Dubai, UAE — Amlak Finance Thursday reported a net profit of AED 269 million ($73.23 million) for Q3 2023 as compared to a net profit of AED 390 million for Q3 2022.
Amlak’s total income for Q3 2023 decreased by 19 percent to AED 364 million as compared to AED 448 million in Q3 2022.
Revenues from financing business decreased by 10 percent to AED 90 million during Q3 2023 as compared to AED 100 million in Q3 2022.
The company recorded a net gain of AED 174 million on debt settlement arrangements and was able to reduce its debt burden by AED 531 million (including Mudaraba instrument of AED 118 million).
Amlak had announced the commencement of negotiation with the remaining financiers on 2 May 2023 in order to exit from the Common Terms Agreement for restructuring, which remains underway.
Amlak’s operating costs for the quarter increased by 6 percent to AED 69 million, compared to AED 65 million during the same period last year mainly due to a one-off expense related to the commencement of negotiations with financiers to exit the Common Terms Agreement.
The company also continued to efficiently manage its obligations, including the repayment of AED 80 million to financiers. To date, Amlak has settled 83 percent of its Islamic deposit liabilities including the Mudaraba instrument relating to financiers.
As a result of debt settlement arrangements and repayments, the profit distribution to financiers decreased by 20 percent and stood at AED 45 million for Q3 2023 as compared to AED 56 million for Q3 2022.
In the region, Amlak’s investment in Egypt witnessed the devaluation of the Egyptian Pound against the UAE Dirham, which impacted the Group’s financial position.