National Finance House (NFH), a Bahraini incorporated finance provider, has reported 20 per cent increase in net profit at BD1.01 million ($2.67 million) for last year as against BD841,200 in 2013.

The company's total operating income grew to BD2.93 million from BD2.79 million the previous year, with basic and diluted earnings per share increasing to 13.5 fils, as against 11.2 fils in 2013, said a report in the Gulf Daily News (GDN), our sister publication.

The distribution of a cash dividend of six per cent of the company's paid-up share capital, amounting to BD450,000, was announced following the company's annual general meeting yesterday (February 25).

At the end of last year, total assets increased to BD45.03 million compared to BD43.66 million at the end of 2013 and shareholders' equity had risen to BD12.46 million from BD11.82 million at the end of 2013, resulting in an improved return on average equity of 8.3 per cent, which was 7.3 per cent earlier.

For the quarter ended December 31, NFH reported a net profit of BD225,000 compared to BD180,000 for the same period of previous year.

NFH chairman Farouk Almoayyed said the company continues to grow the business and further strengthened its institutional capability.

"With Bahrain maintaining its trend of economic growth during the year, there was a subsequent improvement in market conditions and consumer confidence.

"This had a positive effect on our business, which is reflected in the company's financial results.

"Looking ahead, we have a cautiously optimistic outlook for the company this year."

The Economic Development Board expects the kingdom's economy to maintain a growth rate of 3.6 per cent this year, despite concerns over the decline in oil prices.

GDP growth will be driven by the government's commitment to continue investing in major infrastructure projects, which will be funded by the $10 billion GCC Development Fund.

NFH chief executive Venkatachalam PS said last year the company finalised plans for the implementation of its new core banking system.

"The competitive nature of Bahrain's vehicle financing sector in Bahrain intensified last year, marked by new entrants and heavy discounting promotions.

"With a continued focus on delivering superior customer service rather than competing on price, NFH was successful in achieving a net growth of 4pc in vehicle financing, and disbursed loans valued at BD19 million.

"The total loan book stood at BD43.2 million at the end of the year, compared with BD41.6 million at the end of 2013," he said. - TradeArabia News Service