Profit of listed companies hits Dhs78.52 billion mark in 2019

The combined profit of 126 listed Emirati and foreign firms amounted to Dhs78.52 billion in 2019, a year-over-year (YOY) growth of 7.7 per cent from Dhs72.24 billion, according to the financial statements revealed by these companies which account for 95.5 per centt of 132 corporations trading in the Abu Dhabi Securities Exchange and Dubai Financial Market.

Most of the companies which failed to disclose their financial statements are foreign, given that the Securities and Commodities Authority mandates listed companies to file earnings reports within 45 days following the end of each fiscal quarter.

According to these results, the banking sector continues its lead over other business platforms, securing net profit of Dhs46.47 billion, a YOY growth of 11.6 per cent from Dhs41.63 billion.

The realty sector came second with Dhs12.7 billion followed by the telecommunication companies which reported Dhs10.43 billion in profit.

The three sectors’ combined profit of Dhs69.6 billion account for 88.6 per centt of total earnings booked by all companies listed in the country’s two main bourses.

In more detail, 61 DFM-listed firms reported Dhs38.855 billion, a growth of 14.4 per centt over last year, while 65 ADX-listed companies announced Dhs39.67 billion, up 2.8 per cent on 2018.

The Emirates NBD was the best performer with Dhs14.502 billion, followed by FAB,Dhs12.52 billion. Dubai Islamic Bank achieved Dhs5.013 billion in profit, while ADCB reported Dhs4.79 billion.

FAB recently approved the distribution of 74 per cent cash dividends - Dhs0.74 per share, implying total cash dividends of Dhs8.08 billion - for the financial year that ended 31st December 2019.

An earlier report said that consolidated net profits of 67 companies listed on the UAE’s financial markets reached Dhs75.56 billion in 2019, an increase of 16.9 per cent compared to 2018.

Following financial data and operational performance analysis, the net profits disclosed by the 67 companies in their financial statements have exceeded 2018 profits registered for the total number of listed companies (103), which reached Dhs75 billion.

Fifteen national banks registered Dhs46.86 billion in 2019, an approximate growth of 13.3 per cent compared to Dhs41.36 billion in 2018. These reported profits compose 62 per cent of total profits registered by the 67 listed companies, reflecting a positive streak in the country’s banking sector, despite a backdrop in global markets.

Thirty-three of the companies, listed on the Dubai Financial Market, DFM, reported Dhs37.56 billion in profits for 2019, a 32 per cent increase compared to 2018 profits of Dhs28.45 billion.

The Abu Dhabi Securities Exchange, ADX, showed 34 of its listed companies reporting Dhs38 billion in profits in 2019, a five per cent increase compared to 2018 figures (Dhs36.2 billion).

A recent report said that the total assets of Emirates Telecommunications Corporation, Etisalat, and the Emirates Integrated Telecommunications Company, du, increased to Dhs145.12 billion in 2019, a YoY growth of around 2.8 per cent from Dhs141.74 billion.

The financial statements announced by the two listed companies show their total combined revenues hit Dhs64.8 billion in 2019, while the royalty fee they paid to the government stood at circa Dhs7.85 billion.

WAM