Dubai: A drop in fee and rental income saw Dubai mortgage lender Amlak come up with a nine-month profit of Dh389.9 million against Dh1.08 billion a year ago.
Amlak’s accumulated losses as of end September came to Dh824 million (or 55 per cent of the capital). These relate to fair value losses sustained on investment-linked properties in 2014 and 2020.
The company says it’s on track with debt resettlement programme. Post the restructuring, as of end September, it had repaid 79 per cent of the Islamic deposit liabilities and 59 per cent of Mudaraba instrument over a period of around eight years, under a 12-year plan.
“The company continued its debt settlement arrangement initiatives through cash and real estate asset swap, which further reduced losses during 2021,” Amlak said in a statement. Last year, the company fully settled four financiers and partially done so with two others.)
This programme has continued through this year, reducing the accumulated losses further. In these nine months, two financiers were fully settled and three partly.
Accumulated losses were at Dh2.3 billion as of end December 2020.
It paid Dh89 million to financiers during the first nine months of 2022 – ‘As a result of repayments and debt settlement arrangements, the profit distribution to financiers decreased by 16 per cent and stood at Dh56 million for Q3-2022 as compared to Dh67 million for Q3-2021’.