From a reformist perspective 2018 was a landmark year for the UAE with the Government announcing and/or introducing a series of sweeping changes that are intended to have a positive impact on the country’s economy, fiscal policies, visa system and even the gender make-up of the Federal National Council, in the medium to long term. The UAE Government aims to prepare the country for a more prosperous future in a post-oil world, by creating a dynamic economic environment that will stimulate public & private sector investment, create jobs, spur innovation & technological advances across all key economic sectors and improve the overall quality of life of UAE residents at large.
We look forward to 2019 with measured optimism for profitable growth, in line with anticipated improvement in overall market conditions.
Mohammed Abdulla Jumaa Alqubaisi
BOARD OF DIRECTORS
Abdulla Jumaa Alqubaisi Chairman
Obaid Humaid Al Mazrooei Vice Chairman
Abdulla Alqubaisi Member
Helal Bin Drei Al Qubaisi Member
Ismail Ali Abdulrahim Alfahim Member
Abdulla Al Mazroui Member
Ali Ibrahim Al Saadi Member
NET PROFITS (AED Millions)
TOTAL OPERATING INCOME (AED Millions)
LOANS AND ADVANCES (AED Millions)
CUSTOMER DEPOSITS (AED Millions)
SHAREHOLDERS' EQUITY (AED Millions)
The following are some of the key achievements and noteworthy developments that have made 2018 a memorable year for the Finance House Group:
- Our “Investment Grade” Corporate Credit Rating of A3 (Short Term) and BBB- (Long Term) were reaffirmed for the sixth successive year by Capital Intelligence, an internationally renowned credit rating agency.
- Finance House Securities was awarded the Service Excellence award by the Department of Economic Development in Dubai.
- We expanded our customer reach further by opening a new branch of Finance House in Abu Dhabi and two new branches of Insurance House one in Dubai and the other at the Traffic Patrol Directorate – Al Muroor – inAbu Dhabi.
- Achieved group-wide VAT implementation in a smooth and timely manner.
I summarize below the key financial outcomes of our actions for the year ended 31 December 2018:
- FH Group posted a Consolidated Net Profit of AED 17.84 million compared to AED 32.61 million in the previous year.
- Net Interest Income, Income from Islamic Financing & Investing Assets and Net Income from Perpetual Instruments were marginally lower at AED 194.95 million in 2018 compared to AED 196.64 million in the previous year. This is mainly due to increased cost of funding that was not entirely passed on to our corporate customers.
- Net Fee and Commission income was marginally lower at AED 46.75 million compared to AED 47.48 million in the previous year. Poor trading volumes in domestic equity markets during 2018 translated to significantly lower brokerage fees at our local stock broking subsidiary.
- Net Insurance Income catapulted to AED 38.77 million in 2018 compared to AED 12.68 million in the previous year, aided by the sustained turnaround in the core operations of our insurance subsidiary.