Amanat reports 37.8% growth in first quarter net profit

16/05/2017 05:56 AST

Amanat Holding said on Monday it reported a 37.8 per cent jump in net profit during three months to March. Net profit rose to Dh13 million in the first quarter and net profit margin increased to more than 50 per cent.

The robust performance was mainly driven by an increase in the share of income from associates, which reached Dh10.7 million for quarter compared to Dh2.2 million for the same period last year.

"I am delighted with the robust results we achieved in the first quarter and the improved financial indicators. We started the year on a strong note with the completion of our investment in IMC and the continued positive growth of our other associates," Khaldoun Haj Hassan, Chief Executive Officer of Amanat, said in a statement.

"We are committed to work with each of these companies to support them in their growth plans and help them sustain competitive differentiation. With a healthy deal pipeline ahead, we will continue to focus on expanding our portfolio with differentiated businesses which has, and proven leadership teams and reputed shareholders - a recipe that should ensure that we continue to deliver sound returns to our own shareholders," Hassan said.

Interest income also reached Dh14.5 million, driven by higher yield. Operating costs to income reached 44.3 per cent in the first quarter of 2017, a 530 basis points (bps) improvement compared to the same period last year, as a result of effective cost management.

"We have a strong conviction that our business strategy and value creation model should translate into attractive returns for our shareholders," Faisal Bin Juma Belhoul, Chairman of the Board of Amanat said in a statement.

Since it was founded two years ago, Amanat has deployed over Dh737 million in strategic investments across the UAE and Saudi markets.

Gulfnews