Finance House Q3 profit up 8%

ABU DHABI — Finance House on Wednesday said its net profit rose eight per cent to Dh25.4 million in the quarter ending September 30, over Dh23.5 in the corresponding period.

By Haseeb Haider

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Published: Thu 14 Oct 2010, 11:29 PM

Last updated: Mon 6 Apr 2015, 11:42 AM

In the first nine months of the year, the Abu Dhabi-based finance company’s net profit was slightly higher as it earned Dh87.5 million, compared to Dh86.8 million for the same period in 2009.

Mohammed Alqubaisi, Chairman of Finance House described the achievement as ‘laudable’ by any standard in the backdrop of unsettled economic conditions for the most part of 2010 and the consequent self restraint exercised by us with regard to growing our loans and investment portfolios.

He said ‘customer deposits have maintained a healthy upward trend to date, which reflects the continued confidence of the market in Finance House and in its ability to adjust its business model for sustained growth even in challenging times.

“Our investments have performed well in markets that have seen a sustained rise post Ramadan,” the chairman said.

The company’s shareholders’ equity as at September 30, 2010 stands at Dh535.4 million, after a dividend payout of Dh110 million earlier this year. This strong capital base provides it with the balance sheet strength to grow prudently and profitably.

“In recent weeks, there are visible signs of sustained economic recovery and market stability, locally & globally. It is time to grow our lending and investment books once again, albeit on a selective and cautious basis. Going forward, bulk of our asset growth will be match funded through medium and long term debt,” Alqubaisi said.

“Our strategy of seeking and addressing profitable niche segments should continue to stand us well through the economic recovery phase and enable us to continue generating above average equity returns for our shareholders on a sustained basis”, Alqubaisi added.

The company’s principal activities are commercial and retail financing, financial services and investments.

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