On 15 November 2010 FIMBank plc published its Interim Statement explaining that the Group’s performance for the second half of 2010 continued to show the positive trend experienced during the first half when profits after tax increased by 16.4% to USD3.39 million. The FIMBank Group stated that the more optimistic outlook forecast for 2010 is materializing due to a renewed appetite for business as emerging market conditions continue to improve and trade flows started to pick up. FIMBank stated that this is evidenced by an increase in the general pipeline of business at both FIMBank and uts fully-owned subsidiary London Forfaiting Company Ltd, supported by a strong balance-sheet and healthy capital and liquidity ratios.
FIMBank also explained that as a steady availability of funding is critical for the growth of business and with the current instability in the interbank markets, the Bank continues with its strategy to diversify its funding base. In fact, in October 2010 FIMBank successfully raised the equivalent of €33 million for a 3-year 4.25% Bond which will be applied to support the general line of medium-tenor trade-finance business. The FIMBank Group explained that other funding initiatives continue to be developed whilst new products and services are expected to be launched in the first quarter of 2011.
Moreover during the period under review, India Factoring and Finance Solutions Private Ltd (the Mumbai based venture) in which FIMBank plc owns a 49% stake received its Certificate of Registration from the Reserve Bank of India authorising it to commence business as a Non-Bank Financial Institution. FIMBank explained that the Indian Factoring company has already started operations and will provide factoring, forfaiting and trade finance solutions primarily to Small and Medium Enterprises (SMEs) and Small Scale Industries (SSIs). FIMBank also said that it recently increased its shareholding in the Beirut-based LCI Factors S.A.L (now renamed Levant Factors) to 50% whilst Menafactors and Egyptfactors continue to register encouraging progress helped by a gradual normalization of economic conditions in Dubai and greater access to local funding.
The FIMBank Group concluded by stating that as the Bank continues to expand into new geographical and product markets (with the consistent application of high risk management and compliance standards and buoyed by a more optimistic business sentiment) it expects revenue and income to continue to strengthen with no foreseen credit issues whilst existing ones kept under control. This gives the Group confidence that the positive performance seen during the first half of the year will remain on track for the rest of the financial year.