Bahrain-based Sakana Holistic Housing Solutions posted a net profit of BD486,000 ($1.3 million) for the first half of 2009, with the result was in line with the same period of 2008.

Sakana's net financing income stood at BD1.56 million as of June 30, an increase of 121 per cent on the same time last year.

Total assets increased to BD39.2 million, up 20 per cent from BD 32.7 million.

"The prevailing market conditions challenged mortgage underwriting for Sakana in this period, which remained significantly low, as did profit margins which were affected by the increased cost of funding," said Sakana chairman Abdul Hakim Khalil Al Mutawa.

"We have been able to weather the storm so far and continue to manage costs effectively to remain profitable. We remain optimistic about growing our mortgage business."

"The last couple of months have witnessed a marginal increase in real estate activities and it remains to be seen whether the number of transactions will improve towards the end of the year," said chief executive officer R Lakshmanan.

"As we move forward in 2009, Sakana remains confident and will continue to provide financing for residents of up to 90 per cent of property value with BD350,000 as maximum amount of finance,” he added.

"Sakana is also proud to be a teamwork oriented organisation. It is our team spirit and hard work which has enabled us to achieve such results, and our dedicated team will continue to provide value-added services to a wide cross-section of customers in Bahrain," he said. – TradeArabia News Service