Dubai, UAE: 6th August 2024: Amlak Finance PJSC, a leading Sharia-compliant finance company in the UAE, has released its financial results for the first half of 2024. The company reported a net profit of AED 30 million, a notable decrease from AED 138 million in H1 2023. However, revenue from financing and investing activities rose by 10% to AED 66 million, up from AED 60 million in the same period last year.

This growth in revenue is a testament to Amlak's strategic focus on its core operations and prudent balance sheet management. The company's total revenue for H1 2024, excluding a one-off gain of AED 154 million, slightly increased to AED 144 million compared to AED 126 million in H1 2023. This indicates a steady upward trajectory in its core business activities.

Operating costs for the company increased by 4%, reaching AED 48 million in H1 2024, compared to AED 46 million in H1 2023. This rise is primarily attributed to ongoing restructuring efforts aimed at streamlining operations and enhancing efficiency. Despite these costs, Amlak has successfully managed its financial obligations, repaying AED 46 million to financiers during the first half of the year. Since 2014, the company has settled 84% of its Islamic deposit liabilities, including Mudaraba instruments.

One of the significant highlights of Amlak's financial performance is the advanced stage of negotiations with remaining financiers to exit the current Common Terms Agreement. This move could potentially unlock new growth avenues and operational flexibility for the company. Additionally, Amlak recorded lower amortization costs of AED 16 million in H1 2024, down from AED 22 million in H1 2023, reflecting efficient management of investment deposits.

However, Amlak's investment in Egypt faced challenges due to the devaluation of the Egyptian Pound against the AED, impacting the group's overall financial position. Despite this, the company remains resilient and focused on its long-term strategic goals.

Given Amlak's steady revenue growth, effective management of obligations, and potential exit from the Common Terms Agreement, the future looks promising for the company. Investors should consider holding their positions as the company navigates through its restructuring phase and positions itself for future growth.