Bahrain housing finance institution Eskan Bank achieved a net profit of BD3.26 million ($8.65 million) in the first half of the year, an increase of 20 per cent compared to BD2.7 million in the first six months of 2010.

"Eskan Bank continues to be the leader in housing financing solutions by contributing to the development of the mortgage lending market in the context of real estate development and construction within Bahrain," said Housing Minister and bank chairman Bassem Al Hamer.

"During the first half year, the bank has been able to meet citizens' housing needs and continues to be the financing arm of the Housing Ministry," he added.

The bank maintained momentum for the delivery of properties in the market. It is also developing six community projects scheduled for completion by end of the third quarter as part of the bank's commitment to serve the community.

It is also involved with the development of two commercial projects.

"The bank continues to deliver residential units and affordable houses through partnership with leading property developers in the private sector and by creating appropriate innovative funding structures to boost property development," Al Hamer added.

For the second quarter, the bank recorded a net profit of BD1.35 million as against BD1.4 million in the second quarter of 2010. The marginal decrease was mainly due to slower loan growth during the second quarter of 2011.

Overall, the bank has been able to achieve a 20 per cent growth in net income in the first half of 2011 compared to the same period last year. The return on assets increased from 1.2 per cent to 1.45 per cent over the past year.

The bank showed continuous growth in loan balances, which rose from BD274 million to BD289.4 million over the past 12 months. The bank has continued strengthening its asset base, which rose from BD440 million a year ago to BD449.3 million.

Eskan Bank is in the process of finalising a medium-term syndicated loan facility to meet its future funding requirements. Both domestic and international banks took part in the bidding process.

Eskan Bank is also reviewing the mortgage guarantee system which would support creation of primary and secondary markets. It aims to ensure sustainability of the mortgage business which will allow Bahrainis to own their homes. – TradeArabia News Service