Fimbank Group announced its results for the six months ended June 30. The period under review was marked by positive operating results, which were impacted by sharp impairments from factoring undertakings, thus depressing the overall group performance.
The group registered a strong improvement of 41 per cent in its operating performance, from $19.32 million to $27.30 million. Net interest income almost doubled to $14.55 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. Meanwhile, net fee and commission income rose by eight per cent to $11.57 million.
These figures emerge from the consolidated interim results of Fimbank Group, which were approved by its board of directors on August 5.
For the six months ending June 30, the group posted an after-tax profit of $1.45 million, compared with a loss of $6.98 million registered for the same period in 2013.
Other key financial indicators highlighted in the group’s interim results show total consolidated assets standing at $1.33 billion, reflecting a seven per cent increase on the $1.24 billion reported at the end of 2013.
The positive operating results posted by Fimbank continue to confirm the proven validity of our flexible and robust business mode- John Grech
Total consolidated liabilities as at June 30 stood at $1.12 billion, or a three per cent increase on the $1.09 billion reported in December 2013. Operating expenses for the six months under review increased by 43 per cent from $14.18 million in 2013 to $20.25 million, reflecting the inclusion of the India and Russia entities as well as increases to staff and operating costs.
Commenting on the group’s results and performance for the first half of 2014, chairman John Grech said: “The positive operating results posted by Fimbank continue to confirm the proven validity of our 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 $48 million of new equity. This support serves as a platform which should significantly boost the bank’s capability to generate more business and create further opportunities for profit.”
While expressing her confidence in Fimbank’s future prospects, president Margrith Lutschg-Emmenegger said: “My appreciation goes to management and all our employees for their commitment, which is critical, especially during such 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.”