Amlak Finance profit surges to $34 million
Dubai-based Islamic mortgage company Amlak Finance said first quarter profit rose more than five-fold to 126 million dirhams ($34.31m). Revenue almost tripled. Revenue in the three months to March 31 was 270m dirhams, compared with 102n dirhams in the year-earlier period, the lender said, its second-biggest quarterly profit ever.
Net income in the year-earlier period was 23.8m dirhams, according to Reuters data.
Amlak chairman Nasser Al Shaikh said earlier he expected profit this year to rise 70 per cent, the same as last year's target, spurred by higher UAE residential demand and investments sales.
Profit at Amlak more than doubled last year to 301m dirhams, helped by the sale of investments in listed companies, Al Shaikh said.
Amlak generated 15pc of its profit last year from the sale of investments. It still has a stake in Dubai Aerospace Enterprise.
Share of Amlak are down 14.2pc to Thursday's close, twice that for the Dubai's main stock index, which was down 7.9pc. The stock rose 0.44pc yesterday, before the Amlak released its results.
Goldman Sachs last month raised its price target on Dubai-based Amlak Finance and rival Tamweel, saying the stocks were oversold.
The brokerage, which raised its price target on Amlak shares to 5.10 dirhams from 4.80 dirhams, said the company has started improving performance and returns by refocusing on the core business. It retained a "neutral" rating on the stock.
Net income in the year-earlier period was 23.8m dirhams, according to Reuters data.
Amlak chairman Nasser Al Shaikh said earlier he expected profit this year to rise 70 per cent, the same as last year's target, spurred by higher UAE residential demand and investments sales.
Profit at Amlak more than doubled last year to 301m dirhams, helped by the sale of investments in listed companies, Al Shaikh said.
Amlak generated 15pc of its profit last year from the sale of investments. It still has a stake in Dubai Aerospace Enterprise.
Share of Amlak are down 14.2pc to Thursday's close, twice that for the Dubai's main stock index, which was down 7.9pc. The stock rose 0.44pc yesterday, before the Amlak released its results.
Goldman Sachs last month raised its price target on Dubai-based Amlak Finance and rival Tamweel, saying the stocks were oversold.
The brokerage, which raised its price target on Amlak shares to 5.10 dirhams from 4.80 dirhams, said the company has started improving performance and returns by refocusing on the core business. It retained a "neutral" rating on the stock.
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