Amlak posts $12.3m Q3 loss, eyes merger soon

Lender says losses in 2009 due to depressed transaction volumes, property values.
Amlak posts $12.3m Q3 loss, eyes merger soon
By Andy Sambidge
Tue 01 Dec 2009 03:43 PM

 

Amlak Finance , the largest real estate financier in the Middle East by total assets, on Tuesday announced a third quarter net loss of AED45m ($12.3m).

 

The UAE lender said the losses were "comparatively lower" than in the previous two quarters and the total loss for the nine months to the end of September stood at AED178m.

 

Commenting on the Q3 results, Ali Ibrahim Mohammed, vice chairman, Amlak , said: "Although the long term outlook for the property sector in the UAE looks robust, we have adopted a policy of prudence and this is reflected in our level of provisioning in this year."

 

He added that a final announcement by the federal government regarding the merger with Tamweel would "further fortify our business operations and investor confidence".

 

Earlier this month, Tamweel 's chairman, Sheikh Khaled bin Zayed al-Nahyan, said he saw the merger being completed in Q1 2010.

 

On Tuesday, Amlak said its 2009 losses were a result of transaction volumes and property values remaining "depressed but beginning to show encouraging signs of stabilisation".

 

Operational profit before provisions and impairments stood at AED39m for the nine months period with total provisions for financing business at AED313m, the lender said in a statement.

 

At the end of September 2009, Amlak 's total assets stood at AED14.7 billion and financing portfolio stood at AED9.3 billion, compared to AED15.7 billion and AED9.8 billion respectively in September 2008.

 

Arif Alharmi, Amlak 's CEO added: "As expected Q3 was another challenging quarter. However, during this difficult year, we managed to restructure our balance sheet to show a much healthier position now than in the beginning of the year.

 

"We have also been working closely with the ministerial committee, leading the Amlak and Tamweel restructuring plan, which once complete will emerge as a stronger financial services organization playing a leading role in the mortgage market and the UAE real estate industry as a whole."

 

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