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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(Thousands of US dollars)
7. Investments in financings
(continued)
45
Dar Al-Maal Al-Islami Trust
Annual Report 2011
Islamic investments in financings largely comprise conventional loans and
advances made by a subsidiary of the Group and a loan on a profit sharing
basis to a trust outside the Group in the amount of $104.3 million (2010:
$102.2 million).
At 31 December 2009, investments in financings included an amount of
$129.7 million, representing the principal outstanding of $167.9 million less
fair value adjustments, relating to a Kard Hassan granted to Islamic Investment
of the Gulf (Bahamas) Limited acting on behalf of certain funds under its
management. On 31 March 2010, the principal was reduced by $124.0
million to settle the subscription for new shares in Ithmaar Bank B.S.C. (note
42) together with professional fees due to Islamic Investment Company of the
Gulf (Bahamas) Limited which acted on DMI’s behalf. In addition, $33.0
million of the remaining principal was waived by DMI and the balance of $10.9
million was repaid on 28 June 2010. The total profit in the consolidated
statement of income in 2010 related to fair value adjustments in respect of the
Kard Hassan amounted to $5.2 million.
Financings subject to finance leases
Gross investment in
Unearned future
Net investment
finance leases
finance income
in finance leases
2011
receivable
on finance leases
Not later than one year
25,236
9,844
35,080
Later than one year and
not later than five years
28,210
16,514
44,724
53,446
26,358
79,804
2010
Not later than one year
60,555
(5,618)
54,937
Later than one year and
not later than five years
53,136
(6,624)
46,512
113,691
(12,242)
101,449
The allowance for uncollectible finance lease receivables included in the
provision for impairment amounted to $Nil million at 31 December 2011
(2010: $7.6 million).