Fimbank Group plc has posted an interim post-tax profit of $3.39 million for the six months ended June 30, up from $2.92 million in the same period in 2009.
Total consolidated assets stood at $770 million, an increase of 11 per cent over the levels reported at end 2009. Loans and advances to banks increased by 20 per cent while loans and advances to customers dropped by six per cent when compared to December 31, 2009, levels and after adjustments.
The group’s trading assets increased by $33 million, mostly a reflection of the improved appetite for business and the gradual return of confidence in the markets. Group equity stood at $117 million, marginally up from the equity levels of December 31, 2009.
After the difficult and challenging conditions that marked most of 2009, more favourable economic forecasts fuelled a more optimistic outlook for 2010, the group said. World trade started to show signs of rebound during the first half of the year, while capital started to flow to emerging markets.
As global credit risk perceptions slowly started to improve, international financial markets started to stabilise and liquidity has shown gradual signs of easing, improving prospects especially for banking business, the group added.
However, as clear signs of a rebound in main emerging powers like China, Brazil and India continued, the recovery in other emerging markets where the group is particularly active, remains challenging and is certainly not helped by protracted concerns in the developed countries, not least the eurozone.
With liquidity and capital adequacy ratios at healthy levels and a more stable access to funding, the group sought to capitalise on the current business sentiment, continue with its strategy of pursuing factoring investments and projects, and with a qualitative focus on profitability. In the first half of the year, the group continued to expand its client and product base in both existing and new geographical markets. Efforts to recover fully impaired past losses continued.
The directors have not recommended the payment of a dividend.
In May, a scrip dividend of $1,565,047 was paid in respect of the financial year ended December 31, 2009. Of this, $487,970 was paid through the issue of 488,240 new ordinary shares.
The Malta-headquartered Fimbank Group of Companies, which is listed on the Malta Stock Exchange, includes Fimbank plc, and its wholly-owned subsidiaries London Forfaiting Company Ltd, FIM Business Solutions Ltd, FIM Property Investment Ltd, and FIM Factors BV.