Amlak Finance’s third-quarter (Q3) net profit plummeted over five-fold to AED53 million ($14.4 million) as compared to a Q3 2023 net of AED269 million. 

 

Meanwhile, revenue from financing and investing business increased by 14% to AED103 million during Q3 2024, as compared to AED90 million in Q3 2023. Amlak’s total revenue for Q3 2024 slightly increased to AED231 million compared to AED206 million excluding a one-off gain of AED174 million in Q3 2023, an Amlak release said.

 

Amlak’s operating costs increased 6% to reach AED72 million in Q3 2024, compared to AED68 million during the same period last year due to additional expenses related to the fast-tracked sale of investment properties.

 

Managing obligations

The company also continued to efficiently manage its obligations, including repayment of AED69 million to financiers during Q3 2024. Since 2014 to date, Amlak has settled 84% of its Islamic deposit liabilities including Mudaraba instrument relating to financiers. In this regard, negotiations with the remaining financiers to exit the Common Terms Agreement are ongoing.

 

Furthermore, the company recorded lower amortisation cost of AED24 million in Q3 2024 compared to AED31 million in Q3 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