Saudi Arabia’s leading non-bank real estate lender, Amlak International said its revenue rose 11 per cent to hit SR296 million ($78.5 million), while the group's real estate financing portfolio surged to SR3.2 billion ($892 million) across the individual and corporate book.
Announcing the financial results for the 12-month period ended December 31, 2019, Amlak said its net income for the period surged by 14.5 per cent to SR70 million, while the earnings before tax (EBT) increased by 4.6 per cent to SR102 million, at a margin of 35%.
Strong growth in new disbursements to individuals saw an increase in value of 90% with the number of new contracts surging by 119%.
New disbursements to corporate customers increased by 28.5%. Amlak’s corporate lending book accounts for 69% of the total portfolio, it added.
Commenting on performance, CEO Abdullah Al Sudairy said: "We have reason to be pleased with performance in 2019. A number of tailwinds are providing impetus to the Kingdom’s rapidly growing real estate financing sector, and we are at the forefront of its development."
"The diversity and quality of our lending book has proved critical, enabling us to serve both corporate and individual customers while maintaining a healthy balance sheet and remaining committed to strict asset quality criteria, leading to best-in-industry delinquency ratios," he noted.
During 2019, the company completed individuals portfolio sales worth SR307 million outstanding as of December to the Saudi Real Estate Refinance Company (SRC).
Amlak intends to continue selling a substantial portion of its individuals contracts to SRC, providing it with an additional source of funding while de-risking the portfolio and generating income from fees.
Al Sudairy said: "We are bullish on opportunities for growth across our portfolio, and we intend to take advantage of avenues created by Ministry of Housing programmes such as the REDF and the SRC."
"Meanwhile, we continue to add value to shareholders, with earnings per share of SR1.1 before Zakat for 2019," he added.
Al Sudairy said Amlak will this year focus on capturing growing demand for individual financing, driven by government initiatives to encourage home ownership among Saudi nationals, while increasing lending to high-growth sector corporates, where rapid financing procedures coupled with competitive yields will drive income.
The strategy is built on a healthy balance sheet with significant headroom for growth, with SR3.6 billion in available credit, of which 40% is unutilized, he added.-TradeArabia News Service
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