Amlak Finance PJSC on Thursday reported a net profit of Dh30 million for H1 2024 as compared to net profit of Dh138 million for H1 2023.
Meanwhile the revenue from financing and investing business increased by 10 per cent to Dh66 million during H1 2024 as compared to Dh60 million in H1 2023. Amlak’s total revenue for H1 2024 excluding a one-off gain of Dh154 million slightly increased to Dh144 million compared to Dh126 million in H1 2023.
Amlak’s operating costs increased by 4 per cent to reach Dh48 million in H1 2024, compared to Dh46 million during the same period last year due to ongoing restructuring.
The company also continued to efficiently manage its obligations, including repayment of Dh46 million to financiers during H1 2024. Since 2014 to date, Amlak has settled 84 per cent of its Islamic deposit liabilities including Mudaraba instrument relating to financiers.
Amlak has commenced negotiations with the remaining financiers during 2023 to exit from the Common Terms Agreement for restructuring which are currently at an advanced stage.
Furthermore, the company recorded lower amortization cost of Dh16 million in H1 2024 compared to Dh22 million in H1 2023 on regular investment deposits. 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 and settlements made to the financiers in any reporting period.
In the region, Amlak’s investment in Egypt has been subject to the devaluation of the Egyptian Pound against the UAE dirham, which impacted the group’s financial position.