BCFC net profit surges 13pc to $19.1m
Manama, July 23, 2014
Bahrain Commercial Facilities Company (BCFC), a consumer finance and insurance provider, has reported a 13 per cent rise in consolidated net profit at BD7.2 million ($19.1 million) for the first six months of the year when compared with BD6.4 million for the same period last year.
Net profit for the three-month period ended June 30 was BD4.2 million, as against BD3.1 million earned in the same period last year.
"The implementation of key strategic initiatives identified under the current three years strategic plan is bearing fruit," chairman Abdulrahman Fakhro said.
"All business segments remained resilient in a very challenging operating environment."
New business volumes in Bahrain Credit, the consumer finance business of the group, have surpassed BD56m in the first half of the year resulting in eight per cent growth in the loan portfolio to BD188 million when compared with BD174 million as of end-December last year.
The portfolio quality remained good with non-performing loans at 3.4 per cent of total loan portfolio.
In the automotive business, National Motor Company registered a net profit of BD1.1 million for the first six months as against BD1.6 million for the same period last year.
The performance was affected by the initial operating results of its wholly owned subsidiary Tas'heelat for General Trading and Cars in Erbil, Kurdistan, which commenced operations in late October last year.
The company's strong brands and range, close co-operation with the principals, renewed focus on not just market share but profitability and continued high standards of after-sale service augur well for the future.
Another group firm, T'asheelat Real Estate Services Company has reported a net profit of BD1 million for the first half this year as against BD228,000 last year.
The realised profit is largely attributable to the launch and sale of land plots in Saar 3 project, which received a very encouraging response from Bahraini customers looking for affordable housing, a company spokesman said.
Pursuing similar opportunities, the company has acquired another new large land plot in Sanad area for the purpose of subdivision and sale.
It also continues to make prudent investments in its rental properties portfolio in neighbourhoods which offer high occupancy rates and are providing steady and reliable annuity style yields, the spokesman added.
The insurance services business represented by wholly-owned subsidiary, T'asheelat Insurance Services Company continued to build its market presence and delivered 30 per cent increase in net profit to BD410,000 for the six months ended June 30, as against BD315,000 earlier.
"The group has a very low leverage which uniquely positioned it to explore further profitable opportunities that will further improve return to shareholders," BCFC chief executive Dr Adel Hubail said.
"The company sustained good performance in all the four business segments in an economy that continued to be stressed due to regional events.
"Management remained watchful to adapt and adjust to changing conditions mitigating risks whilst seeking opportunities.
"The six months performance has been encouraging but the company remains optimistic about the performance for the balance of the year," Dr Hubail added. - TradeArabia News Service