FIMBank plc – Interim Directors’ Statement
FIMBank plc announced that the second half of 2013 has been characterised by further evidence of greenshoots in the global scenario led by stronger growth in many advanced economies in particular in the US. In order to support such recovery, the world’s major central banks look set to persist with loose monetary policy for a long time to come. The outlook looks reasonably encouraging with the important caveats that the euro-zone is still lagging behind and that the larger emerging economies are not as dynamic as they were. In this scenario FIMBank has taken a prudent approach by selecting markets where the Group is active and taking severe provisions with regard to facilities, the fate of which is still undetermined.
This is an approach which has been also followed by London Forfaiting Company although the same remains a strong element in the Group’s performance showing good trading results and significant growth. MENAFactors, the Dubai-based subsidiary covering the MENA region, confirmed its positive trend. Egypt Factors’ performance has been inevitably affected by the political situation in the country, although the amount and the quality of business in the factoring area look promising. The performance of FactorRus has been also affected by serious impairments while India Factors, the Group’s joint venture in India, confirms a promising performance. The results of BrasilFactors continue to reflect a break-even operating performance in its start-up years of operations.
The transfer by Massaleh Investments K.S.C.C. of its shareholding interest in FIMBank to Burgan Bank S.A.K. has been completed and FIMBank now forms part of the KIPCO Group, with Burgan Bank and United Gulf Bank having acquired 49.78 % shareholding in the Bank. This follows the conversion of the first tranche (USD 30 million) of the USD 60 million Convertible Loan granted by United Gulf Bank in favour of FIMBank which has caused the issuance of 36,254,567 shares to United Gulf Bank as already announced on the 4 July 2013. The new shareholding structure has already improved the position of FIMBank with regard to access to new funding. New developments regarding the multi step approach announced by Burgan Bank and United Gulf Bank should take place in the near future.
The operating performance for the FIMBank Group for the remaining part of the year is expected to follow on the positive trends showed in the first half of 2013.
No material events or transactions have taken place that would have an impact on the financial position of the Group or require specific disclosure.
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