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Amlak Finance Registers Net Loss of AED 45 Million for Q3 2009 |
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Amlak Finance PJSC today announced its financial results for the 3rd Quarter 2009.
Dubai-UAE, December 01 2009 – Amlak Finance PJSC the largest real estate financier in the Middle East by total assets, today announced its financial results for the 3rd Quarter 2009. As at the end of September 2009, Amlak’s net loss for the 3rd quarter stood at AED 45 million comparatively lower than losses recorded in 1st and 2nd quarters. Total nine months period loss stood at AED 178 million mainly due to yet further prudent general provisioning on mortgage financing portfolio, “where transaction volumes and property values have remained depressed but beginning to show encouraging signs of stabilization”.
Operational profit before provisions and impairments stood at AED 39 million for the nine months period and total provisions for financing business stood at AED 313 million cumulatively as of 30 September 2009. Impairments on corporate and international investments stood at AED 115 million bringing the overall balance sheet provisions to AED 428 million as at the end of September 2009.
At the end of September 2009, Amlak’s total assets stood at AED 14.7 billion and financing portfolio stood at AED 9.3 billion, compared to AED 15.7 billion and AED 9.8 billion respectively in September 2008
Commenting on the Q3 results, Ali Ibrahim Mohammed, Vice Chairman, Amlak Finance PJSC said, “Although the long term outlook for the property sector in the UAE looks robust, we have adopted a policy of prudence and this is reflected in our level of provisioning in this year.”
Ali Ibrahim added, “We are also close to a final announcement by the Federal government regarding their decision which will further fortify our business operations and investor confidence.”
On his part, Arif Alharmi, Chief Executive Officer, Amlak Finance PJSC, said, “As expected Q3 was another challenging quarter. However, during this difficult year, we managed to restructure our balance sheet which is now in a much healthier position than in the beginning of the year. Our strategy and focus for this period, and the near future, has been and will be to best serve our customers and stakeholders, maintain and improve the quality of our mortgage portfolio, restructure our real estate investments and future obligations, optimize liquidity management and cost control as well as the disposal of non core investments.”
Alharmi added, “We have also been working closely with the ministerial committee, leading the Amlak and Tamweel restructuring plan, which once complete will emerge as a stronger financial services organization playing a leading role in the mortgage market and the UAE real estate industry as a whole.”
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