Customer Deposits up 50.5%; Total Assets up 26.9% Total Operating Income up 29.8%; Net Profit up 8.3%
Abu Dhabi, 23 July 2014 - Finance House PJSC (FH) has registered a robust consolidated net-profit of AED 61.2 Million for the six months ended 30 June 2014, marking an increase of 8.3% compared to AED 56.5 Million in the corresponding period of the previous year.
Net Fee & Commission Income grew by a whopping 75% to reach AED 35.8 Million compared to AED 20.5 Million in the first half of the previous year. Similarly, income from investing activities nearly doubled to AED 65.4 million in first half 2014 compared to AED 33.6 million in the same period last year, on the back of improved performance of UAE stocks. Net interest income and income from Islamic financing and investing assets was marginally lower at AED 63.7 million compared to AED 66.9 million in the same period last year, primarily on account of significantly lower interest rates on short term money market placements with local banks.
As a combined result of the above, Total Operating Income for the half year ended 30 June 2014 jumped nearly 30% to AED 160.3 million compared to AED 123.5 million in the same period of the previous year. Due to continued expansion in business activities of the Group, Total Operating Expenses were higher at AED 80.8 million compared to AED 58.6 million in the same period last year. In line with its conservative approach towards impairment provisioning, FH has set aside additional impairment provision of AED 18.3 million in the first half of 2014 compared to AED 8.4 million in the same period last year.
Total Assets grew by an impressive 26.9% YOY to reach AED 4.50 billion as of 30 June 2014 compared to AED 3.55 billion at the same time last year. Customers’ Deposits grew by a whopping 50.5% YOY to reach an all-time high of AED 2.66 billion as of 30 June 2014 compared to AED 1.77 billion at the same time last year. Net Loans & Advances including Islamic financing and investing assets grew by a robust 13.6% YOY to reach AED 1.73 billion as of 30 June 2014, compared to AED 1.52 Billion at the same time last year. The resultant Loans to Deposits ratio as of 30 June 2014 stood at 65%, leaving ample room for growth in lending book in the near term.
Shareholders’ Equity as at 30 June 2014 stood at a healthy AED 703.9 million compared to AED 677.6 million at the same time last year. This is after distributing a generous cash dividend of 25% in April 2014, amounting to AED 75.6 million for the year ended 31 December 2013.
Commenting on first half 2014 results, Mohammed Abdulla Alqubaisi, Chairman of Finance House said: “The stable economic environment in the UAE has allowed us to focus on our core engines of growth which are commercial and consumer lending and proprietary investments. Our strategy of continuously seeking and addressing profitable & underserved niche segments has enabled us to generate healthy returns for our shareholders on a sustained basis. We are confident that this strategy will continue to serve us well in the near future as well.”