Finance House 9-month profit hit by higher provisions, equity markets

Abu Dhabi-listed Finance House has registered a consolidated net profit of Dh64.7 million for the nine months ended 30 September 2015, compared to Dh73.3 million for the full year ended 31 December 2014, a drop of 11.7 per cent.

Net interest income and income from Islamic financing and investing assets grew by an impressive 40.7 per cent year-on-year (YOY) to reach Dh142.6 million for the first 9 months of 2015 compared to Dh101.4 million in the corresponding period of the previous year.

However, the net fee and commission income was lower by 30.6 per cent compared to the same period in the previous year, due to lower brokerage revenue from subdued activity in the domestic equity markets during the first 9 months of 2015 compared to the same period in 2014.

Income from proprietary investment portfolio fell Dh73.2 million for the first nine months of 2015 compared to Dh95.1 million in the same period last year.

The drop in investment income YOY is primarily due to the lacklustre performance of domestic equity markets in 2015, compared to the previous year.

Total Operating Income for the nine months ended 30 September 2015 was up by 7.6 per cent to Dh249.4 million compared to Dh231.8 million in the same period of the previous year.

Total operating expenses were higher at Dh142.5 million compared to Dh123.6 million in the same period last year.

In line with its conservative approach towards impairment provisioning, the company has set aside additional impairment provision of Dh42.3 million in the first nine months of 2015 compared to Dh26.9 million in the same period last year.

Shareholders’ equity at the consolidated level as at 30 September 2015 stood to Dh880.3.

Mohammed Abdulla Alqubaisi, Chairman of Finance House said: “We continue to focus on our core engines of growth which are commercial and consumer lending and proprietary investments.”

 

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