Administrative expenses | - | (11,596) | - | - |
Directors | * Executives | |||
2024 | 2023 | 2024 | 2023 | |
USD | USD | USD | USD | |
Liabilities | ||||
Amounts owed to customers | 648,124 | 853,071 | 152,979 | 49,567 |
Statements of profit or loss | ||||
Interest expense | (19,707) | (14,075) | (5,531) | (719) |
Fee and commission income | 80 | 240 | 6 | 16 |
Fee and commission expense | - | - | (27) | - |
Administrative expenses - remuneration | (334,416) | (388,106) | (2,895,476) | (2,705,353) |
Administrative expenses - other long-term benefits | (400) | (391) | (602,499) | (579,460) |
Administrative expenses - short-term benefits | - | - | (33,663) | (15,113) |
Administrative expenses - others | (10,907) | (18,366) | (13,570) | (59,175) |
FIMBank Group Annual Report & Financial Statements 2024
190
Other related parties | ||
2024 | 2023 | |
USD | USD | |
Liabilities | ||
Amounts owed to customers | 386,245 | 468,100 |
Statements of profit or loss | ||
Interest expense | (14,046) | (8,252) |
Group | Bank | |||
2024 | 2023 | 2024 | 2023 | |
USD | USD | USD | USD | |
Authorised and contracted | 694,568 | 205,395 | 642,942 | 200,000 |
Authorised but not contracted | 324,122 | 1,052,983 | - | 90,000 |
1,018,690 | 1,258,378 | 642,942 | 290,000 |
Group | Bank | |||
2024 | 2023 | 2024 | 2023 | |
USD | USD | USD | USD | |
Authorised and contracted | 4,821,457 | 6,028,022 | 6,414,195 | 5,664,108 |
Authorised but not contracted | 529,624 | 678,127 | 529,624 | 670,116 |
5,351,081 | 6,706,149 | 6,943,819 | 6,334,224 |
FIMBank Group Annual Report & Financial Statements 2024
191
Ultimate parent company
The ultimate parent company of FIMBank p.l.c. is Kuwait Projects Company Holding K.S.C.P. (“KIPCO”) a company registered in the State
of Kuwait. The registered address is KIPCO Tower, Khalid Bin Al Waleed Street, Sharq, Kuwait City, P.O. Box 23982, Safat 13100, State of
Kuwait.
The immediate parent company is United Gulf Holding Company B.S.C. (“UGH”) , a holding company licensed by the Ministry of Industry,
Commerce and Tourism in Bahrain. The registered address is PO Box 5565, Diplomatic Area, UGB Tower, Manama, Kingdom of Bahrain.
FIMBank Group Annual Report & Financial Statements 2024
192
Statement by the directors pursuant to capital markets
rule 5.68
For the year ended 31 December 2024
We, the undersigned, declare that to the best of our knowledge, the Financial Statements set out on pages 46 to 191 prepared in accordance with
the requirements of International Financial Reporting Standards as adopted by the EU give a true and fair view of the assets, liabilities, financial
position and profit or loss of the Bank and its subsidiaries included in the consolidation taken as a whole and that this report includes a fair review
of the development and performance of the business and the position of the Bank and its subsidiaries included in the consolidation taken as a whole,
together with a description of the principal risks and uncertainties that they face.
Approved by the Board of Directors and signed on its behalf by Dr. John C. Grech (Chairman) and Mr. Masaud M.J. Hayat (Vice Chairman) on 9
April 2025 as per Director’s Declaration on ESEF Annual Financial Report submitted in conjunction with the Annual Report and Financial
Statements 2024.
FIMBank Group Annual Report & Financial Statements 2024
193
Schedule I
Statements of profit or loss
Five-year summary – Bank
2024
2023
2022
Restated
2021
2020
USD
USD
USD
USD
USD
Interest income
54,480,196
52,818,308
30,248,635
19,588,232
22,721,724
Interest expense
(35,797,670)
(33,156,902)
(13,509,191)
(10,457,006)
(11,482,001)
Net interest income
18,682,526
19,661,406
16,739,444
9,131,226
11,239,723
Fee and commission income
3,785,269
3,116,178
2,744,994
4,940,843
5,366,867
Fee and commission expense
(1,163,931)
(1,206,187)
(1,924,794)
(2,165,538)
(2,552,278)
Net fee and commission income
2,621,338
1,909,991
820,200
2,775,305
2,814,589
Net trading results
(534,483)
(921,644)
1,411,029
542,868
(554,107)
Net loss/(gain) from equity instruments measured at
fair value
(718,609)
768,541
(337,257)
-
-
Dividend income
6,000,000
12,221,863
10,321,545
16,989,049
7,240,817
Impairment charge in respect of investments in
subsidiaries
(1,500,000)
-
(8,261,536)
(87,356)
(9,314,000)
Other operating income
194,273
328,330
566,474
133,940
120,725
Other operating expenses
-
(24,531)
(364,205)
(155,943)
-
Operating income before credit losses
24,745,045
33,943,956
20,895,694
29,329,089
11,547,747
Net movement in expected credit losses and other
credit impairment charges
(3,180,417)
(2,993,592)
(17,424,101)
(3,699,557)
(34,272,400)
Operating income
21,564,628
30,950,364
3,471,593
25,629,532
(22,724,653)
Administrative expenses
(21,010,359)
(24,824,525)
(22,139,252)
(23,213,366)
(23,722,803)
Depreciation and amortisation
(2,842,709)
(2,828,936)
(2,811,670)
(2,965,967)
(2,962,370)
Total operating expenses
(23,853,068)
(27,653,461)
(24,950,922)
(26,179,333)
(26,685,173)
(Loss)/Profit before tax
(2,288,440)
3,296,903
(21,479,329)
(549,801)
(49,409,826)
Taxation
(915,246)
(806,755)
(530,755)
(113,418)
(6,566,776)
(Loss)/Profit for the year
(3,203,686)
2,490,148
(22,010,084)
(663,219)
(55,976,602)
FIMBank Group Annual Report & Financial Statements 2024
194
Schedule II
Statements of financial position
Five-year summary – Bank
2024
2023
2022
Restated
2021
Restated
2020
USD
USD
USD
USD
USD
Assets
Balances with the Central Bank of Malta,
treasury bills and cash
134,179,290
352,997,057
216,852,467
239,982,048
319,267,749
Derivative assets held for risk management
1,464,641
812,609
1,610,475
841,688
1,019,288
Loans and advances to banks
90,098,124
114,325,243
125,882,432
182,458,548
179,364,067
Loans and advances to customers
517,783,911
618,118,225
718,910,427
745,564,139
779,834,360
Financial investments at fair value through profit
or loss
13,958,450
19,329,840
18,179,220
19,966,163
20,385,323
Financial investments at fair value through other
comprehensive income
120,265,095
140,755,780
143,189,022
162,408,542
153,327,686
Financial investments at amortised cost
2,073,906
28,399,073
14,602,008
9,914,754
9,839,457
Investments in subsidiaries
116,182,573
157,687,573
152,687,573
159,448,858
147,436,214
Property and equipment
1,916,689
2,994,784
4,770,241
1,965,249
3,507,509
Intangible assets
2,906,773
2,624,736
3,099,853
3,774,315
4,008,725
Current tax assets
-
-
-
66,667
76,225
Deferred tax assets
15,004,834
15,004,834
15,004,834
16,336,538
15,590,954
Other assets
9,312,395
7,747,110
6,830,284
3,848,321
5,570,563
Total assets
1,025,146,681
1,460,796,864
1,421,618,836
1,546,575,830
1,639,228,120
Liabilities and equity
Liabilities
Derivative liabilities held for risk management
1,165,387
626,476
818,031
1,533,556
1,629,434
Amounts owed to institutions and banks
168,729,126
333,498,402
386,787,784
497,633,356
387,900,641
Amounts owed to customers
679,691,057
951,166,330
869,220,415
838,675,598
1,037,118,337
Provision for liabilities and charges
211,125
90,135
121,209
201,775
173,051
Other liabilities
8,584,443
10,633,538
10,498,948
7,921,481
7,645,488
Total liabilities
858,381,138
1,296,014,881
1,267,446,387
1,345,965,766
1,434,466,951
Equity
Called-up share capital
261,221,882
261,221,882
261,221,882
261,221,882
261,221,882
Share premium
858,885
858,885
858,885
858,885
858,885
Reserve for general banking risks
-
-
-
2,218,995
3,358,738
Fair value reserve
(12,195,204)
(17,382,450)
(25,501,836)
(1,074,305)
2,413,581
Other reserve
2,681,041
2,681,041
2,681,041
2,681,041
2,681,041
Accumulated losses
(85,801,061)
(82,597,375)
(85,087,523)
(65,296,434)
(65,772,958)
Total equity
166,765,543
164,781,983
154,172,449
200,610,064
204,761,169
Total liabilities and equity
1,025,146,681
1,460,796,864
1,421,618,836
1,546,575,830
1,639,228,120
Memorandum items
Contingent liabilities
30,960,840
42,331,477
38,670,533
39,327,362
44,246,902
Commitments
111,629,563
100,220,087
91,414,423
107,469,111
105,245,766
FIMBank Group Annual Report & Financial Statements 2024
195
Schedule III
Cash flow statements
Five-year summary – Bank
2024
2023
2022
2021
2020
USD
USD
USD
USD
USD
Net cash flows (used in)/from operating activities
(285,714,829)
118,887,081
10,641,732
(128,050,504)
73,253,835
Cash flows from investing activities
Payments to acquire financial investments at fair
value through other comprehensive income
-
-
(25,549,207)
(74,874,050)
(109,616,706)
Payments to acquire financial investments at
amortised cost
-
(13,440,236)
(14,569,219)
-
-
Payments to acquire treasury bills at
amortised cost
(31,587,228)
(288,263,020)
(429,590,021)
-
-
Payments to acquire shares in
subsidiary companies
-
-
(252)
-
(1,801,829)
Payments to acquire property and equipment
(284,181)
(34,872)
(916,620)
(399,511)
(142,744)
Payments to acquire intangible assets
(1,149,354)
(490,433)
(318,308)
(779,881)
(393,096)
Proceeds on settlement of financial investments at
fair value through profit or loss
3,607,970
249,464
127,493
160,770
105,639,259
Proceeds on maturity of financial investments
at fair value through other
comprehensive income
17,882,889
13,745,002
13,000,000
50,918,619
49,246,582
Proceeds on maturity of financial investments at
amortised cost
26,429,022
-
9,800,719
-
-
Proceeds on maturity of treasury bills at
amortised cost
156,492,976
288,934,098
296,265,806
-
-
Proceeds on extinguished shares of
a subsidiary company
40,000,000
-
-
-
-
Proceeds on merger by acquisition of
a subsidiary company
3,487
-
-
-
-
Proceeds on disposal of property and equipment
-
27,500
1,565
9,751
-
Receipt of dividend
6,000,000
7,221,863
8,821,545
4,889,049
240,817
Net cash flows from/(used in) investing activities
217,395,581
7,949,366
(142,926,499)
(20,075,253)
43,172,283
Cash flows from financing activities
Payments of lease liabilities
(1,732,785)
(1,450,567)
(1,330,082)
(1,787,096)
(997,729)
Net cash flows used in financing activities
(1,732,785)
(1,450,567)
(1,330,082)
(1,787,096)
(997,729)
Effect of net exchange gains/(losses) attributable
to assets and liabilities
9,801,806
(7,268,046)
15,912,422
9,317,492
(11,405,644)
(Decrease)/Increase in cash and cash equivalents
(60,250,227)
118,117,834
(117,702,427)
(140,595,361)
104,022,745
Cash and cash equivalents at beginning of year
127,729,732
9,611,898
127,314,325
267,909,686
163,886,941
Cash and cash equivalents at end of year
67,479,505
127,729,732
9,611,898
127,314,325
267,909,686
FIMBank Group Annual Report & Financial Statements 2024
196
Schedule IV
Accounting ratios
Five-year summary – Bank
2024
2023
2022
2021
2020
%
%
%
%
%
Net interest income and other operating income to total assets
2.67
2.41
2.21
2.05
1.43
Operating expenses to total assets
(2.33)
(1.89)
(1.76)
(1.69)
(1.63)
(Loss)/Profit before tax to total assets
(0.22)
0.23
(1.51)
(0.04)
(3.01)
Pre-tax return on capital employed
(1.37)
2.00
(13.93)
(0.27)
(24.13)
(Loss)/Profit after tax to equity
(1.92)
1.51
(14.28)
(0.33)
(27.34)
2024
2023
2022
2021
2020
Weighted average number of shares in issue (000’s)
522,444
522,444
522,444
522,444
522,444
Net assets per share (US cents)
31.92
31.54
29.51
38.40
39.19
Basic earnings per share (US cents)
(0.61)
0.48
(4.21)
(0.13)
(10.71)
FIMBank Group Annual Report & Financial Statements 2024
197
Directors and executive management
Board of Directors John C. Grech (Chairman)
Masaud M.J. Hayat (Vice Chairman)
Edmond Brincat (Independent Director)
Hussain Abdul Aziz Lalani
Rabih Soukarieh
Samer Abbouchi
Simon Jethro Lay (Executive Director)
Sunny Bhatia
Teuta Bakalli (Independent Director)
Company secretary Andrea Batelli
Registered address Mercury Tower
The Exchange Financial and Business Centre
Elia Zammit Street
St. Julian’s STJ 3155
MALTA
Contact number Tel: +356 2132 2100
Executive Management
FIMBank p.l.c.
Group chief executive officer Simon Jethro Lay
Executive vice presidents Andrea Batelli Group General Counsel,
Head of Investor Relations & Company Secretary
Christine Coleiro Group Chief Human Resources Officer
Juraj Beno Group Chief Financial Officer
Modesto Luengo Group Chief Risk Officer
Ronald Haverkorn Advisor to the GCEO
Thomas Dodd Group Chief Compliance Officer & MLRO
London Forfaiting Company Limited
Chief executive officer Simon Jethro Lay
Company secretary William Ramzan Chief Financial Officer
India Factoring and Finance Solutions (Private) Limited
Chief executive officer Ravi Valecha
Company secretary Mandar Karmarkar Manager – Company Secretary
The Egyptian Company for Factoring S.A.E.
Chief executive officer Ahmed Shaheen
Company secretary Mohamed Gamaleldien Head of Legal
Independent auditor’s report
To the Shareholders of FIMBank p.l.c.
Report on the audit of the financial statements
Our opinion
In our opinion:
● The Group financial statements and the Parent Company (“the Bank”) financial statements (the “financial statements”) of FIMBank p.l.c. give a true and fair view of the Group and the Parent Company’s financial position as at 31 December 2024, and of their financial performance and cash flows for the year then ended in accordance with International Financial Reporting Standards (‘IFRSs’) as adopted by the EU; and
● The financial statements have been prepared in accordance with the requirements of the Maltese Banking Act (Cap. 371) and the Maltese Companies Act (Cap. 386).
Our opinion is consistent with our additional report to the Audit Committee.
What we have audited
FIMBank p.l.c.’s financial statements comprise:
● the Consolidated and Parent Company statements of financial position as at 31 December 2024;
● the Consolidated and Parent Company statements of profit or loss and statements of other comprehensive income for the year then ended;
● the Consolidated and Parent Company statements of changes in equity for the year then ended;
● the Consolidated and Parent Company statements of cash flows for the year then ended; and
● the notes to the financial statements, comprising material accounting policy information and other explanatory information.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (ISAs). Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Independence
We are independent of the Group and the Bank in accordance with the International Code of Ethics for Professional Accountants (including International Independence Standards) issued by the International Ethics Standards Board for Accountants (IESBA Code) together with the ethical requirements of the Accountancy Profession (Code of Ethics for Warrant Holders) Directive issued in terms of the Accountancy Profession Act (Cap. 281) that are relevant to our audit of the financial statements in Malta. We have fulfilled our other ethical responsibilities in accordance with these Codes.
To the best of our knowledge and belief, we declare that non-audit services that we have provided to the Bank and its subsidiaries are in accordance with the applicable law and regulations in Malta and that we have not provided non-audit services that are prohibited under Article 18A of the Accountancy Profession Act (Cap. 281).
The non-audit services that we have provided to the Bank and its subsidiaries, in the period from 1 January 2024 to 31 December 2024, are disclosed in note 15 to the financial statements.
Our audit approach
Overview
|
|
· Overall group materiality: USD1,844,000, which represents 1% of net assets. |
|
· The group auditor performed a full scope audit on the financial statements of the Bank and an audit of selected financial statement line items within the financial statements of FIM Property Investment Limited, which is one of the Bank’s subsidiaries. · The other three significant components, namely FIMFactors B.V. (and its subsidiary India Factoring and Finance Solutions (Private) Limited), The Egyptian Company for Factoring S.A.E. and London Forfaiting Company Limited, were audited by component auditors. · The group auditor performed oversight procedures on the work of component auditors. |
|
|
· Credit loss allowances in respect of loans and advances to customers of the Group and Bank · Valuation of the Group’s trading assets measured at fair value · Recoverability of deferred tax assets of the Group and Bank
|
As part of designing our audit, we determined materiality and assessed the risks of material misstatement in the financial statements. In particular, we considered where the directors made subjective judgements; for example, in respect of significant accounting estimates that involved making assumptions and considering future events that are inherently uncertain. As in all of our audits, we also addressed the risk of management override of internal controls, including among other matters, consideration of whether there was evidence of bias that represented a risk of material misstatement due to fraud.
Materiality
The scope of our audit was influenced by our application of materiality. An audit is designed to obtain reasonable assurance whether the financial statements are free from material misstatement. Misstatements may arise due to fraud or error. They are considered material if individually or in aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the financial statements.
Based on our professional judgement, we determined certain quantitative thresholds for materiality, including the overall group materiality for the financial statements as a whole as set out in the table below. These, together with qualitative considerations, helped us to determine the scope of our audit and the nature, timing and extent of our audit procedures and to evaluate the effect of misstatements, both individually and in aggregate on the financial statements as a whole.
|
Overall group materiality |
USD1,844,000 |
|
How we determined it |
1% of net assets |
|
Rationale for the materiality benchmark applied |
We chose net assets as the benchmark in view of the volatility of the Group’s profit before tax over the past five years. Moreover, in our view, the actual return attributable to equity holders is dependent on the adequacy of the Group’s capitalisation in view of the regulatory restrictions in respect of dividend distributions, while also being a generally accepted benchmark. In this respect, we considered net assets to be more reflective of the financial position and financial performance of the Group. We chose 1% which is within the range of quantitative materiality thresholds that we consider acceptable. |
We agreed with the Audit Committee that we would report to them misstatements identified during our audit above USD92,200 as well as misstatements below that amount that, in our view, warranted reporting for qualitative reasons.
Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial statements of the current period. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.
|
Key audit matter |
How our audit addressed the key audit matter |
|
Credit loss allowances in respect of loans and advances to customers of the Group and Bank
Credit loss allowances in respect of loans and advances to customers represent management’s best estimate of expected credit losses (‘ECLs’) within the loan portfolios at the balance sheet date. The Group has four lending portfolios: · the final ECL for Stage 1 and 2 exposures estimated by the vendor’s model; · observations in respect of the methodology applied by the Group to estimate ECLs in accordance with the requirements emanating from IFRS 9, including the appropriateness of the models and staging criteria used by the Group as part of the ECL calculation; · the Trade Finance portfolio, comprising import and export finance facilities originated in Europe; and · a portfolio of other facilities including syndicated senior secured facilities to international corporates and shipping finance facilities. The measurement of ECLs in respect of loans and advances to customers requires a considerable level of judgement since the determination of ECLs is subject to a high degree of estimation uncertainty. In this respect, it is considered a key area of focus. The level of estimation uncertainty surrounding the measurement of ECLs in respect of the Group’s lending portfolios remained elevated during the financial year ended 31 December 2024 in view of the inflationary pressures and interest rate environment experienced internationally, as well as the geopolitical tensions as a result of the ongoing Russia-Ukraine and Middle East conflicts. This affected a number of components forming part of the ECL calculation, including the determination of staging, the modelling of expected default levels and loss severities, and the determination of forward-looking scenarios giving rise to heightened subjectivity requiring a higher level of expert judgement. Credit loss allowances relating to all loans and advances to customers are determined at an instrument level. Significant judgement is required in the development and/or calibration of the models designed to estimate ECLs on loans measured at amortised cost in accordance with the requirements of IFRS 9, which has become more pronounced due to the macroeconomic conditions being experienced and the complexities in the modelling aspects of the ECL calculation. In general, the Group calculates ECL by using the following key inputs: probability of default (PD), loss given default (LGD) and exposure at default (EAD). The maximum period considered when measuring ECL is the maximum period over which the Group is exposed to credit risk. In this respect, the EAD for exposures within the Group’s portfolios is based on contractual maturity. For non-defaulted (Stages 1 and 2) exposures, the Group uses a model developed by an external vendor in which key risk parameters, including both PDs and LGDs, are estimated using statistical models mainly by benchmarking exposure-specific characteristics against an underlying dataset. Specifically, the PDs and LGDs attributable to financial assets within the Group’s lending portfolios are determined by reference to the default and loss history of comparable borrowers with similar characteristics in terms of size, industry, country of operation and financial soundness of the borrower. PDs are computed taking cognisance of quantitative and qualitative model inputs, which are used to generate a borrower-specific credit score. For exposures classified within the Local Corporate Lending portfolio, the credit score is determined by reference to inputs related to the project being financed, such as the property type, property valuation upon completion, project costs and project complexity, whereas the credit scores for exposures classified within the Bank’s Factoring Receivables and Trade Finance portfolios, as well as syndicated loans, are determined by reference to financial statement inputs and other qualitative inputs, comprising the entity’s competitive position in the market, the customer concentration level and management quality amongst other factors. Similarly, credit scores for exposures classified within the Group’s Factoring Receivables portfolio originated at subsidiary level on a with-recourse basis are computed using internally developed scorecards taking into account quantitative (for instance sales growth and net worth of the entity) and qualitative (such as industry and market conditions) inputs. Finally, credit scores for shipping finance loans and the Group’s Factoring Receivables portfolio originated at subsidiary level on a non-recourse basis are determined by relationship managers on the basis of a qualitative assessment, unless the buyer is externally rated, in which case the external rating is used. Credit scores are then mapped to a rating scale, on the basis of which a Through-The-Cycle (‘TTC’) PD is assigned to each borrower. The rating scale to PD matrix is calibrated by reference to historical market default data sourced from external credit rating agencies. Accordingly, the Group’s ECL model estimates TTC PDs at a borrower level by benchmarking model inputs against those attributable to peers with similar credit risk characteristics and operating in the same industry. TTC PDs are then adjusted using a macroeconomic modelling tool to first reflect current macroeconomic conditions (deriving an unconditional Point-in-Time or PiT PD) and then to simulate the PD under multiple macroeconomic forecasts developed by the external vendor (deriving a conditional PiT PD). Similarly, the unsecured LGD is estimated at a facility level by benchmarking facility-specific model inputs against observed losses for facilities which are similar in nature. In this respect, the model is principally driven by the nature of the exposure (term vs. revolver), the relative ranking of the facility in the borrower’s capital structure, the country and industry in which the borrower operates, together with the borrower-specific PD. Secured loans and advances to customers are primarily secured by residential and/or commercial real estate, as well as cash pledges and, in the case of certain exposures within the Factoring Receivables portfolio, credit insurance cover purchased from foreign third party underwriters which provide cover in respect of losses up to a pre-determined percentage of each eligible receivable. In this respect, the secured LGD is derived through the application of adjustments to the unsecured LGD to reflect the collateral value after taking into consideration pre-determined haircuts. The same macroeconomic modelling elements used to transform TTC PDs to PiT PDs are then used to convert the TTC LGDs to conditional PiT LGDs. In this regard, macroeconomic conditioning is applied to the LGD term structure through a modelled correlation between PD and LGD term structures. Estimation uncertainty is particularly relevant in relation to the level of subjectivity and expert judgement required to develop macroeconomic forecasts to capture the potential movement in default levels and loss severities under multiple forward-looking scenarios. Specifically, the Group applies three macroeconomic scenarios to capture the current economic environment, reflecting management’s view of the range of potential outcomes. In this respect, the current economic conditions induce additional elements of complexity in determining the severity and likelihood of macroeconomic forecasts used in the Group’s ECL calculation across different countries and the extent to which these potential scenarios will impact PiT PD and LGD parameters. Staging is determined based on a combination of quantitative and qualitative criteria. Quantitative criteria comprise a comparison of model-calculated PDs/implied ratings as at reporting date with the calculated PDs/implied ratings upon origination. For exposures classified within the Local Corporate Lending portfolio as well as syndicated and shipping finance facilities, qualitative criteria for staging purposes are based on aspects such as the regular monitoring of the financial performance of borrowers and developments affecting the borrowers’ future abilities to repay. Factoring receivables and Trade Finance facilities are not managed on a credit by credit basis due to the high volume of homogeneous exposures. In this respect, the Group’s internal credit risk management framework designed to identify Significant Increase in Credit Risk (‘SICR’) and Unlikeliness-to-Pay (‘UTP’) events in respect of such exposures is primarily based on delinquency. The Group applies a set of SICR and UTP criteria to determine staging on a qualitative basis, which require a significant element of judgement. For loans which are classified as Stage 3 (defaulted) exposures, judgement is required to estimate the expected future cash flows related to that loan. In this regard, the ECL calculation for defaulted exposures is driven by a process based on an internally developed discounted cash flow methodology. The measurement of ECLs for Stage 3 exposures is therefore dependent on parameters and assumptions including the estimation of cash flows under multiple scenarios, the determination of borrower-specific discount rates, and the weighting assigned to each scenario. Estimated future cash flows are generally based on parameters or assumptions around borrowers’ operating cash flows, judgements around the possible outcome of litigation and/or liquidation proceedings and out-of-court settlements, and recoveries through the sale or repossession of collateral to determine a probability weighted recoverable amount of the loan. In view of the above matters, the risk of misstatement in the estimation of ECLs in respect of Stage 3 loans and advances to customers, which is subjective in nature and inherently judgemental in respect of both timing of recognition of impairment and the estimation of the size of any such impairment, remains high. Accordingly, summarising the key areas relevant to the Group’s measurement of ECLs would include: · Allocation of exposures to stage 1, 2, or 3 using criteria in accordance with IFRS 9; · Accounting interpretations and modelling assumptions used to build the models that calculate the ECL; · Completeness and accuracy of data used to calculate the ECL; · Inputs and assumptions used to estimate the impact of multiple macroeconomic scenarios; and · Measurements of individually assessed provisions including the assessment of multiple scenarios.
Relevant references in the Annual Report and Financial Statements: · Material accounting policies: Note 3.9; · Note on Net movement in expected credit losses and other credit impairment charges: Note 4; · Credit risk: Note 4.2; and · Note on Loans and advances to customers: Note 22. |
During our audit of the financial statements for the year ended 31 December 2024, we focused on the key drivers of the estimation of ECL. In this respect, we evaluated and tested the appropriateness of management assumptions and key parameters. Discussions with the Audit Committee included: · the final ECL for Stage 1 and 2 exposures estimated by the vendor’s model; · observations in respect of the methodology applied by the Group to estimate ECLs in accordance with the requirements emanating from IFRS 9, including the appropriateness of the models and staging criteria used by the Group as part of the ECL calculation; · the controls and governance framework implemented by management in respect of the estimation of ECLs in accordance with IFRS 9; and · impairment allowances in respect of exposures classified as Stage 3.
In respect of the Group’s ECL models used for estimating credit loss allowances attributable to non-defaulted exposures, the appropriateness of the modelling methodology used was independently assessed by reference to the requirements of IFRS 9. In addition, the appropriateness of the key assumptions used in, and the conceptual soundness of, the adapted discounted cash flow model utilised for the estimation of credit loss allowances attributable to defaulted exposures were similarly assessed, particularly the methodology used to determine forecasted operating cash flows.
We understood and critically assessed the model used by the Group to measure expected credit loss allowances on exposures classified within Stages 1 and 2. Our audit approach focused specifically on: · obtaining comfort over the accuracy and completeness of model inputs, with the updating process being largely manual; · assessing the reasonableness of the staging criteria applied by the Group, as well as the macroeconomic modelling aspect within the ECL model, especially in respect of the calibration of forward-looking economic scenarios within the ECL model; and · backtesting the ECL outcome against both publicly available and internal historical information on observed default levels and expected default levels in the short-to-medium term. For the purpose of obtaining comfort on the credit loss allowances for Stage 1 and 2 exposures within the Group’s lending portfolios, emanating from a vendor model, we carried out the following substantive procedures: · Performed an overall assessment of the ECL provision levels by stage to determine if they were reasonable considering the Group’s portfolio, risk profile, credit risk management practices and the macroeconomic environment. · Tested a sample of exposures classified within the Local Corporate Lending portfolio, as well as syndicated facilities, to independently review the borrower’s financial performance and ability to meet loan repayments, and assess the appropriateness of the internal credit rating assigned by management. · Challenged the criteria used to allocate an asset to stage 1, 2 or 3 in accordance with IFRS 9 and tested assets in stage 1, 2 and 3 to verify that they were allocated to the appropriate stage. · Tested the completeness and accuracy of certain instrument-specific model data inputs utilised within the models for the purposes of the year end ECL calculation. · Performed backtesting to obtain comfort on the level of ECL allowances for each specific portfolio by benchmarking ECL coverage against publicly available information for peer market participants as well as internal historical experience. · Benchmarked LGDs estimated by the model in respect of exposures classified within the Factoring Receivables and Trade Finance portfolios, as well as syndicated facilities, against publicly available information reflecting the loss experience in the market for instruments with comparable seniority within a borrower’s debt structure, as well as by comparing with internal historical experience. · For exposures classified within the Local Corporate Lending portfolio, we tested the accuracy of property valuations against source data and assessed the reasonableness of market value haircuts used as inputs to modelled LGDs on a sample basis. We also tested the accuracy of the Group’s data in respect of the status of perfection of collateral on a sample basis. · For Factoring Receivables which are collateralised by credit insurance cover, we assessed the reasonableness of the LGD determined by reference to the terms of the credit insurance arrangement with third party underwriters. · Performed a recalculation of the ECL for a sample of exposures across portfolios. · For a sample of Factoring Receivables facilities which were past due by more than 90 days as at 31 December 2024, performed procedures to assess the recoverability of such exposures. · Assessed the reasonableness of the multiple macroeconomic scenarios and variables. Specifically, we challenged the reasonableness of the severity of the multiple forward-looking macroeconomic scenarios used in the ECL calculation, as well as the appropriateness of the assigned probability weightings.
ECL calculation for
defaulted exposures For Stage 3 exposures, the appropriateness of provisioning methodologies and policies was independently assessed. For Stage 3 loans, we performed tests of detail to review and challenge the Group’s estimate of credit loss allowances, in light of the latest information on the borrower, together with the appropriateness of key parameters used. An independent view was formed on the level of credit loss allowances recorded based on the detailed loan and customer information available. Substantive procedures were performed on defaulted exposures in respect of the estimation of the size of the respective ECL provisions, as follows: · Reviewed the credit files of loans and advances classified within stage 3 to understand the latest developments at the level of the borrower and the basis of measuring the ECL provisions and considered whether key judgements (such as the appropriateness of the timing and level of expected cash flows by reference to the current status of litigation / liquidation proceedings) were appropriate given the borrowers’ circumstances. · Assessed the discount rate used to determine the present value of discounted cash flows. · Challenged the appropriateness of the Group’s methodology in respect of scenarios applied for the exposures referred to above, particularly in respect of the extent to which the Group considers multiple scenarios in determining the recoverability of stage 3 loans, by forming an independent view of the recoverability of stage 3 loans under different scenarios. · Tested the accuracy of key inputs and reperformed the impairment calculation used to derive expected cash flows under different scenarios. · Reviewed the perfection of collateral in line with the Group’s policy, where the exposure is secured by immovable property.
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Valuation of the Group’s trading assets measured at fair value At 31 December 2024, the Group’s assets included trading assets measured at fair value through profit or loss amounting to USD274.7 million. These assets are not actively traded and, as such, are not quoted in an established market. The fair valuation of trading assets is determined through the application of an internally developed valuation model that involves the exercise of judgement and the use of assumptions based on limited observable market data. Key inputs used in the valuation methodology to discount expected future cash flows comprise: · instrument specific characteristics used to determine credit spreads, including counterparty creditworthiness and transaction currency; and · market risk-free rates determined by reference to contractual terms as well as interest rates observed in the market at reporting date. The Group’s trading assets are classified as Level 3 instruments in the fair value hierarchy given that their fair value is determined by reference to significant unobservable inputs. In this respect, the valuation of trading assets is deemed to represent a key audit matter. Relevant references in the Annual Report and Financial Statements: · Material accounting policies: Note 3.9; and · Note on Trading assets: Note 20.
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We involved our valuation experts, as appropriate, in performing our procedures in relation to the trading assets. As part of those procedures: · we evaluated the appropriateness of the valuation methodology used by the Group to determine the fair value of the trading assets; · we assessed the reasonableness of discount rates applied in the internally developed discounted cash flow model to determine the fair value of trading assets at reporting date. Specifically: o we assessed whether the instrument-specific credit spreads were within an appropriate range by reference to movements in instrument-specific external ratings (where available) and country external ratings on a sample basis; o we tested the appropriateness of market risk-free rates applied by the Group for the determination of discount rates to be used for the fair valuation of trading assets at reporting date across the portfolio; and · we tested the accuracy of inputs used in the discounted cash flow model at reporting date for a sample of assets by agreeing key inputs to contractual agreements; and · we determined the fair value of a sample of trading assets independently by reference to the discount rates assessed as outlined previously. In addition to the above, we also: · assessed the reasonableness of the Group’s valuation methodology by performing backtesting by reference to realised gains or losses on disposals of trading assets during the financial year ended 31 December 2024; and · recomputed realised fair value gains/losses for a sample of disposals. We also reviewed the appropriateness of the disclosures in respect of fair values of the trading assets in accordance with the requirements of IFRS 13. Based on the work performed, the valuation methodology as well as the assumptions and inputs used in the fair valuation of trading assets appear to be reasonable. In addition, the related disclosures are deemed to be appropriate. |
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Recoverability of deferred tax assets of the Group and Bank At 31 December 2024, the Group and Bank had recognised deferred tax assets amounting to USD15.7 million and USD15.0 million respectively. The deferred tax assets are predominantly related to unutilised tax losses attributable to the Bank and one of its subsidiaries, India Factoring and Finance Solutions Private Ltd. In accordance with the requirements of IFRSs as adopted by the EU, deferred tax assets are recognised only to the extent that it is probable that future taxable profits will be available, against which these tax benefits can be utilised. The recognition of deferred tax assets therefore requires significant judgement in estimating future taxable profits based on profit forecasts drawn up by management at the reporting date. The amount of deferred tax assets recognised in the financial statements is expected to be recovered within the foreseeable future. Such estimation uncertainty might lead to material differences between the projected period for utilisation of tax losses compared to actual timing of utilisation. In this respect, this area has been deemed to represent a key audit matter. Relevant references in the Annual Report and Financial Statements: · Material accounting policies: Note 3.8; · Note on Taxation: Note 16; and · Note on Deferred taxation: Note 31. |
As part of our audit procedures: · we reviewed the profitability projections prepared by management and evaluated the assumptions utilised in the preparation of taxable profit forecasts at the reporting date with reference to our understanding of the Group’s and Bank’s business, historical trends, and relevant documentation on the Group’s and Bank’s business strategy over the foreseeable future; · we reviewed the computation of taxable profits within the projections on the basis of tax laws (and tax rates) enacted by the reporting date and the expected utilisation of tax losses, and assessed whether these tax losses are expected to be utilised within a reasonable timeframe; and · we evaluated the adequacy of disclosures made in Notes 16 and 31 to the financial statements, including those regarding key assumptions. Based on the work performed, the carrying amount of deferred tax assets, as well as the related disclosures, appear to be consistent with the explanations and evidence obtained. |
How we tailored our group audit scope
The Group is composed of six components: FIMBank p.l.c. (the “Parent Company” or “Bank”), and its subsidiaries FIM Property Investment Limited, London Forfaiting Company Limited, FIMFactors B.V. (and its subsidiary India Factoring and Finance Solutions (Private) Limited) and The Egyptian Company for Factoring S.A.E., which are determined to be financially significant entities.
We tailored the scope of our audit in order to perform sufficient work to enable us to provide an opinion on the financial statements as a whole, taking into account the structure of the Group, the accounting processes and controls, and the industry in which the Group operates.
The Group auditor carried out a full scope audit on the Bank and an audit of selected financial statement line items within the financial statements of one of the Bank’s subsidiaries located in Malta, namely FIM Property Investment Limited.
The financial statements of London Forfaiting Company Limited, FIMFactors B.V. (and its subsidiary India Factoring and Finance Solutions (Private) Limited) and The Egyptian Company for Factoring S.A.E. (the remaining subsidiaries within the Group), predominantly based in the United Kingdom, India and Egypt respectively, were audited by component auditors. In this respect, we issued instructions to the component auditors auditing these three components.
In establishing the overall audit approach to the Group audit, we determined the type of work that needed to be performed by us, as the Group auditor, or by component auditors. For the work performed by component auditors operating under our instructions, we determined the level of involvement we needed to have in the audit work at those locations to be satisfied that sufficient audit evidence had been obtained for the purposes of our opinion. We ensured that our involvement in the work of other auditors, together with the additional procedures performed at the Group level, were sufficient to allow us to conclude on our opinion on the Group’s consolidated financial statements as a whole.
The audit engagement team of the Group performed all of this work by applying the overall materiality at the level of the Group’s consolidated financial statements, together with additional procedures performed on the consolidation. This gave us sufficient appropriate audit evidence for our opinion on the consolidate financial statements as a whole.
Other information
The directors are responsible for the other information. The other information comprises all of the information presented in the Annual Report and Financial Statements 2024 (but does not include the financial statements and our auditor’s report thereon).
Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon except as explicitly stated within the Report on other legal and regulatory requirements.
In connection with our audit of the financial statements, our responsibility is to read the other information identified above and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
Responsibilities of the directors and those charged with governance for the financial statements
The directors are responsible for the preparation of financial statements that give a true and fair view in accordance with IFRSs as adopted by the EU and the requirements of the Maltese Banking Act (Cap. 371) and the Maltese Companies Act (Cap. 386), and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the directors are responsible for assessing the Group’s and the Bank’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Group or the Bank or to cease operations, or have no realistic alternative but to do so.
Those charged with governance are responsible for overseeing the Group’s financial reporting process.
Auditor’s responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
As part of an audit in accordance with ISAs, we exercise professional judgement and maintain professional scepticism throughout the audit. We also:
● Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
● Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group’s and the Bank’s internal control.
● Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors.
● Conclude on the appropriateness of the directors’ use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group’s or the Bank’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Group or the Bank to cease to continue as a going concern.
● Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
● Plan and perform the group audit to obtain sufficient appropriate audit evidence regarding the financial information of the entities or business units within the Group as a basis for forming an opinion on the consolidated financial statements. We are responsible for the direction, supervision and review of the audit work performed for purposes of the group audit. We remain solely responsible for our audit opinion.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, actions taken to eliminate threats or safeguards applied.
From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.
Report on other legal and regulatory requirements
Report on compliance with the requirements of the European Single Electronic Format Regulatory Technical Standard (the “ESEF RTS”), by reference to Capital Markets Rule 5.55.6
We have undertaken a reasonable assurance engagement in accordance with the requirements of Directive 6 issued by the Accountancy Board in terms of the Accountancy Profession Act (Cap. 281) - the Accountancy Profession (European Single Electronic Format) Assurance Directive (the “ESEF Directive 6”) on the Annual Financial Report of FIMBank p.l.c. for the year ended 31 December 2024, entirely prepared in a single electronic reporting format.
Responsibilities of the directors
The directors are responsible for the preparation of the Annual Financial Report, including the consolidated financial statements and the relevant mark-up requirements therein, by reference to Capital Markets Rule 5.56A, in accordance with the requirements of the ESEF RTS.
Our responsibilities
Our responsibility is to obtain reasonable assurance about whether the Annual Financial Report, including the consolidated financial statements and the relevant electronic tagging therein, complies in all material respects with the ESEF RTS based on the evidence we have obtained. We conducted our reasonable assurance engagement in accordance with the requirements of ESEF Directive 6.
Our procedures included:
● Obtaining an understanding of the entity's financial reporting process, including the preparation of the Annual Financial Report, in accordance with the requirements of the ESEF RTS.
● Obtaining the Annual Financial Report and performing validations to determine whether the Annual Financial Report has been prepared in accordance with the requirements of the technical specifications of the ESEF RTS.
● Examining the information in the Annual Financial Report to determine whether all the required taggings therein have been applied and whether, in all material respects, they are in accordance with the requirements of the ESEF RTS.
We believe that the evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Opinion
In our opinion, the Annual Financial Report for the year ended 31 December 2024 has been prepared, in all material respects, in accordance with the requirements of the ESEF RTS.
Other reporting requirements
The Annual Financial Report and Financial Statements 2024 contains other areas required by legislation or regulation on which we are required to report. The Directors are responsible for these other areas.
The table below sets out these areas presented within the Annual Financial Report, our related responsibilities and reporting, in addition to our responsibilities and reporting reflected in the Other information section of our report. Except as outlined in the table, we have not provided an audit opinion or any form of assurance.
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Area of the Annual Financial Report and Financial Statements 2024 and the related Directors’ responsibilities |
Our responsibilities |
Our reporting |
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Directors’ report The Maltese Companies Act (Cap. 386) requires the directors to prepare a Directors’ report, which includes the contents required by Article 177 of the Act and the Sixth Schedule to the Act. |
We are required to consider whether the information given in the Directors’ report for the financial year for which the financial statements are prepared is consistent with the financial statements.
We are also required to express an opinion as to whether the Directors’ report has been prepared in accordance with the applicable legal requirements.
In addition, we are required to state whether, in the light of the knowledge and understanding of the Bank and its environment obtained in the course of our audit, we have identified any material misstatements in the Directors’ report, and if so to give an indication of the nature of any such misstatements. |
In our opinion: ● the information given in the Directors’ report for the financial year for which the financial statements are prepared is consistent with the financial statements; and ● the Directors’ report has been prepared in accordance with the Maltese Companies Act (Cap. 386).
We have nothing to report to you in respect of the other responsibilities, as explicitly stated within the Other information section.
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Statement of compliance with the principles of good corporate governance The Capital Markets Rules issued by the Malta Financial Services Authority require the directors to prepare and include in the Annual Financial Report a Statement of Compliance with the Code of Principles of Good Corporate Governance within Appendix 5.1 to Chapter 5 of the Capital Markets Rules. The Statement’s required minimum contents are determined by reference to Capital Markets Rule 5.97. The Statement provides explanations as to how the Bank has complied with the provisions of the Code, presenting the extent to which the Bank has adopted the Code and the effective measures that the Board has taken to ensure compliance throughout the accounting period with those Principles. |
We are required to report on the Statement of Compliance by expressing an opinion as to whether, in light of the knowledge and understanding of the Bank and its environment obtained in the course of the audit, we have identified any material misstatements with respect to the information referred to in Capital Markets Rules 5.97.4 and 5.97.5, giving an indication of the nature of any such misstatements.
We are also required to assess whether the Statement of Compliance includes all the other information required to be presented as per Capital Markets Rule 5.97.
We are not required to, and we do not, consider whether the Board’s statements on internal control included in the Statement of Compliance cover all risks and controls, or form an opinion on the effectiveness of the Bank’s corporate governance procedures or its risk and control procedures. |
In our opinion, the Statement of Compliance has been properly prepared in accordance with the requirements of the Capital Markets Rules issued by the Malta Financial Services Authority.
We have nothing to report to you in respect of the other responsibilities, as explicitly stated within the Other information section. |
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Remuneration report The Capital Markets Rules issued by the Malta Financial Services Authority require the directors to prepare a Remuneration report, including the contents listed in Appendix 12.1 to Chapter 12 of the Capital Markets Rules. |
We are required to consider whether the information that should be provided within the Remuneration report, as required in terms of Appendix 12.1 to Chapter 12 of the Capital Markets Rules, has been included. |
In our opinion, the Remuneration report has been properly prepared in accordance with the requirements of the Capital Markets Rules issued by the Malta Financial Services Authority. |
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Other matters prescribed by the Maltese Banking Act (Cap. 371) In terms of the requirements of the Maltese Banking Act (Cap. 371), we are also required to report whether: ● we have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of our audit; ● proper books of account have been kept by the Bank, so far as appears from our examination of those books; ● the Bank’s financial statements are in agreement with the books of account; ● in our opinion, and to the best of our knowledge and according to the explanations given to us, the financial statements give the information required by any law which may from time to time be in force in the manner so required. |
In our opinion: ● we have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of our audit; ● proper books of account have been kept by the Bank, so far as appears from our examination of those books; ● the Bank’s financial statements are in agreement with the books of account; and ● to the best of our knowledge and according to the explanations given to us, the financial statements give the information required by any law in force in the manner so required. |
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Other matters on which we are required to report by exception We also have responsibilities under the Maltese Companies Act (Cap. 386) to report to you if, in our opinion adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us. We also have responsibilities under the Capital Markets Rules to review the statement made by the directors that the business is a going concern together with supporting assumptions or qualifications as necessary. |
We have nothing to report to you in respect of these responsibilities. |
Other matter – use of this report
Our report, including the opinions, has been prepared for and only for the Bank’s shareholders as a body in accordance with Article 179 of the Maltese Companies Act (Cap. 386) and for no other purpose. We do not, in giving these opinions, accept or assume responsibility for any other purpose or to any other person to whom this report is shown or into whose hands it may come save where expressly agreed by our prior written consent.
Appointment
We were first appointed as auditors of the Group and Bank on 17 January 2024. Our appointment has been renewed annually by shareholder resolution representing a total period of uninterrupted engagement appointment of 2 years.
Fabio Axisa
Principal
For and on behalf of
PricewaterhouseCoopers
78, Mill Street
Zone 5, Central Business District
Qormi
Malta
9 April 2025