FIMBank posts $1.45 million profit for interim profits

FIMBank Group’s interim results were impacted by sharp impairments from factoring undertakings, depressing the overall group performance despite a positive 41% increase to USD27.3 million in operating performance.

Net interest income almost doubled to USD14.55 million, mainly as a result of lower funding costs, higher volumes for funded business, and the inclusion of results from India Factoring in India and Factorrus in Russia. Net fee and commission income rose by 8% to USD11.57 million.

For the six months ending 30 June 2014, the Group posted an after-tax profit of USD1.45 million, compared with a loss of USD6.98 million registered for the same period in 2013.

Total consolidated assets stand at USD1.33 billion, reflecting a 7 per cent increase on the USD1.24 billion reported at end 2013. Total consolidated liabilities stood at USD1.12 billion, or a 3 per cent increase on the USD1.09 billion reported in December 2013. Operating expenses increased by 43 per cent from USD14.18 million in 2013 to USD20.25 million, reflecting the inclusion of the India and Russia entities as well as increases to staff and operating costs.

Chairman Dr John C. Grech said the positive operating results had confirmed the proven validity of FIMBank’s flexible and robust business model.

“However, in the light of the challenging environment we will be facing throughout the rest of the year, we reaffirm our intent to step up recovery efforts over impairments, which have marked the group’s performance since 2013.

“We will continue to be on our guard and monitor developments with a view to limiting further similar events going forward. We are also encouraged in this process by the support of our shareholders, demonstrated so strongly in the recent Rights Issue that generated USD48 million of new equity. This support serves as a platform which should significantly boost FIMBank’s capability to generate more business and create further opportunities for profit.”

President Margrith Lutschg-Emmenegger said management and all employees had shown commitment during challenging times.

“Our strength has always been our ability to re-invent ourselves to adapt to new realities and challenges. The Group can now boast a strong reference shareholder which has already started facilitating access to funding, and has led to a stronger equity base. Apart from improving our visibility in the market, our objective will remain that of maintaining strong capital ratios and enhancing our credit rating.”