Abu Dhabi, 23 July 2013 - Finance House PJSC (FH), has registered a robust consolidated net-profit of AED 56.5 Million for the six months ended 30 June 2013, compared to AED 72.2 Million for the full year ended 31 December 2012.
Net Interest Income earned during the first half of the year grew by 7.5% to AED 64 million compared to AED 59.5 million registered in the same period of the previous year. Net Fee & Commission Income grew by a whopping 65.6% to reach AED 20.5 Million compared to AED 12.4 Million during the first half of the previous year. Similarly, Net Insurance Income at its insurance subsidiary also registered an impressive growth to AED 7.6 million compared to AED 1.6 million in the comparable period of the previous year. Income from investing activities also grew at a healthy rate compared to the same period in the previous year, on the back of improved performance of UAE stocks, profitable exit from a private equity investment and profitable disposal of an investment property.
As a combined result of the above, Total Operating Income for the half year ended 30 June 2013 was higher by 9.3% at AED 123.5 Million compared to AED 113 Million during the same period of the previous year. Due to continued expansion in business activities of the Group, Total Operating Expenses were higher by 8% compared to the same period last year. In line with its conservative approach towards impairment provisioning, FH continues to set aside provisions against potential impairment losses, on a quarterly basis.
Net Loans & Advances grew by a robust 15.5% YOY to reach AED 1.42 Billion as of 30 June 2013, compared to AED 1.23 Billion at the same time last year. During the same period, Islamic Financing & Investing Assets grew by nearly 54% to reach AED 100 Million as of 30 June 2013 compared to AED 65 Million as of 30 June 2012. Customers’ Deposits grew steadily to reach AED 1.77 Billion as of 30 June 2013. The resultant Loans to Deposits ratio as of 30 June 2013 stood at 86.1%, leaving ample room for growth in lending book in the near term.
Shareholders’ Equity as at 30 June 2013 stood at a healthy AED 677.6 Million compared to AED 651 Million as of 31 December 2012. This is after distributing a cash dividend of 12% in March 2013, amounting to AED 36.3 Million for the year ended 31 December 2012.
At the recently concluded Banker Middle East Industry Awards 2013, Finance House was once again voted as the “Best Corporate Finance Company in the Middle East”, for the second year running. Insurance House (IH) was adjudged as the “Best Local Insurance Company” and the motor insurance product offering from IH was earlier adjudged as the “Best Motor Insurance Product in the ME” under the Product Awards category.
Commenting on first half 2013 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”.