KSA’s Amlak net income soars to 129% growth in H1 2020
Revenue grew 6.2% to reach $19.5m (SAR 73.2m) for Q2 2020, and 7.9% to reach $39.5m (SAR 148.4m)
Financing contracts and a equity listing on Saudi Arabia’s stock exchange – Tadawal – are among the factors for Amlak International’s 129% net income growth in H1 2020.
As part of its financial results for the period ended 30 June 2020, net income for the business grew by 20.9% year-on-year to $6.3m (SAR 23.8m) for the Q2 2020 period, and by 129% year-on-year to $14.2m (SAR 53.3m) for H1 2020.
Total revenues increasing by 6.2% year-on-year to reach $19.5m (SAR 73.2m) for Q2 2020 and 7.9% year-on-year to $39.5m (SAR 148.4m for H1 2020.
The two major factors for the company’s growth was attributed to completing the offering of 30% of its equity on the Saudi Stock Exchange – Tadawul – raising approximately $115.9m (SAR 435m). Growth in new financing contracts to individuals saw an increase in value of 75.3%, with the corporate lending book accounting for 69% of Amlak’s total portfolio.
Commenting on the financial results for the company, Amlak International CEO Abdullah Al Sudairy admitted that the second quarter was a challenging period for businesses across the kingdom, as a result of the measures to contain the Covid-19 pandemic impacted the economy, but despite these headwinds, the firm saw growth in its lending portfolio.
“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,” said Al Sudairy.
“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 accommodative and have enabled us to relieve some pressure on borrowers.”