Complex Made Simple

Finance House nets Dhs81.3 million in the first nine months of 2014

Finance House PJSC (FH) has registered a robust consolidated net-profit of Dhs81.3 million for the nine months ended 30 September 2014, compared to Dhs80.2 million in the corresponding period of the previous year.

Net Fee & Commission Income grew by a whopping 49% to reach Dhs48.8 million compared to Dhs32.7 million in the first nine months of the previous year. Similarly, income from investing activities grew by 44% to Dhs95.1 million in the first nine months of 2014 compared to Dhs66.2 million in the same period last year. Net interest income and income from Islamic financing and investing assets was up 4% at Dhs101.4 million compared to Dhs97.6 million in the same period last year.

As a combined result of the above, Total Operating Income for the nine months ended 30 September 2014 jumped nearly 20% to Dhs231.8 million compared to Dhs193.9 million in the same period of the previous year. Due to continued expansion in business activities of the Group, Total Operating Expenses were higher at Dhs123.6 million compared to Dhs90.6 million in the same period last year. In line with its conservative approach towards impairment provisioning, FH has set aside additional impairment provision of Dhs26.9 million in the first nine months of 2014 compared to Dhs23.1 million in the same period last year.

Total Assets grew by an impressive 24.6% during the first nine months of 2014 to reach Dhs5.13 billion as of 30 September 2014 compared to Dhs4.12 billion as of 31 December 2013. Customers’ Deposits grew by an impressive 27.3% during the first nine months of 2014 to reach an all-time high of Dhs2.77 billion as of 30 September 2014 compared to Dhs2.18 billion as of 31 December 2013. Net Loans & Advances including Islamic financing and investing assets grew by a robust 46.4% during the first nine months of 2014 to reach Dhs2.31 billion as of 30 September 2014, compared to Dhs1.58 billion as of 31 December 2013. The resultant Loans to Deposits ratio as of 30 September 2014 stood at 83.3%, leaving ample room for growth in lending book in the near term.

Shareholders’ Equity as at 30 September 2014 stood at Dhs758.4 million compared to Dhs729.0 million as of 31 December 2013. This is after distributing a generous cash dividend of 25% in April 2014, amounting to Dhs75.6 million for the year ended 31 December 2013.

Commenting on FH financial results for the first nine months of 2014, Mohammed Abdulla Alqubaisi, Chairman of Finance House said: “In line with the sustained pick-up in economic activity across the UAE, we continue to focus on our core engines of growth which are commercial and consumer lending and proprietary investments. Our strategy of continuously seeking and addressing profitable & underserved niche segments has enabled us to generate healthy returns for our shareholders on a sustained basis. We are confident that this strategy will continue to serve us well in the near future as well.”