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Dunia Finance LLC announces unaudited financial results for H1 2014

July 22, 2014

Dunia's customer numbers grew 20 per cent in H1 2014 to 150,400. Customer deposits increased 42 per cent, to AED 620.9 million, which compares to deposits of AED 436.7 million in H1 2013.

New customer acquisition, alongside a deepening of relationships with existing customers, helped Dunia deliver strong top line revenue and income growth. During the first half, the company saw revenues of AED 225.7 million, up 36 per cent from AED 166.4 million, and net profit of AED 82.6 million, up 49 per cent from AED 55.6 million for the same period last year. Expense grew at only 15 per cent during the same period at AED 79.6 million versus AED 69.1 million in the prior year driven principally by investments to enable growth.

Dunia's balance sheet was further strengthened over the period. The company saw a rapid growth of 44 per cent growth in total customer asset and liability footings, which reached AED 1,854 million as of 30 June 2014, up from AED 1,287 million at the same time last year.

During this period Dunia recorded positive operating leverage of 20.4 per cent over the same period in the prior year, which resulted in Dunia's cost income ratio improving even further to 35.3 per cent from 41.6 per cent in the prior period.

Dunia's capital adequacy stood at a healthy 40.5 per cent on a net worth basis at the end of June 2014, which remains well above the regulatory requirement, and underlines the company's focus on sound capital management, while ensuring adequate room for growth.

The company announced an interim dividend of AED 24 per share simultaneously with the announcement of the half year financial results for the six months ended June 30, 2014. This interim dividend amount is 50 per cent higher than the interim dividend declared in 2013 reflecting both its strong financial results, continually improving capital base and confidence of continued strong results in the remainder of 2014.

The Chairman of Dunia's Board, Mr Salem Rashid Al Noaimi, said: "Dunia's strong growth momentum in the first half of 2014 as in previous years, once again endorses our business approach of ensuring a focus on our customers evolving needs. We are delighted with the performance of Dunia. Our commitment to helping our customers stay ahead as they use our services, drives us to continuously invest in enhancing the customer experience through world class service and continous innovation. We will continue to provide such value to our customers and all our stakeholders, while creating an institution that is admired by all constituents across a broad array of metrics."

Rajeev Kakar, Managing Director and CEO, said: "The 2014 first half performance has been incredibly satisfying, not only because of our strong positive growth in top-line and bottom-line numbers while ensuring extremely healthy growth on financial ratios like Return on Assets and Return on Equity, but also because our customers once again positively endorsed us for delivering strongly on key service satisfaction and value metrics. It is this continuous track record of predictably delivering strongly against customer experience expectations and on shareholder expectations that allows us to continuously invest further in enhancing our value-based services and products to customers. I believe it is important to ensure a consistently predictable growth in earnings as it enables us to ensure sustainability in our operations, allowing us to continuously invest in line with our efforts to continually provide greater customer value, while providing for a larger share of their needs, in line with our objective of becoming their preferred financial services provider. It is this on-going investment in creating customer satisfaction and loyalty that will enhance customer life time value for Dunia, and all our stakeholders."

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Source: CPI Financial

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