DFM's net profit falls 8% in 2017

01/02/2018 05:56 AST

Dubai Financial Market company said its net profit for 2017 fell 8 per cent along with total revenues, even as the board proposed a cash dividend of 5 per cent.

Net profit for the 12 months ending December 2017 fell to Dh233 million from Dh253.5 million last year. Total revenues reached to Dh421.6 million in 2017 compared to Dh439.3 million in 2016, the bourse said in an emailed statement.

The total revenue comprised of Dh321.1 million of operational revenues and Dh100.5 million of investment revenues and others.

For the fourth quarter to December, DFM's net profit decreased 24 per cent to Dh59.5 million compared to Dh78.5 million in the last quarter of 2016. Total revenues during the period fell 17 per cent to Dh108.30 million compared to Dh131.2 million during the corresponding period of 2016.

"The year 2017 witnessed many achievements, especially as DFM started implementing its Strategy 2021, approved by the Board of Directors in December 2016. This strategy aims at leveraging past successes, as well as paving way for even bigger larger achievements and further sustainable growth," Eisa Kazim, chairman of the bourse said in a statement.

Trading value

The trading value dropped 13 per cent in 2017 to Dh115 billion due to some unfavourable global circumstances related to oil prices and international markets' volatility.

Despite the falling volumes, the bourse attracted more than 6,000 new investors in 2017 and net investments of foreign investors (excluding Arabs and GCC Nationals) reached to Dh1.25 billion, noting that foreign investors' presence continued to increase over the past years from 11.2 per cent in 2011 to 21.7 per cent in 2017, at 12 per cent compound annual growth rate, the statement said.

During 2017, the DFM has welcomed the listing of Emaar Development Company, the largest of its kind in the market since 2014. Other listings included Orient UNB Takaful, Bahrain-based Khaleeji Commercial Bank and Awtad on the Second Market.

"The DFM maintained its attractiveness as the market of choice for companies looking to list their shares whether through IPOs or as a dual listing. The exchange is well positioned to attract more potential future IPOs," Kazim said.

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