Abu Dhabi, March 1, 2010 – At its Annual General Meeting, the shareholders of Finance House pjsc approved a cash dividend of 50 per cent and a stock dividend of 25 per cent. The company recorded a net profit of AED 112.4 million in 2009, arising predominantly from the company’s core business activities. The total assets grew 12% over the previous year to a figure of AED 2.72 billion. Customer deposit balances grew to AED 1.50 billion as against AED 1.06 billion the previous year - an increase of 41%, which is a testimony to Finance House’s credibility in the market
In his address to the shareholders, Chairman Mohammed Alqubaisi said: “For Finance House, 2009 was a year of consolidation in terms of both market positioning and its internal organization. Early in the crisis we took certain pre-emptive actions in anticipation of a likely deterioration in economic circumstances, and these enabled us to withstand the crisis better. Our policy of growth with restraint helped us steer clear of exposures that could have adversely affected our performance in 2009.”
The Finance House brand has established its resilience in the marketplace among both retail and corporate customers. The three main business areas of the Company– Commercial and Corporate Finance, Retail Finance, and Treasury and Investments - complement each other in making up an integrated portfolio of activities. Finance House has distinguished itself by creating innovative products and financing solutions that address niche, under-served market segments.
“As I reflect upon the past year, I am again reminded of how the fundamental strategies on which we have built this company - the continuous pursuit of profitable niche lending opportunities, sound risk management practices, diversification of the portfolio across economic sectors, diversity of our product offerings, and our emphasis on keeping costs low - continue to serve us well,” he added.
“Prudence is an imperative in our business and we operate within self-imposed restraints with no compromise. We constantly review the organization’s risk profile relative to its risk appetite. We also ensure that we always maintain a high capital adequacy ratio and remain highly liquid. Our provisioning policy is conservative and serves as a buffer against any unforeseen credit or investment losses. As a result, we received continued strong acceptance from corporate depositors, government institutions and banks, enabling us to increase our deposits substantially from previous levels,” he added.
Mr. Alqubaisi Concluded: “We go into 2010 with a strong capital base, a consistent business strategy, a well diversified portfolio, and with interesting opportunities being thrown up by a rapidly evolving market. Our main priority now is the balancing of near-term results with long-term growth, keeping in view the need to balance the rewards against the various risks that such opportunities may entail. In the final analysis, our unwavering focus is on enhancing the strength of Finance House and in creating value for our shareholders”.