A soft real estate market was a drag on overall revenues for Amlak Finance, dropping 13 per cent compare dto the first nine months of 2017. Plus, a more conservative valuation of assets was a factor in the mortgage company reporting a net loss of Dh51 million from a profit of Dh30 million last year.
But core revenues was in positive territory, up by 6 per cent year-on-year. Amlak recorded a 70 per cent increase in revenue from sale of properties under development and an increase related to infrastructure completion and sales of plots in Nad Al Hamar joint venture.
According to Arif Abdulla Alharmi, Managing Director and CEO of Amlak Finance, “Amlak’s third quarter results show a steady revenue generated from our core business. The performance is a reflection of our diverse products, and we will continue to build on this success moving forward, by expanding our portfolio to meet growing market demand.”
During the first nine months, the entity recorded an impairment charge of Dh42 million compared to an impairment reversal of Dh15 million in 2017. It also recorded an amortisation cost of Dh84 million, an increase of 2 per cent, due to the further early payment of Dh684 million to financiers in January. This was equivalent to 10 future scheduled monthly instalments until December.
To date, Amlak has paid 42 per cent of its Islamic deposits liabilities relating to financiers and 75 per cent relating to liquidity support providers.