FIMBank plc - Interim Directors’ Statement

On 12 November, FIMBank plc issued its Interim Directors’ Statement covering the four and a half month period since the end of the Bank’s half-year on 30 June.

Performance Review

During the period under review, FIMBank reported that encouraging opportunities continued to emerge across the markets and business sectors in which the Group operates. Most notably, London Forfaiting Company remained a strong element in the Group’s performance showing good trading results and consistent growth. On its part, FIMBank maintained its selective approach to business in markets whilst taking up new opportunities in commodity finance as well as increasing its transactional banking business to satisfy clients’ demands. Overall, the Bank’s business strategy continues to focus mainly on short-term self-liquidating transactions supporting real trade-related flows.

Menafactors, the Dubai-based subsidiary covering the MENA region, maintained the positive trend of the first half as the outlook for business continued to stabilise and improve. Meanwhile, the Group reported mixed results from its factoring joint-ventures. The performance in Egypt and Russia continued to be characterised by slow growth. In India, after an impressively strong entry into the market, the performance of India Factors is now settling down to levels more consistent with the cautious economic outlook and lower growth forecasts for the sub-continent. On the other hand, the results of BrasilFactors show a break-even operating performance in its start-up year of operations.

Overall, revenue and profit levels have followed the trend of the first half when the Group reported an 11.4% increase in net profit to US$4.5 million. The Group continues to be underpinned by strong risk and compliance practices, prudent impairments and sound provisioning policies.

Looking ahead, 2013 will see the arrival of new waves of regulation whilst both the Group and the Bank will continue to seek to maintain healthy capital and liquidity ratios correspondent to their strategy.

Burgan Bank

The Directors also made reference to the potential takeover by Burgan Bank. The announcement revealed that, in recent weeks, discussions and negotiations have been taking place aimed at bringing the transaction to a more advanced stage. Further announcements will be made as soon as there are developments.

Relocation of Head Office

In July, the FIMBank Group Head Office was officially relocated to its new premises at Mercury Tower located at The Exchange in St. Julian’s. The new office set-up includes significantly improved and state-of-the-art facilities that bring all of the Group’s operations in Malta together.