Dunia Finance posts 62pc profit growth
Abu Dhabi, February 19, 2014
UAE-headquartered Dunia Finance (dunia) has registered a solid 62 per cent growth in its net profit for 2013 which rose to Dh118 million compared to the previous year.
A leading financial institution, dunia has been created out of a strategic partnership between Abu Dhabi firms Mubadala Development Company and Waha Capital, Fullerton Financial Holdings (a subsidiary of Temasek Holdings) of Singapore and business group AA Al Moosa Enterprises of Dubai.
The company's net revenues surged 26 per cent to hit Dh354 million in 2013. This performance was driven by dunia’s finely tuned customer centric strategy of enhancing and deepening relationships through superior service, customised solutions, intelligent use of technology, enhanced platforms and well-trained people, as well as careful expense control.
The increasingly positive impact of dunia’s customer centric philosophy and sustainable approach to growth is reflected in a 21 per cent increase in total customer numbers over the course of 2013.
The Emirati firm now provides a host of financial solutions and products to a growing base of 138,000 customers. Its customer deposits have grown at a commensurate rate to ensure a comfortable liquidity and funding position through a stable source of granular, low cost, and high duration deposits, which were up by 24 per cent against the prior period, reaching Dh515 million.
Dunia's customer loan assets topped Dh1 billion for the first time in 2013, having grown 35 per cent to Dh1.03 billion, said a senior official.
“I am delighted with dunia’s continued strong performance over the last year. Our unrelenting focus on empowering people, enabling success and enriching lives has provided the opportunity to form close relationships with customers, which is delivering growth in a consistent and sustainable way," remarked chairman Salem Rashid Al Noaimi.
"We believe this approach will lead to further success, creating greater shareholder value and returns over the long term," he added.
According to him, dunia’s robust and granular balance sheet again delivered a strong positive operating leverage in 2013 of 16 per cent during the year.
"Its absolute costs increased by only 10 per cent versus FY 2012, while revenue grew by 26 per cent on a year-on-year basis. dunia’s relentless focus on improving efficiency in its operations is also reflected in its continuously improving and healthy cost-income ratio, which dropped to 42 per cent in 2013, as compared to 48 per cent in the prior year," he added.
The company announced its maiden interim dividend of Dh8.8 million in July 2013 and has now announced a final dividend of Dh8.8 million for 2013, stated Al Noaimi.
"With this, the total dividend for 2013 amounts to Dh17.6 million. This is the third year in a row of dividend growth, demonstrating a successful track record and reflects the confidence management and the Board has in the company’s future growth prospects," he added.
Rajeev Kakar, the executive director and CEO, said: “Our dedicated approach to acquiring and nurturing customer relationships is the driving force behind another year of strong results. We remain committed to sustaining our growth strategy by increasing our customer base and deepening relationships, while launching new products and services."
"Over the year we have launched a number of new initiatives, and going forward, we will further enhance our offering, as well as our platforms and talented people, to deliver against the needs of our valued customers," he added.-TradeArabia News Service