Amlak International posts revenue drop in Q1 2022 on one-off gains from sale of portfolios last year: CEO

Abdullah Al Sudairy, CEO of Amlak International for Real Estate Finance Co.

Amlak International for Real Estate Finance Co. reported lower revenue in Q1 2022, due to the one-off gains made on selling the company’s portfolios last year, CEO Abdullah Al Sudairy told Al-Arabiya TV.  

If adjusted to these gains, Amlak would have reported a marginal increase in the first-quarter revenue.  

Al Sudairy added that profit rose despite a decline in revenue, thanks to improved Murabaha agreements, as well as lower credit provisions and lending costs. 

The company is working on developing its products to capitalize on the current and future demand. Amlak has a bullish outlook on demand for its products and market conditions, particularly amid the positive and robust projections for the Saudi economy.

The CEO added that Amlak’s agreements are secured by properties. In addition, all debts and financing deals are guaranteed by real estate.

Commenting on the interest rate hike, Al Sudairy explained that Amlak has a risk management department to address risks of higher policy rates. It is always studying its hedge agreements to ensure the company’s solid position in the medium and long terms.

The real estate developer posted a net profit of SAR 27.1 million in Q1 2022, an increase of 8% from SAR 25.2 million in the corresponding period the last year, Argaam reported.