Dunia Finance Posts 91% Profit Increase For H1 2013

Abu Dhabi-headquartered finance company Dunia has announced strong first half results, posting a net income of Dhs55.6 million and revenues of Dhs166.4 million.

Revenues and profit were up by 27 per cent and 91 per cent respectively, over the previous year.

The firm announced a 23 per cent hike in the size of its customer base, while customer deposits increased by 36 per cent. The company also reported minimal growth in expenses, which remained broadly flat at Dhs69.2 million as compared to 68.2 million the previous year.

Dunia, created through the strategic partnership of Abu Dhabi state fund Mubadala, Fullerton Financial Holdings, Waha Capital and A.A Al Moosa Enterprises, also saw a 30.8 per cent growth in total customer asset and liability which reached Dhs1, 287 million as of 30 June 2013, up from Dhs 984.1 million at the same time last year.

Dunia’s cost of credit decreased from 11 per cent in H1 2012 to 10.3 per cent, while its cost income ratio reduced to 41.6 per cent from 52 per cent in the same period last year.

The firm’s capital adequacy stood at 37 per cent by the end of June 2013.

The company also announced an interim dividend of Dhs16 per share along with the first half results. The interim dividend amount is also equal to the full year dividend of Dhs16 per share for the financial year 2012.

“Our ability to attract new customers and enhance existing relationships, alongside careful management of our costs, allowed us to further strengthen our balance sheet,” said Rajeev Kakar, managing director and CEO of Dunia.

The company will focus on the consumer mass market, mass affluent, small business and SME segments, he added.

Dunia Finance, founded in 2006, provides a range of financial services including personal and car loans, credit cards, fixed deposits and caters to both personal and small business needs.