Bahrain-based National Finance House (NFH) has announced the distribution of a cash dividend of five per cent of the company's paid-up share capital, amounting to BD375,000 ($988,846) at its annual general meeting.

For the fourth quarter of last year, NFH had posted a net profit of BD148,000 compared to BD189,000 for the same period of previous year, reported the Gulf Daily News, our sister publication.

Total assets had risen to BD40.29 million compared with BD33.42 million in 2011, while shareholders' equity grew to BD11.36 million from BD10.63 million, it added.

"I am pleased to report that NFH posted a strong overall financial and operational performance in 2012, with total operating income increasing by 11 per cent to BD2.51 million compared with BD2.26 million the previous year," said chairman Farouk Almoayyed.

"During 2012, the company took the prudent step of booking very conservative provisions of BD550,600 against impairment on loans to customers. This resulted in a reduction of net profit from BD801,000 in 2011 to BD722,000 in 2012," he stated.

During 2012, NFH focused on vehicle financing and further built on the positive relationship with all the car dealers which resulted in highest amount of financing since the inception of the company.

The company also managed to keep its liquidity and funding positions at very comfortable levels.

"Despite the stiff competition, I am pleased to report that NFH achieved a strong overall performance in 2012, highlighted by improved top line financial results, record vehicle purchase loans and major new business achievements," said general manager P S Venkat.

"NFH is continuing to work towards realising the board's vision of becoming the first-choice provider of finance solutions.

"In line with this a number of strategic initiatives were implemented throughout 2012 which contributed in strengthening NFH's relationship with its customers and enabled it to achieve excellent results.

"Those new initiatives included the launch of a call centre to service customers both during and after office hours, initiation of expansion of head office and main branch in order to provide better facilities to customers and to improve brand image of the company.

"The company also finalised a new core banking system, replacing the legacy system in order to enhance customer service and improve internal control and efficiency," he said.-TradeArabia News Service