NEWS | Wednesday, 29 August 2007

Slightly improved results for FIMBank plc

The US$ denominated equity, FIMBank plc, has published its interim results that show a slight improvement when compared to the previous year’s interims.
The top line figure of Net Interest Income is an impressive increase of 22%, whilst net fee and commission income has also increased. However, this year FIM Bank did not report any income from Dividends. This was compensated for as the Bank had less impairment losses during the period.
What dampen the results registered so far are the expenses for administration, staff related, depreciation and a further write down for goodwill. The increased activity in existing and for new ventures has started to eat up from the additional income earned. The bank has also recruited new personnel and compensated staff according to performance which added to the costs. However, new activities should result in new revenue streams to be registered in future years. The income from associated ventures was mixed with some registering in positive territory but others at start up stage still have to turn around to set off the initial expenses.
As a result, the profit before Tax reached US$3.8 million against the US$3.4 of the previous year. The Bank on its own, which is the major investment of the FIMBank, had results that mirror those of the Group.
Looking at the Balance Sheet, one finds that the Total net Assets have increased. In fact, its financial assets have appreciated in value whilst loans and advances to banks and customers have decreased.
The Group’s reported Equity has increased by 4% and now stand at US$65 million.
Of relevance is a note to the accounts that the bank repaid a US$60 million syndicated international finance facility and replaced it with other funding lines mainly on more competitive terms.
Overall, the positive results although marginally improved bode well for the future as they show the Bank is in an expansion process.