Bahrain group posts H1 profit of $9.5m
Manama, July 28, 2011
Bahrain Commercial Facilities Company (BCFC) has posted a net profit of BD3.6 million ($9.5 million), while earnings for the second quarter stood at BD2.1 million as against BD2.4 million for the same period of 2010.
'Following the difficult operating environment in the first quarter, the company immediately put in place a contingency plan that included extreme cost control measures to offset expected reduction in business performance,' said BCFC chairman Abdulrahman Yusuf Fakhro.
'The result of such actions was immediately felt on the financial results with a 38 per cent improvement in net profit in the second quarter as compared to the first quarter of the year.
'Demand for credit picked up in the second quarter with new loans in the second quarter at BD14.7 million, some 47 per cent above the BD10 milion booked in the first quarter of the year,' said chief executive officer Dr Adel Hubail.
'The focus is, and will continue to be on maintaining the portfolio quality,' he added.
The profits of National Motor Company for the six months were BD720,000 against BD1.3 million last time.
The company also had a very strong second quarter registering a profit of BD589,000 against BD133,000 in the first quarter. Although the strong yen and problems in sourcing Honda cars and parts due to the tsunami that struck Japan remain a matter of concern, tight inventory management, appropriate cost control measures and emphasis on after sales operations have contributed to the improving performance.
In line with the strategic plan, the real estate arm of the business has acquired investment properties in localities of Bahrain that offer steady and reliable rental income streams even in depressed market conditions.
The company will continue to look for further opportunities in this area, it said. – TradeArabia News Service