Bahrain-based Sakana Holistic Housing Solutions posted a net profit of BD245,000 ($649,919) in the first quarter of this year, a 126 per cent increase compared to the same period last year.

The Islamic mortgage finance provider reported strong financial results despite the global financial crisis, said a company official.

Sakana's total assets as of March 31 stood at BD41.1 million, an increase of 98 per cent over BD20.8 million reported at the same period last year.

Sakana's mortgage book grew by 81 per cent to stand at BD33.3 million as of March 31.

The first quarter results follow Sakana's recent annual general meeting where the company reported a 428 per cent increase on its last year's performance despite tough market conditions during the second half of last year.

'Despite the crisis, reduction in real estate transactions and the credit crunch we are delighted to report that Sakana has managed to remain profitable,' Sakana chairman Abdul Hakim Khalil Al Mutawa said.

'Since the start of the crisis the value of transactions has reduced and with the continued reduction in volume this will have an impact on future results with cost of funds increasing significantly, resulting in lesser margins,' Sakana chief executive officer R Lakshmanan said.

'We would like to thank the Central Bank of Bahrain for recently clarifying that banks exposure to Sakana will be considered as exposure to financial institution. We expect this may favourably impact our ability to raise funds from banks.'

'As we move forward in 2009, Sakana is still providing financing for residents up to 80 per cent of property value and up to 30 years term,' Lakshmanan added.


Source: Trade Arabia News