Bahrain Commercial Facilities Company (BCFC) posted a net profit of BD5.1 million ($13.5 million) in the first half of the year.

While this is down on the BD6.4 million for the same period last year, it is considered satisfactory given the economic conditions, according to company chairman Abdulrahman bin Yusuf Fakhro.

'The first six months of 2009 has been the most challenging because of the crisis the world economy is facing,' he said.

'Although relatively less affected than other markets, the Gulf has not been immune to this and that has negatively impacted the markets in which we operate.'

'Demand for credit is lower than experienced in recent years and the company has chosen to be more selective in its lending,' said deputy chief executive officer Dr Adel Hubail.

'This has translated into new business of BD36 million, some 30 per cent lower than last year.

'The portfolio is stable at around BD155 million and the business has delivered earnings of BD3.6 million, 18 per cent ahead of last year and benefiting from the capital increase in November.

'The focus is, and will continue to be, on maintaining the portfolio quality and it is pleasing to note that non-performing loans are less than 2.5 per cent of receivables.'

The National Motor Company has maintained its market share, translating into a fall in turnover of 25 per cent, he said.

'The global recession has led to manufacturers severely reducing output and 2010 model introductions are likely to be some months later than the tradition,' he said.

'Thus the management of inventory levels is crucial and the company is adequately positioned to meet market expectations.

'The General Motors corporate restructuring is now complete and a number of attractive new products will be introduced to the Middle East in the coming months.'

The real estate and insurance services businesses have made a sound contribution in line with market conditions, he said.

'Looking ahead, market demand in the near term is likely to broadly reflect the first half,' he said.

'The company is properly prepared and positioned to face this.

'Following the rights issue of November 2008, the company enjoys unprecedented balance sheet strength with shareholders funds of BD65 million,' he said.-TradeArabia News Service