On 16 May, FIMBank plc issued its Interim Directors’ Statement to update the market on developments since the start of the year. FIMBank noted that the performance during the period under review remains supported by prudent impairments, a growing balance-sheet, healthy capital and liquidity ratios and is in line with the trends indicated at the time of the approval of the 2011 financial statements.
At the time, the Directors had indicated that although current market conditions continue to call for prudence as well as attention to strong risk management and compliance, 2012 should bring much needed hope that the worst may indeed be over. FIMBank had also noted that the Bank will undoubtedly face challenges particularly those related to the impact of the introduction of Basle III’s more stringent capital requirements on the business environment in which the Group operates. However, FIMBank’s Directors had explained that the Group had established a wide and diversified product range which, driven by strong fundamentals, will continue to provide it with growth and profit opportunities.
In the Interim Statement, FIMBank provided an update on current business activities. The Bank noted that although the approach to new trade finance business remained selective and focused on developing safe transaction structures with established corporate clients, a progressive pick-up in new opportunities is evident, particularly in commodities. FIMBank also continued to further develop its range of funding products with enhancements to the Easisave account facility and new deposit offerings.
FIMBank confirmed that its fully-owned subsidiary London Forfaiting Company remained a strong and consistent driver of the Group’s performance. With respect to the factoring joint-ventures, FIMBank explained that the entities in UAE, Russia, Brazil and India continued to show steady growth while EgyptFactors is being impacted by the challenging conditions in the country.
FIMBank also made reference to the announcement of 13 April related to the proposed transfer by Massaleh Investments K.S.C.C. of its 38.8% interest in FIMBank to Burgan Bank and the latter’s intention to inject new equity which will see it increase its prospective holding to above 50% of FIMBank’s issued share capital. FIMBank indicated that the due diligence process by Burgan on FIMBank is progressing but no developments could be reported at this stage.