Amlak allocates 60% of portfolio for corporate finance, market share at 6.3%: CEO

Adnan Alshobely, CEO of Amlak International Finance Co.

Amlak International Finance Co.’s CEO Adnan Alshobely said that 60% of the company’s portfolio is allocated for the corporate finance segment, while the remaining 40% goes to retail finance.

This reflects Amlak’s strategy to diversify products and target multiple segments, he added.

In an interview with Al Arabiya Business, Alshobely indicated that net financing income grew by more than 47%, driven by a 9.56% increase in the financing portfolio, along with higher returns resulting from improved pricing, enhanced risk management, and channeling financing towards highly profitable segments.

As regards financing sources, the top executive clarified that, since the company does not accept customer deposits, it relies on banking facilities from commercial banks, in addition to capital, with the possibility of resorting to the secondary market and debt instruments when needed.

He stressed that the company has a solid liquidity position, enabling it to expand confidently, while continuously monitoring liquidity adequacy indicators and using internal tools to identify potential risks and take appropriate actions.

Alshobely also stated that the company's total market share reached 6.3%, while the market share in consumer financing reached nearly 3.5%, with efforts to gradually increase this share through product improvements and increased outreach.

The 57% increase year-on-year in credit loss provisions was due to two main factors: The growth of the loan and advance portfolio, and the development of a methodology for credit loss assessment models in line with market changes and regulatory trends.

This increase does not reflect any pressure on asset quality or collections, but rather reflects a flexible, precautionary approach to ensuring financial stability, said the CEO.

The company has implemented its strategic digital transformation plan by developing digital platforms and improving the customer experience through innovative technical solutions.

More than 70% of credit assessments are currently automated using modern technologies, including artificial intelligence, which has accelerated procedures and increased operational efficiency, he added.