Reem Finance profit leaps in 2016 on successful turnaround strategy
- Total Net Profit grew to AED 55.5 million, following an AED 8.6 million loss in 2015
- Cash dividend payout of 10 per cent of paid-up capital
Abu Dhabi, 23 March 2017: Reem Finance P.J.S.C (Reem), the Abu Dhabi headquartered provider of credit and finance solutions to businesses across the UAE, today announced a Total Net Profit of AED 55.5 million for financial year 2016, following a loss of AED 8.6 million the previous year.
Reem’s return to profitability was achieved through a strategic focus on specialised corporate and trade finance lending. Gross loans and advances increased to AED 276 million as of 31 December 2016, 46% higher than the previous year. Investments in fixed income securities, listed equity and private equity grew to AED 225 million in 2016, a 76% increase year-on year. Net Operating Income rose to AED 89 million, which is an increase of 196% during the same period.
A cash dividend payout of 10 per cent of paid-up capital, which equals AED 0.1 per share, was also approved at the firm’s Annual General Meeting held on Sunday 19th March.
Performance in 2016 was aided by significant recoveries from non-performing loans (NPLs) which despite a challenging market, saw a 58% reduction in provisions from AED 19 million in 2015 to AED 8 million in 2016.
Reem delivered a 13% return on equity to its shareholders in 2016, compared to a negative return of on equity of 2.3% in 2015.
Speaking at the company’s AGM Dr Saleh Al Hashemi, Chairman of Reem Finance, said: “I am delighted with the company’s performance in 2016. This has been testament to the energy, hard work and drive of the team underpinned by a clear focus on delivering our core proposition – fast, flexible and convenient financing solutions for our clients.
