On 5 August, FIMBank plc published its results for the six months ended 30 June 2010. During the first half of the year, the FIMBank Group generated a profit after tax of US$3.39 million, an increase of 16.4% from the level of US$2.92 million registered in June 2009. Net fee and commission income for the six months to 30 June 2010 increased by 8% to US$10.28 million while net interest income declined by 6% to US$6.09 million.
Fair values of the Group’s Trading assets, mainly the forfaiting book, was negligibly marked downwards by US$0.08 million (June 2009: mark-down of US$1.76 million) in line with the improved global credit risk perceptions and the gradual return of confidence and normalisation in financial markets and trade flows. This was however offset by net realised gains from traded assets of US$0.05 million (June 2009: mark-down of US$0.24 million) as well as realised and unrealised exchange profits of US$2.29 million.
Net impairment charges amounted to US$2.13 million (June 2009: US$1.79 million). The Directors explained that this was mainly the result of an increase in specific impairment charges of US$1.63 million on the factoring book of Menafactors due to the credit issues in Dubai. Otherwise specific impairment allowances declined by US$1.27 million.
The share of losses from the Group’s investment in factoring equity accounted investees, amounted to US$0.31 million (2009: loss of US$0.24 million). The negative contribution from Egypt Factors dropped to US$0.13 million from the loss of US$0.21 million incurred during the first six months of 2009. The share of losses also includes the expenses incurred by the newly set-up factoring ventures in Russia, India and Lebanon.
The FIMBank Group posted an after-tax profit of USD$3.39 million for the first six months of 2010 (June 2009: US$2.92 million) with earnings per share amounting to US$0.025.
In the 2010 Half-year report the Directors stated that during the first six months of 2010 there was a prudent growth in the forfaiting portfolio as the outlook for last year’s fair value write-downs became cautiously more positive. The Group explained that the business environment for factoring in Dubai remains difficult while the performance at Egypt Factors continues to show signs of growth in a new and challenging market. Meanwhile, the Indian and Russian factoring joint-ventures are now set up and will become fully operational in the second half of 2010.
In conclusion the Directors stated that the FIMBank Group continues to enjoy strong capital and liquidity ratios. The balance sheet is healthy and growing as is the general pipeline of business. The Directors confirmed that the performance for the period under review is very satisfactory and supported by an outlook of improved cost management, control over new impairments and recoveries in fair value write-downs and losses of prior years.