Business | Banking
Finance House posts earnings of Dh226m
Finance House has announced a record net profit of Dh226 million for the first half, representing an increase of 182 per cent over the same period last year (Dh80 million).
- Staff Report
- Published: 00:04 July 10, 2008
Dubai: Finance House has announced a record net profit of Dh226 million for the first half, representing an increase of 182 per cent over the same period last year (Dh80 million).
The full-year net profit figure for 2007 was Dh202.8 million.
Mohammad Al Qubaisi, chairman of Finance House, said: "These results once again demonstrate the effectiveness of our strategy and the strength of our belief in delivering value to our clients through a differentiated service, and in operating discipline as a means to strong financial performance to our shareholders.
"As at June 30, 2008, our shareholders' equity rose to Dh1.02 billion, and this is after distributing a dividend of Dh150 million to shareholders during this half-year.
"Year on year, our net worth has grown by a spectacular 50 per cent, supported by this performance."
Total assets grew to Dh2.66 billion, a rise of 23 per cent over the December 31, 2007 figure. This is reflected in the growth in loan portfolios, which rose by 64 per cent over the previous year-end, and is contributed by both commercial and retail portfolios. Deposits grew 18 per cent as compared to the previous year-end.
The company's investments performed very well in capital markets that were devoid of direction for much of the half-year.
Challenging task
Keeping operating costs under control remained a challenging task in the current inflationary environment.
However, through investments in infrastructure and the resulting synergies, the Company has improved its cost-to-income ratio from 23 per cent (2007) to 13 per cent in the current half-year.
Finance House's share price has risen by 43 per cent since the beginning of the year as compared to the 9 per cent appreciation of the Abu Dhabi Securities Exchange index.
Year-on-year, our net worth has grown by 50 per cent, supported by this performance."
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