Amlak Finance’s first-quarter (Q1) net profit soared 89% to AED27 million ($7.35 million) on prudent management of its UAE operations and balance sheet. Amlak’s total assets stand at AED3.14 billion.

 

Amlak’s revenue from financing and investing business increased by 14% to AED33 million during Q1 2024 as compared to AED30 million in Q1 2023, an Amlak release said. Amlak’s total revenue for Q1 2024 however decreased by 9% to AED68 million as compared to AED74 million in Q1 2023.

 

Amlak’s operating costs decreased by 23% to AED23 million in Q1 2024, compared to AED30 million during the same period last year.

 

Managing obligations

The company also continued to efficiently manage its obligations, including repayment of AED23 million to financiers during Q1 2024. Since 2014 to date, Amlak has settled 84% of its Islamic deposit liabilities including Mudaraba instrument relating to financiers.

 

Amlak has commenced negotiations with the remaining financiers during 2023 in order to exit from the Common Terms Agreement for restructuring which are currently at an advanced stage.

 

Further, the company also recorded lower amortisation cost of AED8 million in Q1 2024 compared to AED12 million in Q1 2023 on regular investment deposits. The amount of amortisation 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 AED which impacted the group’s financial position.--TradeArabia News Service