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Amlak Finance first-half net profit surges 35%
Total assets stand at AED 3.8 billion, debt settlement arrangements yielded Dh225 million gain and contributed in total debt reduction of Dh565 million including Mudaraba instrument of Dh120 million
Amlak’s focus on efficient operations in 2022 delivered a six per cent reduction in operating costs to Dh41 million in H1 2022 compared to Dh43 million during the same period last year. — File photo
Amlak Finance PJSC on Wednesday said its first-half net profit surged 35 per cent to Dh266 million compared to Dh197 million in the corresponding period last year as the company focused on prudently managing its UAE operations and balance sheet.
In a statement, the company said its first-half total income dropped by nine per cent to Dh319 million from Dh351 million in the same period last year. Revenues from financing business decreased by 19 per cent to Dh69 million during the first half of 2022 as compared to Dh85 million in H1 2021.
The company’s debt settlement arrangements, through cash and assets, remained successful during the period. The company recorded a gain of Dh225 million on debt settlement arrangements and was able to reduce its debt burden by Dh565 million, including Mudaraba instrument of Dh120 million.
Amlak’s focus on efficient operations in 2022 delivered a six per cent reduction in operating costs to Dh41 million in H1 2022 compared to Dh43 million during the same period last year.
The company also continued to efficiently manage its obligations, including repayment of Dh60 million to financiers during H1 2022.
As a result of debt settlement arrangements and repayments, the profit distribution to financiers decreased by 15 per cent and stood at Dh39 million for H1 2022 as compared to Dh46 million for H1 2021.
Further, the company also recorded lower amortisation cost of Dh73 million in H1 2022 compared to Dh85 million in H1 2021. The amount of amortisation represents the unwinding of fair value gains on initial recognition of investment deposits and varies according to the level of repayment and settlements made to the financiers in any reporting period.
During H1 2022, the group recorded an impairment reversal of Dh99 million compared to an impairment reversal of Dh20 million in H1 2021.
— muzaffarrizvi@khaleejtimes.com
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