Finance House Reports Net Profit of AED 48 million for the half - year ended 30th June 2011
 
21st July 2011
finance house

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”.‎