CHAIRMAN’S STATEMENT

Group financial performance in 2019

I summarize below the key financial outcomes of our actions for the year ended 31 December 2019:

  • FH Group has posted a Consolidated Net Profit of AED 22.45 million for the financial year ended 31 December 2019, which is 25.8% higher than the Net Profit of AED 17.84 million registered in the previous financial year ended 31 December 2018.
  • Our insurance subsidiary- Insurance House PSC (IH) turned-in yet another stellar performance, with Net Profit soaring by 51.9% to reach AED 16.17 million in 2019 compared to AED 10.64 million in the previous year.
  • Aggregated income from group-wide investing activities & other operating income (of a recurring nature) was substantially higher at AED 35.31 million in 2019 compared to AED 21.22 million in the previous year, primarily due to pro-active management of our proprietary investment book despite volatile market conditions.
  • Net Interest Income and Income from Islamic Financing & Investing Assets were lower at AED 174.34 million in 2019 compared to AED 194.95 million in the previous year.
  • Net Fee and Commission income earned in 2019 was also lower at AED 43.05 million compared to AED 46.75 million in the previous year.
  • Net Operating Income for 2019 was higher by 2.8% at AED 227.82 million compared to AED 221.53 million in the previous year.
  • Net Loans & Advances including Islamic Financing & Investing Assets as of 31 December 2019 were marginally higher at AED 2.54 billion compared to AED 2.44 billion as at the end of the previous year.
  • Customers’ Deposits & Margin Accounts as of 31 December 2019 stood at AED 2.47 billion compared to AED 2.75 billion as at the end of the previous year.
  • Our loan loss provisioning policy continues to be conservative. In line with the expected credit loss model (ECL) for loan impairment provisioning under IFRS 9, net impairment charge for the year 2019 was AED 70.46 million compared to AED 80.16 million in the previous year.
  • Total Operating Expenses for 2019 at the Group level were marginally higher at AED 205.01 million compared to AED 202.46 million in the previous year.
  • Net cash and cash equivalents as at 31 December 2019 stood at AED 496.48 million, representing a healthy 12.7% of Total Assets.
  • At the consolidated level, Shareholders’ equity as at 31 December 2019 increased to AED 794.48 million compared to AED 768.17 million at the end of the previous year. Total Assets ratio at the consolidated level as of 31 December 2019 stood at a robust 23.3%, providing a solid footing for sustained future growth in assets.