Finance House posts $8.2m Q1 profit
Abu Dhabi, April 18, 2012
Abu Dhabi-based Finance House has registered a robust net profit of Dh30.2 million ($8.2 million) for the first quarter of 2012 when compared to Dh29.3 million during the same period last year.
This equates to over 47 per cent of the net profit of Dh63.9 million recorded for the full year ended 31 December 2011, said the Abu Dhabi bank in its statement.
Kicking off 2012 on an upbeat note, Finance House said its net interest income of Dh27.6 million trended well with the average quarterly net interest income of Dh28 million registered in 2011.
Similarly, the company's net fee and commission income of Dh5.75 million recorded during the quarter was in line with Dh 5.95 million registered during the same period last year.
However, the total operating income of Dh50.88 million was 27 per cent higher than the average quarterly total operating income of Dh40 million registered during 2011.
As of March 31, 2012, the customers’ deposits reached an all time high of Dh1.72 billion, manifesting the continued confidence of the market in the strong financial position and solid performance of the company.
Similarly, the total assets also scaled a new peak at Dh3.44 billion, overhauling the previous high of Dh3.31 billion registered as of December 31.
Commenting on the results, Mohammed Abdulla Alqubaisi, chairman of Finance House, said: “We worked relentlessly on rewiring our business strategies in line with changing market dynamics. Our robust Q1 results demonstrate our ability to adapt business & execution strategies in tune with rapidly changing market conditions, locally and globally.”
According to him, the shareholders’ equity stood at Dh526 million, compared to Dh522 million last quarter.
At the recent Annual General Meeting, the shareholders of the company approved a cash dividend of 20 per cent.
“The overall size of our loan book has registered a marginal growth 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," Alqubaisi said.
"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," he added.-TradeArabia News Service