FH 2006Q3 profit AED8.68m -65%

[sharewadi]

Finance House 2006 Q3 profit AED 8.68m down 65% from AED 24.7m in 2005 Q3

Wheeeeee! That's some drop. Here's why...

Finance House:

Net realised gain/(loss) on disposal of investments available for sale: (AED 833,000) in 2006Q3 vs AED 24,990,000 in 2005Q3

So Finance House (FH) sold up and took a big hit . Better news is for 2006 M9 profits of 214m dhs, up from 143m dhs in 2005 M9.

EPS:

2006 Q3 AED 0.04 - a big drop from 2005 Q3 AED 0.12
2006 M9 AED 1.07 - up a bit from 2005 M9 AED 0.71

So without investigating further just now, I would hazard a guess and say this quarter was a bit of an anomaly, Finance House could be one to look at buying.
_________________
UAE IPO list | posting guidelines

[sharewadi]

Gulf News (17 October 2006) prefers to highlight the nine month increase in profit for 2006 for Finance House (FH) ... But why no mention of the big change in investments for sale? Surely that's worth reporting or commenting on? Or asking the chairman about?

Looks like a rights issue or share bonus coming up too - capital increase from AED 200 million to AED 220 million.

Gulf News 17 October 2006:

Finance House posts 50% jump in profit By Stanley Carvalho, Staff Reporter Abu Dhabi: Finance House (FH) achieved a 50 per cent growth in profit for first nine months of this year, thanks to higher income in nearly all major revenue streams, the company's chief said. Profits totalled Dh214.38 million compared to Dh142.87 million last year. The company's assets grew to Dh1.18 billion ending September 2006 compared to Dh1.06 billion in December 2005. "We are firmly on a growth path and are clearly poised to build on our early successes. Our balance sheet reflects a strong capitalization and affords us a robust platform on which to develop products to meet and exceed the expectations of our highly valued customers," Mohammad Al Qubaisi, Chairman, Finance House said yesterday. "We plan to continue introducing innovative products and services progressively and our business strategy is on track to establishing Finance House as a serious contender in the market while achieving strong results for our shareholders." Total operating income reached Dh237.28 million as against Dh158.02 million. Net interest income was Dh34.16 million compared to Dh43.99 million last year. However, dividend income, other income and net fee and commission income was higher this year. "There was higher income from nearly all income streams leading to higher profitability," a senior official told Gulf News. Shareholders' equity stood at Dh684.06 million compared to Dh808.22 million in December 2005. But retained earnings grew to Dh382.18 million from Dh167.79 million. The company has a share capital of Dh200 million but plans are underway to raise it to Dh220 million soon.

_________________
UAE IPO list | posting guidelines