Amlak Finance, which recently denied press reports that it was planning to acquire a bank, said its half year net profit rose to $73.2 million, an increase of 155 per cent compared to $28.8 million in the half year of 2007. Amlak’s revenue for the half year of 2008 was posted at $168.7 million, up 114 per cent against the half year of 2007, with the company’s property financing activities contributing 52 per cent of the total revenue.
Total assets, as of June 2008, stood at $3.8 billion, a rise of 133 per cent compared to $1.6 billion as at June 2007.
In a statement released on the DFM, Amlak said that statements made by Arif Alharmi, Amlak’s chief executive to Zawya Dow Jones, regarding Amlak’s plans to buy a bank in the UAE were “taken out of context and what is clearly stated during the interview was that the company was considering a number of options, including pursuing its banking licence application, which was renewed in May, as well as the possibility of acquiring a bank if the opportunity arises.”
Alharmi said, “We have a planned an expansion roadmap for the region, as we move rapidly toward launching our operations in Jordan, Qatar and Syria, and we look forward to maintaining this growth.”
Nasser Bin Hassan Al-Shaikh, the chairman of Amlak Finance said they were moving closer toward full operational capability and profitability with their regional subsidiaries in Saudi Arabia and Egypt, which saw an increase in its capital in the second quarter of 2008 from EGP50 million ($9.3 million) to EGP125 million ($23.4 million). Amlak also concluded the IPO of Amlak Finance Jordan.
Al-Shaikh said that Amlak upgraded its profit growth forcasts for 2008 based on what he called its “stellar performance” in the first half of the year where it aims to achieve in 2008 a growth of over 90 per cent in net profit, in comparison with the previous year.