Staff Report
Dubai, UAE
Amlak Finance PJSC, a financial services provider, experienced a significant drop in its net profit by 78 percent in the first half of 2024. As per its H1 2024 financial results, the firm collected Dh30 million as net profit after income tax as compared to Dh138 million it made in the corresponding period last year.
Meanwhile, the revenue from financing and investing business increased by 10 percent to Dh66 million during H1 2024 from Dh60 million in H1 2023. Amlak’s total revenue for H1 2024 excluding a one-off gain of Dh154 million slightly increased to Dh144 million from Dh126 million for the same period last year.
Due to ongoing restructuring, Amlak’s operating costs increased by four percent to reach Dh48 million in H1 2024 from Dh46 million in H1 2023.
The company also continued to efficiently manage its obligations, including repayment of Dh46 million to financiers during H1 2024. Since 2014 to date, Amlak has settled 84 percent of its Islamic deposit liabilities including Mudaraba instrument relating to financiers.
Amlak has commenced negotiations with the remaining financiers during 2023 to exit from the Common Terms Agreement for restructuring which are currently at an advanced stage.
Furthermore, the company recorded lower amortization cost of Dh16 million in H1 2024 compared to Dh22 million in H1 2023 on regular investment deposits. The amount of amortization represents the unwinding of fair value gains on initial recognition of investment deposits and varies according to the level of repayment and settlements made to the financiers in any reporting period.
In the region, Amlak’s investment in Egypt has been subject to the devaluation of the Egyptian Pound against Dirham which impacted the group’s financial position.
Ends
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