Dunia Finance makes Dh29m profit for H1 2012

Dunia Finance LLC announced on Sunday its unaudited half yearly financial results for the period ended June 30, 2012, declaring half year net profit of Dh29.1 million, compared to a loss of Dh0.4 million in H1 2011, and net revenues of Dh131.1 million, up 44 per cent on H1 2011.

In the first half of 2012, deposit balances were up 84 per cent versus H1 2011 to Dh313 million. Customer loans and receivables up  by 45.2 per cent versus H1 2011 to Dh662 million.

In H1 2012, Dunia Finance’s return on equity grew to 19.2 per cent versus 0.3 per cent in H1 2011. Operating leverage is at 42.5 per cent versus H1 2011. Loss absorption capacity is growing to 1.9x versus 0.9x in H1 2011.

The total stock of portfolio impairment provisions stood at 4 per cent of customer receivables. Dunia’s capital adequacy remains at 37.5 per cent at the end of the first half of 2012, which is higher than regulatory requirements.

Rajeev Kakar, executive director and CEO, said: “Despite the continuing challenging global economic environment, Dunia Finance has performed strongly in the first half of 2012, posting record revenues and profit off the back of a record performance in 2011. We remain confident in the sustainability of these profitable trends.”