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.
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.