Waha Capital Annual Report 2015

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Dunia Group

During the year ended 31 December 2015, Dunia Services recorded net income of AED 33.5 million.

Waha Capital owns a 25% stake in Dunia Finance and a 25% stake in Dunia Services (which together comprise “Dunia Group”).

Dunia Finance is a finance company regulated by the Central Bank of the U.A.E. that offers a range of financial solutions including personal loans, auto loans, credit cards, guarantees and deposits to its customers in the U.A.E.

Dunia Finance has demonstrated impressive growth, stable net interest margins and rising profits over the last few years. Net interest margins have consistently been in the 25-35% range. Serving the salaried and mass affluent market has enabled Dunia to grow its loan book at a 50.5% CAGR over the 2009 to 2015 period.

During the year ended 31 December 2015, Dunia Finance achieved the following:

  • Net interest income of AED 546.3 million, an increase of 41% on the corresponding period in 2014.
  • Net income of AED 217.4 million, an increase of 13.6% on the corresponding period in 2014.
  • Loan book expanded to a customer base of 211,000 with 33.7% growth in its loan portfolio on 31 December 2014.
  • Cost to income ratio reduced to 27.7% from 31.6% in 2014.
  • Customer deposits grew to AED 1.2 billion as at 31 December 2015, an increase of 41.9% against the 31 December 2014 balance. Customer deposits comprise a mix of deposits pledged for the issue of guarantees, interbank sources, deposits and regular time deposits.
  • Prudent impairment reserve of 3.3% of total loans and advances, providing a non-performing loan cover of 1.2x.

Dunia Services FZ LLC was established in 2012 under the Dubai Technology and Media Free Zone Authority. Dunia Services’ principal activity is to offer a range of services including strategy and management consulting and knowledge and business process outsourcing to a range of customers including commercial banks, finance companies and insurance companies.

During the year ended 31 December 2015, Dunia Services recorded net income of AED 33.5 million, which is an increase of 259.9% on the corresponding period in 2014.

The carrying value of Dunia Group was AED 202.8 million as at 31 December 2015.