- Amlak H1 2022 net group profit up by 35% compared to the same period last year
- Total assets stand at AED 3.8 billion
- Debt settlement arrangements yielded AED 225 million gain and contributed in total debt reduction of AED 565 million (including Mudaraba instrument of AED 120 million).
Dubai, UAE: Amlak Finance PJSC today announced its H1 2022 financial results. Amlak reported a net profit of AED 266 million for H1 2022 as compared to net profit of AED 197 million for H1 2021. The company focused on prudently managing its UAE operations and balance sheet.
Amlak’s total income for H1 2022 decreased by 9% to AED 319 million as compared to AED 351 million in H1 2021. Revenues from financing business decreased by 19% to AED 69 million during H1 2022 as compared to AED 85 million in H1 2021.
The company’s debt settlement arrangements, through cash and assets, remained successful during the period. The company recorded a gain of AED 225 million on debt settlement arrangements and was able to reduce its debt burden by AED 565 million (including Mudaraba instrument of AED 120 million)
Amlak’s focus on efficient operations in 2022 delivered a 6% reduction in operating costs to AED 41 million in H1 2022, compared to AED 43 million during the same period last year.
The company also continued to efficiently manage its obligations, including repayment of AED 60 million to financiers during H1 2022.
As a result of debt settlement arrangements and repayments, the profit distribution to financiers decreased by 15% and stood at AED 39 million for H1 2022 as compared to AED 46 million for H1 2021. Further, the company also recorded lower amortisation cost of AED 73 million in H1 2022 compared to AED 85 million in H1 2021. 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.
During H1 2022, the Group recorded an impairment reversal of AED 99 million compared to an impairment reversal of AED 20 million in H1 2021.
Amlak Finance PJSC
Since its establishment in November 2000 as the region’s pioneer financial services provider, Amlak Finance has provided its customers with innovative, Sharia-compliant property financing products and solutions designed to meet the rapidly evolving market demands.