Bahrain's Sovereign Wealth Fund (SWF) said in a statement that the share of profit from associate companies
declined by approximately 11 per cent as a result of lower operating income; this coupled with higher impairment losses (BHD 316.5 million in 2011 compared to BHD 191.2 million in 2010) resulted in a consolidated net loss of BHD 270.6 million in 2011 (2010: BHD 234.3 million).
The outlook reflects CRISIL's view that the Maverick group will maintain its revenues and margins over the medium term, though the group's financial risk profile is expected to deteriorate over the medium term because of the significant debt-funded capex and financial support to associate companies
. The outlook may be revised to "positive" in case of lower-than-expected debt funding and higher-than-expected accruals from new projects upon their timely completion.
The bank generated 88 per cent of the net profit from its core banking businesses and the remaining 12 per cent through subsidiaries and associate companies
The regulator has already intervened twice to lower customers' bills in 1999 and 2004 after warnings over United Utilities' trading with associate companies
, which it said was in breach of its licence.
NPL was established over 40 years ago and it is now the world's largest pattern and toolmaker and has associate companies
in the USA, Mexico, Europe, Japan and South East Asia.
The organization also represents more than 200 associate companies
that supply products and services to the demolition industry.