Finance House net profit up 19pc, at $17.8m
Abu Dhabi, October 16, 2012
Abu Dhabi-based Finance House (FH) has achieved a year-on-year growth of 19 per cent, registering a net profit of Dh65.7 million ($17.89 million) for the nine months ended September 30, compared to Dh55.3 million for the same period last year.
Total operating income for the nine months ended September 30 grew by circa 27 per cent to Dh155.4 million compared to Dh122.7 million for the same period last year, on the back of robust growth in lending book and higher returns from the group’s well-diversified investment portfolio.
Net loans and advances grew by 20.5 per cent to Dh1.35 billion compared to Dh1.12 billion as of September 30, 2011.During the same period, customer deposits grew by 32 per cent to reach Dh1.63 billion, compared to Dh1.23 billion last year.
The resultant loans to deposits ratio as of September 30 stood at 83 per cent (91 per cent as of September 30, 2011), with ample room to support continued growth in lending book in line with improving levels of business activity across the UAE, a statement from FH said.
Return on average equity for the first nine months of 2012, on an annualised basis, significantly improved to 17.3 per cent per annum compared to 12 per cent per annum for the full year ended December 31, 2011.
Annualised return on average assets for the first nine months of 2012 improved to 2.6 per cent compared to 2 per cent for the full year ended December 31, 2011. The group’s capital adequacy ratio as of September 30 stood at 21.6 per cent and provides a solid foundation for balance sheet growth in the near term.
The basic and diluted earnings per share attributable to the ordinary shares of FH for the nine months ended September 30, stood at Dh0.22 per share compared to Dh0.18 per share for the same period last year, which is a 22 per cent growth, year-on-year.
Mohammed Alqubaisi, chairman of Finance House, said: “Finance House is built on solid foundations and over the years, we have demonstrated consistent growth and delivered excellent results despite challenging economic conditions. Our robust financial performance to date is in line with this established tradition.”
The bank’s board has approved a share buyback programme for up to 10 per cent of the company’s shares issued which is now subject to ESCA and UAE Central Bank approvals.
“FH Board has decided to initiate the share buyback programme of up to 10 per cent of the company’s shares issued because we believe that there is no better investment we can make than in our own future,” Alqubaisi said.
“We believe this decision is in the best interests of our shareholders and Finance House, and is intended to enhance shareholders value.”
“We look forward to the future with great optimism and remain confident of our ability to continue growing,” he concluded. – TradeArabia News Service