Dubai’s Amlak Finance Q2 net profit slumps 87 percent
Dubai’s Amlak Finance reported an 87 percent drop in second-quarter net profit on Wednesday
Dubai’s Amlak Finance reported an 87 percent drop in second-quarter net profit on Wednesday as the Islamic mortgage lender’s income from financing, investments and deposits all declined and amortization costs soared.
Amlak, which signed a $2.7 billion debt and financing restructuring deal with creditors last November, made a net profit attributable to shareholders of 7.17 million dirhams ($1.95 million) in the three months to June 30, it said in a bourse statement.
This compares with a net profit of 55.79 million dirhams in the prior-year period.
Quarterly income from Islamic financing and investing assets fell 30.1 percent year-on-year to 64.87 million dirhams and deposit income roughly halved to 1.11 million dirhams over the same timeframe.
Amlak also recognized amortization of initial fair gains on investment deposits of 51.43 million dirhams in the second quarter, versus none a year earlier.
($1 = 3.6730 UAE dirham)