Abu Dhabi – August 15, 2023: Leading UAE financial institution Finance House PJSC today
released its condensed consolidated interim financial statements for the first half year ended
30 June 2023.
The Total Comprehensive Income for the period stands at AED 9.73 million, marking an
improvement from the Total Comprehensive Loss of AED 14.56 million reported in the
corresponding period of the previous year.
Mohammed Alqubaisi, Founder said: “Despite ongoing challenges, this is a significant
turnaround in the overall financial performance of the group in the first half of 2023, in
comparison to the same period of the previous year.”
Key financial highlights include:
An 8.8% increase in Net Interest Income and Income from Islamic Financing and Investing
Assets, amounting to AED 67.97 million.
Net Fee & Commission income rose to AED 10.69 million, up from AED 9.70 million in H1
2022.
A notable surge in Net Income from Investing activities, reaching AED 16.30 million, a stark
contrast to the Net Loss of AED 9.48 million in the first half of 2022.
However, the group also reported a higher Net Insurance Loss of AED 30.62 million, compared
to a loss of AED 9.47 million in the previous year.
Alqubaisi said: “Due to unsettled economic conditions globally, we expect local & global equity
and fixed income markets to remain volatile for the rest of the year.”
The report also highlighted the group’s cautious and balanced approach to asset/liability
growth, with the loan book continuing to be substantially funded by the deposit book. The
Total Operating Expenses at the group level increased to AED 69.72 million, primarily
attributed to hiring key management personnel and launching new strategic business and
technology initiatives across the FH Group.
Alqubaisi emphasized the group’s prudent loan loss provisioning policy. He said: “Effective
collection and recovery strategies implemented across Retail Finance and Commercial
Finance Lending Portfolios are moderating the requirement for incremental credit impairment
provisions compared to the previous year.”
FH’s liquidity position remains strong, with Cash & Cash equivalents accounting for 14.5% of
Total Assets. The Capital Adequacy Ratio at the consolidated level stands robust at 26.3%,
ensuring a solid foundation for sustained future growth.
Concluding the report, Alqubaisi expressed optimism about the future prospects. He said:
“With sizeable ongoing investments into shoring up our digital sourcing and servicing
capabilities, we are well positioned to profitably leverage emerging economic growth
opportunities in the UAE and across the GCC & MENA.”
On behalf of the Board of Directors, the FH Group Founder Mohammed Jumaa Alqubaisi
expressed gratitude to all stakeholders for their continued trust and support.
