Amlak Finance Sees 4% Profit Increase in Q1 2025
Amlak Finance PJSC reports a steady increase in net profit and operational efficiency for Q1 2025 as it completes debt restructuring.
Summary
Amlak Finance PJSC has announced a 4% increase in net profit for Q1 2025, reflecting improved operational efficiency and successful debt restructuring efforts.
Amlak Finance PJSC, a leading financial institution in the UAE, has reported its financial results for the first quarter of 2025, showcasing a steady growth trajectory amidst challenging market conditions. The company announced a net profit of AED 28 million, marking a 4% increase from AED 27 million recorded in the same quarter last year. This growth is indicative of Amlak's strategic focus on managing its operations efficiently and restructuring its debt obligations.
The company's total revenue for Q1 2025 surged by 15% to AED 76 million, compared to AED 66 million in Q1 2024. However, it is noteworthy that revenues from financing and investing activities decreased by 35% to AED 22 million. This decline was offset by a significant reduction in operating costs, which fell by 18% to AED 18 million. The cost of distribution to financiers also decreased, contributing to the overall profitability.
Amlak's commitment to financial prudence is further evidenced by its repayment of AED 35 million to financiers during the quarter, with an impressive 91% of its Islamic deposit liabilities settled. The completion of its debt restructuring, marked by the effective signing of the restated Common Terms Agreement on March 17, 2025, is a testament to the company's robust financial management.
Additionally, Amlak received shareholder approval to sell plots in Ras Al Khor, classified under investment properties, which could potentially unlock further value for the company. The regional investments contributed AED 3 million in income during the quarter, highlighting Amlak's diversified investment strategy.
Looking ahead, Amlak Finance is well-positioned to capitalize on its strengthened financial position and operational efficiencies. The successful debt restructuring and strategic asset management are likely to support sustained growth. Investors might find Amlak's current valuation and growth potential attractive, suggesting a 'buy' recommendation for those looking to invest in a stable financial entity with a promising outlook.
Source
Summary
Amlak Finance announced its financial results for Q1 2025, reporting a net profit after income tax of AED 28 million, a 4% increase from the previous year. The company's total assets are AED 2.42 billion, and it completed debt restructuring in March 2025. Total revenue increased by 15% to AED 76 million, while revenue from financing and investing activities decreased by 35% to AED 22 million. Operating costs decreased by 18% to AED 18 million, and the cost of distribution to financiers was reduced to AED 14 million. Amlak repaid AED 35 million to financiers and has settled 91% of its Islamic deposit liabilities. The company secured financier approval for a restated Common Terms Agreement and shareholder approval for the sale of plots in Ras Al Khor. Investments contributed AED 3 million in income during the quarter.
