Bahrain Credit's new loans rise 17pc in Q2
Manama, July 21, 2010
Bahrain Commercial Facilities Company (Bahrain Credit) saw new loans in the second quarter of the year rise 17 per cent to BD17 million ($45.1 million) from BD14.5 million in the first quarter.
Earnings for the second quarter also edged ahead, up from BD2.3 million in the first quarter to BD2.4 million.
'The expectation at the start of the year that global markets would recover in the first half of 2010 has not materialised,' said chairman Abdulrahman Yusuf Fakhro.
'In fact, locally, the businesses in which the group operates have registered negative growth rates.
'Accordingly, the group's net profit of BD4.9 million for the first half was down slightly from the previous year's BD5.1 million in the first half, but in the circumstances this is satisfactory.
'Demand for credit remains low with the key drivers, the automotive and real estate sectors, continuing to remain weak.'
'It is pleasing to report that the portfolio is at around BD147 million,' said chief executive officer Dr Adel Hubail.
'The focus is, and will continue to be, on maintaining the portfolio quality and non-performing loans although higher at 3.75 per cent of the receivables can be considered reasonable in the existing environment and are adequately provided for.'
The profits of National Motor Company for the first half reached BD1.2 million, 15 per cent ahead of the 2009 result.
The company has had a very strong second quarter posting a profit of BD728,000 against BD187,000 in the same period last year.
'Although the strong yen remains a matter of concern, tight inventory management, appropriate cost control measures and emphasis on after-sales operations should continue to offset any lower contribution from new car sales,' said Dr Hubail.
'The company has also commenced phase one of the reconstruction of its Sehla premises which will further boost customer service levels.
'The insurance services business has made a sound contribution in line with market conditions.
'Looking ahead, market demand in the near term is unlikely to show any significant improvements.
'The company continues to enjoy unprecedented balance sheet strength with shareholders funds of BD68 million,' he added.-TradeArabia News Service