Finance House net profit up 15.9pc
Abu Dhabi, February 5, 2014
Abu Dhabi-based Finance House has reported a consolidated net profit of Dh83.7 million for 2013, up 15.9 per cent over Dh72.2 million achieved in the previous year.
The total comprehensive income for the year grew by a whopping 52.3 per cent to reach Dh117.6 million compared to Dh77.2 million in the previous year.
The total assets grew to Dh4.12 billion as at 31 December 2013, registering a healthy increase of 10.6 per cent compared to Dh3.72 billion as at December 31, 2012, said a company statement.
Bearing in mind the total comprehensive income of Dh117.6 million posted during the year, the sound liquidity position and the robust capital adequacy ratio, the Board has recommended a cash dividend of 25 per cent subject to regulatory approvals.
Commenting on results, chairman Mohammed Alqubaisi said: "We are proud to maintain our profitable stance for the ninth successive year since inception. In less than a decade, we have experienced a complete boom-bust cycle and it is gratifying to note that our resilient business model has delivered profitable growth not only during periods of rapid economic growth but also during periods of relative economic stagnation or contraction."
Due to unavoidable margin compression in a low interest rate environment, the net interest income and income from Islamic Financing & Investing Assets was flat at Dh128.4 million in 2013 compared to Dh128.7 million in 2012.
However, the net fee and commission income jumped by 50.3 per cent to Dh43.5 million in 2013, compared to Dh28.9 million in
The total operating income for 2013 was up by 9.4 per cent at Dh266.4 million compared to Dh243.4 million in the previous year.
The net loans & advances including Islamic Financing & Investing Assets as at 31 December 2013 grew by 8.4 per cent to Dh1.58 billion compared to Dh1.46 billion at the end of the previous year.
Loans to deposits ratio as of 31 December 2013 stood at a healthy 72.5 per cent compared to 80.8 per cent in the previous year, reflecting a cautious approach to loan book growth as well as the significant head room available for sustained loan book growth in 2014 and beyond.
"For a genuine private sector enterprise operating in the fiercely competitive UAE financial services sector, this is a creditable achievement indeed," he added.-TradeArabia News Service