On 16 November FIMBank plc issued its Interim Directors’ Statement explaining that the Group started the third quarter of 2009 with a healthy liquidity position and capital adequacy ratios which enabled a gradual pick-up in business for the Bank, Menafactors in Dubai and EgyptFactors as well as the trading performance of London Forfaiting Company. The Directors explained that the improved efficiency and cost management measures which were implemented previously helped to keep operating profits on target.
FIMBank stated that efforts were also made to resolve certain credit issues related to the financial assets (debt securities and other loan instruments) for which unrealized mark-to-market writedowns have been in the Company’s books since the end of 2008. FIMBank said that some positive results have been obtained or are anticipated to be determined in the near future and it hopes that most of the remaining issues will have been resolved by the end of the financial year, even if write-backs may not be expected before 2010.
Furthermore, the Directors are satisfied with the recent formations of factoring joint-ventures in the important markets of Russia (together with the International Finance Corporation and Transcapitalbank) and in India (in partnership with Punjab National Bank and Italy’s Banca IFIS and Blend Financial Services). Both of these joint-ventures are planned to start operations in the first quarter of 2010.
The Directors concluded their statement by reassuring investors that no material events or transactions have otherwise taken place to impact the financial position of the Group.