The Fimbank Group has registered a pre-tax-profit of $8.84 million (€6.78m) during 2012, compared with $8.28 million (€6.4m) in 2011. The group’s balance sheet saw considerable growth, with total consolidated assets as at December 31, 2012, standing at $1.13 billion (€0.87bn), an increase of 11 per cent over end-2011 figures.
The results for 2012 also show that the group’s operating income increased by four per cent over the same period in 2011, from $37.40 million to $38.72 million (€29.83m), while group operating expenses for the same period decreased marginally from $28.92 million in 2011 to $28.49 million (€21.95m) in the year under review.
The group’s basic earnings per share stood at $0.0617 (2011: $0.0645). The directors will be recommending to the annual general meeting of shareholders the payment of a cash dividend amounting to $5,279,120 (2011: $ 2,738,034), representing a net dividend per ordinary share of $0.03693149 (2011: $0.02003884, diluted to $0.01926812 due to 2012 bonus issue).
2012 unfolded as a year which saw some normality returning to financial markets as political, monetary and fiscal measures contributed to the process of stabilisation across a number of European economies. Most of the North African and Middle Eastern markets where the Fimbank is active remained clouded by political instability. However, the group’s focus on providing support to trade business and short-term exposures means that it is geared to take up opportunities which might develop in these markets.
Reflecting on Fimbank’s performance and the current outlook, president Margrith Lütschg-Emmenegger said the group had maintained “its selective approach to business and continued to explore openings in commodity finance, particularly softs, metals and energy, as the bank made further inroads into trade-related transactional banking business with new clients and markets”.
The year under review was also marked by the announcement in the first quarter of the proposed transfer by Massaleh Investments KSCC of its shareholding interest in Fimbank to Burgan Bank SAK and United Gulf Bank BSC, both forming part of the Kipco Group.
The new investors’ plans are to inject new equity which would see their prospective holding exceeding 50 per cent of Fimbank’s issued share capital.
Earlier this year, the overwhelming majority of Fimbank shareholders approved two resolutions which will enable these institutions to acquire a controlling interest in the company, subject to regulatory approval.
Fimbank chairman John C Grech referred to this development as “an important milestone for Fimbank, not least because it opens up new horizons and will allow us to expand and pursue opportunities which to date were effectively out of our reach”.
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