Finance House Jan-Sept profit tops $21m
Abu Dhabi, October 29, 2013
Abu Dhabi-based Finance House (FH) has posted a net profit of Dh80.2 million ($21.8 million) for the nine months ended September 30, marking a 10.4 per cent rise over the net profit of Dh 72.6 million during the same period last year.
Net interest income earned during the first nine months of the year grew to Dh92.7 million compared to Dh91.8 million registered in the same period of the previous year.
Net fee & commission income grew by 43.7 per cent to reach Dh 32.7 million compared to Dh22.8 million during the first nine months of the previous year. Similarly, net insurance income at its insurance subsidiary also registered an impressive growth to Dh8.6 million compared to a marginal loss of Dh0.9 million in the comparable period of the previous year.
Income from investing activities also grew at a healthy rate of 20.5 per cent compared to the same period in the previous year, on the back of improved performance of UAE stocks, profitable exit from a private equity investment and profitable disposal of an investment property.
As a combined result of the above, total operating income for the nine months ended 30 September was higher by 10.4 per cent at Dh193.9 million compared to Dh175.6 million during the same period of the previous year.
Due to continued expansion in business activities of the Group, total operating expenses were higher by 8.1 per cent compared to the same period last year.
In line with its conservative approach towards impairment provisioning, FH continues to set aside adequate provisions against potential impairment losses, on a quarterly basis. Net charge on account of impairment allowances for the first nine months of 2013 was Dh23.1 million compared to Dh19.1 million during the same period of the previous year.
Mohammed Abdulla Alqubaisi, chairman of Finance House said: “Our steady all-round growth in business volumes and profitability alongside stable and healthy balance sheet ratios clearly manifest the resilience of our business model and our ability to adjust swiftly to changing market conditions.”
“We continue to seek and address profitable & underserved niche segments in order to generate healthy returns for our shareholders on a sustained basis. We are confident that this strategy will continue to serve us well in the near future also,” he added. - TradeArabia News Service
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