FIMBank Group announces half-yearly results

07.08.2014

Strong operational performance impacted by impairments from factoring undertakings 

The FIMBank Group has announced its results for the six months ended 30 June 2014. The period under review was marked by positive operating results which were impacted by sharp impairments from factoring undertakings, thus depressing the overall Group performance. The FIMBank Group registered a strong improvement of 41 per cent in its operating performance, from USD19.32 million to USD27.30 million. Net Interest Income almost doubled to USD14.55 million, mainly as a result of lower funding costs, higher volumes for funded business, and the inclusion of results from India Factoring in India and Factorrus in Russia. Meanwhile, Net Fee and Commission income rose by 8 per cent to USD11.57 million.

These figures emerge from the consolidated interim results of the FIMBank Group which were approved by its Board of Directors on 5 August 2014. For the six months ending on 30 June 2014, the Group posted an after-tax profit of USD1.45 million, compared with a loss of USD6.98 million registered for the same period in 2013. Other key financial indicators highlighted in the Group’s interim results show Total Consolidated Assets standing at USD1.33 billion, reflecting a 7 per cent increase on the USD1.24 billion reported at end 2013. Total Consolidated Liabilities as at 30 June 2014 stood at USD1.12 billion, or a 3 per cent increase on the USD1.09 billion reported in December 2013. Operating expenses for the six months under review increased by 43 per cent from USD14.18 million in 2013 to USD20.25 million, reflecting the inclusion of the India and Russia entities as well as increases to staff and operating costs.

Commenting on the FIMBank Group's results and performance for the first half of 2014, the Group's Chairman Dr John C. Grech stated that: “The positive operating results posted by FIMBank continue to confirm the proven validity of our flexible and robust business model. However, in the light of the challenging environment we will be facing throughout the rest of the year, we reaffirm our intent to step up recovery efforts over impairments, which have marked the Group’s performance since 2013. We will continue to be on our guard and monitor developments with a view to limiting further similar events going forward. We are also encouraged in this process by the support of our shareholders, demonstrated so strongly in the recent Rights Issue that generated USD48 million of new equity. This support serves as a platform which should significantly boost FIMBank’s capability to generate more business and create further opportunities for profit”.

Whilst expressing her confidence in FIMBank’s future prospects, President Margrith Lutschg-Emmenegger stated: “My appreciation goes to management and all our employees for their commitment, which is critical especially during such challenging times. Our strength has always been our ability to re-invent ourselves to adapt to new realities and challenges. The Group can now boast a strong reference shareholder which has already started facilitating access to funding, and has led to a stronger equity base. Apart from improving our visibility in the market, our objective will remain that of maintaining strong capital ratios and enhancing our credit rating.”

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