First Investment Bank management expects 12% ROE in 2017

First Investment Bank

First Investment Bank

First Investment Bank (5F4 BU) held a meeting with minority shareholders on 24 March 2017 to present 2016 FY results.

The meeting was attended by Mr. Vassil Christov, Chief Executive Officer of the bank, Mr. Dimitar Kostov, Chief Risk Officer, and Mr. Jivko Todorov, Chief Financial Officer, bank announcement to the stock exchange says.

First Investment Bank improved effectiveness and profit

First Investment Bank reported steady increase in profit before tax and impairment, which reached BGN 255 million. Such profit growth was mainly driven by the more efficient management of assets and liabilities of the bank.

In 2016, robust capital buffers were built by Fibank. During the year, the bank allocated provisions amounting to BGN 155 million.

The audited profit after tax and impairments amounted to BGN 90.2 million. The bank also reported a 2% growth in assets which reached BGN 8.9 billion. Thus First Investment Bank ranks third in asset size in the Bulgarian banking system, after UniCredit Bulbank and DSK Bank.

As at 31 December 2016, the capital adequacy of the Bank amounted to 15.41%, the cost/income ratio was 42.04%, and the return on equity – 11.17%.

Forecasts for 2017

First Investment Bank management confirmed further net interest margin improvement in 2017. It also said ROE around 12% was achievable but no further expectations were revealed.

Attracting strategic partner in 2017

Bank’s management has previously revealed that it is discussing partnering with a potential financial investor for a significant minority stake in the Bank as part of the needed capital raise post the 2016 asset quality review. Questions from shareholders came from the issue but no additional information on the matter was shared. First Investment Bank management noted such information will be provided at the next meeting in 3 months.

The biggest company on the Bulgarian Stock Exchange

On Friday, 24 March 2017, market cap of Fibank rose to BGN 544,5 mln. which made it the most expensive company on the local stock market. Sopharma stepped back with approx. BGN 511 mln.

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