Finance House Q1 profit inches up

Abu Dhabi-based Finance House’s net profit inched up to Dh30.2 million in the first quarter of 2012 as compared to Dh29.3m for the same quarter last year.

The first quarter net is equal to 47 per cent of last year’s Dh63.9m profit achieved in the whole of 2011.

Net interest income in Q1 2012 was Dh27.6 million trended well with the average quarterly net interest income of Dh28 million registered in 2011.

Net fee and commission income of Dh5.75 million recorded during the quarter was in line with the average quarterly fee and commission income of Dh5.95 million registered in 2011.

However, total operating income of Dh50.88 million for Q1 2012 stood at 27 per cent higher than the average quarterly total operating income of Dh40 million registered during 2011.

In addition to steady income growth from our core lending business, the significant uplift in Total Operating Income was also fuelled by the stellar performance of our well diversified investment portfolio, with the successful execution of our fixed income strategy being a key driving factor.

As of 31 March 2012, customers deposits reached an all-time high of Dh1.72 billion; assets as of March 31 2012 scaled a new peak at Dh3.44 billion, overhauling the previous high of Dh3.31 billion on December 31, 2011.

Mohammed Abdulla Alqubaisi, Chairman of Finance House, said: “We worked relentlessly on rewiring our business strategies in line with changing market dynamics. Our robust Q1 results demonstrate our ability to adapt business & execution strategies in tune with rapidly changing market conditions, locally and globally”.

Shareholders’ equity as at March 31, 2012 stood at Dh526 million, compared to Dh522 million as at December 31, 2011.

In the Annual General Meeting held on March 6, 2012, the shareholders approved a cash dividend of 20 per cent, subject to regulatory approvals, which have since been obtained and dividends distributed to shareholders.

“The overall size of our loan book has registered a marginal growth during the quarter, with new disbursements roughly matching repayments on existing loans.  However, we expect to see a robust growth in our loan book from Q2 onwards, in line with our growth strategy. We continue to maintain a cautious approach towards managing our investment portfolio, which has performed remarkably well during this quarter on the back of improved market sentiments. As to liquidity, the company has a robust system in place for managing its cash flows,” Alqubaisi said.