In a related development, a key player in the finance sector, Amlak Finance, has released its first half financial results for the period ending 24th June 2024, which shows commendable growth in top-line and bottom-line despite a tough economic environment.
PC: ZAWYA
Revenue Growth and Profitability
In its latest press release, Amlak Finance announced a net profit of AED 30 million for H1 2024. Its performance is strong against the same period last year, reflecting the strategic focus on growth and operational efficiency.
Revenue from financing and investing activities grew impressively by 10% to AED 66 million in 1H 2024 compared to AED 60 million in the same period during 2023. Seemingly, such an indication was a fruition of the effective management of funding resources and investment strategies, which contributed to a large extent in the overall financial health of Amlak by drawing in increased revenue.
Revenues for the six months ending June 2024, with the one-off exceptional gain of AED 154 million excluded, increased to AED 144 million as opposed to AED 126 million during H1 2023. The adjusted figures suggest an unbroken curve of rising activities related to the generation of the company’s core revenues.
Operational Costs and Restructuring
As a result of the growth in revenue, Amlak Finance’s operating costs increased by 4% to AED 48 million in the first half of 2024 from AED 46 million in the same period last year. This increase in cost is mainly due to continued efforts in restructuring to further align the business and enhance overall organisational efficiencies.
The company is making substantial investment in its restructuring program to best enable it operationally, within the context of a very competitive financial environment. These endeavours, while adding to the cost in the near term, are bound to offer gains in the long run bridging revenue opportunity and cost effectiveness.
Funding and Financial Obligations
Amlak Finance has shown high fiscal discipline by efficiently managing its financial obligations. It repaid AED 46 million to its financiers in H1 2024, reflecting the commitment toward a robust balance sheet and management of funding-related responsibilities.
Since 2014, it has settled a substantial portion of its Islamic deposit liabilities, including Mudaraba instruments. So far, the firm has paid 84% of such liabilities, thereby fulfilling its promise to its liabilities with the perspective of achieving solvency in its financial condition.
Outlook and Future Plans
Looking ahead, Amlak Finance remains focused on ensuring the continuity of its growth trajectory and enhancement of value for shareholders. The company further intends to build upon its recent performance through enhanced funding strategies and new investment opportunities. These strategic restructuring initiatives would contribute, in the long term, to profitability and operational efficiency.
The first half year performance of Amlak in 2024 was good. With the character of resilience and adaptability in the dynamic financial environment, by keeping a disciplined approach to funding and operations, it can better sail through future challenges and exploit new opportunities for growth.
Amlak Finance’s H1 2024 financial results represent a period of stable growth and strategic investment. The growth in revenues, cost control, and the meeting of all financial liabilities underpin a robust operational structure that focuses on long-term success. As the group continues in its quest to streamline operations and funding strategies, Amlak Finance will sustain the built successes to spur further growth in the financial sector.
