Amlak swings back into the black in Q2

dubai - Savings in operating costs and reversal of impairments results in a profit

Amlak Finance on Monday reported a net profit of Dh8.1 million for Q2 2017 compared to a loss of Dh35.5 million in Q2 2016, thanks to substantial savings in operating costs and reversal of impairments.

It posted a net profit of Dh15.5 million for the first-half ended on June 30, 2017.

Revenue from financing business activities decreased by nine per cent to Dh96 million in H1 2017, compared to Dh105 million for the same period last year, due to a decrease in the financing portfolio.

Rental income increased by 11 per cent during H1 2017 to Dh30 million compared to Dh27 million in H1 2016.

Rental income recorded in Q2 2017 stood at Dh15 million compared to Dh14 million in the same period last year, representing an increase of seven per cent, mainly due to increased rental income generation and recoveries from larger pool of foreclosed units.

An impairments reversal of Dh8 million was recorded during H1 2017 compared to an impairment charge of Dh30 million in H1 2016. During Q2 2017, it recorded an impairment reversal of Dh1 million compared to an impairment charge of Dh24 million in Q2 2016, reflecting an improvement in portfolio quality.

Arif Alharmi, managing director and CEO of Amlak, said: "H1 2017 proved to be somewhat challenging as we continue to face uncertainty in the market. Amlak will continue to focus on core business development, product and service differentiation and driving profitability and value for our shareholders. We will also continue with our strategy and efforts to develop the infrastructure and sale of Nad Al Hamar land plots which will support the overall revenue and profitability."

- waheedabbas@khaleejtimes.com