Amlak International posts 14.5% net income growth in FY2019
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Saudi-based non-bank real estate lender, Amlak International, reported a 14.5% growth in net income to SAR 70 million for the fiscal year 2019, it said in a statement today.
Revenues for the company grew by 11% to reach SAR 296 million and Earnings Before Tax (EBT) increased by 4.6% to SAR 102 million, at a margin of 35%.
Amlak’s total financing portfolio increased to SAR 3.2 billion across the individual and corporate book.
Strong growth in new disbursements to individuals saw an increase by 90% with the number of new contracts surging by 119%.
New disbursements to corporate customers increased by 28.5%, which accounts for 69% of Amlak’s total portfolio.
“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,” Abdullah Al Sudairy, CEO of Amlak International, said.
In 2019, Amlak completed individual portfolio sales worth SAR 307 million outstanding to the Saudi Real Estate Refinance Company (SRC).
The CEO remained bullish on opportunities for growth across the company’s portfolio, and take advantage of avenues created by Ministry of Housing programs 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 FY2019,” Sudairy continued.
In 2020, the company will focus on capturing growing demand for individual financing, driven by government initiatives to encourage home ownership among Saudi nationals, while increasing lending to high-growth sector corporates.
The strategy is built on a healthy balance sheet with significant headroom for growth, with SAR 3.6 billion in available credit, of which 40% is unutilized.