Finance House records 182% increase in net profit to Dhs226m for first half of 2008

Mr. Mohammed Alqubaisi, Chairman of Finance House said:

"These results once again demonstrate the effectiveness of our strategy and the strength of our belief in delivering value to our clients through a differentiated service, and in operating discipline as a means to strong financial performance to our shareholders. As at 30th June 2008, our Shareholders' Equity rose to Dhs1.02bn, and this is after distributing a dividend of Dhs150m to shareholders during this half-year. Year on year, our net worth has grown by a spectacular 50% supported by this performance."

Total assets grew to Dhs2.66bn, a rise of 23% over the 31 December 2007 figure. This is reflected in the growth in loan portfolios which rose by 64% over the previous year-end, and is contributed by both commercial and retail portfolios. Deposits grew 18% as compared to the previous year-end. The Company's investments performed very well in capital markets that were devoid of direction for much of the half-year.

Keeping operating costs under control remained a challenging task in the current inflationary environment. However, through investments in infrastructure and the resulting synergies, the Company has improved its cost-to-income ratio from 23% (2007) to 13% in the current half-year.

Finance House's share price has risen by 43% since the beginning of the year as compared to the 9% appreciation of the Abu Dhabi Securities Exchange index. Despite this, the Company's Price/Earning ratio and Dividend yield remain among the best in the financial sector.

Mr. Alqubaisi added, "Our strategy remains unchanged - to deliver better value to our Shareholders by constantly identifying profitable segments and by directing our resources towards those areas that we believe offer us the best risk-adjusted returns".