Finance House H1 profit crosses $13m
Abu Dhabi, July 21, 2011
Finance House (FH), a leading Abu Dhabi-based finance company, has announced a net profit of Dh48 million ($13.06 million) for the first half of 2011, compared to Dh54.9 million ($14.94) for the same period last year.
The basic and diluted earnings per share attributable to the ordinary shares of FH for the six months ended June 30 is Dh0.16 per share compared to Dh0.18 per share for the same period last year.
Net interest income earned during the first half of the year was Dh57.2 million compared to Dh59.7 million for the same period last year.
“One of the key contributors to the lower net interest income is the sharp reduction in interest rates on inter-bank placements which stood at Dh 654 million as of June 30, 2011 compared to Dh591 million at the same time last year,” said Mohammed Alqubaisi, chairman Finance House.
Net loans and advances as of June 30 were marginally lower at Dh1.01 billion compared to Dh1.07 billion at June 30.
“Despite robust levels of new credit facilities granted during the first half of 2011, loan draw downs were sluggish, reflecting the cautious borrowing approach adopted by the corporate private sector in the UAE,” Alqubaisi said.
Customers’ deposits as at June 30 stood at Dh1.42 billion compared to Dh1.48 billion at the same time last year.
The resultant loans to deposits ratio as of June 30 stood at a healthy 71 per cent (72 per cent as of June 30, 2010), with ample room to grow the lending book in the near term.
Shareholders’ equity as at June 30 rose to Dh523 million compared to Dh495 million at the same time last year. This increase is after distributing a sizeable 15 per cent cash dividend amounting Dh41.25 million during the first half of 2011.
“We remain confident that in the foreseeable future, our strategy of continuously seeking and addressing profitable niche segments will enable us to continue generating robust returns on our shareholders’ equity on a sustained basis,” Alqubaisi concluded. – TradeArabia News Service