Special Features
DFM Company net profit surges 138% to Dhs96.5m during first half of 2013
Dubai Financial Market Company announced its financial results for the first half of the year ending June 30th 2013, recording a net profit of Dhs96.5m, compared to Dhs40.6m during the corresponding period of 2012, a 138% increase. The net profit of the second quarter 2013 reached 69.5m, a 581% increase compared to Q2- 2012 level of Dhs10.2m.The Company recorded a total revenue of Dhs178.4m in H1-2013 compared to Dhs118.7m during H1- 2012. The revenue comprised of Dhs153.2m of operating income and Dhs25.2m of investment returns. The Company expenses reached Dhs81.9m compared to Dhs78.1m recorded during H1-2012. During the second quarter of 2013, the Company’s revenue reached Dhs112.7m compared to Dhs49.6m in the second quarter of 2012, whilst expenses amounted to Dhs43.2m in the same period compared to Dhs39.4m during Q2- 2012.
It is noteworthy that the DFM trading value has significantly improved by 82% to Dhs58.8bn during the first six months of this year compared to Dhs32.3bn in the corresponding half of last year. Meanwhile, the trading value increased 222% to Dhs38bn in the second quarter of 2013 compared to Dhs11.8bn in the same period of 2012. Trading commissions represents the main revenue stream for the DFM Company.
Abdul Jalil Yousuf Darwish, Chairman of Dubai Financial Market (PJSC) said: "During the first half of 2013, DFM has started to harvest the fruits of its sincere efforts over the years to develop the market infrastructure in line with international best practices, as well as the sound fundamentals of the national economy, which were significantly reflected on the performance of DFM as one of the best performing exchanges globally year to date. The DFM General Index has advanced 37% by the end of June, and the daily trading value soared 85% to Dhs467m compared to Dhs252m during the corresponding period of 2012.
Within the same context, DFM has attracted 14359 new investors since the beginning of the year compared to 5097 new investors during 2012, lifting the total number of investors registered on the market to approximately 800 thousand. We believe that what has been achieved this year represents a new beginning and reaffirms the appropriateness of the strategic direction adopted and implemented by the Board of Directors during the first term. We will carry on with this during the new term which started in April 2013 for 3 years, which will positively reflect on the company’s performance in the future."
Essa Abdul Fattah Kazim, Managing Director and CEO of Dubai Financial Market (PJSC) said: "DFM’s development efforts have been well recognized by local and international investors with the reignited interest towards the market since the beginning of this year as well as the upgrade of the UAE to Emerging Market status by the MSCI.
These developments reaffirm that the profundity of the market infrastructure and the fulfillment of the upgrade requirements were achieved a long time ago. During the first half of the year, we have implemented the "Buyer Cash Compensation", as the latest of DFM’s continuous efforts to implement international best practices and further market enhancements will follow. The positive performance over the past few months is sustainable with DFM coming under the radar of more prominent international investors who are attracted by the DFM investment opportunities, taking into account the thriving economy and continued improvement in the companies’ performance."
