Sakana Announces Half Year Results for 2009
Net profit BD 486,000 as of 30 June 2009
Bahrain-based Sakana Holistic Housing Solutions (a 50:50 joint venture between BBK and Shamil Bank), the innovative Islamic mortgage finance provider today announced its results for the period January to June 2009. Sakana posted net profit of BD 486,000 which is comparable with the same period last year against the backdrop of global economic turmoil and extraordinarily depressed financial markets.
Sakana’s net financing income stood at BD 1.56 million as of 30 June 2009, an increase of 121% over 30 June 2008. Total assets increased to BD 39.2 million, up 20% from BD 32.7 million, mortgage assets stood at BD 32 million from BD 23.3 million, an increase of 37% over 30 June 2008.
Mr. Abdul Hakim Khalil Al Mutawa, Sakana’s Chairman, commented: “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. 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.”
Mr. R. Lakshmanan, Sakana’s Chief Executive Officer, said: “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. As we move forward in 2009, Sakana remains confident and will continue to provide financing for residents of up to 90% of property value with BD 350,000 as maximum amount of finance.
“Sakana is also proud to be a teamwork-oriented organization. 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 the Kingdom of Bahrain,” he concluded.
