Dubai: The mortgage lender Amlak Finance secured a net profit of Dh266 million for the first six months of 2022, a solid increase on the Dh197 million a year ago. This came as a result of ‘prudently managing operations and balance-sheet’, the Dubai firm said in a statement.
Total income for the period was, however, down 9 per cent to Dh351 million, with revenues from the core financing business down 19 per cent to Dh69 million.
Amlak did record a gain of Dh225 million on debt settlement arrangements and was ‘able to reduce its debt burden by Dh565 million (including a Mudaraba instrument of Dh120 million). Another gain was the 6 per cent reduction in operating costs to Dh41 million.
Handling Dh989m in accumulated losses
At the end of June 2022, Amlak’s accumulated losses was Dh989 million, reduced from the Dh2.3 billion at the end of 2020 and Dh1.31 billion of December 2021. The management has taken a number of initiatives to bring this down, not least winning approval in June 2020 from its financiers on an agreement that covers the new terms of Amlak’s debts.
As a result of debt settlement arrangements and repayments, profit distribution to financiers was down 15 per cent to Dh39 million compared to Dh46 million for H1-2021. Amlak also recorded lower amortisation costs of Dh73 million compared to Dh85 million a year ago.