Finance House Reports Net Profit of AED 29.3 Million for Q1 2011
 
19th April 2011
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Abu Dhabi, April 19, 2011 – Finance House PJSC (FH), has kicked-off 2011 ‎on a positive note by registering a net profit of AED 29.3 Million for the first ‎quarter of 2011, compared to AED 32.1 Million for the same period last year. ‎

Net Interest Income in Q1 2011 at AED 31.3 Million was higher than AED ‎‎30.2 Million registered in Q1 2010 while Net Fee & Commission Income in Q1 ‎‎2011 at AED 8.3 Million was significantly higher than the comparable AED 4.6 ‎Million registered in Q1 last year. Total Operating Income at AED 52.7 Million ‎was marginally lower than AED 53 Million registered in Q1 last year primarily ‎on account of fair value reductions in its trading portfolio representing ‎investment in UAE stocks which suffered a temporary price set-back in view ‎of the ongoing political unrest and resultant turmoil in the Middle East.‎

As of 31 March 2011, Customers’ Deposits reached an all time high of AED ‎‎1.591 Billion, manifesting the continued confidence of the market in the ‎strong financial position and solid performance of the company even under ‎unsettled economic and political conditions across the region. Compared to ‎the same period last year, Customers’ Deposits have grown by an impressive ‎‎30%. Similarly, Total Assets as of 31 March 2011 also scaled a new peak at ‎AED 3.22 Billion representing a 33% increase over the same period last year.‎

Mohammed Abdulla Alqubaisi, Chairman of Finance House, said‎‏:‏‎ “Despite the ‎temporary setbacks unleashed by the turmoil in the Middle East during the ‎first quarter of this year, we are pleased to announce that Finance House has ‎maintained its profitable stance, with the major part of the company’s net ‎profit coming from our core business, which has grown steadily over the ‎years”. ‎

Finance House’s Shareholders’ Equity as at 31st March 2011 stands at AED ‎‎551 Million, compared to AED 520 Million at the same time last year. In the ‎Annual General Meeting held on 21 March 2011, the Shareholders of the ‎Company approved a cash dividend of 15% and a stock dividend of 10%. Its ‎strong capital base provides it with the balance sheet strength to grow ‎prudently and profitably. ‎

During the quarter, the Finance House successfully acquired a ‎‏48‏‎% equity ‎stake in an established & running Islamic Finance Company through the ‎conversion of a Convertible Sukuk issued earlier. Additionally, as a key ‎founding member, Finance House successfully completed the IPO of ‎Insurance House, an associate in which the Company holds a ‎‏36‏‎% equity ‎stake. ‎

‎“Going forward, our strategic investments in both these entities should ‎contribute significantly to Finance House’s bottom-line”, Alqubaisi added.‎

Alqubaisi continued: “The overall size of our loan book has not grown during ‎the quarter, with new disbursements roughly matching repayments on ‎existing loans. However, we expect to see a robust growth in our loan book ‎from Q2 onwards, in line with our growth strategy. We continue to maintain ‎a cautious approach towards managing our investment portfolio. ‎Notwithstanding the unexpected steep fall in prices of UAE stocks in Q1, our ‎investment portfolio as a whole has performed relatively well, with a positive ‎contribution to net income. As to liquidity, the company has a robust system ‎in place for managing its cash flows”.‎

‎“We remain confident that our strategy of continuously seeking and ‎addressing profitable niche segments will enable us to continue generating ‎above average equity returns for our shareholders on a sustained basis”, ‎concluded Alqubaisi.