Optimism forecast for this year has translated into a renewed appetite for business as emerging market conditions continue to improve and trade flows pick up, Fimbank Group said in its interim directors’ statement on Monday.
The group’s performance for the second half of the year continued to show the positive trends already in evidence in the financial results for the first half, the bank said.
There has been an increase in the general pipeline of business at both Fimbank and London Forfaiting Company, supported by a strong balance sheet and healthy capital and liquidity ratios. Fimbank is continuing with its strategy to diversify its funding base as a steady availability of funding remains critical to the growth of the business, and with stability in the inter-bank markets not yet back to the pre-crises levels.
Following the successful bond issue in October when the bank raised the equivalent of €33 million for a three-year 4.25% Bond, the bank said other funding initiatives continue to be developed.
New products and services are expected to be launched in the first quarter of next year.
India Factoring and Finance Solutions Private Limited, the Mumbai-based venture in which Fimbank holds a 49 per cent stake, received its Certificate of Registration from the Reserve Bank of India, authorising it to commence business as a non-bank financial institution.
India Factoring has already started operations and will provide factoring, forfaiting and trade finance solutions primarily to small and medium-sized businesses and small scale industries.
Fimbank has also increased its shareholding in the Beirut-based LCI Factors S.A.L., now renamed Levant Factors, to 50 per cent.
Elsewhere, Menafactors and Egyptfactors continue to register encouraging progress, helped by a gradual normalisation of economic conditions in Dubai, and greater access to local funding, respectively.
“As inroads are made to new geographical and product markets, with the consistent application of high risk management and compliance standards and buoyed by a more optimistic business sentiment, it is expected that revenue and income will continue to strengthen with no foreseen credit issues and existing ones kept under strict work-out controls,” the bank said.