Dunia announces stellar 2013 full year financial results

19 February 2014

Dunia Finance LLC (dunia) today announced its audited full year financial results for the 12 month period ended 31st December 2013.

Dunia is a leading UAE headquartered financial institution created out of a strategic partnership between Mubadala Development Company PJSC of Abu Dhabi, Fullerton Financial Holdings (a subsidiary of Temasek Holdings) of Singapore, Waha Capital PJSC of Abu Dhabi, and business group A.A. Al Moosa Enterprises of Dubai.

Net revenues reached AED 354 million in FY 2013, an increase of 26% on the previous year. Net profit was AED 118 million, up 62% on FY 2012. 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% increase in total customer numbers over the course of 2013. dunia now provides a host of financial solutions and products, with world class service standards, to a growing base of 138,000 customers. Its customer loan assets surpassed AED 1 billion for the first time in 2013, having grown 35% to AED 1.03 billion. The company’s 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% against the prior period, reaching AED 515 million.

Dunia’s robust and granular balance sheet again delivered a strong positive operating leverage in 2013 of 16% during the year. Its absolute costs increased by only 10% versus FY 2012, while revenue grew by 26% 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% in 2013, as compared to 48% in the prior year. These favourable fundamentals help ensure predictability and profitability of operations, which is important for maintaining sustainable yet strong growth momentum over the year ahead.

Dunia’s capital adequacy continued to be healthy and stable, standing at 32.4% by the end of FY 2013. While this capital adequacy ratio remains far higher than the regulatory requirement of 15%, it reaffirms the company’s enduring focus on, and commitment to, sound risk management principles and high standards of governance, while ensuring a strong ability to invest for growth.

Dunia announced its maiden interim dividend of AED 8.8 million in July 2013 and has now announced a final dividend of AED 8.8 million for 2013. With this, the total dividend for FY 2013 amounts to AED 17.6 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.

Salem Rashid Al Noaimi, Chairman, said: “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. We believe this approach will lead to further success, creating greater shareholder value and returns over the long term.

Commenting, Rajeev Kakar, 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.

“We are delighted that our continuously improving financial performance, prudent management of risk, and sound balance sheet has enabled us to secure our first standalone credit rating of BB- from Fitch. Our commitment to sustainable business practices also goes hand-in-hand with delivering better financial returns and value to shareholders over the long term, allowing us to capture new opportunities in the marketplace, backed by a strong and growing capital base.”