The FIMBank Group has announced its results for the six months ended 30 June 2013. The period under review was marked by positive operating results from all the main Group companies and associated factoring undertakings. These, however, were heavily impacted by sharp impairments which significantly depressed Group performance. Prior to impairment losses, marked-to-market adjustments and share of equity results, the FIMBank Group improved its operating performance by 12%, from USD17.17 million to USD19.32 million. Net Interest Income increased by 33% to USD7.37 million, mainly due to higher volumes, resulting in the strengthening of the Net Interest Margin, from 38% to 43%. These figures emerge from the consolidated interim results of the FIMBank Group which were approved by its Board of Directors on 13th August 2013. For the six months ending on 30 June 2013, the FIMBank Group posted an after-tax loss of USD6.98 million, compared to a profit of USD4.55 million registered for the same period in 2012. Other key financial indicators highlighted in the Group’s interim results show total consolidated assets standing at USD1.12 billion, in line with the USD1.13 billion reported at end 2012. Total Consolidated Liabilities as at 30 June 2013 stood at USD1 billion, the same level as last year. The interim results also highlight healthy liquidity ratios consistently above the required regulatory threshold. Moreover, the Basle II Capital Adequacy Ratio, at 15.04%, and a Tier 1 Capital Ratio of 11.44% at end of June 2013 remained robust and comfortably above the regulatory minimums. The Board of Directors adopted a conservative approach to impairment provisions. Commenting on the FIMBank Group results and performance for the first half of 2013, FIMBank Chairman Dr John C. Grech stated that: “In the prevailing challenging operating environment, FIMBank continued developing its franchise with reputable corporate customers, focusing on providing structured commodity and trade finance solutions. The Group followed a cautious approach towards developing new relationships, as dictated by the challenging environment and witnessed by the high level of liquidity in its assets portfolio.” With regard to the decision concerning impaired assets the FIMBank Chairman explained that “After evaluating the circumstances of each case, the Board decided to take the most prudent approach, and made conservative provisions on these impaired assets. Meanwhile, legal remedies are in process for their recovery. Management will be actively monitoring developments concerning these assets with a view to releasing some of the provisions in the second half of 2013.” FIMBank President Margrith Lütschg-Emmenegger stated that “FIMBank continues to demonstrate a strong and diversified business model, which allows us to focus on our core business of cross-border trade finance and react quickly to developments in the markets in which we operate. Referring to the second half of the year, Ms Lütschg-Emmenegger underlined the fact that “as a result of the ongoing integration with the Group’s new reference shareholders, the KIPCO Group, we will have access to more favourable conditions on the funding side of the balance sheet, benefit from intra-group technology transfers, and leverage Group synergy to drive value and generate bottom line results.” Whilst expressing his confidence in FIMBank’s future prospects, Dr Grech maintained that: “For the second half of the year we are expecting the Group’s operating performance to remain resilient and in line with the trend achieved during the first six months of 2013. This should be aided by the effect of the new institutional shareholding which is expected to result in the development of new business opportunities, the realisation of strategic objectives, and overall improved visibility in the market.”