Fimbank Group posts interim profit of $2.92m
Fimbank Group posted an after-tax profit of $2.92 million for the six months to June 30, down from $23.81 million in the corresponding period in 2008, Fimbank plc said last week. The marked difference in profits was attributed to the bank's disposal of...
Fimbank Group posted an after-tax profit of $2.92 million for the six months to June 30, down from $23.81 million in the corresponding period in 2008, Fimbank plc said last week. The marked difference in profits was attributed to the bank's disposal of its shareholding in Global Trade Finance Limited which generated $19.35 million last year.
The directors are not recommending an interim dividend. The condensed interim financial statements were approved after a board meeting in London on August 13.
The group said its interest and fee-based operating sources of income decreased: net interest income fell by 25 per cent to $5.31 million but the net interest margin improved to 54 per cent of gross interest income (last year it stood at 43 per cent).
Net fee and commission income dropped by nine per cent to $9.15 million. Pressure on global credit risk perception negatively impacted fair value adjustments of the group's trading assets which resulted in an aggregate downward mark-to-market adjustment of $1.76 million, all unrealised as at June 30. This was partly offset by realised gains on trading assets of $0.24 million and foreign exchange profits of $0.47 million for a negative trading result of $1.05 million.
The group reported unrealised gains on other financial assets carried at fair value of $1.11 million for the first six months of 2009. Fimbank said the prospects of substantive write-backs of unrealised mark-downs in financial assets which marked the group's performance last year were good. The group warned that the timing was still difficult as the outlook on credit and impairment issues remained guarded.
The bank said weakening economic cycles, financial market dislocation and a generally spread lack of confidence continued to hamper liquidity and to cause trade to slow down.
In April, the bank's combined euro-dollar 7 per cent 2012-2019 subordinated bond issue heavily oversubscribed within minutes. Over €30 million were raised by over 2,600 investors.
The Fimbank Group includes Fimbank plc, and its wholly owned subsidiaries London Forfaiting Company Ltd, FIM Business Solutions Ltd, FIM Property Investment Ltd, and FIM Factors BV. LFC is the parent company of a group of subsidiaries in various jurisdictions but acting mainly as marketing offices. FIM Factors's subsidiary Menafactors Ltd, incorporated in the Dubai International Financial Centre.