Amlak reports 14.5% rise in income for 2019
Saudi real estate lender reports all-round growth in revenue, earnings before tax and portfolio
Amlak International, the Saudi non-banking real estate lender, has announced positive results for 2019, reporting a 14.5% growth in net income to $18.6m for the year.
Amlak added in a statement that in the 12-month period ended December 31, 2019, total revenues increased by 11% to reach $79m while earnings before tax (EBT) increased by 4.6% to $27.2m at a margin of 35%.
Amlak also said its total financing portfolio increased to approximately $853m across the individual and corporate book, reinforcing the importance of the diversity of the portfolio as a platform for growth. Strong growth in new disbursements to individuals saw an increase in value of 90% with the number of new contracts increasing by 119%. New disbursements to corporate customers increased by 28.5%. Amlak’s corporate lending book accounts for 69% of the total portfolio.
The full-year results included $4.42m in non-recurring charges related to Zakat and tax settlements for prior years, with 2019 the first year the company calculated Zakat and tax based on GAZT regulations No. 2216 issued on March 17, 2019, in relation to calculation of Zakat for financial services companies.
“We have reason to be pleased with performance in 2019. A number of tailwinds are providing impetus to the Kingdom’s rapidly growing real estate financing sector, and we are at the forefront of its development,” said Abdullah Al Sudairy, CEO, Amlak International.
“The diversity and quality of our lending book has proved critical, enabling us to serve both corporate and individual customers while maintaining a healthy balance sheet and remaining committed to strict asset quality criteria, leading to best-in-industry delinquency ratios.”
During 2019, Amlak completed individuals portfolio sales worth $81.8m outstanding as of December to the Saudi Real Estate Refinance Company (SRC). Amlak said it intends to continue selling a substantial portion of its individuals contracts to SRC, providing it with an additional source of funding while de-risking the portfolio and generating income from fees.
Al Sudairy added: “We’re bullish on opportunities for growth across our portfolio, and we intend to take advantage of avenues created by Ministry of Housing programmes such as the REDF and the SRC. Meanwhile, we continue to add value to shareholders, with earnings per share of SAR 1.1 before Zakat for 2019.”
