(The Group's Comments) Ezdan Net Profit Climbs to QR 272.4 Million in Q1 2019

April 11, 2019

Profits: Ezdan Holding Group reported its results for the first quarter, which showed a 164% increase in profits that amounted to QR 272.4 million, compared to QR 103.3 million for the same period of 2018, while the company’s earnings per share reached QR 0.10 in the first quarter of 2019, versus QR 0.04 for the corresponding period of 2018. These high profits can be traced back to the following reasons:

1.      The increase of the operating profit by QR 24.5 million, or 9.0%, to QR 295.4 million due to a decrease in operating expenses by more than QR 18.5 million.

2.      No loss of valuation of real estate investments during the first quarter of 2019, contrary to the same period in 2018, which included an assessment loss of about QR 12.6 million.

3.      The increase of the Other Incomes by about QR 36.0 million as a result of savings in the Executive Committee allowances through the settlement of part of the Islamic funds granted by His Excellency Sheikh Thani Bin Abdullah Al Thani to the company.

4.      Lower costs of financing and administrative expenses by QR 54 million and QR 44.4 million, respectively.

Comprehensive income: During the first quarter of 2019, the company recorded a loss of QR136 million from the valuation of financial assets, compared to a loss of QR 22.6 million. These losses resulted in a decrease in the fair value reserve from QR 719.8 million at the end of 2018 to QR 585 million at the end of the first quarter of 2019.

During the first quarter, the company acquired Islamic finance facilities amounting to QR 340 million, in return the company paid off QR 614 million.

The most important financial investments of the company are in Qatar International Islamic Bank (10%), MediCare Group (12.5%) and Qatar Islamic Insurance Company (7.33%). As for real estate investments most of them are real estate and completed projects (94%), while unexploited land accounts for (6%).