FH reports Dh61.2m net on net fee and commission income growth

Total assets up 26.9 per cent as customer deposits surge 50.5 per cent

24/07/2014 01:35 AST

Finance House (FH), an Abu Dhabi-headquartered finance company, on Wednesday reported a consolidated net-profit of Dh 61.2 million for the six months up 8.3 per cent compared to Dh 56.5 million in the corresponding period of in 2013.

Net fee and commission income grew by a 75 per cent to reach Dh35.8 million. Income from investing activities nearly doubled to Dh65.4 million in first half 2014 compared to Dh33.6 million in the same period last year, on the back of improved performance of UAE stocks. Net interest income and income from Islamic financing and investing assets was marginally lower at Dh63.7 million compared to Dh66.9 million in the same period last year, primarily on account of significantly lower interest rates on short term money market placements with local banks.

Total operating income for the half year ended 30 June 2014 jumped nearly 30 per cent to Dh160.3 million compared to Dh123.5 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 Dh80.8 million compared to Dh 58.6 million in the same period last year.

In line with its conservative approach towards impairment provisioning, FH has set aside additional impairment provision of Dh18.3 million in the first half of 2014 compared to Dh8.4 million in the same period last year.

Total assets grew by an impressive 26.9 per cent to reach Dh4.50 billion as of 30 June 2014 compared to Dh3.55 billion at the same time last year.

Customers’ deposits grew by 50 per cent year on year to reach an all-time high of Dh2.66 billion as of 30 June 2014 compared to Dh1.77 billion at the same time last year. Net loans and advances including Islamic financing and investing assets grew by a robust 13.6 per cent year on year to reach Dh1.73 billion as of 30 June 2014, compared to Dh1.52 billion at the same time last year.

“Our strategy of continuously seeking and addressing profitable and 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,” said Mohammad Abdullah Al Qubaisi, Chairman of Finance House.

Gulf News