BCFC posts $32.6m net profit
Manama, March 20, 2013
Bahrain Commercial Facilities Company (BCFC) has reported total consolidated net profit of BD12.3 million ($32.6 million) for 2012, up 41 per cent over BD8.7 million earned in the previous year.
The return on shareholders' equity for last year was 14 per cent, as against 11 per cent for 2011. Earnings per share were 76 fils, up from 54 fils in 2011, reported the Gulf Daily News, our sister publication.
Impressed with the results, the company approved a cash dividend of 40 per cent, or 40 fils per share during the annual general meeting held yesterday. The dividend award was 35 per cent in 2011.
Addressing the shareholders, BCFC chairman Abdulrahman Fakhro said, "The performance of the company is very pleasing and a testament to its robust business model."
"The world economies are stressed, regional difficulties remain and in such difficult conditions all the company's business segments continued to exceed market expectations," he added.
Bahrain Credit, the company's consumer finance business, achieved a net profit of BD6.7 million, as against BD5.7 million in 2011. The company underwrote new loans of BD87 million in 2012, as against BD62 million in 2011 with its core product of vehicle finance continuing to play a pivotal role.
Its latest product, the Imtiaz credit card, is "now a major player in a very competitive market segment".
The company continued its conservative underwriting policies and further improved portfolio quality.
Another group firm, National Motor Company saw earnings of BD3.5 million in 2012, as against BD2.4 million in 2011.
The company said it benefited from a sharp turnaround in the automotive market coupled with the exciting new products provided by the principals.
"It is satisfying to note that the strategic capital investments in upgrading facilities and continued service improvements are translating into higher levels of customer satisfaction," chief executive Dr Adel Hubail said.
The real estate division, T'asheelat Real Estate Services Company has reported net profits of BD1.6 million for last year, as against BD85,000 for 2011.
The company said that through its Saar Land project it "has been successful in fulfilling the aspirations of Bahrainis for affordable housing and more such projects will be evaluated on an on-going basis".
T'asheelat achieved a net profit of BD544,000 in 2012 compared to BD494,000 the previous year.
The group continues to maintain a strong and healthy liquidity position and has recently replaced a maturing $75m loan with a new three-year $100 million syndicated loan facility.
BCFC has a comfortable leverage facilitating expansion and growth plans. "The financial position of the company remains solid. We now have a strategic plan for the next three years," Dr Hubail said.-TradeArabia News Service