Finance House PJSC has registered a robust consolidated net-profit of AED61.2 million for the six months ended 30th June 2014, marking an increase of 8.3% compared to AED56.5 million in the corresponding period of the previous year.
Net Fee and Commission Income grew by 75% to reach AED35.8 million compared to AED20.5 million in the first half of the previous year. Similarly, income from investing activities nearly doubled to AED65.4 million in first half 2014 compared to AED33.6 million in the same period last year, on the back of improved performance of U.A.E. stocks.
Net interest income and income from Islamic financing and investing assets was marginally lower at AED63.7 million compared to AED66.9 million in the same period last year, primarily on account of significantly lower interest rates on short term money market placements with local banks.
As a combined result of the above, Total Operating Income for the half year ended 30th June 2014 jumped nearly 30% to AED160.3 million compared to AED123.5 million in the same period of the previous year. Due to continued expansion in business activities of the group, Total Operating Expenses were higher at AED80.8 million compared to AED58.6 million in the same period last year. In line with its conservative approach towards impairment provisioning, Finance House has set aside additional impairment provision of AED18.3 million in the first half of 2014 compared to AED8.4 million in the same period last year.
Total Assets grew by an impressive 26.9% YOY to reach AED4.50 billion as of 30th June 2014 compared to AED 3.55 billion at the same time last year. Customers’ Deposits grew by 50.5% YOY to reach an all-time high of AED2.66 billion as of 30th June 2014 compared to AED1.77 billion at the same time last year. Net Loans and Advances including Islamic financing and investing assets grew by 13.6% YOY to reach AED1.73 billion as of 30th June 2014, compared to AED1.52 billion at the same time last year. The resultant Loans to Deposits ratio as of 30 June 2014 stood at 65%, leaving ample room for growth in lending book in the near term.
Shareholders’ Equity as at 30th June 2014 stood at a healthy AED703.9 million compared to AED677.6 million at the same time last year. This is after distributing a generous cash dividend of 25% in April 2014, amounting to AED75.6 million for the year ended 31st December 2013.
Commenting on first half 2014 results, Mohammed Abdulla Alqubaisi, Chairman of Finance House, said, “The stable economic environment in the U.A.E. has allowed us to focus on our core engines of growth which are commercial and consumer lending and proprietary investments. Our strategy of continuously seeking and addressing profitable and underserved niche segments has enabled us to generate healthy returns for our shareholders on a sustained basis. We are confident that this strategy will continue to serve us well in the near future as well.”
Source : WAM News Agency for United Arab Emirates
