FIMBank publishes interim financial statements

First International Merchant Bank plc has just published its interim financial statements for the six-month period of 1 January to 30 June this year. A presentation will be made to stockbrokers and financial intermediaries later on this month.

During the period under review, the merchant bank’s activities continued to grow at a consistent rate, in line with monthly average increases in business recorded during the year 2001. This growth in business is reflected in the operating income for the period, as compared to the same period last year. FIMBank is essentially a fee-income-driven, short-term trade finance bank, and commission earnings remain the best indicator of its growth.

Over the first six months of this year, the bank generated US$592,774 more in net fees and commissions and US$90,436 more from foreign exchange trading. The net increase of US$650,721 or (20%) in operating income is attributed to increased business activity, because net interest income is at almost the same level as last year.

The bank has continued to increase resources so as to sustain its increased business activity, volume of transactions, servicing of new customers, and achievement of its marketing objectives. Administrative overheads have gone up by US$302,667.

Changes in the composition of assets and liabilities reflect a lower reliance by FIMBank on borrowing from banks. Borrowing is gradually being replaced by increased funding from customer deposits. The bank’s outstanding position of current business has reached a level of US$127 million. This is 44% higher than that recorded in the results of the end of last year.

In preparing the financial statements for this interim report, FIMBank has assessed its exposures and considered it prudent to put aside US$1,160,133 of its operating income. Delays experienced during the realisation of expected proceeds – inherent in the short-term nature of the bank’s business – give rise to impairment in assets on particular reporting dates, which might well be recovered by the next reporting date.

No interim dividend is being paid or proposed in respect of these six months.