First Investment Bank full year preliminary unconsolidated results showed strong YoY performance, but the last quarter stepped back on the stellar performance of Q3, despite realising a net profit of BGN 15.9m, 6% up compared to the previous quarter. In Q4 the bank was restrained by low liquidity and a capital adequacy ratio already dangerously close to the minimum requirement (despite the recent capital increase), which limited loan portfolio growth. Currently, the capital adequacy ratio stands at 12.36%. The operating performance was further affected by a new syndicated loan facility at higher rates, which impacted the interest expenses. Overall, in the last quarter the loan portfolio added only another 3%, to reach BGN 2.8bn, 62% growth for the full year. The assets reached BGN 4.2bn, up 34% YoY and 14% QoQ. Loans to non-financial institutions (NFI) amounted to 66% of the assets, down from 73% in Q3. This affected the Net Interest Margin (NIM) which fell by 16bps QoQ, to 4.5%*. That was still 50bps above the end-2006 level of 4%. The net interest income was up 53% YoY, to BGN 131m, but the last quarter showed a 13% QoQ slow-down, driven by a 17% higher interest expense. The melt-down in the global markets affected the profit from securities, which were only 0.9m in the last quarter, compared to 4.8m in Q3, and that affected the non-interest income by -14%. Total operating income for the year was BGN 191m, up 44%, while operating expenses were up only 26% (at BGN 104m). This increased the efficiency of the bank, which reached 55%, from 63% in 2006. ROaE was 18.1%*, down from 19.7% in 2006, affected by the capital increase in Q2, and ROoA was 1.4%, compared to 1.1% a year ago. The provisioning ratio was not disclosed, but a note from the management states that it is at the same level as last year. The year-end number of offices and branches of FIB was 120. * all ratios calculated on average balance sheet figures from the last 4 quarters