Abu Dhabi, 21 July, 2011 – For the first half-year of 2011, Finance House P.J.S.C (FH) has announced a net profit of AED 48 million compared to AED 54.9 million for the same period last year. The basic and diluted earnings per share attributable to the ordinary shares of FH for the six months ended 30 June 2011 is AED 0.16 per share compared to AED 0.18 per share for the same period last year.
Net Interest Income earned during the first half of the year was AED 57.2 million compared to AED 59.7 million for the same period last year. According to Mohammed Alqubaisi, Chairman Finance House: “One of the key contributors to the lower net interest income is the sharp reduction in interest rates on inter-bank placements which stood at AED 654 million as of 30th June 2011 compared to AED 591 million at the same time last year”.
Net Loans & Advances as of 30th June 2011 were marginally lower at AED 1.01 billion compared to AED 1.07 billion at 30th June 2010. While commenting on the loan book, Mohammed Alqubaisi stated that: “Despite robust levels of new credit facilities granted during the first half of 2011, loan draw downs were sluggish, reflecting the cautious borrowing approach adopted by the Corporate private sector in the UAE”.
Customers’ Deposits as at 30th June 2011 stood at AED 1.42 billion compared to AED 1.48 billion at the same time last year. The resultant Loans to Deposits ratio as of 30th June 2011 stood at a healthy 71% (72% as of 30th June 2010), with ample room to grow the lending book in the near term.
Shareholders’ Equity as at 30th June 2011 rose to AED 523 million compared to AED 495 million at the same time last year. This increase is after distributing a sizeable 15% cash dividend amounting AED 41.25 million during the first half of 2011.
Looking ahead, Alqubaisi commented: “We remain confident that in the foreseeable future, our strategy of continuously seeking and addressing profitable niche segments will enable us to continue generating robust returns on our shareholders’ equity on a sustained basis”.