ICD portfolio sees near 7% growth in 2016

Total assets were placed at Dh769.9b, but net profit fell by 20%

Investment Corporation of Dubai (ICD) said yesterday its portfolio witnessed a growth of 6.9 per cent to Dh769.9 billion in 2016.

The growth was a result of an increase in loans and receivables in the banking and financial services segment and aircraft fleet upgrades in the transportation services segment, the investment arm of government of Dubai said in a statement.

The net profit for 2016 fell nearly 20 per cent, while revenues were steady at Dh176.3 billion, a decrease of 0.5 per cent from the previous year.

Net profit, meanwhile, was Dh22.1 billion, down 19.6 per cent from the prior year. Net profit attributable to the equity holder of ICD was Dh18 billion, a decrease of 21.4 per cent from the prior year. The decrease in net profit was primarily driven by the impact of increased competitive pressure on yields in the Transportation Services segment and the comparison with a prior year gain on Discontinued Operations resulting from the sale of Standard Aero Inc.

“In 2016 the portfolio of ICD demonstrated resilience by delivering a strong operational and financial performance despite challenging market conditions,” Mohammad Ebrahim Al Shaibani, Executive Director and CEO of Investment Corporation of Dubai, said in a statement.

Liabilities increased to Dh560.5 billion, rising 7 per cent from the year-end position in 2015, resulting primarily from higher customer deposits in the Banking and Financial Services segment, ICD stated. The group’s share of equity increased 7.2 per cent from the year-end position in 2015, as a result of operating profits, it added.