FIMBank registers 7% increase in pre-tax profit

07.03.2013

The FIMBank Group registered a pre-tax-profit of USD8.84 million during 2012, compared with USD8.28 million in 2011. The Group’s Balance Sheet saw considerable growth, with Total Consolidated Assets as at 31 December 2012 standing at USD1.13 billion, an increase of 11% over end-2011 figures. These positive indicators emerge from the FIMBank Group’s financial results for 2012, which were announced recently.

The results for 2012 also show that the Group’s Operating Income increased by 4% over the same period in 2011, from USD37.40 million to USD38.72 million, while Group Operating Expenses for the same period decreased marginally from USD28.92 million in 2011 to USD28.49 million in the year under review. The Group’s Basic Earnings per Share stood at US cents 6.17 (2011 – US cents 6.45). The Directors will be recommending to the Annual General Meeting of shareholders the payment of a cash dividend amounting to USD5,279,120 (2011: USD2,738,034), representing a net dividend per ordinary share of US cents 3.693149 (2011: US cents 2.003884, diluted to 1.926812 due to 2012 Bonus Issue).

2012 unfolded as a year which saw some normality returning to financial markets as political, monetary and fiscal measures contributed to the process of stabilisation across a number of European economies. Most of the North African and Middle Eastern markets where the FIMBank Group is active remained clouded by political instability. However, the Group’s focus on providing support to trade business and short-term exposures means that it is geared to take up opportunities which might develop in these markets. Reflecting on FIMBank’s performance and the current outlook, President Margrith Lütschg-Emmenegger said that the Group had maintained “its selective approach to business and continued to explore openings in commodity finance, particularly softs, metals and energy, as the Bank made further inroads into trade-related transactional banking business with new clients and markets”.

The year under review was also marked by the announcement in the first quarter of the proposed transfer by Massaleh Investments K.S.C.C. of its shareholding interest in FIMBank to Burgan Bank S.A.K. and United Gulf Bank B.S.C., both forming part of the KIPCO Group. The new investors’ plans are to inject new equity which would see their prospective holding exceeding 50% of FIMBank’s issued share capital. Earlier on this year, the overwhelming majority of FIMBank shareholders approved two resolutions which will enable these institutions to acquire a controlling interest in the company, subject to regulatory approval. FIMBank Chairman Dr John C. Grech has referred to this development as “an important milestone for FIMBank, not least because it opens up new horizons and will allow us to expand and pursue opportunities which to date were effectively out of our reach”.

---