On 15 November FIMBank plc published its Interim Directors’ Statement covering the period between 1 July 2011 and the date of the announcement.
FIMBank explained that the period under review was characterized by continued turmoil in Libya, economic challenges in the Eurozone and a cautious return to normality in other parts of North Africa. FIMBank noted that its business activities in Libya and Egypt, which includes the joint-venture Egypt Factors, remained safe and well under control. As the situation in these countries is stabilizing, FIMBank expects new business opportunities to present themselves in these markets. Elsewhere in the Mediterranean, FIMBank’s exposure remained short-term and supporting trade-related flows.
FIMBank announced that it maintained a selective and prudent approach to new trade finance business and focused on developing safe transaction structures with established corporate clients. With respect to the funding side, FIMBank confirmed further positive fund raising abilities including the web-based Easisave account which will include further enhancements in the near future. During the period under review FIMBank also drew on the USD $60 million trade facility made available by the International Finance Corporation (IFC), comprising 75% participation from the Saudi Fund for Development. Meanwhile new and increased relationships with emerging market banks resulted in further funding diversification.
Elsewhere in the Group, London Forfaiting Company’s performance continued to be strong and consistent. Menafactors, the Dubai-based subsidiary, maintained the positive momentum gained in the first half of 2011 while FIMBank’s Dubai office registered growth as the outlook continues to be promising.
Moreover, FIMBank reported that the new factoring joint-venture in India registered impressive growth and a steady performance. The other factoring joint ventures in Russia and Lebanon also experienced growth in their portfolio and revenue. FIMBank also referred to the official setting up of Brasil Factors on 9 November 2011.
In the current market conditions, FIMBank explained that it continues to remain prudent, adopts vigilant risk management and remains selective in its core abilities of trade and emerging markets. FIMBank reported that its overall performance during the second half of the year remains supported by low impairments, a growing balance-sheet and healthy capital and liquidity ratios. FIMBank also announced that the financial performance over recent months was in line with the first 6 months of the financial year when the Group reported a profit after tax of $4.08 million (June 2010: $3.39 million).