Following a challenging 2009, the FIMBank Group has reported an encouraging and significant increase of 24 per cent in its after tax-profits, which reached US$6.74 million.
The group’s balance sheet, meanwhile, also saw considerable growth, the group reports, with total consolidated assets as at 31 December 2010 standing at US$861 million, a 24 per cent increase over end-2009 figures. These encouraging figures emerge from the FIMBank Group’s financial results for 2010, which were announced recently.
FIMBank President Margrith Lutschg-Emmenegger commented, “The improved profitability and growth in the group’s balance sheet are in line with the gradual normalisation and return of confidence in international markets and hence the improvement in the group’s activity.
“Despite challenging market conditions, we have also managed to retain our Fitch rating, thus validating the solid risk management we implement, as well as the strong, trade-financed business model which we have been adopting successfully over the years.”
Among the group’s highlights in 2010 were FIMBank’s issue of a €33 million offer of 2013 4.25% Bonds, which were oversubscribed within hours of opening, as well as the official launch of the factoring joint venture in India, India Factoring, the group’s acquisition of a larger stake in Lebanon’s Levant Factors and the conclusion of negotiations to set up a factoring joint venture in Brazil.
Over the last year the FIMBank Group’s operating income after net impairment allowances increased by 23 per cent over last year’s level − from US$26.11 million to US$32.24 million – while group operating costs were reported at US$25.02 million, only marginally above the levels for the same period in 2009.
This, the group underscores, “underlines the good process and continued efforts aimed at improving the group’s efficiency and cost-management”.
Ms Lütschg-Emmenegger confirmed that FIMBank is now looking at a period of growth, with trade finance activity gradually reverting to pre-crisis levels.
“We will continue to pursue new geographic and product markets and to strengthen our presence in important trading centres, while keeping an eye on developments in the Middle East and North Africa,” she said.
“Diversification and strengthening of funding will remain a priority area for the group, especially for the bank, and will continue to be an important driver of business and of revenue and profit growth.”
Group equity as at 31 December 2010 stood at US$121 million, up five per cent over last year in a reflection of the group’s profit performance as well as the equity retention resulting from the scrip dividend approved in May.
The group’s basic earnings per share stood at U$D0.0497, far higher than 2009’s US$0.0116.
The group’s board of directors will be recommending to the annual general meeting the payment of a scrip dividend amounting to USD3,371,955 (2009: US$1,565,048), representing a net dividend per ordinary share of US$0.02480242 (2009: US cents 1.155640).