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Finance House profits up in Q1

ABU DHABI— ADX-listed Finance House PJSC net profit rose marginally to Dh31.04 million for the first quarter of 2010, compared to Dh30.95 million for the same period last year.

The company’s shareholders’ equity as at March 31 2010 stands at Dh520 million, after paying a 50 per cent cash dividend amounting to Dh110 million in March 2010. Additionally, the shareholders have also approved a bonus shares of 25 per cent.

“Its strong capital base provides it with the balance sheet strength to grow prudently and profitably,” the finance company said in its financial statement, issued on Tuesday evening.

Mohammed Alqubaisi, Chairman of Finance House, said that the company continued profitability. “Major chunk of net profit came from our core business, which has grown steadily over the years,” he said. He continued: “We continue to maintain a cautious approach towards managing our loan and investment portfolios,” he said.

Consequent to a well-designed strategy, Finance House curtailed loan book marginally by three per cent from the previous year-end level to Dh1.10 billion, notwithstanding the fact that it continued to selectively market all products. The chairman said that the current focus is on achieving improved yields without significant increase in the overall size of the lending book.

haseeb@khaleejtimes.com