Amlak Finance Q1 2008 net profits soar by 425%

At the end of 31 March 2008, Amlak's Q1 net profits rose to Dhs 126 m against only Dhs24m in Q1 2007, marking a resounding growth of 425%. Amlak also reported an impressive 165% rise in revenues to Dhs270m during the first quarter of 2008 compared to Dhs102m during the same period last year.

Citing the company's continued strong performance for the the 4th consecutive quarter, H.E. Nasser Bin Hassan Al-Shaikh, Chairman, Amlak Finance PJSC, said: "Once again Amlak surpassed all expectations and have created substantial shareholder value setting the tone for what is to be expected from it for the rest of the year. With an overall size of business surpassing Dhs14 bn in value, Amlak has gained more solid footings as the uncontested leader in the real estate financing sector in the region."

He added, "We continuously raise the bar not only of the industry but also within the Amlak team in order to bring more innovative and pioneering products and services to our increasing roster of valued stakeholders. It feels good to see a sector that we have single handedly established in the country since year 2000 grow to where it is today but it even feels better to disclose the financial results today that demonstrate that Amlak continues to lead the industry."

On his part, Mr. Arif Alharmi, Chief Executive Officer, Amlak Finance PJSC, said: "The management's strategy is on the right track and our team work and dedication has begun to bear fruits with these outstanding Q1 results. As the market moves towards maturity, we have also moved towards developing more structured products to meet the growing needs of our customers."

January witnessed the launch of Amlak's free of charge '1-Hour' approval service for new applicants. The new process, which has been in place for more than three months before its official launch, underwent thorough examination to ensure it is in line with the company's quality assurance program, and has received outstanding response from customers who require fast turnaround time to acquire their property.

Similarly in March, Amlak announced the launch of Easy Start, which is intended to offer customers the opportunity to pay only the profit over a four year period and at the end of the this period they can either pay off the entire amount or convert the principal into a flexible plan that can be paid over the remaining finance period.

On March 16, the assembly of the Annual General Meeting (AGM) of Amlak approved the distribution of 10% cash dividend of the company's share capital to shareholders, amounting to Dhs 150 m. Meanwhile, the Extraordinary General Meeting mandated the Board of Directors with the issuance of convertible Sukuk, up to Dhs1.8bn, in addition to non-convertible Sukuk up to at Dhs3bn, for a total value of Dhs4.8bn.