Saudi Arabia’s leading non-bank real estate lender, Amlak International
, has announced its financial results for the period ended June 30. Net income grew by 20.9% y-o-y to SR23.8 million for the Q2 2020 period, and by 129% y-o-y to SR53.3 million for 1H 2020, with total revenues increasing by 6.2% y-o-y to reach SR73.2 million for Q2 2020 and 7.9% y-o-y to SR148.4 million for 1H 2020.
Earnings before tax (EBT) increased by 16% y-o-y to SR28.5 million for Q2 2020, at a margin of 38.9%, and by 27% y-o-y to SR61.8 million for the first half.
The company recently completed the offering of 30% of its equity on the Saudi Stock Exchange
– Tadawul – raising approximately SR435 million.
Amlak’s total financing portfolio increased to SR3.5 billion across its individual and corporate book. Growth in new financing contracts to individuals saw an increase in value of 75.32%, with the corporate lending book accounting for 69% of Amlak’s total portfolio.
The bank borrowing increased by SR286 million from December 2019 to reach SR2.37 billion, while the gross revenue surged to SR148.4 million for H1 from SR137.6 million last year, driven by growth in the portfolio.
The results for the period included a SR6.4 million impairment allowance for expected credit losses (ECL), increasing credit provision from SR89.7 million as of December 2019 to SR96.1 million as at June 2020.
The increase results from the expected impact of the Covid-19 pandemic to the company’s business.
Commenting on the performance, CEO Abdullah Al Sudairy said: "The second quarter was a challenging period for businesses across the Kingdom, as measures to contain the Covid-19 pandemic impacted the economy. Despite these headwinds, we have seen growth in our lending portfolio."
"Top- and bottom-line performance remains healthy. As demonstrated by our own performance, we believe that the current situation is challenging but remains acceptable, and we believe in positive long-term fundamentals," stated Al Sudairy.
"We also saw the roll-out of supportive policies for the sector, including a range of SAMA initiatives, which allow financing companies to postpone financial commitments to bank payments for up to six months. These have been accommodative and have enabled us to relieve some pressure on borrowers," he added.-TradeArabia News Service
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