FIMBank Group Posts Positive Half-Yearly Results

15.09.2006

For the half year ended 30 June 2006, the FIMBank Group posted an after-tax profit of USD3.13 million, a 91% increase over the USD1.64 million registered in 2005. FIMBank Group includes FIMBank plc Malta, as well as its subsidiaries and affiliates, namely London Forfaiting Company Limited (LFC) the wholly owned UK based subsidiary with offices in London, New York, Sao Paolo, Moscow, Istanbul and Singapore. Other group members include Global Trade Finance Limited (GTF), FIMBank’s Factoring flagship affiliate in the Indian sub-continent, and FIM Business Solutions Ltd, Malta, providing the Group and its correspondents with Information Communication and Technology services.

Group Operating Income after net impairment losses increased by 35% from USD7.42 million in 2005 to USD10.04 million. Correspondingly, Net Trading Income more than doubled, due to the performance of LFC’s enlarged forfaiting portfolio. The contribution of associated undertakings, namely Global Trade Finance Limited, India, where the Group has a 38.5% equity participation, to Group income continued to improve during the period under review, from USD0.57 million in 2005 to USD1.09 million in 2006, resulting in consolidated pre-tax profit for the Group of USD3.44 million (2005 - USD1.85 million).The main operating ratios show significant improvements. Return on Equity increased to 10.8% on annualised basis, while Return on Assets increased to 1.1%. Basic Earning per share went up by 61% to UScents 4.02. The expansion in operating activity is also reflected in the balance sheet, with Total Assets growing to USD582 million.

FIMBank’s Board of Directors noted that these interim figures demonstrate the strong growth being registered by the Group in all its business areas and, particularly, reflects the result of the strategy of market and product diversification which is providing considerable scope for profit maximisation. Whilst core banking revenues continued to grow, an increasing portion of Group net income was contributed by subsidiaries and affiliates. The Board also considers positively the growth in the Group Asset base. The Group’s projects for developing business via alliances with strong partners in new markets, as well as the focus on diversifying from the traditional banking and trade finance products, continue to be main drivers of the FIMBank Group’s results. The Board also continues to explore avenues of capital improvement, which would further support the growth and overall risk profile of the business. The Board is optimistic about the overall business strategy and there are encouraging prospects that the strong momentum achieved in the first half of 2006 will continue for the remainder of the year.

 

 

 

 

 

 

 

 

 

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