Dunia Finance operating income increases to AED 506.7 million, up 43% compared to FY 2013

Dunia Finance net profit increases to AED 191.3 million, up 61% compared to FY 2013

Total Group dividend increases to AED 72 million, up 309% from AED 17.6 million in 2013

UAE, 15th 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 506.7 million in 2014, up 43% on 2013, and net profit of AED 191.3 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 the year 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."

Rajeev Kakar, Managing Director and CEO, said: "In 2014, dunia invested in launching new products, innovating across channels, enhancing technology infrastructure, and aggressively expanding market share. We also invested in transforming our capabilities through the use of new-age technology solutions, like mobility and social media. This enhanced customer value through product and service excellence will enable us to deliver stronger results in 2015."

FOR MORE INFORMATION, PLEASE VISIT WWW.DUNIA.AE OR CONTACT:
Mariam Elsamny, Chief Marketing Officer
Dunia Group
Email: mariamelsamny@dunia.ae
Tel: +971 528559555

MEDIA CONTACTS
Sam Turvey, Partner
Bell Pottinger
Email: sturvey@bellpottinger.com
Tel: +971 555597383
 
ABOUT DUNIA FINANCE
Dunia is an Abu Dhabi headquartered finance company operating in the UAE. It is a strategic investment and alliance created by a group of leading players namely:

  • Mubadala - a wholly owned investment vehicle of the Government of the Emirate of Abu Dhabi

  • Fullerton Financial Holdings - a wholly owned subsidiary of Temasek Holdings in Singapore

  • Waha Capital - a holding company engaged in owning, selling, leasing and investing in various types of fixed and movable assets worldwide

  • A.A. Al Moosa Enterprises - one of the leading business groups in the UAE 

Dunia aims to focus nationally on the key Mass Affluent and Mass Market segments in the Consumer Financial services side, and on the SME and Small business customers on the Business Finance side. Through a nationwide presence in the UAE, dunia provides a full-function product range, including a secured and unsecured loans, credit cards, financial planning services, deposits, financial guarantees and payroll processing for non-individual customers.

Dunia is unique in its use of a customer-centric approach that aims to deliver a differentiated, yet relevant and unique value proposition that caters to the holistic product, convenience, experience, and service expectations of people in the UAE. All this is delivered sustainably and predictably to customers through processes and a proposition that is supported by investment in state-of-the-art technology and capabilities; and through partnerships with service providers who excel in their individual areas of expertise. Dunia is led by a senior management team comprising of talented and seasoned business leaders with significant global experience.

Dunia means 'the world' in Arabic and in several other languages spoken in the UAE. Dunia aims to offer its customers a world of opportunities.

© Press Release 2015