Bahrain Commercial Facilities posts $23m profit
Manama, February 22, 2012
Bahrain Commercial Facilities Company has reported net profits of BD8.7 million ($23 million), two per cent higher than the BD8.6 million earnings of 2010.
The company's profit for the fourth quarter was BD2.5 million up from BD1.7 million for the same period in 2010. The board is recommending holding the cash dividend at 35 per cent.
'The performance of the company in the challenging local and global economic conditions prevailing in 2011 is pleasing,' said chairman Abdulrahman Fakhro.
'Following the difficult operating environment in the first quarter, contingency plans were immediately put in place that included cost control steps and more direct marketing efforts whilst supporting customers facing genuine financial difficulties by deferring their loan repayments.
'These measures greatly benefited the group image and also its performance as reflected in consistent improvement in quarter-on-quarter financial results.'
The company's affiliate businesses also showed positive results.
Over 2011, Bahrain Credit focused on its core product of vehicle lending and further built on the positive relationship with all the car dealers.
The credit card, since its introduction in 2010, has been very successful which enabled the company to capture a new market segment.
New mortgage lending was done on a selective basis.
The company maintained its conservative policies for approving new credit.
The wholly-owned subsidiary National Motor Company had a phenomenal year with earnings of BD2.4 million up from BD1.9 million.
Locally, the difficult operating environment had a negative impact on vehicle sales for the whole year.
Additionally, the strong Japanese yen and the natural disasters that hit Japan and Thailand resulted in an increase in Japanese sourced vehicles and disruption of vehicle supply respectively.
However, the strength of equity in both the Honda and GM brands and the continued excellence in the after sales divisions overcame these negative factors.
Tasheelat Insurance Services Company has performed in line with market expectations.
Tasheelat Real Estate Services Company in 2011 made prudent investments in rental properties and land held for resale.
'The 2011 results in the context of extremely challenging economic conditions are welcoming,' said chief executive Dr Adel Hubail.
'The financial position of the company remains strong and the company will continue to look for investments that will increase shareholder value in existing businesses within Bahrain and outside when such opportunities present themselves,' he added.-TradeArabia News Service
More Finance & Capital Market Stories
- Gulf stocks surge as Fed tapering adds fuel to fire
- SABB launches graduates programme
- NBAD names key official for Hong Kong
- Commercial Bank of Dubai obtains $450m loan
- EFG Hermes names group co-chief
- Islamic bond issuance in GCC picking up
- Kuwait budget surplus likely to hit $42.4bn
- Bahrain banking sector on road to recovery
- GCC banks' outlook stable, says report
- GBSA panel names new chairperson