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19 March 2024

Finance House Q1 profit soars 38% to Dh35.5m

Published
By Staff

Abu Dhabi-listed Finance House (FH) posted net profit of Dh35.51 million for the first quarter of 2014, which is nearly 38 per cent higher than the net profit of Dh25.81 million earned during the first quarter of the previous year.

Total operating income jumped nearly 52 per cent to Dh91.20 million in Q1 2014, compared to Dh60.14 million in Q1 2013. Net fee and commission income grew by a whopping 72 per cent to reach Dh15.53 million in Q1 2014 compared to Dh9.04 million in Q1 2013. Net investment income from a diversified investment portfolio rocketed to Dh48.65 million in Q1 2014 compared to Dh11.69 million in Q1 2013.

Net interest income earned during Q1 2014 was lower than Q1 2013 due to one-off adjustments in the previous year, primarily on account of recoveries made under rescheduled commercial loans.

Net loans and advances including Islamic financing & investing assets grew by a steady 8.6 per cent year-on-year to reach Dh1.65 billion as of March 31, 2014 compared to Dh1.52 billion at the same time last year. Customers’ deposits grew by an impressive 20.6 per cent to reach Dh2.05 billion as of March 31, 2014 compared to Dh1.70 billion as of March 31, 2013. The resultant loans-to-deposits ratio as of March 31, 2014 stood at a healthy 80.5 per cent compared to 89.4 per cent as of March 31, 2013.

Shareholders’ equity as of March 31, 2014 stood at a robust Dh690.3 million compared to Dh641.5 million as of March 31, 2013. This is after setting aside for distribution a cash dividend of 25 per cent in March 2014, amounting to Dh75.63 million for the year ended December 31, 2013.

Liquid assets to total assets as of March 31, 2014 was circa 36 per cent, reflecting the company’s conscious approach to maintain abundant liquidity at all times. Capital adequacy as of 31 March 2014 was a robust 24.8 per cent, with ample room for accelerated loan/ asset growth in the foreseeable future.

Earlier this year, FH secured investment grade corporate credit rating of “BBB-“(Long Term) and “A3” (Short Term), both with a “Stable” outlook from Capital Intelligence (CI), an internationally reputed credit rating agency.

“We remain confident that our strategy of continuously seeking and addressing profitable niche segments will enable us to continue generating healthy returns to our shareholders on a sustained basis”, Mohammed Abdulla Alqubaisi, Chairman of Finance House.