Amanat Holdings H1 profit jumps to Dh23.8m on higher interest income

Amanat Holdings, a healthcare and education company, today announced a net profit of Dh23.8 million for the first half of 2016, a significant increase over the figure stated for the same period last year of Dh1.6 million.

The increase was mainly a result of improved yield rates on deposit and on the contribution of associates.

For the first six months of 2016, Amanat reported a total income of Dh32.5 million, primarily from interest income of Dh31 million. Yield on deposits came at an average of 2.88 per cent compared to 1.63 per cent in H1 2015. Operating expenses for the first half of 2016 were Dh16.4 million.

The share of profit from associates stood at Dh7.7 million for H1 2016, predominantly from Amanat’s investment in Saudi Arabian healthcare operator, Sukoon International Holding.

The company’s 16.34 per cent stake in the education provider Madaares, acquired in April 2016, contributed Dh0.65 million during the second quarter of 2016. Amanat has reclassified its investment in Madaares from available for sale investments to investments in associates.

As of June 30, 2016, Amanat’s shareholders’ equity stood at Dh2.542 billion (Dh1.02 per share), following the company’s payment of a 2015 dividend to shareholders totaling Dh37.5 million during Q2 2016.

Faisal Bin Juma Belhoul, Chairman of the Board of Amanat: “Amanat is delighted to report a substantial year-on-year increase in our net profits in the first half of 2016. The recent acquisition of our stake in Madaares, and our ongoing commitment to Sukoon, provides Amanat with a strong platform for growth as we enter the second half of the year.”

Khaldoun Haj Hasan, Chief Executive Officer of Amanat, added: “We will support both associates as they explore opportunities for expansion, subject to propitious conditions within the wider macroeconomic environment. Additionally, Amanat continues to evaluate a healthy pipeline of opportunities and considers further investments in the healthcare and education sectors wherever there is the prospect of long-term growth and value creation.”

Amanat also announced changes to its Board with the appointment of Dr. Kassem Alom as a non-Executive Independent Director. He replaces Abdulmonem Al Rashed, who stood down to focus on other business commitments.

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