Sakana reports substantial growth in assets and profits for 2008

Sakana reports substantial growth in assets and profits for 2008
At the Annual General Meeting (AGM) held on the 26th March 2009, Sakana Holistic Housing Solutions, a 50:50 joint venture between BBK and Shamil Bank, announced its 2008 full year results, which showed net profit of BD 584,000 a significant (428 per cent) increase over 2007 despite very tough market conditions during the second half of 2008.  At the same time it reported that total assets increased to BD 40 million, an increase of 138% over 2007. During the year, Sakana’s paid up capital was increased from BD 12.5 million to BD 20 million.
The AGM was followed by an Extra Ordinary General Meeting and the shareholders approved increasing the Authorized Capital from BD 20 million to BD 100 million.
Sakana has now completed two full years of commercial operations and established itself as a leading provider of Islamic mortgage products in the Kingdom of Bahrain.  The net mortgage book as of 31st December 2008 had grown to BD32.6 million, an increase of 128 per cent over the 2007 level and 85 per cent of the portfolio consist of resident customers.
Mr. Abdul Hakim Khalil Al Mutawa, Sakana’s Chairman, commented: “Sakana made strong progress during 2008 on all fronts. The increase in paid up capital has put us in a much stronger position to face the challenges of the ongoing financial crisis, as we continue to receive great support and co-operation from our shareholders.  In December 2008 we won the Best Islamic Mortgage provider in the Middle East at the IREF ME 2008 Awards in London.  This was a clear reflection on how, in just two years, Sakana has come of age.
We expect 2009 to be a challenging year and expect to see tightening liquidity, reduction in real estate prices, delayed and cancelled projects. However, our focus remains on growing our mortgage book.
The pressures of increased cost of funding, reduced take-up of mortgages and possible reductions in asset values will impact on our business and in line with these factors we have prudently adjusted our financing criteria.  By having a clear strategy and the right level of risk management we will be better prepared for the year ahead.”
Sakana Chief Executive, Mr. R Lakshmanan, said: “  We will continue to develop and diversify our services, including our property consulting services , which in 2008 launched ‘Nasmah West’ a freehold development in Juffair.”
“We will monitor our liquidity position very closely and work with our shareholders and other banks to ensure that we have the required funding in place for 2009.  We know that it will be a challenging year, but by focusing on what our customers want and need, and by continuing to develop home grown talent we are confident that we can continue to take the company forward.”
Sakana has established itself as a leader in the market providing a range of mortgage solutions to customers from different income groups and backgrounds.