AMLAK Finance PJSC, the UAE’s leading Islamic mortgage finance provider, today announced that its net profits (before depositors share) increased 268% to AED 72.088 million for this year’s first half which ended June 30, 2005, against AED 19.603 million for the same period last year. The half year net profit for 2005 was also 24% higher than the full year results recorded for 2004.
Revenue increased 188% to AED 93.7 million against the previous year’s AED 32.500 million, while annualized earnings per share was AED 0.13 compared to AED 0.06 for the same period last year.
The Company won support from shareholders at the EGM for its 1:1 rights issue which will result in an increase in the number of shares from 750,000,000 to 1,500,000,000. The rights issue price for each share is AED1 per share. The funds raised will fortify AMLAK’s local and regional business expansion plans.
Speaking at the Extraordinary General Meeting yesterday, Mohamed Ali Alabbar, Chairman of Amlak Finance, announced the strong financial results. “Our success is in large part thanks to the continued support and guidance of H.H. General Sheikh Mohammed Bin Rashid Al Maktoum, Crown Prince of Dubai & Minister of Defence, and we are delighted that His Highness continues to support us.”
Commenting on the financial results and on the outcome of the EGM, Mohammed Al Hashimi, Chief Executive Officer, explained: ”We are delighted to have been given this strong vote of confidence by our shareholders. We believe that the outstanding financial results we have announced today are testament to the potential and strong fundamentals that Amlak enjoys, and we look forward to continuing success in our business.”
Alabbar said: “The first half of 2005 has been a tribute to Amlak’s diversification strategy, as the company generated new and innovative financing channels, grew its customer base, and maintained its position as the region’s largest Islamic home finance provider. Its results speak for themselves, and demonstrate strong continued growth in both revenues and profits. This is in large part due to the strategy of innovation that we have implemented, designed to deliver new funding sources to enable further growth and to maintain prudent management of risk.”
Al Hashimi stated: “The first development of the year was our entry into a new area of fundraising with the successful launch of our US$75 million Real Estate Fund.
“This momentum of innovation and development has continued throughout 2005, with other milestones in the first six months including our joint venture with Emaar Properties to create Emaar Financial Services, our first foray into property development with the successful launch of Yacht Bay in Dubai Marina, and the successful subscription and listing on DFM of our debut US$200 million Sukuk” he added.
Al Hashimi also highlighted the recently announced Mohammed bin Rashid Housing Programme to build 10,000 homes for UAE nationals as a flagship project for the company.
With a customer base in excess of 4000, AMLAK is dedicated to providing the highest possible return for its 23,000 shareholders.
