Amlak posts 131% profit rise in 2007

 

The firm, which is the UAE’s largest mortgage financier by market value, saw its net profits in the fourth quarter of 2007 jump to Dh128.43m, in what was a 758 per cent growth compared to the previous year, the company said in a statement yesterday.

Amlak’s annual revenue reached Dh711m, up 82 per cent against 2006, with the company’s financing activities contributing 65 per cent.

Chairman Nasser bin Hassan Al Shaikh said: “Despite the injection of major financial resources in our regional expansion, Amlak has surpassed all expectations and has almost doubled the 70 per cent forecast annual profit growth for 2007.

“In 2006, Amlak’s net profits were recorded at Dh130.42m and with the remarkable growth in financial results, I believe this success is attributed to many factors, most important of which centres on the clear focus of consolidating the company’s core business by targeting real estate financing and investments,” he added.

The company’s earnings per share amounted to Dh0.20, compared to Dh0.09 in 2006, an increase of 122 per cent.

In December, its shares jumped 5.5 per cent, their highest in more than a year, after it predicted profits would more than double for the year. The lender was appointed last year as an official escrow agent by the Dubai Lands Department, regulated by the Real Estate Regulatory Agency.

The company also signed a memorandum of understanding with the International Finance Corporation (IFC) of the World Bank to co-ordinate efforts between both organisations to develop the housing finance market in the region.

Al Shaikh said decisions by Amlak’s management regarding products, services and the company’s infrastructure during 2007 had paid off, adding that the bank’s profit rise was also down to securing more affordable and efficient sources of funding.

Amlak successfully entered into a joint venture in Saudi Arabia with the Al Baraka Banking Group, Saudi Investment Bank and Aseer Group to form Amlak International for Real Estate Development last year.

The major mortgage financier also launched an operation in Egypt last year, under a wholly owned unit called Amlak Finance and Real Estate Investment.