BCFC net profit surges to $10m
Manama, July 23, 2008
Bahrain Commercial Facilities Company (BCFC) earned a net profit of BD3.7 million ($9.8 million) in the second quarter of the year, up from BD1.9 million for the same period last year.
This took its first half net profit to BD6.4 million, an increase of 48 per cent on the BD4.3 million earned in the same period last year.
Last month, shareholders approved a BD25.4 million rights issue. The proceeds will enable BCFC to build on the strong growth following last year’s organisational restructuring.
Consumer finance business continued to perform strongly with new business volumes surpassing BD50m in the first half of the year.
Non-performing loans are less than 2 per cent of the portfolio reflective of the company’s stringent underwriting standards and strong collection efforts.
BCFC’s fully-owned subsidiary National Motor Company’s earnings for the first half of this year were 43 per cent higher over the same period last year.
The real estate business realised gains of BD500,000 from mezzanine financing.
Whilst the company will continue to pursue similar opportunities, in the current fully valued real estate market such transactions may be considered non-recurring.
The insurance arm of BCFC, Tas’heelat Insurance Services Company continued to build market presence and delivered a 38 per cent increase in net profit compared to the first half of last year.-TradeArabia News Service