FIMBank plc - Interim Results

On 13 August, FIMBank plc published its results for the six months ended 30 June 2009.

During the first half of the year, the FIMBank Group generated a pre-tax profit of US$2.4 million. In the first six months of 2008 the trade finance bank had recorded a profit of US$34 million but this was boosted by the US$29.2 million gain on sale of its shareholding in the factoring company in India Global Trade Finance Limited (GTF) as well as the share of profits from this associate company which have not been repeated in 2009. Net interest income declined by 25% to US$5.3 million with net fee and commission income easing by 9% to US$9.1 million. Moreover the Group incurred a US$1.05 million net trading loss and US$1.5 million in net impairments. These offset the net income of US$1.11 million arising from other financial instruments carried at fair value. On a positive note, FIMBank managed to reduce administrative costs by 25% to US$9.9 million following improvements in efficiencies and cost management.

While EgyptFactors contributed to a loss of US$0.21 million, FIMBank reported a profit of US$0.47 million from MenaFactors with the Directors indicating that this subsidiary based in Dubai is now on the right path to growth and profitability. In this respect, the Directors reiterated their intention of disposing a substantial holding in MenaFactors by approaching strong institutional partners.

On the Balance Sheet side, FIMBank decreased its exposure to the wholesale market whilst loans and advances to customers increased by US$9 million to US$260 million. FIMBank also reduced its dependency on inter-bank lending but further diversified its funding sources reflected in a US$21 million increase in customer deposits. Moreover the trade specialist successfully launched a US$40 million bond issue back in April 2009 which strengthened the Group’s Tier 2 Capital.

In conclusion the Directors stated that the outlook for the second half of the year is one of increased pick-up in business and improved profitability. Furthermore, the Directors are also optimistic on the continued progress of its entities, the planned investment in Russia, the timely return to the Indian factoring market and the developments in the Group’s private banking offering.

The Directors did not declare the payment of an interim dividend in respect of the period under review. Last year, following the extraordinary gain made on the sale of GTF, the Directors declared a net special dividend of US$0.0329 per share.

A copy of the Half-Year Results is available here.

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