Communication - Presse

BCFC reports net profit of nearly BD11m

MANAMA: Bahrain Commercial Facilities Company (BCFC) has reported a consolidated net profit of BD10.8 million for the six months ended June 2019, 4 per cent higher than BD10.4m earned in the same period last year.

The company has reported earnings per share of 54 fils (2018: 52 fils).

For the three months ended June 2019, net profit was BD5.3m (2018: BD5.4m), 2pc below the same period last year and earnings per share of 26 fils (2018: 27 fils). Commenting, chairman Abdulrahman Fakhro said, “The economic environment in Bahrain remained extremely challenging with consumers spending significantly constrained hurting overall demand. The BCFC Group cannot be insulated from the country’s economic conditions. It is reassuring that in a very challenging operating environment BCFC’s business model remained resilient.”

In the first half, total operating income was BD23m, 3pc higher than the same period last year (2018: BD22.3m).

For the three months period, total operating income was BD11.7m, 3pc higher than the operating income for the same period last year of BD11.4m.

For the first six months, other comprehensive income was BD8m, 32pc less than the same period last year (2018: BD11.8m).

For the three months period, comprehensive income was BD3.5m, 40pc less than BD5.8m achieved during the same period last year.

Total assets on 30 June 2019 stood at BD410m, 8pc higher than BD380m at 30 June 2018.

The company continues to maintain a strong and healthy liquidity position.

With total equity of BD146.5m, which is 9pc higher than BD135m at 30 June 2018, the group is operating at a low leverage of 1.8 multiples which augurs well for expansion and growth plans.

Bahrain Credit, the consumer finance business, remained robust.

It reported a net profit of BD9.1m, 8pc higher than BD8.5m achieved in same period last year.

The company’s net interest income has stood at BD13.5m, 10pc higher than same period last year (2018: BD 12.3 million).

For the three months period, net interest income was BD6.9m, 11pc higher than the same period last year (2018: BD6.2m).

During the six months, the company has advanced BD82m new loans resulting in 4pc growth in the loan portfolio from the start of the year.

The company continued its conservative underwriting policies and non-performing loans were controlled at 3.6pc of the loan portfolio.

National Motor Company achieved a net profit of BD1.1m, 13pc behind the same period last year.

The automotive market in Bahrain continues to remain stressed with double digit contraction in the new car sales volumes during the first six months of 2019.

Due to heavy price-driven sales promotions all-round the year, the auto industry margins have been significantly impacted.

The company continues to observe efficient inventory management and disciplined expense controls to remain one of the leading players in the market.

Tasheelat Automotive Company has achieved an exceptional performance and has earned a net profit of BD141,000 (2018: BD95,000).

GAC Motor continued to win more customers and is now 6th largest selling automotive brand in the country as per government data.

The commercial automotive brand Foton Motor has also started gaining ground within customers seeking efficient and durable commercial vehicles. Despite overall contraction in the new vehicle sales in 2019, the company has sold 28pc more cars than same period last year.

Tasheelat Car Leasing Company has performed well.

In short period of two years, the company has expanded its operations to 10 branches distributed around Bahrain and become a profitable business.

The company has won many strategic government tenders and is working towards increasing its fleet size by participating in long term leasing, monthly leasing and spot rental services.

The real estate division, Tasheelat Real Estate Services Company has reported net profit of BD116,000 compared to BD242,000 in the same period last year.

Due to lackluster activities in the real estate market, the company is casually optimistic for investing into new projects and currently is in the process of liquidating remaining 62 plots.

The rental property portfolio continued to enjoy healthy occupancy rates.

The company has gradually and carefully added new buildings to this portfolio which is generating steady and reliable annuity style returns.

In the insurance services, Tasheelat Insurance Services Company achieved net profit of BD369,000 for six months ended June 2019 (2018: BD365,000).

The performance has been affected due to contraction in the new vehicle sales and shift in customers’ preferences to small price vehicles.

The company has diversified into new market segments, improving its revenue streams and retained margins.

BCFC chief executive Dr Adel Hubail said, “The results reflect a customer-centric approach to provide innovative and efficient solutions to the loyal customer base through active and continuous collaboration with trusted business partners. The strong capital and excellent liquidity position of the company augurs well for maintaining its unique market position in all the segments of the market it chose to operate to enhance its shareholders value.”



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