FH earning up in first quarter
50% jump in total operating income
abu dhabi — Finance House has registered a robust consolidated net-profit of Dh25.54 million in Q1 2016.
Net interest income, income from Islamic Financing and investing assets and net income from perpetual instruments jumped by nearly 32 per cent to Dh58.09 million, on the back of a steady growth in the loan book and planned additions to the fixed income securities portfolio.
Net fee and commission income earned in the quarter rose by 20 per cent to Dh11.30 million, mainly on account of higher processing fees on new commercial lending facilities and increased volumes of unfunded business transacted by corporate clients.
Net investment income from a well-diversified investment portfolio increased by 8.7 per cent to Dh28.91 million in Q1 2016.
Other Operating Income was higher by circa Dh16 million, primarily on account of robust recoveries in the commercial lending portfolio against which loan loss provisions were held.
As a combined result of the above, total operating income for Q1 2016, soared by nearly 50 per cent to Dh118.89 million.
Net loans and advances including Islamic financing & investing assets grew by 10.57 per cent to reach Dh2.20 billion as of 31 March 2016.
“This steady pace of loan book growth, the credit portfolio to stable resources ratio at the consolidated level as of 31 March 2016 stood at a remarkably healthy 76.7 per cent, reflecting the Group’s cautious and balanced approach to asset/liability growth,” the Finance House said in a statement.
FH’s loan loss provisioning policy continues to be conservative. Bearing in mind the current economic climate and the likelihood of potential adverse impact on credit portfolio quality going forward, the finance company has taken additional loan loss provisions in this quarter, as a precautionary measure.
Mohammed Abdulla Alqubaisi, chairman Finance House said “The results achieved in Q1 2016 are a continuing reflection of a resilient business model that has stood the test of time.”