Abu Dhabi, January 29, 2008- Finance House has reported strong results for 2007 with a surge in net profit which, at AED 202.8 million, exceeds 100% of the capital of the company. Further, the Board has recommended a dividend of 75%. This constitutes a 26% increase over the AED 160.6 million net profit of 2006. Total assets grew to AED 2.16 billion, an increase of 64% over the previous year figure of AED 1.31 billion.
“Our 2007 performance added further vigour to the momentum we have built up since inception – in creating value for the shareholders, as well as in every qualitative measure. As at 31st December 2007 our Shareholders’ Equity grew to AED 949.5 million, an increase of AED 225 million over the previous year, and this is after an AED 100 million dividend payment to shareholders in 2007. This strength of the company’s capital base gives us a strong platform for future growth. We did not have any exposure to the sub-prime crisis, and this is due to our conservative approach to risk”, said Mr. Mohammed Abdullah Alqubaisi, Chairman of Finance House.
Finance House’s assets witnessed all-round growth in 2007. Its loan portfolios grew by an impressive 103% during the year, both the commercial and retail portfolios having recorded significant increases. Over the same period, customer deposits grew by 75% to AED 404.5 million. The company’s investments portfolio performed very well for the year, with profitable exits, as well as significant valuation gains in marketable securities, as the region’s capital markets staged a recovery during the latter part of the year.
Mr. Alqubaisi added, “Consistent with our strategy, we continue to concentrate on our profitable niches and on identifying new areas that will offer us the best returns and help us stay ahead of the curve. Our 2007 product launches - home mortgage loans and executive finance in the retail suite, and the Smart Guarantee and FlexiDeposit products for corporate clients – stand out as value differentiators. We are well positioned for a great 2008.”