- Net operating revenues increased by over 200% year-on-year and total income surpassed AED 78.6 million.
- Net operating profit before impairment grew to AED 35 million in FY 2019.
- Cost efficiency improved by 34% and the NPL ratio improved by 27% compared with 2018.
Reem Finance, the private joint stock company established in Abu Dhabi in 2007 and regulated by the UAE Central Bank, and focused on innovative commercial financing, announced its consolidated audited financial results for the fiscal year ending 31 December 2019.
Reem Finance’s audited annual results for 2019 highlighted the company’s solid performance. The annual financial statements showed the company’s ability to realize ongoing growth in revenues and net profits and deliver a strong balance sheet despite market uncertainty and challenging conditions.
Profitability and cost efficiency
Reem Finance reported a net profit for fiscal year 2019 of AED 26.5 million, a significant increase compared with 2018’s AED 3 million, while its net operating profit before impairment grew to AED 35 million. The company’s net operating revenues increased 217% year-on-year to AED 50.7 million (AED 15.9 million in 2018), while total income surpassed AED 78.6 million, up 82% compared with 2018.
Strong capital ratios
Capital ratios also remained strong, with Reem’s robust capital adequacy ratio of 53.2% aggressively surpassing the minimum regulatory requirement of 15%.
Seraj Faidi, General Manager of Reem Finance, said: “We showcased exceptional ability to drive operational excellence and significantly improve our activities and financial performance in 2019. Driven by our solid balance sheet, high profitability and unique agility, we will continue to support our clients in achieving their financial goals and contribute to economic growth. Our focus on creating sustainable value and high returns for our diversified client base and distinguished shareholders makes us confident in our ability to build more creative products & tie-ups to add value to our customers while maintaining profitability and achieve our growth targets, despite these challenging times.”
