Saudi Arabia’s Amlak International achieves 129% net income growth in H1
Saudi Arabia’s leading non-bank real estate lender, Amlak International (“Amlak” or the “Company”), has announced its financial results for the period ended 30 June 2020. Net income grew by 20.9% y-o-y to SAR 23.8 million for the Q2 2020 period, and by 129% y-o-y to SAR 53.3 million for 1H 2020, with total revenues increasing by 6.2% y-o-y to reach SAR 73.2 million for Q2 2020 and 7.9% y-o-y to SAR 148.4 million for 1H 2020 . Earnings before tax (EBT) increased by 16% y-o-y to SAR 28.5 million for Q2 2020, at a margin of 38.9%, and by 27% y-o-y to SAR 61.8 million for 1H 2020. The Company recently completed the offering of 30% of its equity on the Saudi Stock Exchange – Tadawul – raising approximately SAR 435 million.
Amlak’s total financing portfolio increased to SAR 3.5 billion across its individual and corporate book. Growth in new financing contracts to individuals saw an increase in value of 75.32%, with the corporate lending book accounting for 69% of Amlak’s total portfolio.
The results for the period included a SAR 6.4 million impairment allowance for expected credit losses (ECL), increasing credit provision from SAR 89.7 million as at December 2019 to SAR 96.1 million as at June 2020. The increase results from the expected impact of the Covid-19 pandemic to the Company’s business.
Commenting on first half performance, Abdullah Al Sudairy, CEO of Amlak International, said:
“The second quarter was a challenging period for businesses across the Kingdom, as measures to contain the Covid-19 pandemic impacted the economy. Despite these headwinds, we have seen growth in our lending portfolio. Top- and bottom-line performance remains healthy. As demonstrated by our own performance, we believe that the current situation is challenging but remains acceptable, and we believe in positive long-term fundamentals. We also saw the roll-out of supportive policies for the sector, including a range of SAMA initiatives, which allow financing companies to postpone financial commitments to bank payments for up to six months. These have been accommodated and have enabled us to relieve some pressure on borrowers.”