Amlak International CEO says total provisions exceed SAR 90 mln

Amlak International for Real Estate Finance Co. studied the coronavirus pandemic risks, increasing allocations by SAR 8.1 million by the end of Q3 2020, CEO Abdullah Al Sudairy told Argaam.

The company’s total provisions exceeded SAR 90 million. Moreover, the new retail mortgage loans increased by 53% in the first nine months of the year on the growing demand for residential loans.

“Growing demand for the Ministry of Housing products supports the mortgage market at present. I cannot find any reason for a potential decline during the fourth quarter of the year,” Al Sudairy said.

Commenting on Q3 2020 financial results, the CEO said the lower bottom line was attributed to the one-off gains recorded in the third quarter of 2019 on sale of finance portfolios.

Al Sudairy concluded that lower interest on finance portfolios is related to a decline in SAIBOR rates, which pushed Amlak to reduce installment rates for the clients that secured variable-rate loans.