15 March 2015
Dunia Group today announced its audited full year financial results for the 12 month period ended 31st December 2014, reporting a record full year profit of AED 200.6 Million. This included Dunia Finance LLC (dunia) reporting a net profit of AED 191.3 million and Dunia Services FZ LLC reporting a net profit of AED 9.3 million.
dunia recorded operating income of AED 507 million in 2014, up 43% on 2013, and net profit of AED 191 million, an increase of 61% over the prior year. This record performance was driven by dunia’s customer centric strategy of deepening relationships through superior service, customized solutions, intelligent use of technology, enhanced platforms, highly trained staff and careful expense control. The increase in net profit to AED 191.3 million allowed dunia to achieve a record 36% return on equity for the period.
dunia announced an interim dividend of AED 13.2 million in July 2014 and is pleased to now announce a final dividend for 2014 of AED 58.8 million taking the total dividend for 2014 to AED 72 million. This is the fourth consecutive year of dividend growth, reflecting the company’s successful track record as well as management and the board’s confidence in the company’s future growth prospects.
dunia’s customer-centric strategy led to a 19% increase in total customers during 2014. As a result, customer assets crossed AED 1.5 billion, up 47% on 2013, and customer deposit balances increased 61% to AED 829 million compared to AED 515 million in 2013. dunia’s balance sheet remained robust, with cash and cash equivalents growing to AED 38 million, reflecting dunia’s prudent liquidity management.
Tight process control and a strategic focus on risk management underpinned dunia’s performance, enabling the company to be a low cost provider. dunia’s cost-income ratio shows a healthy improvement, reducing to 32% from 42% in the prior year, reflecting greater efficiency across its operations. Operating expenses grew 7% from AED 149 million in 2013 to AED 160 million in 2014, contributing to an operating leverage of 36% during the year, vs. 15.9% in the prior year.
dunia’s prudent provisioning policy is reflected in a Non-Performing Loan (NPL) coverage of 1.8x and an increase in impairment reserves from AED 25 million in 2013 to AED 43 million in 2014. As of 31st December 2014, dunia had a 39% capital adequacy level, significantly higher than the regulatory required 15% capital adequacy ratio, underlining the company’s focus on sound risk management principles and overall standards of governance.
Salem Rashid Al Noaimi, Chairman of dunia, said: “We are delighted with dunia’s strong performance over the last year. Our unrelenting focus on our customers and our continued investment in our talent, brand, products, technology and services, has helped us deliver impressive yet sustainable financial results. We believe this approach will lead to further success, creating greater shareholder value and returns over the long term.”