Amlak Finance Reports Q3 2024 Financial Performance
Amlak Finance PJSC announces its financial results for Q3 2024, highlighting key performance metrics and ongoing strategic initiatives.
Summary
Amlak Finance PJSC's Q3 2024 results show a net profit of AED 53 million, with a 14% increase in revenue from financing and investing activities. The company continues to manage its obligations efficiently.
Amlak Finance PJSC, a prominent financial institution in the UAE, has released its financial results for the third quarter of 2024, showcasing a period of strategic management and operational focus. The company's net profit for Q3 2024 stands at AED 53 million, a significant decrease from the AED 269 million recorded in the same quarter of the previous year. This reduction is attributed to the absence of a one-off gain of AED 174 million that was included in the Q3 2023 results.
Despite the dip in net profit, Amlak's revenue from its core financing and investing activities rose by 14%, reaching AED 103 million compared to AED 90 million in Q3 2023. This growth underscores the company's robust business model and its ability to generate sustainable income streams. The total revenue for Q3 2024 increased slightly to AED 231 million, highlighting a stable financial performance amidst challenging market conditions.
Operating costs for the quarter increased by 6% to AED 72 million, up from AED 68 million in Q3 2023. This rise is primarily due to additional expenses related to the expedited sale of investment properties, a strategic move that aligns with Amlak's broader financial objectives.
Amlak has demonstrated commendable financial discipline by repaying AED 69 million to its financiers during the quarter. Since 2014, the company has settled 84% of its Islamic deposit liabilities, including Mudaraba instruments, reflecting its commitment to reducing financial obligations. Ongoing negotiations with remaining financiers aim to exit the Common Terms Agreement, a step that could further enhance Amlak's financial flexibility.
The company also reported a reduction in amortization costs, which fell to AED 24 million in Q3 2024 from AED 31 million in Q3 2023. This decrease is linked to the unwinding of fair value gains on initial recognition of investment deposits, which varies according to the level of repayments and settlements made during the reporting period.
Amlak's investment in Egypt has been impacted by the devaluation of the Egyptian Pound against the AED, affecting the group's financial position. However, the company remains focused on optimizing its investment portfolio and mitigating currency risk through strategic measures.
Given the current financial landscape and Amlak's strategic initiatives, investors may consider holding their position in the company. The increase in core revenue and prudent management of obligations indicate a stable outlook, though external factors such as currency fluctuations should be closely monitored.
Source
Summary
Amlak Finance PJSC reported a net profit of AED 53 million for Q3 2024, a decrease from AED 269 million in Q3 2023. Total assets were AED 3.19 billion. Revenue from financing and investing increased by 14% to AED 103 million, while total revenue rose slightly to AED 231 million, excluding a one-off gain from the previous year. Operating costs increased by 6% to AED 72 million due to costs associated with the expedited sale of investment properties. The company repaid AED 69 million to financiers and has settled 84% of its Islamic deposit liabilities since 2014. Negotiations are ongoing to exit the Common Terms Agreement with remaining financiers. Amortization costs decreased to AED 24 million from AED 31 million in Q3 2023. Amlak's financial position was affected by the devaluation of the Egyptian Pound against the AED.
