Fimbank Group interim profits up 20 per cent

Fimbank Group has announced an after-tax profit of US$4.08 million for the six months to June 30, an increase of over 20 per cent over the same period in 2010.

Group net operating income rose to $18.95 million while total consolidated assets increased by 19 per cent to top the $1 billion mark by June 30. Group basic earnings per share rose to US cents 3.00 from US cents 2.50 in 2010. Averaging at 49 per cent, liquidity ratios were well above the statutory requirements during the period under review, while Basle II solvency ratios, at 19.4 per cent, remained robust and comfortably above the regulatory benchmark.

In their half-yearly report, the directors noted that while the period under review started with “reasonable expectations” that international trade would pick up as a result of wide-ranging monetary and fiscal measures across major economies, the political turmoil in the Middle East and North Africa has fostered a sense of uncertainty. While remaining “cautious of these regions and keeping them closely monitored”, Fimbank is also looking ahead to the opportunities which might present themselves once the situation stabilises.

“The strategy of diversification and growth in both financial products and markets is clearly showing some positive results”, Fimbank president Margrith Lütschg-Emmenegger said.

Ms Lütschg-Emmenegger highlighted the encouraging contribution by Menafactors in Dubai, the promising start of factoring operations in India, and Fimbank’s belief in the potential of other markets where it has set up factoring joint factors with major institutional partners, including Dubai, Russia, Egypt and more recently Brazil.

Ms Lütschg-Emmenegger ex-plained that in the current market and political conditions, Fimbank’s approach to developing new banking and structured trade finance business would remain “selective and focused on its core competency, namely cross-border trade finance with an emphasis on emerging markets”.

With regard to the agreement signed with the International Finance Corporation and the Saudi Fund for Development for a funding facility of $60 million, Ms Lütschg-Emmenegger said this would “enable Fimbank to finance more trade transactions for emerging market firms in various sectors. It also reiterated confidence in the group”.