Amlak Announces First Quarter 2019 Results
- May 8, 2019
- Posted by: admin
- Category: Financial News
- Total revenues stand at 122 million up by 24%
- Revenue from financing business activities up by 2%
- Operating cost down by 3%
- Total assets stand at AED 6 billion
Dubai, UAE: 08 May 2019 – Amlak Finance PJSC, a leading specialized Islamic real estate financier in the Middle East, today announced its financial results for the first quarter ended March 31, 2019.
The company reported net profit of AED 2 million in Q1 2019 compared to AED 7 million net profit in Q1 2018. The Company’s total revenues including unrealized fair value gain related to investment properties increased to AED 122 million in Q1 2019, up by 24% compared to AED 98 million in Q1 2018.
Revenues from financing business activities increased by 2% to AED 43 million during Q1 2019 compared to AED 42 million in Q1 2018.
Operating costs decreased by 3% to AED 29 million in Q1 2019, compared to AED 30 million during the same period last year.
In Q1 2019, The Group recorded an impairment charge of AED 44 million on Islamic Financing Assets compared to AED 2 million in Q1 2018; this increase in impairment is mainly due to a financial default of one developer.
The Company also recorded an amortization cost of AED 26 million in Q1 2019 down by 24% compared to AED 34 million in the same period last year. 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 made to the financers in any reporting period.
Total assets continue to stand at AED 6 billion and total liabilities at AED 5 billion, same as year end 2018 financial results.
The company continues renegotiating the funding conditions with its financiers to allow it more flexibility in adapting to current market conditions. This will provide the company with the opportunity to grow its business resulting in balance sheet growth and increased shareholder value. The renegotiation is currently in progress and, subject to securing approvals from financiers and related authorities, is expected to be concluded by Q2 2019.