Bulgaria's Fibank considers attracting new investors (updated)

First Investment Bank AD

28/04/2017 12:17

(Adds FIbank's shares surge upon announcement) 
    SOFIA, April 28 (Reuters) - First Investment Bank (Fibank) 
 5F4.BB , Bulgaria's third largest lender, said on Friday it had 
hired Citigroup  C.N  to advise on its strategic options that 
could involve attracting new core investors.  
    The announcement pushed Fibank's shares up 9 percent in 
midday trading on the Bulgarian bourse, with traders saying the 
move showed the bank was serious about propping up its capital 
buffers following a central bank recommendation last year.  
    "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. 
    Fibank said this month it had 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 further 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  
    The bank has said it has been working to diversify its loan 
portfolio and reduce credit risk in cooperation with 
international consultant Bain & Co. 
    Fibank's financial results showed its CET 1 capital ratio 
stood at 12 percent in 2016, while overall capital adequacy was 
at 15 percent. Total assets stood at 8.85 billion levs. 
    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 and 
Edmund Blair) 
 ((tsvetelia.tsolova@thomsonreuters.com; +359-2-93-99-731;)) 
 
Keywords: BULGARIA FIBANK/