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Amlak's net profit rises by 98 per cent in third qaurter

DUBAI — Islamic home financier Amlak Finance yesterday said its net profit rose by 98 per cent to Dh67 million for the third quarter of this year compared to a year ago level. For the first nine months Amlak, which is 45-per cent owned by the region's largest real estate developer Emaar Properties, posted a 50-per cent growth to Dh173 million.

It said in a statement that the growth was due partly to a 43-per cent increase in revenue from financing activities over the nine-month period. This means a Dh0.115 earning per share from January to September, as against Dh0.076 recorded for the same period in 2006, it added. The return on equity was placed at 12.2 per cent compared to last year's 8.3 per cent. "The continued growth in return on assets and return on equity demonstrates consistent commitment to Amlak's shareholders," it said in a statement.

Nasser bin Hassan Al Shaikh, chairman of Amlak, said his company is committed to deliver over 70-per cent growth in annual profit in order to serve the long-term interests of shareholders. He said the latest growth supports Amlak's position as the leader in Islamic home financing market. "In announcing our results promptly, the company is further committing to good corporate governance and transparency practices that are important to our shareholders," said Arif Alharmi, CEO of Amlak.

Last month Amlak signed an agreement with International Finance Corporation (IFC), a member of World Bank Group, to make house prices more affordable, through joint ventures, in certain countries.