Dunia Finance said its annual profit jumped 62 per cent last year from 2012 amid a backdrop of a consumer confidence renaissance in the UAE that has boosted demand for credit cards, mortgages and personal loans.
The Abu Dhabi-based consumer finance firm, in which the investment company Waha Capital has a 25 per cent stake, said net income in 2013 rose to Dh118 million. Revenues increased 26 per cent to Dh354m and customer assets rose 35 per cent, surpassing the Dh1 billion mark for the first time.
The number of Dunia Finance customers increased 21 per cent to 138,000 last year. Total customer deposits rose 24 per cent to Dh515m, boosted in part by the company’s use of proprietary customer technology that helps it to cross-sell products more efficiently, it said.
“Our dedicated approach to acquiring and nurturing customer relationships is the driving force behind another year of strong results,” said Rajeev Kakar,Dunia’s executive director and chief executive.
“We remain committed to sustaining our growth strategy by increasing our customer base and deepening relationships, while launching new products and services.”
Consumer finance companies have been aided by a blossoming UAE economy, which grew more than 4 per cent last year, as low interest rates have encouraged more people to take out mortgages and other forms of financing. That has led to a boom in the property and stock markets that saw Dubai’s benchmark equity index more than double last year.
The home financing provider Abu Dhabi Finance House said yesterday its operating profit had more than doubled as its loan book and customer base both increased 10 per cent.
mkassem@thenational.ae
