FH 08Q3 profit Dh160m +405%

[sharewadi]

FH 2008 Q3 profit Dh160m +405%, M9 380m +244% 15 Oct 2008

FH 2008 Q3 report
FH 2008 M9 report

Finance House (FH) profit figures for third quarter 2008 are (EPS annualised in brackets):

2008 Q3 profit = AED 156m +405.4% from 2007 Q3, EPS = 0.71 dhs (2.84 )
2007 Q3 profit = AED 30.8m, EPS = 0.14 dhs
2008 M9 profit = AED 382m +243.8% from 2007 M9, EPS = 1.74 dhs (2.31 )
2007 M9 profit = AED 111m, EPS = 0.50 dhs

EPS figures calculated from Net Profit / 220,000,000 shares outstanding.

FH share price as of 15 Oct 2008 was 11.70 dhs, so 2008 estimated PE is about 11.70 / 2.84 = 4.1, based on Q3 earnings, which is less than half the market average PE of about 10. 2008 PE estimate based on M9 earnings is 11.70 / 2.31 = 5.1, which is a bit more.

Net interest income for both Q3 and M9 more than doubled but still only made up about 10% of Net Operating Income, and about 15% of Net Profit, with most of Finance House's income coming from Gain on Disposal of Investments Available For Sale.

With the downturn / crash in stock markets in October, FH results for Q4 2008 could be heavily affected. Details are not supplied with financial statements of which companies FH holds shares in. Asset Value will presumably also take a hit. At the end of September 2008, about a third of FH's total assets were in Investments Available For Sale, and a little less than half as Loans and Advances to customers.

Liabilities are about half in the form of Customer Deposits and another third as Due to Banks. FH has little in the way of cash, but other relatively liquid assets add up to enough to cover their Total Liabilities, even if all investments were valued at zero (total investments were about AED 2 billion as of 30 September 2008) so on paper at least, FH still looks like it should stay solvent. Any comments anyone?

Other result and related topics

2008Q3 UAE result list

FH 2008Q2 profit AED 99.5m 09 Jul 2008
FH 2008Q1 profit AED 126.7m 13 Apr 2008
FH 2007FY report - profit AED 202.8m 29 Jan 2008 (SW summary)
FH 2007Q3 profit AED 30.8m 10 Oct 2007
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