ICD shows big rise in banking and financial services incomes

DIVERSIFICATION OF ACTIVITIES BOOSTS ASSETS TO REACH A RECORD DH1.12TR

Investment Corporation of Dubai (ICD), the principal investment arm of the Government of Dubai, has boosted its assets to a record Dh1.12 trillion, thanks to diversification of its activities and their resilience in volatile markets.

The ICD yesterday reported a net profit of Dh25 billion for 2019, up 16.9 per cent compared to 2018. The consolidated results for the year ended December 31, 2019, posted a net revenue of Dh228 billion down by 1.9 per cent, with a drop in oil and gas revenues and a marginally lower transportation income offset by higher income in banking and financial services and in the others segment.

Banking and financial services include DenizBankA., EmiratesNBD’s new acquisition.

TRANSPORTATION SECTOR

Net Profit growth of 16.9 per cent included a record contribution from banking and financial services and a strong performance from transportation. “In 2019, ICD produced a very solid performance given the considerable challenges faced by the global economy and the effect that these have had on our businesses,” said Mohammad Ebrahim Al Shaibani, Executive Director and CEO, Investment Corporation of Dubai.

“The diversification of our activities and their resilience in volatile markets are two significant contributing factors when it comes to delivering consistent performance year-on-year,” he said.

Banking and financial services results benefited from a Dh4.4 billion gain on the partial disposal of Network International Holdings Plc and the fair value measurement of its remaining stake.

Net Profit attributable to the equity holder of ICD was Dh18 billion, an increase of 10.7 per cent compared to the prior year period.

BALANCE SHEET

Assets increased to a record Dh1.12 trillion, rising 27.5 per cent from the year-end 2018, whilst liabilities reached

Dh869.7 billion, rising 35.6 per cent, both mainly driven by the acquisition of DenizBankA., the continued business growth as well as the implementation of new IFRS 16 — Lease accounting rules.

“In 2020, with the significant disruptions arising in the wake of the Covid-19 crisis, we are focused on adjusting our operations to preserve their ability to operate competitively when the health crisis subsides. We remain confident that ICD’s businesses can deliver sustainable returns over the long term for the prosperity of Dubai,” said Al Shaibani.

The Group’s share of equity increased by 3.5 per cent to Dh204.6 billion from the yearend 2018, despite an Dh9.7 billion one-time adjustment relating to the adoption of IFRS 16.

Banking and financial services results benefited from a Dh4.4 billion gain on the partial disposal of Network International Holdings Plc and fair value measurement of its remaining stake.

Dh228b net revenue, which is down by 1.9 per cent. The fall is due to drop in oil and gas incomes. Dh1.12tr assets of ICD, which registered a record increase of 27.5 per cent from the year-end 2018 Dh869.7b is the liabilities, rising 35.6 per cent, mainly driven by the acquisition of DenizBankA., and implementation of new IFRS 16 - Lease accounting rules