Bulgaria's Fibank considers attracting investors among strategic options

First Investment Bank AD

28/04/2017 10:08

SOFIA, April 28 (Reuters) - Bulgaria's First Investment Bank 
 5F4.BB  said on Friday it had hired Citigroup C.N  to advise 
the country's third largest lender on its strategic options, 
including the possibility of attracting new core investors. 
    "The bank is reviewing strategic opportunities which may 
include: entering into strategic partnerships and/or 
consolidations; attracting new core investors; raising new 
capital to fund the future growth of the bank," it said. 
    The bank has said it has been working to diversify its loan 
portfolio and reduce its credit risk in cooperation with 
international consultant Bain &Co. 
    Earlier this month, Fibank said it has met central bank 
recommendations to raise about 206 million levs ($115 million) 
in additional capital by reporting pre-tax, pre-provision profit 
of 266 million levs for 2016. 
    The central bank told Fibank to raise additional capital 
after an asset quality review slashed its CET 1 capital ratio to 
5.2 percent, and when tested under a theoretical severe economic 
crisis this fell to -6.9 percent.  L8N1AU09G  
    Fibank's financial results showed its CET 1 capital ratio 
stood at 12 percent in 2016, while its overall capital adequacy 
was at 15 percent. It's total assets stood at 8.85 billion levs. 
    At present, Fibank is controlled by Bulgarian businessmen 
Tzeko Minev and Ivaylo Mutafchiev, each with 42.5 percent 
stakes. 
 ($1 = 1.7953 leva) 
 
 (Reporting by Tsvetelia Tsolova; editing by Alexander Smith) 
 ((tsvetelia.tsolova@thomsonreuters.com; +359-2-93-99-731;)) 
 
Keywords: BULGARIA FIBANK/