Bahrain Commercial Facilities Company (BCFC) has reported 11 per cent increase in net profit at BD14.5 million ($38.5 million) for last year when compared with BD13.1 million for 2013.

Profit for the fourth quarter last year was BD3.3 million as against BD3.5 million in the corresponding previous quarter, said a report in the Gulf Daily News (GDN), our sister publication.

The board has recommended a cash dividend of 45 per cent, as against 40 per cent for 2013.

Chairman Abdulrahman Fakhro said full year profits were the highest in the company's history.

"These results manifest the faithful adherence to our core values, the successful execution of strategic plan initiatives and the hard work of our dedicated employees," he said.

The company's consumer finance business, Bahrain Credit, achieved net profit of BD9.8 million as against BD9 million earlier and provided loans of BD115 million, as against BD99 million earlier.

This resulted in a 14 per cent year-on-year increase in interest generating loan portfolio, the company said.

The quality of underwriting remained a key priority for the company and non-performing loans were 3.1 per cent of the portfolio.

The company said its credit cards brand "Imtiaz" strengthened its market share to 17,000 active cards.

In the automotive business, National Motor Company has registered a net profit of BD2 million as against BD2.7 million earlier. The results include the first full year's operating losses of BD1.3 million for its wholly owned subsidiary operating in Erbil, Kurdistan.

The company said it continues to closely monitor the situation in Iraq and is taking proactive steps to protect its investment.

In Bahrain, National Motor Company has pursued a brand-focused strategy aimed at "enriching the overall car ownership experience of customers, which has shown encouraging results".

The company's real estate division, T'asheelat Real Estate Services Company, recorded a net profit of BD1.9 million as against BD712,000 earlier.

T'asheelat Real Estate continues to focus on affordable housing and has completed another project in Saar.

All the company's investment properties for rental income have maintained almost full occupancy rate during the year and generated steady and reliable yield.

T'asheelat Insurance Services Company reported a net profit of BD813,000 as against BD652,000 earlier.

Last year, the company arranged more than 18,000 motor insurance policies.

"This was achieved through maintaining excellent relationship with insurance companies, developing closer ties with car dealers and providing value-added services to customers," Fakhro said.

"It is quite welcoming to note higher renewal rates from our existing customers."

In the year, BCFC issued new floating rate bonds maturing in 2019 to raise $53 million.

BCFC Group chief executive Dr Adel Hubail said the group now has a very low leverage of 1.6 times which provides strong potential for future expansion and growth plans.

"The sustained growth and profitability reflect the clarity of its unique value proposition in the niche markets identified in all its businesses, synergy amongst all its business segments and continuity in its practices.

"Going forward, the group will continue to seek investments that will increase shareholders value as and when such opportunities present themselves," Dr Hubail added. - TradeArabia News Service