Amlak says that third quarter profit doubles after impairment reversal

Dubai-based mortgage finance company's income rises to Dh11.8 million

Amlak profits benefits from lower impairment costs, but fell on a quarter-on-quarter basis. Sammy Dallal / The National

Amlak, the Sharia'a-compliant mortgage financing company, said its third quarter profit more than doubled after a reversal of impairment on Islamic financing and investment assets.

Net income attributable to equity holders of the parent rose to Dh11.8 million in the three months ended September 30 compared to Dh5.67m in the same period last year. The firm said that its Islamic financing and investing assets rose to Dh7.1m in the third quarter compared to a loss of Dh5.3m in the same period last year due to what it said was an improvement in asset quality of its portfolio.

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"I am pleased with the Q3 2017 results and expect the same trend to continue for the remainder of 2017," said Arif Alharmi, managing director and chief executive officer of Amlak.

"Amlak will continue to focus on core business development, product and service differentiation, and driving profitability and value for our shareholders.  We will continue with our strategy and efforts to develop the Nad Al Hamar land plots which will support the overall profitability of the company. While there may be challenges ahead, I am confident that Amlak is well-positioned to capitalize on the improving economic backdrop in the UAE and I look forward to seizing these opportunities."

Income from Islamic financing and investment assets dropped to Dh45.6m in the three months ended September 30 compared to Dh49.7m in the same period last year, the firm said.