Amlak Finance, the Dubai mortgage lender whose shares were frozen for six years after the 2008 financial crisis, reported an 87 per cent decline in second-quarter profits.
Amlak earned net income of Dh 7.2 million in the three months to June 30, down from Dh55.7m the previous year.
That was driven by a 30 per cent decline in revenues from its main financing business, which earned Dh64.9m from Islamic financing and investing assets, down from last year’s total of Dh92.8m.
Amlak recorded Dh20.8m in revenue from uncompleted real estate projects. IFRS 15, an accounting convention, allows the company to book revenue from a project that has not yet been handed over to customers.
Had Amlak not booked this revenue, the company would have run a loss of about Dh13.6m in the second quarter.
Financing assets declined by 14 per cent over the last six months.
That, and the booking of revenue from real estate, suggests that Amlak is moving away from providing mortgage financing, and towards acting as a property developer, one analyst said.
Amlak, which has recognised a number of major impairments over the last six years as its asset portfolio lost value after Dubai’s property crash, recognised further impairment charges of about Dh52m in the second quarter.
Amlak shares fell 2.6 per cent on the Dubai Financial Market to close at Dh2.21 per share.
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Business Insights
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MATCH INFO
Uefa Champions League, Group B
Barcelona v Inter Milan
Camp Nou, Barcelona
Wednesday, 11pm (UAE)
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Farasan Boat: 128km Away from Anchorage
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Rating: 4/5
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How to protect yourself when air quality drops
Install an air filter in your home.
Close your windows and turn on the AC.
Shower or bath after being outside.
Wear a face mask.
Stay indoors when conditions are particularly poor.
If driving, turn your engine off when stationary.
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Results
1. New Zealand Daniel Meech – Fine (name of horse), Richard Gardner – Calisto, Bruce Goodin - Backatorps Danny V, Samantha McIntosh – Check In. Team total First round: 200.22; Second round: 201.75 – Penalties 12 (jump-off 40.16 seconds) Prize €64,000
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SPECS
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City's slump
L - Juventus, 2-0
D - C Palace, 2-2
W - N Forest, 3-0
L - Liverpool, 2-0
D - Feyenoord, 3-3
L - Tottenham, 4-0
L - Brighton, 2-1
L - Sporting, 4-1
L - Bournemouth, 2-1
L - Tottenham, 2-1
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Bantamweight: Victor Nunes (BRA) beat Azizbek Satibaldiev (KYG). Round 1 KO
Featherweight: Izzeddin Farhan (JOR) beat Ozodbek Azimov (UZB). Round 1 rear naked choke
Middleweight: Zaakir Badat (RSA) beat Ercin Sirin (TUR). Round 1 triangle choke
Featherweight: Ali Alqaisi (JOR) beat Furkatbek Yokubov (UZB). Round 1 TKO
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Catchweight 74kg: Mirafzal Akhtamov (UZB) beat Marcos Costa (BRA). Split decision
Welterweight: Andre Fialho (POR) beat Sang Hoon-yu (KOR). Round 1 TKO
Lightweight: John Mitchell (IRE) beat Arbi Emiev (RUS). Round 2 RSC (deep cuts)
Middleweight: Gianni Melillo (ITA) beat Mohammed Karaki (LEB)
Welterweight: Handesson Ferreira (BRA) beat Amiran Gogoladze (GEO). Unanimous decision
Flyweight (Female): Carolina Jimenez (VEN) beat Lucrezia Ria (ITA), Round 1 rear naked choke
Welterweight: Daniel Skibinski (POL) beat Acoidan Duque (ESP). Round 3 TKO
Lightweight: Martun Mezhlumyan (ARM) beat Attila Korkmaz (TUR). Unanimous decision
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