Finance House Nets AED 64.7 Million in the first nine months of 2015
 
9th November 2015
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Abu Dhabi, 09 November 2015 - Finance House PJSC (FH) has registered a consolidated net-profit of AED 64.7 million for the nine months ended 30 September 2015, compared to AED 73.3 million for the full year ended 31 December 2014. On the back of steady growth in the lending book and targeted expansion of the fixed income portfolio, Net interest income and income from Islamic financing and investing assets grew by an impressive 40.7% YOY to reach AED 142.6 million for the first 9 months of 2015 compared to AED 101.4 million in the corresponding period of the previous year. However,

Net Fee & Commission Income was lower by 30.6% compared to the same period in the previous year, due to lower brokerage revenue from subdued activity in the domestic equity markets during the first 9 months of 2015 compared to the same period in 2014. Income from a well-diversified proprietary investment portfolio stood at AED 73.2 million for the first nine months of 2015 compared to AED 95.1 million in the same period last year. The drop in investment income YOY is primarily due to the lack-lustre performance of domestic equity markets in 2015, compared to the previous year.

As a combined result of the above, Total Operating Income for the nine months ended 30 September 2015 was up by 7.6% to AED 249.4 million compared to AED 231.8 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 142.5 million compared to AED 123.6 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 42.3 million in the first nine months of 2015 compared to AED 26.9 million in the same period last year. Cash and cash equivalents as of 30 September 2015 stood at a healthy 15.9% of Total Assets, underscoring the continued conservative approach to liquidity management followed by the Group.

Shareholders’ Equity at the consolidated level as at 30 September 2015 surged to AED 880.3. As a result, the Group is now well positioned for accelerated asset growth in the near future.

Commenting on FH financial results for the first nine months of 2015, Mohammed Abdulla Alqubaisi, Chairman of Finance House said: “We continue 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 and 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.”