Dunia Finance first-half profit up 61 %

Dubai-based Dunia Finance delivered record half-year net profit of Dhs29.1 million, up 61 per cent from a loss of Dhs0.4 million in H1 2011, and net revenues of Dhs131.1 million, up 44 per cent on H1 2011. H1 2012 were underpinned by broad-based top line revenue growth, underscoring Dunia Finance’s commitment to acquiring new customers and deepening customer relationships through its customer-centric strategy. Deposit balances were up 84 per cent to Dhs313 million and customer loans and receivables up by 45.2 per cent to Dhs662 million. Dunia Finance remains focused on enhancing its strong business fundamentals to ensure predictability and profitability of operations, which is critical for sustained growth ahead. Return on Equity grew to 19.2 per cent and operating leverage is at 42.5 per cent. The Balance Sheet has continued to strengthen. Dunia maintains prudent provisioning policies. The total stock of portfolio impairment provisions stood at a healthy four per cent of customer receivables, which provides for adequate loss absorption capacity in the event of any unexpected external stresses. Earnings The balance sheet also remains highly liquid, funded through an increasingly diversified and growing base of deposits and increased retained earnings through continuing operations. 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. Rajeev Kakar, Executive Director and Chief Executive Officer said: “Despite the continuing challenging global economic environment, Dunia Finance has performed strongly in the first half of 2012, posting record revenues and profit off the back of a record performance in 2011. 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.” He also said: “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.” From gulftoday