NEWS | Wednesday, 27 August 2008

FIMBank announces strong interim results for 2008

FIMBank plc (“FIMBank” or “the Group”), the Malta based global trade finance specialized institution, is pleased to announce its unaudited results for the six months ending 30 June 2008. For the half year ended 30 June 2008, the Group posted an after tax profit of $23.81 million, a significant increase over the $3.46 million registered during the same period in 2007. The Group’s earning Per Share for 2008 amounted to US cents 20.02 compared to US cents 4.01 in 2007.
The Group Net Interest Income increased by 42 per cent on 2007 to $7.04 million. Net Fee and Commission Income increased by 64 per cent to $10.05 million, being largely the result of improved performance both at Bank and London Forfaiting Company (“LFC”). Net trading income and gains from financial instruments carried at fair value increased by 44 per cent to $2.06 Million. The disposal of shares in Global Trade Finance Ltd (“GTF”) in March 2008 contributed to a consolidated profit on disposal of $29.15 million. Consequently, Group Net Operating income grew from $12.22 million to $47.30 million.
At 30 June 2008, the Group’s total assets stood at $756 million, an increase of 32 per cent over those reported on 31 December 2007, while Group equity stood at $118 Million, an increase of 20 per cent since year end. The Board of Directors, after considering the one-off nature of the gain made by the company from the disposal of its shareholding in GTF, is pleased to announce the payment of an extraordinary dividend of USD4,397,685 (i.e. $cents 3.2909240 per ordinary share) by means of a scrip issue to its shareholders.
Najeeb Al-Saleh, Chairman of FIMBank, commented: “My Board is very pleased with the performance of FIMBank this half year. Even if one were to exclude the extraordinary gain made on the sale of our shareholding in GTF, the performance of the Bank and LFC has been strong. The Group is reaping the benefits of its specialization in trade finance, the diversification of its markets and products and the prudent but solid approach to emerging markets. I am pleased to note that the effects of the sub-prime crisis and the general liquidity tightening has had no adverse effect on FIMBank’s performance, and actually created opportunities for the markets in which the Group is active. The board members and I are confident that the Group should continue this strong performance in the coming years by remaining focused on trade finance and maintaining a strategy of expansion in promising markets.”
Margrith Lutschg-Emmenegger, President of FIMBank stated: “I am proud to say that the performance of the Group is exceeding expectations. The sale of GTF has exceptionally boosted the revenues of the Group this time and this has demonstrated that the strategy followed by management in establishing Factoring joint ventures with sound partners in select markets is yielding the hoped for results. However, this has also placed a challenge on management and staff to maintain a strong revenue stream through the core activities of the Group as well as keeping an open mind on future opportunities. The Group’s operating result has been remarkably strong in spite of the one-off gain on the disposal of GTF.”
For more information on FIMBank and the full interim financial statements for the half year ended 30 June 2008, please refer to www.fimbank.com