Dunia back in black with Dh18m profit

Abu Dhabi Financial services company Dunia Finance announced a Dh18 million net profit for 2:011 compared to an Dh88 million loss in 2010.

This full-year profit translates into the company delivering its maiden positive return on equity (RoE) of 6.6 per cent on a full-year basis.

During the last quarter of 2011, the RoE was higher at 15.2 per cent, signalling a continued strong return on equity in the year ahead, the company said in a statement.

"Last year was, by all standards, a record year for Dunia.

"It was our first year of full profitability and our performance across the board has been phenomenal," said Rajeev Kakar executive director and CEO.

For the full year ending December 31, Dunia's revenue reached Dh205 million, a 94 per cent increase year on year.

The company's customer base also grew a significant 54 per cent last year.

The growth in revenues is attributed to Dunia's revenue diversification strategy which saw the company add a range of new products and transaction services, ramp up cross-sell activities, and a customer-centric approach.

Last year, the company managed to reduce its expenses by 12 per cent compared to 2010 and brought down its cost to income ratio to 65 per cent.

"Our strategies of prudent and targeted asset growth, balanced risk approach, and proactive cost management along with the innovative approach we have towards alliance creation and product development have all proven highly effective," said Kakar.