Finance House Q1 net soars 38% to Dhs35.51m | Finance House Q1 net soars 38% to Dhs35.51m -
Mohammed Abdulla Alqubaisi.

Finance House Q1 net soars 38% to Dhs35.51m

: Saturday, April 26 - 2014 @ 12:24

Finance House PJSC (FH), has kicked-off 2014 on an upbeat note by registering a consolidated net profit of Dhs35.51m for the first quarter of 2014, which is nearly 38% higher than the net profit of Dhs25.81m earned during the first quarter of the previous year.

Total Operating Income jumped nearly 52% to reach Dhs91.20m in Q1 2014, compared to Dhs60.14m in Q1 2013. Net Fee and Commission Income grew by a whopping 72% to reach Dhs15.53m in Q1 2014 compared to Dhs9.04m in Q1 2013. Net Investment Income from a diversified investment portfolio rocketed to Dhs48.65m in Q1 2014, compared to Dhs11.69m 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 & Advances including Islamic financing & investing assets grew by a steady 8.6% YOY to reach Dhs1.65bn as of 31 March 2014, compared to Dhs1.52bn at the same time last year. Customers’ Deposits grew by an impressive 20.6% to reach Dhs2.05bn as of 31 March 2014 compared to Dhs1.70bn as of 31 March 2013. The resultant Loans to Deposits ratio as of 31 March 2014 stood at a healthy 80.5% compared to 89.4% as of 31 March 2013.

Commenting on Q1 2014 results, Mohammed Abdulla Alqubaisi, Chairman of Finance House, said: “The excellent results achieved in Q1 are a continuing reflection of a truly resilient business model that has stood the test of time. Our three main business areas, viz. Commercial Finance, Retail Finance & Investments complement each other and are seamlessly integrated to deliver profitable business growth despite changing economic conditions.”

Shareholders’ Equity as at 31 March 2014 stood at a robust Dhs690.3m compared to Dhs641.5m as of 31 March 2013. This is after setting aside for distribution, a cash dividend of 25% in March 2014, amounting to Dhs75.63m for the year ended 31 December 2013.

Liquid Assets to Total Assets as of 31 March 2014 was circa 36%, 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%, 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,” concluded Alqubaisi.

For further information, contact:

Wissam Farran- Manager
Group Corporate Communications Department
Finance House PJSC
Tel: +971 2 6194893
Fax: +971 2 6315806

Today's Top Stories

Posted by

Saturday, April 26- 2014 @ 12:24 UAE local time (GMT+4) Replication or redistribution in whole or in part is expressly prohibited without the prior written consent of Mediaquest FZ LLC.

AME Info Services







Business DirectoryVIEW ALL

Search by name

Search by industry

Browse alphabetically





JobsVIEW ALL

Search for jobs

Latest Jobs