Bahrain Commercial Facilities Company (BCFC) has reported its highest ever profits last year, which also saw the company's first venture beyond Bahrain.

Chairman Abdulrahman Fakhro told shareholders at the company's Annual General Meeting held yesterday that total consolidated net profits of BD13.1 million ($35 million) for last year were six per cent higher than BD12.3 million in 2012.

This represents a return of 14.1pc on shareholders' equity with earnings per share of 81fils, also higher than the 76fils in 2012, reported the Gulf Daily News, our sister publication.

A cash dividend of 40 per cent or 40fils per share has been approved.

The launch of Tas'heelat for General Trading and Cars, a new Honda dealership in Erbil, Kurdistan, marked the start of the group's expansion beyond Bahrain.

Chief executive Dr Adel Hubail said the group would continue looking for investment opportunities that increase shareholder value in existing business within Bahrain and outside.

The group continues to maintain healthy liquidity position.

During the year, it raised term funding of $155 million that replaced maturing $120 million of syndicated loans.

Additionally, BCFC issued BD20 million five years floating rate bonds, that replaced BD6.7 million of maturing bonds.

"The group has a very low leverage which will facilitate expansion and growth plans," Dr Hubail said.

The company's consumer finance business, Bahrain Credit, achieved net profit of BD9 million for last year.

It has underwritten new loans of BD99 million with its market share increasing in its core product of vehicle finance.

Bahrain Credit achieved 14 per cent growth in new vehicle loans over 2012.

The company's Imtiaz Credit Card registered the milestone of 10,000 cards in issuance.

Non-performing credit cards remained well below industry averages.

The continued conservative underwriting policies in mortgage lending further improved portfolio quality.

Non-performing loans improved to 2.99 per cent of portfolio.

The group's automotive division, National Motor Company (NMC) has reported earnings of BD2.7 million.

Last year's results include pre-incorporation expenses and the expected initial losses of the new dealership in Erbil.

NMC has reorganised its structure by brand to provide better services and bring in greater efficiency.

The principals are also planning important changes this year.

General Motors expects to launch a full range of new vehicles and Honda Motors would provide NMC vehicles from its factories closer to Bahrain therefore reducing lead times in deliveries.

"Strategic capital investment in upgrading facilities and continued service improvements are translating into higher levels of customer satisfaction," the chairman said.

The group's real estate division, T'asheelat Real Estate Services Company (Tresco) reported net profit of BD712,000 compared to BD1.6 million in 2012.

Last year, Tresco completed two affordable housing projects in Saar and continues to evaluate more such projects on an on-going basis.

The insurance division, T'asheelat Insurance Services Company (Tisco), achieved net profit of BD653,000 compared to BD544,000 in 2012.

It arranged in excess of 15,000 motor insurance policies and improved on its renewal rate for existing customers.

Tisco continues to have captive business from group companies and strategic partnerships with some car dealers. Additionally, it is looking to increase market penetration through leveraging on the Bahrain Credit and National Motor Company branch network.-TradeArabia News Service