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FINANCE HOUSE
P.J.S.C - s p un
Date: 9 November 2022
Ref: 36/FC/TKR/2022
Chairman's Report for the nine months ended 30 September 2022
On behalf of the Board of Directors, I am pleased to present the condensed consolidated interim financial
statements of Finance House PJSC and its subsidiaries (FH Group) as at 30 September 2022 and the results
of its operations for the nine months ended 30 September 2022.
FH Group has posted a Net Profit of AED 20.17 million for the nine months ended 30 September 2022
compared to AED 19.82 million registered during the corresponding period of the previous year.
Net Fee & Commission income was higher at AED 14.13 million in the first nine months of 2022 compared
to AED 12.44 million in the same period of the previous year.
Aggregate of Net Investment & Other Operating Income during the first nine months of 2022 was higher
at AED 35.22 million compared to AED 31.04 million in the corresponding period of the previous year.
We remain optimistic that local & global equity and fixed income markets will remain relatively stable
for the rest of this financial year, despite political uncertainties and continued monetary tightening by
central banks around the globe.
Net Interest Income and Income from Islamic Financing and Investing Assets held steady at AED 99.82
million in the first nine months of 2022 compared to AED 100.76 million in the same period last year. A
planned downsizing of our unsecured exposure in the Retail Finance lending book and accelerated
repayment of funded facilities by some of our existing corporate borrowers, were substantially mitigated
by sourcing new corporate borrowers. Due to intense price competition in the UAE Insurance Sector, Net
Insurance Income was lower at AED 25.47 million in the first nine months of 2022 compared to AED
31.26 million in the corresponding period of the previous year.
Net Loans & Advances including Islamic Financing & Investing Assets as of 30 September 2022 were
marginally lower at AED 2.08 billion compared to AED 2.11 billion as at 31 December 2021. Customers'
Deposits & Margin Accounts as of 30 September 2022 stood at AED 1.69 billion compared to AED 1.72
billion as at 31 December 2021. Consequently, the loan book continues to be substantially funded by the
deposit book, reflecting the Group's cautious and balanced approach to asset & liability growth.
Total Operating Expenses at the consolidated level were slightly higher at AED 121.61 million in the first
nine months of 2022 compared to AED 118.96 million in the corresponding period of the previous year.
Following the pandemic period, we are repositioning ourselves to resume business growth in targeted
segments, which has necessitated selective hiring of qualified personnel.
FH's loan loss provisioning policy continues to be prudent. With the implementation of IFRS 9 based
credit impairment provisioning (expected credit loss model) effective 1 Jan 2018, loan loss provision set
aside in the first nine months of 2022 was AED 28.94 million compared to AED 36.31 million in theJ---- jg— oJlJIjIzd
FINANCE HOUSE
P.J.S.C - fi.puil
Date: 9 November 2022
Ref: 36/FC/TKR/2022
corresponding period of the prior year. Effective collection and recovery strategies implemented across
Retail Finance and Commercial Finance Lending Portfolios are beginning to show encouraging results,
thereby moderating the requirement for incremental credit impairment provisions compared to the
previous year.
The FH Group's liquidity position as of 30 September 2022 continues to be strong, with Cash & Cash
equivalents accounting for 16.9% of Total Assets. Similarly, Capital Adequacy Ratio at the consolidated
level as of 30 September 2022 continues to be robust at 26.3%, providing a solid footing for sustained
future growth in assets.
With ongoing investments into shoring our digital sourcing and servicing capabilities, we are well
positioned to profitably leverage economic growth opportunities as local, regional and global economies
emerge from the adverse impacts of the pandemic, recent global events and monetary tightening by
central banks.
Vice Chairman
Abu Dhabi
09 November 2022
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Finance House P.J.S.C; P.O. Box 7878, Abu Dhabi, U.A.E; Tel: *971 (2) 621g ggg
Public Joint Stock Company and the share capital is AED 310,049,961 y-aljlal YA f AA“H aj j. aj Jl «odj—j S— £. a .... S_S

Sentiment: positive