National Finance House posts 17pc profit surge

25/02/2016 08:32 AST

National Finance House (NFH), a Bahraini incorporated finance provider, has announced the distribution of a cash dividend of seven per cent of the paid-up share capital, amounting to BD525,000.

A statement issued after an annual general meeting yesterday said the company posted a 17pc growth in net profit at BD1.18 million for last year when compared with BD1.01m for the previous year.

Total operating income grew to BD3.17m from BD2.93m in the previous year, with basic earnings per share increasing to Bahraini fils 15.8 (2014: 13.5 fils).

For the quarter ended December last year, net profit was BD318,000 as against BD225,000 for the same period of the previous year.

At the end of last year, total assets increased to BD48.36m from BD45.03m as of end-2014, with shareholders' equity rising to BD13.19m (2014: BD12.46m) and return on average equity improving to 9.2pc (2014: 8.3pc).

"Looking ahead, we expect 2016 to be a particularly challenging year, marked by tougher market conditions and a more volatile economic environment," NFH chairman Farouk Almoayyed said.

"Key factors include declining oil prices, uncertain global economic growth, and rising regional geo-political tensions," he added, "Like its GCC counterparts, Bahrain has begun to introduce measures to reduce government expenditure and minimise the impact of lower oil revenues on its fiscal budget."

Given this scenario, said Mr Almoayyed, NFH will undoubtedly find it challenging to maintain the levels of profitability achieved in the previous two years.

NFH chief executive Venkatachalam PS said achievements last year include growing revenues and market share in "Bahrain's highly-competitive vehicle financing sector, and further strengthening our institutional capability".

The year was marked by a net growth of 6pc in vehicle financing activities, and increasing market share to 12.4pc, he added.

"Given the growing intensity of competition throughout the year, and more challenging economic and market conditions during the second half of 2015, this constitutes a significant achievement."

The chief executive said that a new core system implemented last year has "significantly strengthened the operating infrastructure by integrating, centralising and automating all aspects of the business, both front and back office".

This, he said has enabled greater accuracy, control, security and speed of processing; while providing measurable benefits in terms of enhanced productivity, efficiency and customer service; together with the provision of timely information to management for improved decision making.

Gulf Daily News