BCFC net profit surges 18pc to $22.5 million

30/07/2015 09:51 AST

Manama: Bahrain Commercial Facilities Company (BCFC) has posted an 18 per cent rise in consolidated net profit at BD8.5 million ($22.5m) for the first half of the year, compared with BD7.2m for the same period last year.

A statement by the company said net profit for the quarter ended June 30 was BD4.4m as against BD4.2m earned in similar period last year.

Chairman Abdulrahman Fakhro said the results demonstrate strong performance, solid business model and continued expansion in all the business segments even as the company maintained “a very comfortable liquidity position”.

Bahrain Credit, the company’s consumer finance business, achieved net profit of BD5.7m in the first half as against BD4.7m for the same period last year.

It disbursed new loans of more than BD69m during the period, resulting in 8pc increase in gross loan portfolio to BD214.8m as of end-June when compared with BD198.5m as of end-December.

Underwriting policies continued to be conservative and portfolio quality improved further, it said. Non-performing loans saw further reduction to 2.6pc of the total loan portfolio.

National Motor Company, BCFC’s automotive division, saw a net profit of BD1.3m for the first half, as against BD1.1m earlier.

The company said Honda and GM brands, of which it is the authorised distributor, maintained their overall market share “despite tough competition in the local market”.

Sales in the wholly-owned subsidiary, Tas’heelat for General Trading and Cars in Erbil, Kurdistan, were impacted by the volatile political situation in Iraq.

The company’s real estate division, T’asheelat Real Estate Services Company, reported a net profit of BD993,000 as against BD1m earlier. It said a newly introduced land project in Saar area has been well-received by customers looking for affordable housing.

The rental properties portfolio also continued to offer high occupancy rates while providing steady and reliable annuity style yields.

The insurance services business, represented by wholly-owned subsidiary T’asheelat Insurance Services Company, continued to build market presence and delivered a 26pc increase in net profit at BD515,000 for the first half when compared with BD410,000.

Chief executive Dr Adel Hubail said the good performance in all four business segments, in an economy affected by regional events, was encouraging. “Management remains mindful of the need for adaptability and responsiveness to the changing conditions. This is to mitigate risks and seek business opportunities,” he said.

“BCFC has very low leverage which positions us to explore further profitable opportunities, improving return to shareholders,” he added.

Gulf Daily News