Amlak Finance announces First Quarter 2022 financial results
- May 12, 2022
- Posted by: admin
- Category: Financial News
- Amlak Q1 2022 net group profit up by 116% compared to the same period last year
- Total assets stand at AED 4 billion
- Debt settlement arrangements yielded AED 26 million gain and contributed in total debt reduction of AED 65 million (including Mudaraba instrument of AED 14 million).
Dubai, UAE: 12 May 2022: Amlak Finance PJSC today announced its Q1 2022 financial results. Amlak reported a net profit of AED 13 million for Q1 2022 as compared to net profit of AED 6 million for Q1 2021. The company focused on prudently managing its UAE operations and balance sheet.
Amlak’s total income for Q1 2022 decreased by 23% to AED 72 million as compared to AED 92 million in Q1 2021. Revenues from financing business decreased by 17% to AED 36 million during Q1 2022 as compared to AED 43 million in Q1 2021.
The company’s debt settlement arrangements, through cash, remained successful during the period. The company recorded a gain of AED 26 million on debt settlement arrangements and was able to reduce its debt burden by AED 65 million (including Mudaraba instrument of AED 14 million)
Amlak’s focus on efficient operations in 2022 delivered a 13% reduction in operating costs to AED 21 million in Q1 2022, compared to AED 24 million during the same period last year.
The company also continued to efficiently manage its obligations, including repayment of AED 32 million to financiers during Q1 2022.
As a result of debt settlement arrangements and repayments, the profit distribution to financiers decreased by 18% and stood at AED 19 million for Q1 2022 as compared to AED 23 million for Q1 2021. Further, the company also recorded lower amortisation cost of AED 21 million in Q1 2022 compared to AED 32 million in Q1 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 Q1 2022, the Group recorded an impairment reversal of AED 1 million compared to an impairment charge of AED 7 million in Q1 2021.