Fibank has built up the additional capital buffer recommended by BNB

By the end of Q1 2017, First Investment Bank has built up the BGN 206 million capital buffer, implementing the BNB recommendation from the asset quality review and the stress test

Fibank's consolidated audited financial statements for 2016 show solid growth in pre-tax, pre-provision profit, which reached BGN 266 million. Such growth was mainly driven by the more efficient management of assets and liabilities. During the year, provisions were allocated in the amount of BGN 156 million.

By the end of Q1 2017, First Investment Bank has implemented the specific measures to raise capital and, along with the reported 2016 pre-tax, pre-provision profit of BGN 266 million, has built up the capital buffer recommended by the BNB.

As shown by the audited financial statements, provisions in the amount of BGN 156 million were allocated in 2016, in compliance with the applicable International Accounting Standards (IAS) and the International Financial Reporting Standards (IFRS). The generated after-tax profit of BGN 98.8 million will be capitalized.

The loan portfolio diversification and the reduction of credit risk are actively continuing, in cooperation with the international consultant Bain & Co. Disposal of acquired assets has also been set as a priority.

First Investment Bank is actively working towards introduction of the IFRS 9 Financial Instruments, to which effect it has already signed an agreement with an international consulting company.