On 4 March, FIMBank plc published its 2010 full-year results showing a significant improvement in profitability from US$2.6 million in 2009 to US$6.7 million in 2010 as the Group cautiously renewed its appetite for business during the year helped by the improvement in emerging market conditions and a steady pick-up in trade flows. The improvement in profitability was mainly due to the growth in total operating income (+11.6% to US$36 million) as business activity picked up during the year under review. In fact, net interest income rose by 14.9% to US$12.98 million with the non-interest income growing by 9.9% to US$23 million.
Moreover the FIMBank Group benefitted from a 38.6% decline in net impairment allowances to US$3.8 milion which is composed of US$1.5 million for collective charges on the Group’s increased lending portfolio and US$2.28 million in specific impairments (2009: US$5.15 million). The specific impairments mainly relate to the charges booked on the factoring book of Menafactors’ as a result of credit issues which persisted in the MENA region, particularly in Dubai.
2010 marked the first financial year for the Bank since its 15-year tax exemption order which expired on 31 December 2009. Nonetheless, the Group booked a tax credit of US$0.47 million for 2010 as a result of previously unrecognised deductibles.
On the other hand, non-interest expenses climbed by 14.6% to US$25 million mainly due to 2% increase in staff costs to US$23.3 million.
The FIMBank Group reported a 24% increase in total assets to US$861 million mainly due to the growth registered in the trading assets of the Group and the increased levels of loans to customers. Total liabilities also increased by 28% to US$739.7 million on an expanding deposit base especially in the wholesale market. Likewise total equity increased by 5% to US$120.9 million following this year’s profits and the capital retention following the scrip dividend paid with respect to the 2009 financial year. The Group remains well funded and liquid with a capital adequacy ratio of 20.6% and a liquidity ratio of 55% – both well above minimum regulatory requirements.
Looking ahead, the Directors stated that in 2011 the Group will continue to expand into new geographic and product markets and to strengthen its presence in important trading centres. At the same time, the FIMBank Group will also be continuously reviewing the political developments in the MENA region and the African continent.
The Directors recommended a final net dividend of US$0.0248 per share (2009: US$0.0116) to all shareholders as at close of trading on 25 March. The dividend will be paid following approval by shareholders at the upcoming Annual General Meeting on 5 May 2011. Shareholders will be given the option to take up the dividend in either cash or shares. Details of the scrip dividend, including the attribution price, will be announced in due course.
Download a copy of the FIMBank plc 2010 Preliminary Results.