Dubai Financial Market net profit drops as trading values decline

Dubai: The Dubai Financial Market (PJSC) on Tuesday reported a 42.71 per cent drop in net profits to Dh346.6 million last year compared to Dh605 million in 2008.

Total revenues were Dh502.9 million compared to Dh1.01 billion in 2008. The revenues comprised Dh405.9 million in operational revenues and Dh97 million of investment revenues and others. The earnings per share stood at Dh0.04 compared to Dh0.08 in 2008.

During its meeting on Tuesday, the board of directors reviewed and approved the annual results, which will be ratified during the annual general meeting that will be announced later after coordinating with the Emirates Securities and Commodities Authority.

The board of directors also proposed a cash dividends of 5 per cent, equivalent to Dh397.3 million.

Impact

Eisa Kazim, Executive Chairman of the Dubai Financial Market, said: "As trading commissions contribute the majority of our revenue, we have seen a decrease in revenues and net profits in 2009 due to the continued implications of the global financial crisis.

"Nevertheless, DFM was one of the least affected exchanges in relation to the trading value decrease in 2009 compared to other regional exchanges. The decline of 43 per cent in trading value led to a relatively similar drop in operating revenue and net profits.

"Consequently, the company is engaged in deploying a series of plans aimed at reinforcing other revenue streams to limit dependence on trading commissions as much as possible.

"We are confident that these plans will enable us to achieve the best balance of revenue streams in the coming few years.

"Since going public in 2007, DFM showed its undisputed commitment to provide shareholders with the best returns.

"To demonstrate this commitment, the board of directors proposed a cash dividend for the third consecutive year despite the lower trading activity and allocation of some of our liquidity to acquire Nasdaq Dubai."