Dubai's Amlak Finance reported an 87 per cent drop in second-quarter net profit on Wednesday as the Islamic mortgage lender's income from financing, investments and deposits all declined and amortisation costs soared.

Amlak, which signed a $2.7 billion debt and financing restructuring deal with creditors last November, made a net profit attributable to shareholders of Dh7.17 million ($1.95 million) in the three months to June 30, it said in a bourse statement.

This compares with a net profit of Dh55.79 million in the prior-year period.

Quarterly income from Islamic financing and investing assets fell 30.1 per cent year-on-year to Dh64.87 million and deposit income roughly halved to Dh1.11 million over the same timeframe.

Amlak also recognised amortisation of initial fair gains on investment deposits of Dh51.43 million in the second quarter, versus none a year earlier. - Reuters