Fibank plans 44% net income CAGR over the next 3 years, reaching BGN 120m in 2023
Source: Fibank; FFBH
Fibank targets 8% RoE over the next 3 years and 12% in a long-term, according to the “Bank’s Priorities for Development for the 2021-2023 period” presentation published on the bank’s website. The bank also aims to reduce the cost to income ratio sustainably to below 50%, the NPE’s to 7.7% (by sale of assets, restructuring, provisioning and write-offs) and the repossessed assets to 3.9% by 2023.
The bank is planning a balanced loan portfolio growth of an average 3.8% in 2020-2023 in line with the economic recovery which would result in 6.4% CAGR of the net interest income and 7.1% CAGR of fees & commissions income. This would bring 6.6% CAGR of the total operating income. The planned optimisation of the administrative cost (2% CAGR) and the optimisation of the distribution channels would result in 44.2% CAGR of the bank’s net income in the 3-years period reaching BGN 120m by 2023.