FH to pay 12% dividends to shareholders

Abu Dhabi: Finance House PJSC (FH) has approved the distribution of cash dividend of 12 per cent to shareholders, FH said in a statement following the annual general meeting of the bank.

FH has reported a net profit of Dh72.2 million, up 20.4 per cent from Dh60 million in the 2011, and customer deposits increased by 16.5 per cent to Dh1.8 billion by end of December 2012 compared to Dh1.55 billion for the same period in 2011.

The bank said that the total assets also hiked by 6 per cent to amount to Dh3.72 billion by end of December 31, 2012 compared to Dh3.51 billion for the same period last year.

Wadah Al Taha, chief analyst and economist at the Zarouni Group, told Gulf News that the reason behind this growth is the bank’s vision and strategy.

“The bank is competing with major and leading banks in the country. However, FH had managed to bring about many fruitful results financially through its positioning strategy,” commented Al Taha.

He added that the FH has a strong capital base, with clear business strategies, well diversified asset book, along with a capability to exploit opportunities to FH’s advantage.

Mohammad Al Qubaisi, FH chairman, said that the bank has moved ahead towards success in spite of challenges and tough market conditions.

With regard to positioning strategies, Al Qubaisi told Gulf News: “We do not compete with banks but rather we coexist with them. We focus on the Small and Medium-Sized corporates and treat them the same way large corporates are treated in big banks. In addition, there is niche for everyone and we operate within that niche segment.”

“Finance House is again looking to scale new heights of success in 2013 as the company has been adjudged Best Business Finance Company in the Middle East, and has retained the Best Retail Finance Company in the Middle East award for the second consecutive year at the Banker Middle East Industry Awards 2012,” said Al Qubaisi.

He pointed out that political and economic instability continued to haunt the Mena region in 2012 which led to shaking investor’s confidence and dampening business sentiments.

2013 outlook

Al Qubaisi said the bank keeps a close watch on all unfolding situations in the Mena region.

“At present our business strategies or near-term growth objectives will remain the same as we are confident of its efficacy in the midst of ongoing changes in the regional and global landscape,” remarked the chairman.

“We have entered 2013 with renewed dynamism as we have added new features to our existing Smart Guarantee product (SG), which will now cover the entire Dh28 charge on behalf of establishments operating in the UAE, and will also pay them interest on their guarantee margins deposited with us,” he added.

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