DFM registers Dhs38.8 million net profit in first half of 2021

Dubai Financial Market on Thursday announced its consolidated financial results for the first half of the year ending 30 June 2021, registering a net profit of Dhs38.8 million compared to Dhs78.9 million during the corresponding period of 2020. The net profit of the second quarter of 2021 reached Dhs15.3 million compared to Q2- 2020’s level of Dhs44.2 million.

The Company’s total consolidated revenue reached Dhs136.6 million in H1-2021 compared to Dhs181.1 million during H1-2020. The revenue comprised of Dhs87.9 million of operating income and Dhs48.7 million of investment income & others.

The Company’s expenses reached Dhs97.8 million compared to Dhs102.2 million recorded during H1-2020. During the second quarter of 2021, the Company’s revenue reached Dhs63.2 million compared to Dhs92.9 million in the second quarter of 2020, while expenses amounted at Dhs47.9 million compared to Dhs48.7 million during Q2-2020.

Commenting on the key developments of the first half of 2021, Essa Kazim, Chairman of the Dubai Financial Market Company said: “The DFM performance indicators have upheld their 2020 positive trajectory to a great extent, resounding the sound economic performance of Dubai and the UAE. Within this context, the DFM has maintained its attractiveness to retail and institutional investors alike. For instance, 1842 new investors joined the market, including 315 institutions, bringing total number of its investor base to 847,939 investors from 207 countries at the end of June 2021. Foreign investors accounted for 69% of the new investors (1270 investors).”

 Kazim added, “The Market Capitalization of listed securities saw a 14% increase to Dhs388 Billion while the General Index advanced 13%, in spite of the 8.4% decline in total trading value to Dhs 28.5 billion compared to its level in the corresponding period of 2020.”

He added, “Foreign investors continued their noticeable presence with a market share of 48.2% of trading activity during the first half, equivalent to Dhs13.7 Billion and an ownership of 18.5% of the market capitalization at the end of June 2021. These indicators underline investors’ deep confidence on the market, which we have clearly observed during the recent round of the International Investor Roadshow 2021 last May.”

Essa Kazim added, “We are striding to strengthen DFM’s position as a main gateway to a wide range of investment opportunities. In fact, the DFM is currently amongst the leading regional markets in terms of financial products’ diversification as it provides equities, equity futures, bonds & Sukuk, REITs, ETFs, etc. We are vigorously expanding products offering in order to provide investors with alternative investments, enabling them to flexibly manage their portfolios.” “Accordingly, the DFM has accelerated its efforts during the first half of 2021 to implement diversification strategy for investment opportunities offered to its growing investor base through the listing of the first REIT fund as well as a the second of its kind ETF on the market. Meanwhile, the DFM has expanded its equity futures’ opportunities by launching new contracts on individual stocks of three listed companies namely; Aramex, Air Arabia and Emirates Integrated Telecommunications Company (DU) last April, bringing total number of companies that the market offers equity futures contracts on their stocks to eight companies.”

DFM was established as a public institution with its own independent corporate body. DFM operates as a secondary market for the trading of securities issued by public shareholding companies, bonds issued by the Federal Government or any of the local Governments and public institutions in the country, units of investment funds and any other financial instruments, local or foreign, which are accepted by the market. The DFM commenced operations on March 26, 2000 and became the first Islamic Shari’a-compliant exchange globally since 2007. CBI posts Dhs27m profit: Commercial Bank International (CBI) has announced on Thursday its second quarter 2021 financial results.

The bank recorded a net profit of Dhs27 million in Q2 2021, compared to a net loss of Dhs97 million in Q1 2021.

the banks’s net operating income increased by 3% from Dhs129 million to Dhs133 million, while net operating expenses decreased by 6% from Dhs79 million to Dhs74 million. Operating profit of CBI increased by 17.5% from Dhs50 million to Dhs59 million and Impairment charges decreased from Dhs137 million to Dhs27 million.

Commenting on the Bank’s performance, Ali Sultan Rakkad Al Amri, CEO of Commercial Bank International, said: “As the world economy is gradually recovering from the severe impacts of the ongoing Covid-19 pandemic, we have been focusing on the health and safety of our people and customers, and supporting our clients navigate through the current challenges. As a result of our focus on generating revenue growth, continued cost efficiency improvements and reducing our Impairment charges, we have delivered Dhs27 million net profit in the second quarter. We are determined to continue to deliver further improvements in our financial performance throughout the remainder of the year.”