FIMBank holds 2015 Annual General Meeting

08.05.2015

FIMBank plc held its Annual General Meeting yesterday at the Westin Dragonara in St Julian’s, Malta. In his opening address, the Chairman of the FIMBank Group, Dr John C. Grech, explained the background to the Group’s performance last year.  He also introduced and congratulated Mr Simon Lay on his appointment as the Group’s Acting Chief Executive Officer. Dr Grech referred to Mr Lay as an “experienced banker and trade financier who is also considered to be an authority on forfaiting and trade finance”. Dr Grech also referred to Mr Lay’s successful tenure as Managing Director of London Forfaiting Company Ltd, and the fact that FIMBank’s Acting CEO boasts ten years’ experience as a member of the Bank’s Executive Committee.

The first item on the Meeting’s agenda – the approval of the 2014 consolidated audited financial statements - was accompanied by a presentation by Mr Lay. In 2014, the FIMBank Group registered an after-tax loss of USD45.23 million, compared to a loss of USD4.22 million in 2013.  Mr Lay reported that Consolidated Assets as at 31 December 2014 stood at USD1.41 billion, an increase of 14% over the USD1.24 billion reported at end 2013. He also explained that Net Interest Income rose by 77.9%, from USD 15.9 million to USD 28.4 million, while Net Fee and Commission income decreased by 9.3%, from USD 22.9 million to USD 20.76 million.  The positive operational results were, however, impacted by impairments of USD 51 million events across various Group entities, predominantly arising in Russia and India.

“Nevertheless”, said Mr Lay, “Group Liquidity remained strong, while capital adequacy was above the minimum regulatory requirements”. FIMBank’s Acting CEO stated that “2014 was a very difficult year for the Group and one in which we suffered significant impairments from a number of business areas. However, effective action is being taken, and the restructuring of non-core activities is already underway. Our comprehensive cost-risk-benefit review will result in a sharper focus on business sectors which offer profit potential. This will translate into a more controlled and efficient deployment of resources. During the past years, the Group has invested heavily in the development of a global footprint, a robust infrastructure and a capable workforce. We plan to utilise these to ensure a return to profitability at the earliest opportunity, therefore setting FIMBank on a course to meet shareholders’ performance expectations.”

Commenting on the FIMBank Group’s future prospects, Chairman Dr John C. Grech confirmed that “The immediate focus is on the implementation of measures to improve the Group’s financial performance. It is in times like these that we turn to our many strengths, particularly our ability to take the required corrective measures and re-invent ourselves to adapt to new realities. I am convinced that in the months ahead, management, with its new structure in place, and with the support of our controlling shareholders, will succeed in reversing the current temporary downturn. I take this opportunity to thank Burgan Bank and United Gulf Bank for their unwavering support, particularly in the areas of corporate governance and risk management” Dr Grech also thanked his fellow directors, management and staff members for their hard work, dedication and commitment, particularly during the past few months.  Finally, he extended his gratitude to all of the Group’s shareholders for their “understanding and their strong demonstration of loyalty” to FIMBank.

Shareholders approved resolutions to declare a 1:10 bonus share issue by capitalization of the share premium account. The Meeting also elected the Board of Directors, which  includes Majed Essa Ahmed Al-Ajeel (Chairman of Burgan Bank SAK), Masaud M. J. Hayat (Chairman of United Gulf Bank BSC),  Eduardo Eguren (CEO of Burgan Bank SAK) and Rabih Soukarieh (CEO of United Gulf Bank BSC). A full list of elected directors may be found on the Bank’s website. Following the AGM, the Board of Directors confirmed Dr John C. Grech as Chairman and Mr Masaud Hayat as Vice Chairman.

Short interview with FIMBank Chairman Dr John C. Grech
https://www.youtube.com/watch?v=6nYw6fRx-pI

Short interview with FIMBank Director, Burgan Bank CEO Eduardo Eguren
https://www.youtube.com/watch?v=a9BZSFBoKik

---