Falcon Group, which offers non-bank alternative trade finance solutions and specialises in providing conventional instruments such as letters of credit (L/Cs), appears to be doing very well according to its recently released financial results.

They appear to indicate that as conventional banks back away from trade finance, opportunities are opening up for alternative trade finance suppliers.

Financial results

Falcon Group's profits nearly doubled in the 12 months to January 2013, to nearly US$44 million in 2012-13, up from US$23 million in the previous financial year.

The group reported turnover slightly short of US$1.7 billion, an increase of US$600 million over the same period a year earlier.

Market developments

Falcon Group provides L/Cs and other trade finance services to a mix of clients in the electronics, cars, commodities and capital goods markets.

It recently hired Simon Lonergan, previously with Société Générale, to take responsibility for the execution of documentation under L/Cs and bank-to-bank collections.

This article represents the views of the author and not necessarily those of the ICC or any of the other partners in DC-PRO.