Amlak Finance posted a net profit of AED30 million ($8.17 million) for the first-half (H1) 2024, dropping 4.6 times compared to the net profit of AED138 million for H1 2023.

 

Amlak’s total revenue for H1 2024 excluding a one-off gain of AED154 million slightly increased to AED144 million compared to AED126 million in H1 2023, an Amlak release aid.

 

Amlak’s operating costs increased by 4% to reach AED48 million in H1 2024, compared to AED46 million during the same period last year due to ongoing restructuring.

 

Revenue from financing and investing business 

Meanwhile, the revenue from financing and investing business increased by 10% to AED66 million during H1 2024 as compared to AED60 million in H1 2023.

 

 The company focused on prudently managing its UAE operations and balance sheet.

 

The company also continued to efficiently manage its obligations, including repayment of AED46 million to financiers during H1 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 to exit from the Common Terms Agreement for restructuring which are currently at an advanced stage.

 

Lower amortisation

Furthermore, the company recorded lower amortisation cost of AED16 million in H1 2024 compared to AED22 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 AED which impacted the group’s financial position.--TradeArabia News Service