Dunia Finance swings to H1 profit
Dubai, September 2, 2012
Dunia Finance, a leading UAE-based financial institution, said it has registered a record half year net profit of Dh29.1 million ($7.9 million) compared to a loss of Dh0.4 million in the same period last year.
Dunia Finance is a strategic partnership between Abu Dhabi-based Mubadala Development Company, Al Waha Capital (formerly known as Oasis International Leasing Company), AA Al Moosa Enterprises and Fullerton Financial Holdings.
Announcing the results on Sunday, Dunia said the company's net revenues jumped 44 per cent to hit Dh131.1 million, while its net profit touched Dh29.1 million, up 61 per cent compared to 2011 results.
The first half results were underpinned by broad-based top line revenue growth, underscoring Dunia’s commitment to acquiring new customers and deepening customer relationships through its customer-centric strategy, said a top official.
'Despite the continuing challenging global economic environment, Dunia has performed strongly in the first half of 2012, posting record revenues and profit off the back of a record performance in 2011,' remarked executive director and CEO Rajeev Kakar.
The company's deposit balances increased by 84 per cent to Dh313 million in the first half compared to the same period last year, he stated.
The customer loans and receivables also registered a 45.2 per cent growth to hit Dh662 million compared to the same period last year, he noted.
The balance sheet, said Kakar, continues to strengthen thanks to its prudent provisioning policies.
'The total stock of portfolio impairment provisions stood at a healthy 4 per cent of customer receivables, which provides for adequate loss absorption capacity in the event of any unexpected external stresses,' he remarked.
'The balance sheet also remains highly liquid, funded through an increasingly diversified and growing base of deposits and increased retained earnings through continuing operations,' said Kakar.
Dunia’s capital adequacy remains healthy at 37.5 per cent at the end of the first half of 2012, which is comfortably higher than regulatory requirements.
'We have strictly adhered to our strategy of remaining intensely customer-centric and this approach has resulted in our broad-based growth across a number of different segments,' the official remarked.
'We have also focused heavily on rapidly growing our balance sheet, whilst remaining liquid and self-funded through deposits, without excessive dependence on wholesale funding sources. We remain confident in the sustainability of these profitable trends,' he added.-TradeArabia News Service