CHAIRMAN’S STATEMENT

Group financial performance in 2021

I summarize below the key financial outcomes of our actions for the year ended 31 December 2021:

• FH Group has posted a Consolidated Net Profit of AED 22.76 million for the financial year ended 31 December 2021 compared to AED 20.90 million registered in the previous financial year ended 31 December 2020.
• Our insurance subsidiary- Insurance House PSC registered a resilient performance, despite the headwinds, with Net Insurance Income of AED 41.89 million in 2021 compared to AED 42.53 million in the previous year.
• Aggregated income from group-wide investing activities & other operating income (routed through Profit & Loss Account) weighed in at AED 51.54 million in 2021 compared to AED 53.84 million in the previous year, primarily due to pro-active management of our proprietary investment book.
• Net Interest Income and Income from Islamic Financing & Investing Assets were lower at AED 137.20 million in 2021 compared to AED 153.46 million in the previous year.
• Net Fee and Commission income earned in 2021 was also lower at AED 15.86 million compared to AED 25.66 million in the previous year.
• Net Operating Income for 2021 was lower at AED 193.40 million compared to AED 201.39 million in the previous year.
• Net Loans & Advances including Islamic Financing & Investing Assets as of 31 December 2021 stood at AED 2.11 billion compared to AED 2.23 billion as at the end of the previous year.
• Customers’ Deposits & Margin Accounts as of 31 December 2021 stood at AED 1.72 billion compared to AED 1.92 billion as at the end of the previous year.
• Our loan loss provisioning policy continues to be prudent. In line with the expected credit loss model (ECL) for loan impairment provisioning under IFRS 9, net impairment charge for the year 2021 was AED 53.01 million compared to AED 74.10 million in the previous year.
• Total Operating Expenses for 2021 at the Group level were significantly lower by circa 7% at AED 167.74 million compared to AED 180.19 million in the previous year.
• Net cash and cash equivalents as at 31 December 2021 stood at AED 569.17 million, representing a healthy 16.3% of Total Assets.
• At the consolidated level, Shareholders’ equity as at 31 December 2021 stood at AED 801.67 million. Total Assets ratio at the consolidated level as of 31 December 2021 stood at a robust 26.9%, providing a solid footing for sustained future growth in assets.