BCFC registers net profit of $17m in H1
Manama, July 24, 2013
Bahrain Commercial Facilities Company (BCFC) has reported a consolidated net profit of BD6.4 million ($16.97 million) for the first half of the year, slightly higher than the figure for the same period last year.
Net profit for the second quarter of this year was BD3.1 million as against BD3.6 million for the corresponding period last year, reported the Gulf Daily News, our sister publication.
These results are remarkable in light of the fact that last year the company made a one-time income of BD1.3 million from sale of land inventory, chairman Abdulrahman Fakhro said.
"Overall conditions remained challenging both globally and locally and the results are a testament to the company's successful business model," he added.
Chief executive Dr Adel Hubail said the continued expansion in the new business of consumer finance has reflected positively on income.
BCFC disbursed new loans of more than BD51 million in the first half of the year resulting in an eight per cent increase in loan portfolio.
The portfolio quality remained good with non-performing loans contained at 3.50pc of the total loans portfolio, as against 3.64pc as of June last year.
National Motor Company (NMC), its wholly-owned automotive businesses subsidiary, registered net profit of BD1.6 million for the period under review as against BD1.9 million for the corresponding period last year.
In line with strategic plans aimed at a wider presence regionally, the company said it was at an advanced stage in its plans to open a new Honda dealership in Erbil, Kurdistan.
The result for the current period includes certain pre-incorporation cost for the new venture which impacted the company's profit.
The investment will enable BCFC to diversify its income.
Tas'heelat Real Estate Services Company, its wholly-owned real estate subsidiary, reported a net profit of BD228,000 for the period, as against BD1.34 million earlier.
The Saar Land project, which addressed affordable housing needs, has been a success, Dr Hubail said.
"The company also continued to make prudent investments in its rental portfolio in neighbourhoods which offer high occupancy rates and are providing steady and reliable yields," he added.
Tas'heelat Insurance Services Company, its wholly-owned insurance subsidiary, continued to increase its market share, resulting in a 14pc increase in net profit when compared with the first half of last year.
The company continues to maintain a healthy liquidity position and has replaced two maturing loans of $75 million and $45 million with new loans of $100 million (three-year tenure) and $55 million (four years) respectively.
"The group has a very low leverage and this will facilitate expansion and growth plans," Dr Hubail said.
"With strong capital and excellent liquidity position, BCFC is well positioned to enhance value for shareholders," he added. – TradeArabia News Service