The net non-consolidated profit of Bulgaria's third largest lender in terms of assets - First Investment Bank (FIBank), decreased 10.6% to BGN 25.8mn ( EUR 13.2mn ) in 2013, the bank's latest financial statement showed. The aggregate net profit of commercial banks in Bulgaria rose 3.2% to BGN 584.8mn in the same period. The decline in FIBank's net profit was caused by a 69.4% increase in its impairment costs to BGN 61mn. The bank, however, managed to cut its administrative expenses by BGN 7mn to BGN 145.4mn in 2013. FIBank's net interest income grew 10% to BGN 162.3mn and its net fees and commissions earnings rose 18.3% to BGN 85.4mn. The bank's capital adequacy ratio (CAR) stood at 13.58% at end-December (up from 12.9% at end-September), significantly below the ratio for the banking system which was 16.85%. In addition, FIBank's Tier I CAR was at 12.54% (up from 11.64% at end-September), also below the aggregate for the sector - 16.04%. In September, Fitch Ratings affirmed First Investment Bank's long-term Issuer Default Rating (IDR) at 'BB-'/stable outlook and the bank's Viability Rating (VR) at 'b-'. Two Bulgarian investors hold the majority share of FIBank's capital - Tseko Minev and Ivaylo Mutafchiev . Each of them owns 28.9% of the bank's capital. The bulk of the remainder is property of offshore companies.
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