QIFs are exempt as its investors are treated similar to those who have invested directly in underlying assets
The Abu Dhabi-based finance company said on Monday that its first-half profit surged 91 per cent to Dh55.6 million while revenues climbed 27 per cent to Dh166.4 million as it built up a strong relationship with its existing and new customers.
The UAE’s leading lender recorded 23 per cent growth in customer numbers to 125,267 while customer deposits soared 36 per cent to Dh436.7 million from Dh321.7 million in the same period lat year.
“Dunia’s unique business model that ensures a strong customer focus through a rich array of products and services for their needs, supported by a strategic risk and cost management approach, helps ensure it delivers world class service predictably and sustainably,” chairman of dunia’s board, Salem Rashid Al Noaimi, said.
To reward the shareholders, the finance company announced an interim dividend of Dh16 per share for the six months ended June 30, 2013. The interim dividend amount is also equal to the full year dividend of Dh16 per share for financial year 2012, which reflects its strong financial results, continually improving capital base and confidence of continued strong results in the remainder of 2013.
“We are very pleased with our continued strong growth momentum in the first half, as in previous years. We hope to continue adding greater value to our customers, and all stakeholders, in the times ahead,” Al Noaimi said. Dunia Finance, which was established in September 2008 with a paid-up capital of Dh586 million, has emerged as a UAE’s leading financial institution and banks on its customer-centric strategy. The banks’s managing director and chief executive Rajeev Kakar leads the policy initiative to build up strong customer base in past five years.
“My single biggest priority is to acquire more and more customers to promote business. It is my strategy to rapidly expand the bank’s customer base across the UAE,” Kakar told Khaleej Tmes.
Dunia reported a healthy 305 per cent year-on-year rise in 2012 profits to Dh73 million. It’s balance sheet further strengthened this year as its management kept a tight control on expenses, which remained flat at Dh69.2 million in January-June period. The company also recorded 30.8 per cent growth in total customer asset and liability footings, which reached Dh1.287 billion as of June 30 2013, up from Dh984.1 million at the same time last year.
“Dunia’s impressive half-year performance was driven by our unwavering commitment to customers. Our ability to attract new customers and enhance existing relationships, alongside careful management of our costs, has allowed us to further strengthen our balance sheet,” Kakar said.
“With positive momentum in the business powered by a high quality management team and a resilient business model, dunia expects to see continued franchise and financial growth,” he said.
During the first half of 2013, dunia’s cost of credit decreased from 11 per cent in first half of 2012 to 10.3 per cent, representing an improvement in the quality of the overall portfolio. During this period the bank recorded positive operating leverage of 25.4 per cent over the same period in the prior year, which resulted in it’s cost income ratio improving to an efficient 41.6 per cent from 52 per cent in the prior period.
Dunia’s capital adequacy stood at a healthy 37 per cent at the end of June 2013, which remains well above the regulatory requirement, and underlines the company’s focus on sound capital management, while ensuring adequate room for growth.
“With the UAE’s macro-economic fundamentals looking increasingly positive, we are well-placed to capture future market share, hinged around our core strategy of putting the customer first with special focus on the consumer mass market, mass affluent, small business and SME segments, which are critical drivers of any economy,” Kakar concluded.
QIFs are exempt as its investors are treated similar to those who have invested directly in underlying assets
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