Eskan Bank, Bahrain's housing bank, achieved a net profit of BD3.95 million ($10.5 million) for the first nine months this year, an increase of 48 per cent compared to BD2.6 million for the same period last year.

For the third quarter of 2010, the bank recorded a net profit of BD1.24 million against BD1.25 million last time.

Total income for the nine months period grew by 27 per cent to BD12.1 million compared to BD9.6 million for the corresponding period of 2009 due to the growth in the core business of mortgage loans, new initiatives and diversification of its revenue sources especially through commercial mortgages and project developed activities.

The bank's efforts on process re-engineering and higher productivity by leveraging its strong technology platform enabled the bank to contain its operating expenses at BD4 million against BD4.4 million.

The bank's loans and advances as at September 30, 2010, stood at BD277.4 million, which reflects a growth of 7 per cent in the first nine months of this year.

It disbursed BD26.6 million during the nine months of this year which reflects the bank's commitment to stay true to its core objectives.

The shareholders' equity at BD85.9 million was up by 3.4 per cent from the year-end.

'The bank continues to be the largest mortgage lender in Bahrain and actively supports the government to provide affordable housing solutions and develop cohesive communities to improve the quality of life for Bahraini citizens,' said chairman Shaikh Ebrahim bin Khalifa Al Khalifa.

'I am pleased to inform you that the bank was recently awarded the best affordable Housing Initiative award at the Middle East Affordable Housing Summit,' he added.

The bank is also the founder shareholder of Ebdaa Bank which was launched in 2009 to help families start small businesses by offering micro finance to low and middle income Bahrainis.

Eskan's subsidiary Southern Tourism Company continues to promote tourism in Bahrain by providing sea transportation facilities to Hawar Island.

The bank has also established Building Material Company to create the entire value chain to manufacture cost-effective, environmentally efficient homes for the less fortunate.

In line with the bank's strategy to develop residential and community real estate projects and leverage the expertise of Eskan Properties Company, the bank has developed two community projects covering an area of 2,215sqm at Hamad Town and will further develop two more buildings in Isa Town and Muharraq by end of this month.-TradeArabia News Service