Amlak quarterly profits lifted by falling impairment costs

Softening market weighs on revenue from property sales

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

Amlak Finance posted a profit of Dh4.6 million for the second quarter of the year, returning to the black after a drop in impairment costs compared with the same period last year.

The Shariah-compliant finance company’s positive bottom line compared with a loss of Dh36.7m in the second quarter of last year, thanks to a reversal of impairment on its Islamic financing and investment assets and a 30.6 per cent decrease in operating expenses.

But the company’s second quarter profits came in 17 per cent below profits for the first quarter, as revenue from sales of properties under development fell sharply amid what the company described as “a softening in general market conditions.”

Chestertons MENA last month said that residential property sales transactions in Dubai fell 23 per cent quarter-on-quarter in the three months to the end of June, as the market slowed with the onset of the summer.

“H1 2017 proved to be somewhat challenging, as we continue to face uncertainty in the market,” said Arif Alharmi, Amlak’s chief executive.

“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.”