DFM profit slips 43% on lower revenue
dubai — The Dubai Financial Market (DFM) recorded a net profit of Dh82.8 million for the first half of the year ending June 30, 2018, compared to Dh145.6 million during the corresponding period of 2017, representing a 43 per cent decrease. It posted a net profit of Dh33.9 million for the second quarter of 2018, a 22 per cent decrease compared to Dh43.3 million in Q2 2017.
The company recorded a total revenue of Dh182.4 million in H1 2018 compared to Dh239.3 million during H1 2017. The revenue comprised Dh113.8 million of operating income and Dh68.6 million of investment returns. The company expenses reached Dh99.6 million compared to Dh93.7 million during H1 2017.
During the second quarter of 2018, the company’s revenue reached Dh83.3 million compared to Dh90 million in the second quarter of 2017, while expenses amounted to Dh49.4 million in the same period compared to Dh46.7 million during Q2 2017.
During the first six months of 2018, the DFM trading value decreased to Dh36.5 billion, a 47.6 per cent decrease compared to the corresponding period of 2017. Trading commissions represent the main revenue stream of the DFM Company.
Essa Kazim, chairman of the Dubai Financial Market Company, said: “During the first half of 2018, the DFM implemented numerous development initiatives aimed at further enhancing its infrastructure and regulations in line with international best practices and as part of its strategy 2021 that focuses on diversifying
The dFM implemented numerous development initiatives aimed at further enhancing its infrastructure
Essa Kazim, chairman of the Dubai Financial Market Company
the DFM’s products and services. Within this context, the DFM has launched the allocation account mechanism in the first step of its kind among regional markets.
“We were also accredited as the first brokerage firm to provide this service to clients. The new service creates a transparent solution that caters to the requirements of international fund managers, enabling brokers to implement the orders of clients through this account and allocates the quantities to each investor’s account based on the average price of the transactions. Additionally, the DFM has maintained its position as the most favoured listing venue for leading local and regional companies with the listing of Bahrain’s Ithmaar Holding and Egypt’s Naeem Holding for Investment.”
Commenting on the DFM’s efforts to strengthen links with international institutions, Kazim said: “The DFM organised its International Investor Roadshow in New York in early May with senior representatives of 16 international funds managing approximately $3 trillion in assets. The event provided listed companies with an efficient platform to highlight their growth strategies and business developments amid international investors’ growing interest and willingness to further strengthen presence in Dubai’s securities market.”