Dubai: Finance reported an 87 per cent drop in second-quarter net profit on Wednesday as the Islamic mortgage lender’s income from financing, investments and deposits all declined and amortisation costs soared.
Amlak, which signed a $2.7 billion debt and financing restructuring deal with creditors last November, made a net profit attributable to shareholders of Dh7.17 million in the three months to June 30, it said in a bourse statement.
This compares with a net profit of Dh55.79 million in the prior-year period.
Quarterly income from Islamic financing and investing assets fell 30.1 per cent year-on-year to Dh64.87 million and deposit income roughly halved to Dh1.11 million over the same time frame.
Amlak also recognised amortisation of initial fair gains on investment deposits of Dh51.43 million in the second quarter, versus none a year earlier.
Profits
“We look forward to growing our profits for the remainder of the year through new business originations focusing on our target customer segments,” Arif Al Harmi, Managing Director and chief executive officer of Amlak said in a statement.
“We have already launched our Istithmari product, aimed at buy-to-let investors and we plan to develop innovative funding solutions to support our strategy of growth and long term value creation,” he added.
Amlak’s real estate investment portfolio consists of land parcels valued at Dh209 million, completed property units valued at Dh1.05 billion and projects under development valued at Dh687 million all situated in the UAE, except Nasr City land which is located in Cairo, Egypt and is valued at Dh282 million.
(With inputs from Reuters)
