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14 April 2024

Amlak’s ‘07 profit growth to top 120%

By Agencies


Amlak Finance, the largest UAE mortgage firm by market value, confirmed on Wednesday a newspaper report that 2007 profit grew more than 120 per cent to more than Dh285 million ($77.61 million).

The company which complies with Islamic law posted net profit of Dh130.42 million in 2006 and earned Dh172.56 million in the first nine months of this year.

"We would like to confirm the validity of the information outlined in the article," Amlak said in a statement on the bourse website after the Al Khaleej report citing "informed sources".

"The (newspaper's) information ... was not officially disclosed by Amlak," Amlak said in the statement signed by its vice-president legal, Mohammad Ghebeh.

The earnings would indicate fourth-quarter net profit of Dh112.44 million, a more than seven-fold increase over the same period last year, according to Reuters calculations.

Amlak posted its second-biggest profit ever in the third quarter, doubling over last year, as it lent more and cut borrowing costs.

The firm, in which Emaar Properties holds a 40 per cent stake, reshuffled its senior management this year to help boost profitability, its Chairman Nasser Al Shaikh said in May.

Amlak applied for a banking licence 18 months ago to take deposits, a cheaper source of funding for its home loan business than either bank loans or bonds.

Shares of Amlak slipped 0.78 per cent to Dh5.08 at 0625 GMT. EFG-Hermes set a long-term fair value for the stock of Dh3.34 this month. (Reuters)