Abu Dhabi, April 16, 2008 – At its Annual General Meeting held last night, the shareholders of Finance House PJSC approved the distribution of a cash dividend of 75 per cent. The company reported a net profit of AED 202.8 million for 2007, as against AED 160.6 million the previous year, registering an increase of 26%. Total assets grew to AED 2.16 billion, an increase of 64% over the previous year’s figure of AED 1.31 billion.
Mr. Mohammed Alqubaisi, Chairman of Finance House said, “Our 2007 performance added further vigour to the momentum we have built up since inception – in creating value for our shareholders, as well as in every qualitative measure. As at 31st December 2007 our Shareholders’ Equity grew to AED 949.5 million, an increase of AED 225 million over the previous year, and this is after making payment of an AED 100 million cash dividend in 2007. This reflects the strength of the company’s capital base, which in turn provides a strong platform for our future growth. We did not have any exposure to the sub-prime crisis, and this is due to our conservative approach to risk”. Finance House’s assets witnessed all-round growth in 2007. Its loan portfolios grew by an impressive 103% during the year, with both commercial and retail portfolios having recorded significant increases. Over the same period, customer deposits grew by 75% to AED 707.4 million. The company’s investments portfolio performed very well for the year, with profitable exits, as well as significant valuation gains in marketable securities, as the region’s capital markets staged a recovery during the latter part of the year.
Mr. Alqubaisi added, “Consistent with our strategy, we shall continue to concentrate on our profitable niches and on identifying new areas that will offer us the best returns and help us stay ahead of the curve. Our 2007 product launches - Home Mortgage loans and Executive Finance in the retail suite, and the Smart Guarantee and FlexiDeposit products for corporate clients – stand out as value differentiators.