On 21 May, FIMBank plc published its Interim Directors’ Statement covering the period from 1 January to 15 May 2010. The Directors explained that the general pipeline of business is growing with the performance for the period under review being very satisfactory and supported by improved cost management, low levels of impairments and mild recoveries in fair value write-downs of prior years. 2010 marks the first financial year for the Group since its 15-year tax benefits agreement expired on 31 December 2009.
The Directors stated that during this period market prospects for banking business have been supported by a gradual easing of liquidity conditions and signs of an improved flow of trade. Furthermore signs of a rebound in main emerging powers like China, Brazil and India continued. However, the statement explains that in other emerging countries, where FIMBank is most active remains challenging and certainly not helped by protracted concerns in the developed economies especially the Eurozone.
Given this scenario, FIMBank adopted a conservative approach to developing new banking and structured trade finance business. This resulted in a prudent growth in the forfeiting portfolio of the Group. Elsewhere in the Group, the business environment for factoring in Dubai remains difficult whilst Egypt Factors continues to show positive signs. Meanwhile the recently set-up Indian and Russian factoring joint-ventures remain are still on schedule to become fully-operational in the second half of 2010.
The FIMBank Group continues to enjoy strong capital and liquidity ratios backed by a healthy and growing balance sheet. Furthermore the Group also benefits from a renewed appetite for business as emerging market conditions are expected to alleviate and the flow of trade to pick up.