Wednesday 25 May 2022

DFM H1 profit plunges 43pc to $22.5m

DUBAI, July 24, 2018

The Dubai Financial Market (DFM) has posted a net profit of Dh82.8 million ($22.5 million) for the first six months (H1) of the year compared to Dh145.6 million during H1 2017, marking a 43 percent decrease, a media report said.

The net profit for the second quarter of 2018 reached Dh33.9 million, a 22 percent decrease compared to the Q2-2017 level of Dh43.3 million, added the report from Emirates news agency Wam.

The company recorded a total revenue of Dh182.4 million in H1 2018 compared to Dh239.3 million during H1 2017. The revenue comprised Dh113.8 million of operating income and Dh68.6 million of investment returns. The company expenses reached Dh99.6 million compared to Dh93.7 million recorded during H1 2017.

During the second quarter of 2018, the company’s revenue reached Dh83.3 million compared to Dh90 million in the second quarter of 2017, while expenses amounted at Dh49.4 million in the same period compared to Dh46.7 million during Q2- 2017.

During the first six months of 2018, the DFM trading value decreased to Dh36.5 billion, a 47.6 percent decrease compared to the corresponding period of 2017. Trading commissions represent the main revenue stream of the DFM Company.

Essa Kazim, chairman of the Dubai Financial Market Company, said: "During the first half of 2018, the DFM implemented numerous development initiatives aimed at further enhancing its infrastructure and regulations in line with international best practices and as part of its strategy 2021 that focuses on diversifying the DFM’s products and services. Within this context, the DFM has launched the Allocation Account mechanism in the first step of its kind among regional markets.”

"We were also accredited as the first brokerage firm to provide this service to its clients. The new service creates a unique and transparent solution that caters to the requirements of international fund managers, enabling brokers to implement the orders of clients through this account and allocates the quantities to each investor’s account based on the average price of the transactions.

“Additionally, the DFM has maintained and strengthened its position as the most favoured listing venue for leading local and regional companies with the listing of Bahrain’s Ithmaar Holding and Egypt’s NAEEM Holding for Investment,” he added.

Commenting on the DFM’s efforts to strengthen links with international institutions, Kazim said, "The DFM has successfully organised its International Investor Roadshow in New York in early May with senior representatives of international 16 funds managing approximately $3 trillion in assets.”

“The event provided listed companies with an efficient platform to highlight their growth strategies and business developments amid international investors’ growing interest and willingness to further strengthen presence in Dubai’s securities market,” he added.

Tags: Dubai Financial Market | DFM |

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