BCFC posts H1 net of $14m
Manama, July 22, 2009
Bahrain Commercial Facilities Company (BCFC) posted a net profit of BD5.1 million ($13.5 million) in the first half of the year.
While this is down on the BD6.4 million for the same period last year, it is considered satisfactory given the economic conditions, according to company chairman Abdulrahman bin Yusuf Fakhro.
'The first six months of 2009 has been the most challenging because of the crisis the world economy is facing,' he said.
'Although relatively less affected than other markets, the Gulf has not been immune to this and that has negatively impacted the markets in which we operate.'
'Demand for credit is lower than experienced in recent years and the company has chosen to be more selective in its lending,' said deputy chief executive officer Dr Adel Hubail.
'This has translated into new business of BD36 million, some 30 per cent lower than last year.
'The portfolio is stable at around BD155 million and the business has delivered earnings of BD3.6 million, 18 per cent ahead of last year and benefiting from the capital increase in November.
'The focus is, and will continue to be, on maintaining the portfolio quality and it is pleasing to note that non-performing loans are less than 2.5 per cent of receivables.'
The National Motor Company has maintained its market share, translating into a fall in turnover of 25 per cent, he said.
'The global recession has led to manufacturers severely reducing output and 2010 model introductions are likely to be some months later than the tradition,' he said.
'Thus the management of inventory levels is crucial and the company is adequately positioned to meet market expectations.
'The General Motors corporate restructuring is now complete and a number of attractive new products will be introduced to the Middle East in the coming months.'
The real estate and insurance services businesses have made a sound contribution in line with market conditions, he said.
'Looking ahead, market demand in the near term is likely to broadly reflect the first half,' he said.
'The company is properly prepared and positioned to face this.
'Following the rights issue of November 2008, the company enjoys unprecedented balance sheet strength with shareholders funds of BD65 million,' he said.-TradeArabia News Service
More Finance & Capital Market Stories
- ADCB to buy back 3pc of its shares
- GCC insurance growth outpaces developed markets
- Bahrain 'faces budget deficit, inflation challenges'
- Global Payment Services wins key certification
- BBK unveils big India expansion plans
- Kuwait GDP growth to hit 3.5pc in 2014
- Gulf shares tumble over EM exposure cut
- GCC bonds to gain from macro-economic climate
- French Business Council Dubai members up 18pc
- Egypt economy growth seen less strong than thought
- Sharjah approves $4.2bn budget for 2014
- Saudi non-oil sector posts solid growth in Feb
- Seera total income rises to $34m
- NBAD approves 40pc cash dividends
- NBAD sees 8-10pc loan growth
- Al Basel Group launches investment arm
- Union Insurance posts $18m profit
- Oman warns banks on conflicts of interest
- Japan to lend Tunisia $480m
- 400 to join anti-laundering seminar in Riyadh
- Lebanese insurer to head Prague Club
- UAE's first REIT plans $135m IPO
- Bahrain banking industry outlook 'positive'
- New India Assurance opens Bahrain branch
- Qatar sets up mixed business incubator
- Kuwait budget spending up 8pc in April-Jan
- Thomson Reuters to host Mena IFR awards
- ADIB offers smartphone industry investment
- Gulf Finance House to start $3bn Tunisia project
- KFH completes ICT project upgrade