Dunia Group has released its full year financial results for the 12-month period ended 31st December 2016, reporting a profit of AED 73.1 million.
Dunia Group’s results included Dunia Finance, reporting a net profit of AED 71.3 million, and Dunia Services, reporting a net profit of AED 1.8 million.
Dunia Group recorded operating income of AED 879.2 million in 2016, an increase of 7.3% over the same period in 2015 and net profit of AED 73.1 million.
Underpinning the company’s performance in 2016 was Dunia Finance’s customer-centric strategy aimed at deepening relationships through first class service, bespoke financial solutions, and intelligent use of technology.
Dunia Group announced an aggregate dividend of AED 56 million for 2016, maintaining a six-year track record of dividend distribution.
During 2016, the company’s focus on enhancing the entire customer experience led to a 21% increase in customers. Total customer assets were maintained at the prior year level of AED 1.96 billion.
The company’s balance sheet remains strong with a growth in cash and deposits of 54% over the prior year to AED 202.5 million.
Greater operational efficiencies and tight process control resulted in Dunia’s cost-income ratio declining to 14% in 2016 from 28% in 2015.
As of 31st December 2016, Dunai Group maintained a healthy 31.5% 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.
Commenting on the results, Chairman Salem Rashid Al Noaimi said: “The company delivered another sound performance in 2016 as we continued to focus on operational efficiencies and enhancing the overall dunia experience despite the uncertain global economy and subdued commodity prices. We head into the new financial year with our business in robust shape and a strong portfolio of products and services. Our strength remains our people, and I am truly grateful for their ongoing commitment, dedication and drive.”
Rajeev Kakar, Managing Director and CEO, said: “The macro-economic environment experienced in 2016 led to us taking a number of timely strategic actions to realign business priorities that have helped to ensure continued predictable and profitable returns on a sustained basis. Our ability to confidently navigate the uncertainties of 2016 highlights the resilience of our unique customer-centric business model and the robustness of our operations, demonstrating that Dunia can grow and succeed in even the most challenging of times. Despite such conditions, we continued to invest, attracting new customers while also deepening existing customer relationships by leveraging big data analytics which provides a better understanding of our customers’ needs. This enabled us to specifically tailor products to a loyal and growing customer base.”