DFM Company net profit surges 140% during the first half of 2012

Dubai Financial Market Company (PJSC) announced its financial results for the first half of the year ending June 30th 2012, recording a net profit of Dhs40.6m, a 140% increase compared to the corresponding period of 2011. The net profit of the second quarter 2012 reached Dhs10.2m a 31% decrease compared to Q2- 2011.

The Company recorded total revenue of Dhs118.7m in H1-2012 compared to Dhs113.3m during H1- 2011.

The revenue comprised of Dhs94.3m of operating income and Dhs24.4m of investment returns. The Company expenses reached Dhs78.1 m compared to Dhs96.4m recorded during H1-2011. During the second quarter of 2012, the Company’s revenue reached Dhs49.6m compared to Dhs64.6m in the second quarter of 2011, whilst expenses amounted to Dhs39.4m in the same period compared to Dhs49.9m during Q2- 2011.

It is noteworthy that the DFM trading value has significantly improved by 45.5% to Dhs32.3bn during the first six months of this year compared to Dhs22.2bn in the corresponding half of last year. The trading value in H1-2012 surpassed its levels during the entire year of 2011. Meanwhile, the trading value increased 4.7% to Dhs11.8bn in the second quarter of 2012 compared to Dhs11.3bn in the same period of 2011.

Abdul Jalil Yousef Darwish, Chairman of Dubai Financial Market (PJSC) said: “As the trading commissions represent the main revenue stream, the significant improvement of DFM trading activity since the beginning of the year has left its positive mark on the Company’s revenue and profit. The trading value of the first half of the year surpassing its levels witnessed throughout the full year of 2011, is undoubtedly a strong indication of the investors’ reignited interest in the diversified opportunities offered at DFM and the exchange’s various competitive advantages and leading position amongst regional markets. As a result, DFM is evidently leading as the best performing regional market with its general index increasing 14% year to date. Additionally, the daily average of trading value increased 44% during the first six months of this year to Dhs252m compared to Dhs175m during the same period of 2011. We believe that the trading activity over the last few months represents an encouraging indication of restoring the common market activity levels in the future. We are deeply confident that DFM is fully geared up for a new era of sustainable growth owed to a series of strategic initiatives aimed to further improving its infrastructure according to international best practices. The exchange has successfully implemented 18 initiatives over the past two years as part of the new strategy adopted by the Board of Directors at the beginning of its tenure.”

Essa Abdul Fattah Kazim, Managing Director and CEO of Dubai Financial Market (PJSC) said: “DFM’s efforts are centered around further stimulating the role of financial markets in supporting the economy through productive discussions with various participants including public and private companies, regulators, financial consultancies and investment banks. Our objective is to attract new companies from unrepresented sectors and diversify investment opportunities and asset classes through the introduction of new financial products. The DFM also encourages market participants to further embrace international best practices leading to augmenting Dubai’s leading position as the international financial hub in the region. For this purpose, DFM has intensified its communication with its current and potential participants during the past few months through a variety of initiatives including the organization of its second interactive workshop on “Achieving Good Investor Relations and Corporate Governance”, in May 2012. Over 140 delegates representing 80 companies attended this workshop which was aimed at empowering current and potential issuers to adopt international best practices and further interact with the investing community. Additionally, we have pursued our efforts to support small and medium enterprises (SME’s) to go public in the future. DFM and NASDAQ Dubai have joined hands with the Dubai SME to educate this important category on how to utilize the capital markets.”