Malta-based FimBank has reported a half-year profit of $2.92 million after tax, compared to $23.81 million registered for the same period in 2008. However in 2008 the group recorded an outlier after-tax profit on disposal of its shareholding in Global Trade Finance Limited (“GTF”) of $19.35 million.

During the six months to June, net Interest Income decreased by 25% to $5.31 million, but the Net Interest Margin improved to 54% of Gross Interest Income (2008 - 43%). Net Fee and Commission Income dropped by 9% to $9.15 million.

The continued pressure on global credit risk perception had a negative impact on the fair value adjustments of the Group’s Trading Assets, which resulted in an aggregate downward mark-to-market adjustment of $1.76 million, all of which unrealised as at 30 June. This was partly offset by realised gains on trading assets of $0.24 million and foreign exchange profits of $0.47 million, for a net 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.

"Prospects of any substantive write-backs of unrealised mark-downs in financial assets, which marked the Group’s performance in 2008, are good and being helped by improved trends in the bond markets and restructurings currently under way; however timing is still difficult as the outlook on credit and impairment issues remains guarded," the group said.

Group Net Operating Income of $13 million was helped by improvements in efficiencies and cost management, with Administrative Expenses decreasing by 25% - which costs continue to include expenditure related to the start-up and acquisitions of new ventures.

In 2008 the Group booked $1.98 million in net Share of Profits from equity accounted investees, mainly the contribution from the investment in GTF before its disposal in the second quarter. For 2009 this has been replaced by a Share of Loss from Egypt Factors of $0.21 million.