The Malta-based FIMBank Group said today that despite the current difficult global environment, and despite drops and volatility in commodity, freight and oil prices, its performance for the second half of 2008 is strong and continues to show improvement over the same period last year.

“The resilience of operating revenues is in many ways a consequence of the diversification strategies of recent years, and of the fact that trade, especially in essential and important commodities, including in emerging markets, will continue to flow even in challenging economic conditions,” the bank said.

“Moreover, liquidity ratios remain high and well above regulatory requirements, and no liquidity pressures have materialised as the group’s funding is now more diversified, more deposit-based than in the past as our correspondents continue to support the group.”

It said its asset quality also continues to be good as the group had become more selective with corporate risks, tenors and security of transactions.

FIMBank said that while the recent drops in its equity prices, on small volumes of activity, may be a reaction to the general sentiment arising from the financial market crisis, they were not supported by any relationship or reference whatsoever to the financial health of the group.

“On the contrary, the Board considers that the strong trade finance fundamentals of the Group and its operating and financial soundness continue to provide much opportunity for value accretion and still have room to be reflected in the market pricing of FIMBank equities.

FIMbank also welcomed the deposit guarantee scheme launched by Malta.