FIMBank announces financial results for 2013

11.03.2014

Positive operational performance overshadowed by asset impairment charges

Despite yet another positive operational performance, the FIMBank Group’s bottom line for the year ended 2013 was affected by a few but fairly significant asset impairment charges and valuation losses. As a result, the Group registered an after-tax loss of USD4.22 million in 2013, compared with a profit of USD8.80 million during 2012. On the other hand, the Group’s Balance Sheet saw considerable growth, with Total Consolidated Assets as at 31 December 2013 standing at USD1.24 billion, an increase of 9 per cent over end-2012 figures. These indicators emerge from the FIMBank Group’s financial results for 2013, which were announced recently.

The results for 2013 also show that the Group’s operating performance prior to impairments, valuation losses and share of equity results, increased substantially by 13 per cent over the same period in 2012, from USD36.68 million to USD41.60 million, while Group Operating Expenses for the same period increased by 7 per cent, from USD28.49 million in 2012 to USD30.35 million in the year under review. The latter was largely due to the depreciation on the Group’s new Head Office building, which became operational as from 1st July 2012. The Directors will not be recommending the payment of a dividend, while a resolution proposing a 1 for 10 Bonus Issue of Ordinary Shares by way of capitalisation of the Share Premium Account will be presented to the Annual General Meeting of shareholders.

Although the markets where the Group is active remained affected by generally challenging conditions for business, the year under review continued to present encouraging opportunities in international trade finance, both with existing clients as well as with new products and markets. 2014 also started with considerable anticipation following the proposed joint offer by Burgan Bank and United Gulf Bank to acquire and increase a controlling interest in the Group. In fact, this project had started in the second half of 2013 with the injection of  USD 30 million of new capital, followed by the   extension of funding support later in the year. This allowed both FIMBank and London Forfaiting Company Ltd to register improved operating performances.

Reflecting on FIMBank’s performance and the current outlook, President Margrith Lütschg-Emmenegger said that the “further improvement in performance registered by the Group reflects our resilient trade finance-based model,  which is oriented towards a selective approach to business and the pursuing of openings in commodity finance, particularly softs, metals and energy. Meanwhile, the Bank has continued to make further inroads into trade-related transactional banking business with new clients and markets. We will also continue with our substantial efforts to recover part or all of the overdue balances, especially in relation to our most recently impaired assets”.

On his part, FIMBank Chairman Dr John C. Grech referred to the fact that 2014 has started with the joint offer by Burgan Bank and United Gulf Bank, resulting in these two institutional shareholders increasing their stake in FIMBank to 80 per cent. “With this comes the anticipation of significantly improved prospects to take on new and bigger business, to benefit from better funding opportunities and to overall strengthen the Group's operating performance even further”, he said.

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