News Column

DFM Company's first half net profit up 384% at Dh467.6m

July 17, 2014

Babu Das Augustine Banking Editor

Dubai: Dubai Financial Market Company (DFM) on Thursday reported a net profit of Dh467.6 million for the first half of 2014, up 384 per cent compared to Dh96.5 million reported in the same period in 2013.

For the second quarter of this year, DFM reported a net profit of Dh252.5 million up 263 per cent compared to Dh69.5 million reported in the second quarter of last year.

Substantial increase in trading volumes, turnover and the number of new investors contributed to the performance of the stock exchange company. The exchange's trading value were up 303 per cent to Dh237.06 billion during the first six months of this year compared to Dh58.8 billion in the corresponding period last year. Meanwhile, the trading value increased 234 per cent to Dh126.9 billion in the second quarter of 2013 compared to Dh38 billion in the same period of 2013.

Trading commissions represent the main revenue stream of the DFM Company.

DFM recorded a total revenue of Dh552.1 million in the first half of 2014 compared to Dh178.4 million in the first half 2013. The revenue comprised Dh524.5 million of operating income and Dh27.6 million of investment returns. The company expenses reached Dh 84.5 million compared to Dh81.9 million in the same period last year.

During the second quarter of 2014, DFM's revenue surged to Dh296.5 million compared to Dh112.7 million in the second quarter of 2013 and the expenses amounted to Dh44 million compared to Dh43.2 million in the second quarter of 2013.

"DFM has sustained its momentum and remarkable performance during the first six months of the year 2014, which has been positively reflected on the company results. The DFM General Index continued its growth during the first half increasing to almost 60 per cent continuing from DFM's phenomenal performance witnessed in 2013, when it leapt 108 per cent, leading the best performing exchanges globally," said Essa Kazim, chairman of Dubai Financial Market.

The DGM General Index has ended the first half up 17 per cent and is up 44 per cent year to date. The daily average of trading value has increased 303 per cent to Dh1.9 billion and the exchange attracted 18,927 new investors during the first half compared to 15,720 investors during the same period of 2013.

"A growth of 20.4 per cent [in new investors] signals investors' confidence in DFM's diversified and lucrative investment opportunities, the sophisticated services offered to investors and issuers, as well as its ability to sustain growth," said Kazim.

Foreign investors accounted for 42.6 per cent of total trading value during the first half with a net buy of Dh2.5 billion.

In the first half of the year DFM has managed to expand the scope of its issuer services including; the management of cash dividend distribution on behalf of eight listed companies with a total value of Dh2.25 billion through various tools including the iVESTOR card, providing the event management solutions to the annual meetings of four companies as well as enabling investors to effectively take part in the IPO of Marka recently through the DFM electronic IPO platform "eIPO".

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Source: Gulf News (United Arab Emirates)

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