Waha Capital 2010 full year net profits rise 15% to Dhs249m

Profitability resulted from the company's continued growth and improved performance across the business units, derived from restructuring activities, consolidation of operations and increased income generation in various areas.

Net profits reached Dhs249m, compared to Dhs217m in 2009, while return on equity increased to 12.2%, from 11.6% in 2009.

"The company's very strong 2010 results, even during a year that contained considerable challenges, further demonstrate the company's solid foundation, the value of its diversification strategy and the sustainable business strategy outlined for each operating unit. Building on these results, achieved even in a difficult year, we expect to continue along a very strong growth pattern in the forthcoming period that will be reflected in increasing value, not only to our shareholders but also to the local and regional economy," said H.E. Hussain Jasim Al Nowais, Chairman of Waha Capital.

The rise in net profits was driven mainly by the restructuring of the company's leasing business in which Waha Capital took a 20% stake in the world's leading independent aircraft leasing company AerCap in a deal that also saw Waha sell its 50% stake in the two companies' joint venture AerVenture, as well as 40% of Waha's leasing portfolio.

Additionally, the company boosted income from its maritime business through its growing fleet of support vessels and its 49% ownership in GMMOS. In 2010, the company also increased fee income generated through several advisory mandates related to the arranging and financing of assets on behalf of various clients.

"The year 2010 has been extremely positive for Waha Capital, and we are very pleased to be able to report sustained profitability amidst challenging conditions globally," said Salem Rashid Al Noaimi, CEO of Waha Capital. "Our performance this year is testament to our business strategy and the entrepreneurial spirit of our people, while our stability also is based on the strength of our shareholder base and the support we have received from various stakeholders."

Reflecting the company's strong business performance in 2010, earnings per share increased to Dhs0.14 in 2010 compared to Dhs0.13 in 2009 on an adjusted basis, while return on assets reached 6.2% compared to 4.8% in 2009.

These results were announced following a meeting of the company's Board of Directors in Abu Dhabi chaired by Al Nowais. The meeting was attended by members of the board and the executive management of the company.