Finance House nets Dh80.2m in first nine months of 2013

Finance House PJSC has registered a consolidated net profit of Dh80.2 million for the nine months ending September 30, 2013, 10.4 per cent higher than the net profit of Dh72.6 million earned during the same period last year.

Net interest income earned during the first nine months of the year grew to Dh92.7 million compared to Dh91.8 million registered in the same period of the previous year. Net fee and commission income grew by 43.7 per cent to reach Dh32.7 million compared to Dh22.8 million during the first nine months of the previous year.

Similarly, net insurance income at its insurance subsidiary also registered an impressive growth to Dh8.6 million compared to a marginal loss of Dh0.9 million in the comparable period of the previous year. Income from investing activities also grew at a healthy rate of 20.5 per cent compared to the same period in the previous year, on the back of improved performance of UAE stocks, profitable exit from a private equity investment and profitable disposal of an investment property.
 
As a combined result of the above, total operating income for the nine months ending September 30, 2013 was higher by 10.4 per cent at Dh193.9 million compared to Dh175.6 million during the same period of the previous year. Due to continued expansion in business activities of the group, total operating expenses were higher by 8.1 per cent compared to the same period last year.

In line with its conservative approach towards impairment provisioning, finance house continues to set aside adequate provisions against potential impairment losses on a quarterly basis. Net charge on account of impairment allowances for the first nine months of 2013 was Dh23.1 million compared to Dh19.1 million during the same period of the previous year.

Commenting on the financial results of the group for the first nine months of 2013, Mohammed Abdulla Alqubaisi, Chairman of Finance House, said, "Our steady all-round growth in business volumes and profitability alongside stable and healthy balance sheet ratios clearly manifest the resilience of our business model and our ability to adjust swiftly to changing market conditions. We continue to seek and address profitable and underserved niche segments in order to generate healthy returns for our shareholders on a sustained basis. We are confident that this strategy will continue to serve us well in the near future also."

Net loans and advances grew steadily to reach Dh1.42 billion as of September 30, 2013, compared to Dh1.35 billion at the same time last year. During the same period, Islamic financing and investing assets grew by nearly 38 per cent to reach Dh103.3 million as of September 30, 2013 compared to Dh74.9 million as of September 30, 2012. Customers’ deposits grew steadily at an annual pace of nearly 16 per cent to reach Dh1.89 billion as of September 30, 2013, compared to Dh1.63 billion as of September 30, 2012. The resultant loans to deposits ratio as of September 30, 2013 stood at a healthy 80.4 per cent, leaving sufficient room for growth in lending book in the near future.

Shareholders’ equity as at September 30, 2013 jumped to Dh709 million compared to Dh651 million as of December 31, 2012. This is after distributing a cash dividend of 12 per cent in March 2013, amounting to Dh36.3 million for the year ended December 31, 2012.




 

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