Positive outlook for FimBank with return of confidence in international markets

FimBank Group chairman Najeeb Al Saleh FIMBank’s has said the bank’s focus on maintaining its competitive advantage as a specialist trade finance niche market player, underlined by a sustained diversification policy, “had once again paid off, allowing it to benefit from the opportunities which arose from the recovery of economies around the world”.

Mr Al Saleh was speaking during the bank’s annual general meeting held recently at the Le Meridien Hotel St Julian’s.

Mr. Al Saleh announced that all the components of the group had shown “substantial improvements”, with the FimBank Group registering an increase in its after-tax profit to reach $6.74 million for 2010, four times the 2009 results. The group’s balance sheet also saw an increase of 24 per cent over 2009 figures.

“Our capital and liquidity ratios remain healthy, while a robust risk management policy kept us firmly on course. All these factors contributed to us retaining our current Fitch rating of BB and the outlook as ‘Stable’ in 2010,” said the FimBank chairman.

Among the major developments mentioned by Mr Al Saleh were the $60 million loan agreement recently signed with the IFC, including participation of the Saudi Fund for Development, which will enable the Bank to finance trade in emerging markets, as well as the conclusion of negotiations with the IFC and Bicbanco to setup Brasilfactors, FimBank’s new joint venture in Brazil.

He also described as “encouraging” the fact that the bank’s 2010 bond issue, which raised €33 million of 4.25% 2013 bonds, was oversubscribed within hours of opening.

Mr Al Saleh said that while indicators point to the gradual normalisation and return of confidence within international markets, and hence the marked improvement in the group’s activity, FimBank’s Libya and Egypt exposure “is well under control” and the bank will continue to monitor the situation while “looking out for opportunities that will present themselves in the region”.

The meeting also included presentations by FimBank president Margrith Lütschg-Emmenegger, who outlined the 2010 performance in the context of the group’s strategy and outlook for the future, and on the share-for-share exchange offer of FIM Holdings plc to the shareholders of FimBank plc, as part of an inter-group reorganisation.

All the items on the agenda were passed and an important resolution for the de-listing of FimBank plc, paving the way for the subsequent listing of FIM Holdings plc instead, was carried after a poll took place which passed the tests required for the necessary corporate and statutory approvals.