• Revenue from financing business activities up by 2%
  • Operating cost down by 3%
  • Total assets stand at AED 6 billion

Dubai, UAE – Amlak Finance PJSC, a leading specialized Islamic real estate financier in the Middle East, today announced its financial results for the first quarter ended March 31, 2019.

The company reported net profit of AED 2 million in Q1 2019 compared to AED 7 million net profit in Q1 2018. The Company’s total revenues including unrealized fair value gain related to investment properties increased to AED 122 million in Q1 2019, up by 24% compared to AED 98 million in Q1 2018.

Revenues from financing business activities increased by 2% to AED 43 million during Q1 2019 compared to AED 42 million in Q1 2018.

Operating costs decreased by 3% to AED 29 million in Q1 2019, compared to AED 30 million during the same period last year.

In Q1 2019, The Group recorded an impairment charge of AED 44 million on Islamic Financing Assets compared to AED 2 million in Q1 2018; this increase in impairment is mainly due to a financial default of one developer.

The Company also recorded an amortization cost of AED 26 million in Q1 2019 down by 24% compared to AED 34 million in the same period last year. The amount of amortization represents the unwinding of fair value gains on initial recognition of investment deposits, and varies according to the level of repayment made to the financers in any reporting period.

Total assets continue to stand at AED 6 billion and total liabilities at AED 5 billion, same as year end 2018 financial results.

The company continues renegotiating the funding conditions with its financiers to allow it more flexibility in adapting to current market conditions. This will provide the company with the opportunity to grow its business resulting in balance sheet growth and increased shareholder value. The renegotiation is currently in progress and, subject to securing approvals from financiers and related authorities, is expected to be concluded by Q2 2019.

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About Amlak Finance PJSC:

Established in 2000, Amlak Finance is a leading specialized real estate financier in the Middle East. Amlak provides innovative, Shari’a-compliant property financing products and solutions designed to meet the ever-changing market demands. Amlak offers a range of customized financial solutions and products to investors for both ready and off-plan properties.

Following the completion of its highly successful financial restructuring in 2014, Amlak is pursuing a prudent business strategy that is also now well-placed to work towards continuous enhancement of value for its shareholders.

Amlak launched its first international office in Cairo in 2007. It also has business associations in Saudi Arabia.

To learn more about Amlak Finance, please visit our website: http://www.amlakfinance.com/    

Media Inquiries:
Sasha Pinto
Tel: 04-4454248
Email: slpinto@webershandwick.co

© Press Release 2019

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