dunia Annual Report FY 2011

Transcription

Fourth Annual Report | Financial Year 2011
making waves...
Contents
Chairman’s message
04
Analytics capabilities
65
CEO’s message
06
dunia's unique customer centric approach
68
Shareholders
12
Strategic Cost Management as an element of sustained profitability
69
Board of Directors
14
Corporate Governance
69
Management team
18
Fortified Risk Management
72
...shining brightly
...surging ahead
From start-up to breakeven to profitability - the dunia story
28
Spearheading growth through alliances
76
On the path to greater profitability
29
dunia Academy
78
Flawless execution through a balanced scorecard approach
30
Creating new capabilities
79
Steady and predictable growth
34
Our branding has a story to tell
80
Creating a better world
84
...flying high
Customer centric approach that fuels our growth
38
...aiming higher
Financial solutions that match customer needs
40
Unaudited Financials
Service excellence is the key to our growth
42
...blazing trails
People...our engine for growth
46
Audited Financials
...creating ripples
Framework for exceptional service
62
Capabilities created today, for the future...
63
Technology at dunia
64
88
104
We work relentlessly to build a stronger brand,
collectively and individually, through focus, energy, passion,
creativity, innovation, integrity and execution excellence - one
that truly empowers people, enables success and enriches lives.
Rajeev Kakar
Executive Director & CEO
From the beginning our center of focus has been on our
customers and we have implemented relevant strategies in place
for even better and profitable solutions for them and dunia.
Salem Rashid Al Noaimi
Chairman
Chairman's message
For dunia, 2011 was a defining, trendsetting, and record
setting year. While we faced many challenges during the
year, we continued to respond smartly and reinforced our
commitment to our resilient and predictable approach to
ensure a safer and robust customer centric business strategy.
The dunia team executed the agreed strategy with continued
diligence, unshaken commitment and resolve, focused efforts
and diligent adherence to the principles on which we built
our foundations. Our aim all along had been to emerge from
the crisis as an even stronger company, and we succeeded in
setting a path-breaking trend in the financial sector.
From the beginning, our center of focus has been on our
customers and we have implemented relevant strategies
in place for even better and profitable solutions for them
and dunia. Creating an engaged workforce is central to
our beliefs and we work hard to stimulate a climate of
diversity, confidence and creation. Our employee training
programs are being stepped up to improve engagement and
encourage talent development, both internally and externally.
My colleagues on the Board of Directors and Executive
Management are extremely proud to be leading our great
company at such an exciting period in its short history and
would like to express our gratitude to all our stakeholders
who are helping to relentlessly shape dunia into a future full
of endless possibilities.
Chairman
Chairman
6
7
CEO's message
Dear friends and colleagues,
2011 was a defining year for dunia.
We had a record performance, with dunia turning profitable
for the first time in March 2011, ensuring that the breakeven
milestone was reached in 30 months, while launching as a
green-field operation in the midst of the worst financial crisis
in the last several decades. We also delivered our maiden
year of full year profitability and declared our maiden
dividend to our shareholders. These achievements at an early
stage of our existence are a testimony to the strength of the
seasoned staff and capabilities within dunia, the robustness
of the business model, and a reflection of the high confidence
in the ability to continue to deliver predictably ahead as well.
Since inception, we designed our business model with a clear
focus on the customer and, despite the crisis, we never lost
that focus. In fact, as the crisis unfolded our resolve to go
the extra mile was further strengthened, and this steadfast
resolute focus is what is today helping dunia reap healthy
gains. The 2008 financial crisis has proven that the world is
changing rapidly, and the past is not indicative of the future.
Today’s world of increased connectivity, telecommunication,
travel and social networking makes the process more
complex. For a business to be successful, it is important to
“think ahead” and to be creative and innovative in one’s
approach to be willing to disrupt the status quo. We, at dunia,
were willing to do that from inception. Instead of being
discouraged by the crisis, we saw it as an opportunity for us
to stand out. To create a business that was “based on basics”
and which was designed to provide a unique experience to
customers for their specialized financial needs.
We realized that it was important to creatively keep
correcting our course in the face of uncertainty, while never
losing sight of important milestones along the way. It was
obvious to us that, in the face of such volatility, success
and sustainability would only be decided by the quality of
execution excellence that we would put behind our efforts
to drive our dreams into reality. This required an unparalleled
amount of focus, energy, passion, creativity, innovation,
personal and professional integrity and excellence in
execution from each member of the dunia team. And, that’s
exactly what the team did.
Rajeev Kakar
8
9
At a time, when most companies were downsizing, we decided
to grow. For us, it was an opportunity to attract the best talent,
to engage them, motivate them, empower and enable them to
succeed. Our robust business model, powered by our uniquely
talented and motivated team, delivered pure magic.
I have always believed that the true power of a business
is reflected in its ability to acquire new customers, engage
and deepen existing customer relationships, and retain them
by wowing them on service at levels that they expect at
every interaction. Such businesses create an in-built power
of sustainability for themselves, which allows them to price
better and invest in good times, while being able to absorb
shocks in times of stress. We have strived to build dunia with
such capabilities and power, and our success in achieving
this is reflected in dunia’s ability to consistently, reliably and
predictably deliver on its top-line and bottom-line results, on a
balanced scorecard basis.
2011 saw the emergence of new and unexpected risks – the
Japan earthquake and nuclear crisis, the Arab spring movement
in the region, continued slowdown in the U.S., and growing
uncertainties owing to Europe’s sovereign debt concerns.
We are good at delivering financial
returns. The challenge is: how do we give good
financial returns and do good at the same time?
We realized that the biggest risks plaguing the financial world
were those of high leverage, high concentration and tight
liquidity. We continuously corrected our course to guard our
business against them. I am happy to share that we closed 2011
successfully on all counts, with our entire asset growth during
the year having been funded by a healthy base of granular and
tenured customer funds, together with retained earnings. We
controlled our expenses smartly while ensuring steady growth
to deliver a strongly positive operating leverage, which has
ensured a continuous growth in our equity base, while ensuring
a low debt-to-equity leverage of approximately 1:1 – clearly
ensuring enough room to grow customer assets and earnings in
a sustainable basis ahead.
All this was achieved by meticulously building a highly diverse
and granular portfolio on both the customer assets and deposit
ends of the balance sheet, with positively matching tenure
durations to ensure lower exposure to market risks. We ensured
higher loss absorption capacity in the face of volatile conditions
during 2011, that positions us favourably for predictable growth
ahead.
10
As an ardent believer in the concept of sustainability, I believe that while
it is important to create a well-designed and predictable business model
that aims to consistently go the extra mile for the customer, it is also
important for businesses to focus on Corporate Citizenship. We, in dunia,
have always followed business practices that ensure that we do good as
we focus on delivering business and financial returns. I am delighted at
the tremendous spirit of volunteerism demonstrated by dunia employees,
through the year, for helping in initiatives to help make a difference and
enrich lives. Our corporate social responsibility initiatives were not just
a set of activities. At dunia, these are a management theme, a way of
living life and empowering people, to make a difference to people and
the overall society. We realize that we have a shared responsibility
to supporting the causes of people at the base of the pyramid and in
supporting initiatives like health, education, poverty and environment
which are society’s most pressing challenges ahead.
As we grew in 2011, we simultaneously strengthened our pillars and built
new capabilities:

We built a talented and well-trained team of 700+ staff

We ensured an eclectic mix in terms of gender, nationality and experiences
to strengthen our proven model of synergy in diversity.

We worked passionately to attract UAE National talent to our team
by tailoring special programs that make working and learning at
dunia extremely beneficial, while contributing to their development
and growth for the long-term leadership potential of the company.

We partnered with world-class institutions of higher learning to
recruit the best of talent, augmenting the already experienced
workforce with a wider outlook while simultaneously honing the
latent skills of new recruits through experience.

We enhanced our state-of-the-art in-house training and development
centre that enables our employees to build on their skills and
capabilities, in-turn improving both performance and potential of the
organization.

We continued our focus on building an invigorating environment that
helps retain talent with regular appraisals and goal setting processes
that constantly encourage our employees to strive harder and aim
higher, helping them develop professionally and in sync with rapid
business growth.

We proactively strengthened capacity in line with our planned
growth and the future potential in the marketplace, by continuing
to build on our existing functional capabilities across
business development, operations, technology infrastructure and risk
management.

We continued to invest in making dunia accessible anytime/
anywhere, with multiple touch-points through our 24x7 contact
centre, network of 19 financial centres, website, and dedicated
relationship managers.
11

A spirit of dedicated
performance, consistent
efficiency and diligent
hard work has become
the norm at dunia, and
to this effect, I would
like to express my
gratitude to the entire
dunia team for their
commitment, hard work
and ongoing support.

12
We rigorously tested our controls
framework through periodic voluntary
and mandatory reviews to provide
assurance on our risk management,
governance, business practices and
processes, resulting in 100% compliance
with all regulatory requirements in
product design, process control and
delivery.
We continued our focus on spendsmart initiatives through outsourcing
arrangements,
renegotiation
with
vendors, cost-sharing arrangements, and
front-line focused incremental hiring,
to deliver an absolute reduction in
operating expenses versus prior year.
We introduced several new and
innovative products and services to
augment the existing suite of transaction,
saving, borrowing and protection
solutions offered, to ensure a higher, more
diversified and sustainable revenue base.
We successfully positioned dunia as a
depository institution with a rapidly
growing base of diversified and granular
deposits from corporate customers, inline with our strategy to increasingly
self-fund business growth through
customer sources while minimizing
reliance on professional funding sources.
We significantly expanded our
reach through new strategic alliances
and partnerships with leading players
in other sectors, which in turn helped
drive product innovation, brand building
and increased customer acquisitions
by enhancing customer value and
relevance.
We further intensified our community
involvement for the greater good of
society through ‘dunia Cares’, our social
initiative, bringing together dunia’s
employees and customers in a spirit
of volunteerism, in rolling-out several
campaigns which have had a far reaching
and positive impact in the communities
we serve.
Looking forward into 2012
In summary, we worked relentlessly to build an
even stronger brand, through focus, energy, passion,
creativity, innovation, integrity, and execution
excellence – one that would truly empower people,
enable success, and enrich lives.
Our financial performance in 2011
We faced new challenges in 2011, and I am proud
to acknowledge that our performance has been
substantially ahead of what we had planned.
We achieved a revenue growth of 94% as
compared with 2010, and further improved the
quality of our revenue by adding new products,
diversifying our earnings, creating new fee
opportunities and a granular portfolio mix to
avoid any concentration risks.
Moreover, our operating expenses reduced by
12% versus 2010, as we deployed an aggressive
strategic cost management approach to cut
down smartly on expenses in line with our intent
to become a low-cost provider, despite strong
top-line growth in customer base (54%) and
customer loans and advances (56%).
Our success in generating robust revenue
growth while simultaneously reducing expenses
helped us deliver a strongly positive operating
leverage of 106% in 2011, with cost-income
ratio dropping by more than 50% compared to
the previous year.
Despite commencing business at the inception
of the global crisis, our early and timely focus
on right customer selection and a strong risk
management approach continued to pay-off, as
we were able to successfully improve cost of
credit down by a further 25% vis-a-vis 2010.
Our strategy, combined with disciplined execution,
helped us in significantly improving profitability
where we achieved break-even within 30 months
of business launch (3 months ahead of plan), and
generated a positive net income swing of AED
106 Mln versus 2010 – a 121% improvement on
a year-on-year basis. Our quarter-on-quarter
improvements are even stronger, with net
income in the fourth quarter of 2011 being 174%
ahead of the corresponding period in 2010,
indicating continued strong profitability growth
in 2012.
We are today a brand
that is stronger and
better recognized, with
an established track
record, a larger customer
base, demonstrated
profitability and positive
financial trends, and the
ability to continue to
invest for growth.
As we move into 2012, I think about what
we need to do more of to sustain our healthy
business trajectory and deliver stronger results.
I am very aware that we need to constantly
stay ahead of the market, and proactively guard
ourselves with similar creative and innovative
actions to disrupt the new status quo, just like
the ones we used at launch. I am committed to
ensure that we constantly evolve with changing
trends, leading next practice, and protecting
ourselves from the onslaughts of an irrational
environment and competition. This is a complex
challenge.
As we move ahead, we believe that to continue
to succeed strongly in the future, we must
increasingly build a competitive edge and new
entry barriers, by increasingly offering the
lowest possible level of complexity for the
maximum amount of value. This “concept of
simplicity” resonates with all customers, who
seek greater ease and convenience as they deal
with the stresses of their day to day lives. We
are therefore determined to continue winning
in the long-term, by continuing to focus on
simplifying experience while simultaneously
tackling greater complexity for our customers.
As a myriad of competing solutions enter the
market, we realize that our customers are learning
to expect far more from their relationship with
a financial institution. We therefore intend to
invest for growth, through novel and powerful
technology and analytics enabled means, to
ensure that they get far more from their dunia
relationship. We aim to leverage off our talent
and capabilities to increasingly make simplicity
the competitive edge to help keep us ahead of
the market, to be the preferred choice for our
customers.
and excel as we move forward together on our
journey to build a highly admired franchise, while
we continue on our path to relentlessly deliver
with predictability for all our stakeholders, as we
have done consistently since dunia’s launch in
2008.
A spirit of dedicated performance, consistent
efficiency and diligent hard work has become
the norm at dunia, and to this effect, I would like
to express my gratitude to the entire dunia team
for their commitment, hard work and ongoing
support. I am also extremely thankful to all our
board members, shareholders, our bankers and
the regulators for their guidance, unwavering
support and encouragement at all times, which
have constantly spurred us forward in our
journey towards making a difference.
On a personal level, I am extremely excited
about moving into 2012. Our growing
capabilities and continued performance trends
help renew and fortify our confidence in our
institutional and collective faculties to take on
the challenges and opportunities that lie ahead.
With my warmest personal regards,
Rajeev Kakar
Our early success in 2011 provides us with the
inspiration and confidence to do more. We
are today a brand that is stronger and better
recognized, with an established track record, a
larger customer base, demonstrated profitability
and positive financial trends, and the ability
to continue to invest for growth – together
with a world-class team of people passionate
about serving the customer and executing with
excellence. We resolve to continue to innovate
13
Shareholders
dunia was launched as a strategic alliance of two most successful
and fast growing investment arms of the UAE and Singapore,
Mubadala and Fullerton Financial Holdings, with Waha Capital and
A.A. Al Moosa Enterprises as partners.
14
Fullerton Financial Holdings (FFH)
invests in financial institutions
in emerging markets, bringing
an operational perspective to
all investment decisions. Where
appropriate, FFH supervises and
influences its institutions
to achieve the right risk
reward balance. FFH seeks
to create shareholder value
by differentiating through
great people and disciplined
development and execution of
unique business models. Its prime
areas of focus are in both Business
banking and Consumer banking.
Within Business banking, FFH
focuses on the Commercial, SME
and Self Employed Mass Market
segments. Within Consumer
banking, FFH focuses on the
Mass Affluent and Mass Salaried
segments. FFH is a wholly owned
subsidiary of Temasek Holdings,
an Asia investment house
headquartered in Singapore. As
at 31 December 2010, FFH’s total
assets stood at S$48.3 billion, and
its portfolio includes investments
in 15 financial institutions.
Mubadala Development Company
(Mubadala) is a catalyst for
the economic diversification
of Abu Dhabi. Established and
owned by the Government, the
company’s strategy is built on
the management of long-term,
capital-intensive investments that
deliver strong financial returns
and tangible social benefits
to the Emirate. The company
partners with leading global
organizations to develop, operate,
or invest in businesses across a
wide range of industry sectors
including aerospace, financial
services, healthcare, information
communications and technology,
infrastructure, logistics, metals
and mining, semiconductors and
real estate. By doing so, Mubadala
accomplishes its mission to
expand the economic base of the
Emirate and contribute to the
growth and diversification of the
Abu Dhabi economy.
Waha Capital is an Abu Dhabibased diversified investment
holding company listed on the
Abu Dhabi Securities Exchange.
Waha Capital’s vision and
strategy consist of driving
multi-sector business growth
and diversification through
acquisitions, joint ventures
and creation of new business.
The firm’s activity is spread
across sectors as diverse as
leasing, financial services, oil
and gas services, and real estate
development. Waha Capital's
institutional shareholders include
Mubadala Development Company.
A.A Al Moosa Enterprises LLC,
also more familiarly known as
the Arenco Group, is one of the
leading and prominent local
business groups in the UAE, with
business interests spanning real
estate, hotels, architectural design,
manufacturing, services and
trading. Set up in 1971, the group
has its corporate headquarters
in Dubai, with business interests
in all emirates and beyond. The
group continues to rapidly grow in
its various businesses as a service
oriented group and looks forward
to its diversification into financial
services through its interest in
Dunia Finance LLC.
www.fullertonfinancial.com
www.mubadala.ae
www.wahacapital.ae
www.aaagroup.com
15
Board of Directors
16
17
Board of Directors
Rajeev Kakar
Chairman
Executive Director and Chief Executive Officer
Salem Rashid Al Noaimi is the CEO of Waha Capital PJSC.
Prior to his current role, Al Noaimi served as Deputy CEO
of Waha Capital and CEO of its wholly-owned leasing
subsidiary, Waha Leasing. Earlier in his career, Al Noaimi held
several roles in the banking and financial industry, including
leadership positions at Dubai Islamic Bank, the UAE Central
Bank, and the Abu Dhabi Fund for Development. He chairs
and sits on the board of a number of companies, including
Abu Dhabi Ship Building, Dunia Finance, Siraj Finance, the
Mena Infrastructure Fund, Bahrain’s ADDAX Bank and Aercap
(Netherlands). Al Noaimi is a UAE national and holds a
Bachelor’s Degree in Finance and International Business from
Northeastern University in Boston, USA.
Rajeev is the Executive Director and Founder CEO of
dunia. He is also concurrently the EVP and Regional
CEO for CEEMEA region for Fullerton Financial Holdings
(FFH), a 100% owned subsidiary of Temasek Holdings, in
Singapore. In his additional role as the EVP and Senior
Management Committee Member at FFH, Rajeev also
heads the Consumer Banking businesses globally for
all its Bank and Financial Services Investments
and Holdings.
Rajeev joined FFH in 2006, and prior to that worked
with Citibank N.A. for two decades, based in various
geographies, between 1987 and 2006 - and in
his last role was the Regional Head and CEO for Citibank's Global Consumer Bank, managing the Turkey, Middle East and Africa region.
Gan Chee Yen
In September of 2009, Rajeev received ITP's "CEO of the Year" Award for Financial Services in the Middle East. In 2010 and 2011, Rajeev was also
recognized as one of Arabian Business' "GCC Power List India Top 100" which recognized top Indians in the region for their achievements.
Director
Gan Chee Yen is a Director on the dunia Board and the CEO
of Fullerton Financial Holdings (FFH) in Singapore. Prior to
his current appointment, Gan was the Co-Chief Investment
Officer and Senior Managing Director, Special Projects at
Temasek International. He joined Temasek in May 2003
as CFO and has since served in various investments roles
as a member of the senior management team in Temasek.
The investment clusters he has led included the Financial
Industry portfolio and the Transportation and Logistics
portfolio, before he took on the role of Co-CIO of Temasek
where he anchored several successful investments. He has also recently completed his stint as Head of China market. Gan has served on the boards of
several companies including Neptune Orient Line, a global shipping company and has been a board member of FFH and a board commissioner of Bank
Danamon since 2003. He is a member of the Institute of Certified Public Accountants of Singapore. He received his Bachelor of Accountancy from the
National University of Singapore. Gan has also attended Harvard’s Program for Management Development in September 2001.
Rajeev has completed his Bachelor of Technology in Mechanical Engineering from the Indian Institute of Technology (IIT) in Delhi and his MBA in
Marketing and Finance from the Indian Institute of Management (IIM) in Ahmedabad.
Rajeev is currently a member of the Global Management Board of FFH in Singapore. He is also a member of the Global Advisory Board for the University
of Chicago Booth School of Business. Additionally, Rajeev is a Director on the Board of Fullerton Securities & Wealth Advisors Ltd (FSWA) and Fullerton
India Credit Company Ltd (FICC), headquartered in India, and a Commissioner on the Board of Commissioners for Adira Dinamika Multi Finance Tbk,
in Indonesia. He is also a member of the Board Risk Committee for FICC in India; the Board Risk Committee, HR Committee and Audit Committee for
FSWA in India; and the Risk Committee and Audit Committee of Adira Dinamika Multi Finance Tbk. Rajeev is also a member of the Indian Institutes of
Managment (PAN IIM Network) in the UAE. Between July 2004 and February 2006, Rajeev was a member on the CEMEA Board of Visa International.
Mansour Mohamed Al Mulla
Dr. Ahmed Khalil Al-Mutawa
Director
Director
Mansour works as an Advisor in the Structured Finance and
Capital Markets unit in Mubadala Development Company.
His prime responsibility, amongst others, is to advise, plan
and execute debt financings at projects as well as corporate
levels. He has led the efforts on closing and funding the multi
tranche $4.1 billion debt financing facilities for the Dolphin
Project, which closed in July 2009 and won numerous awards
by leading publications in the Project Finance field. He also
played an instrumental role in the financing efforts of a
number of other Mubadala initiatives, namely the leveraged
buyout debt facilities for the Zurich based Maintenance, Repair and Overhaul operator SR Techniques and financing the purchase of Mubadala's
stake in the Dutch fleet management giant Lease Plan Corporation. Mansour sits on the boards of Abu Dhabi Terminals, Abu Dhabi Finance Company,
Waha Capital PJSC and ALDAR Properties PJSC. He also sits on the Audit Committee of Abu Dhabi Future Energy Company ("Masdar"). Prior to joining
Mubadala, Mansour spent two years working as a projects analyst with the Offset Program Bureau, formally known as UAE Offsets Group. During
his time there, he was exposed to a number of projects across a number of sectors, including aviation, real estate, infrastructure, healthcare and publicprivate partnership. Mansour has a Bachelor of Science in Business Administration (Information Systems) from Portland State University, United States of
America (class of 2001).
Dr. Ahmed Khalil Al-Mutawa is a respectable academic
professional, as he progressed in his academic career since
he held his B.A. in Economics from Cairo University in 1978,
M.A. in Economics from University of North Carolina in 1981,
and Ph.D. in Economics, Georgetown University, Washington,
D.C. in 1991. As a professor, he held the position of the
Chairman of the Economics Department, and in 1997 became
Deputy Vice Chancellor for Planning (DVCP), UAE University.
Dr. Al-Mutawa had occupied many important business
positions, among them: Executive Director, Al-Mustaqbal
Economic & Strategic Consultations; Strategic Development Director at MMI and the Secretary- General of Gulf Organization for Industrial Consulting;
the CEO of Khalifa Fund for Enterprise Development; and currently Chairman of G Capital at DIFC. Dr. Al-Mutawa has been a member of many
Associations, Organizations and Boards of Directors on both local and international levels. He won the award for "Industry CEO of the Year 2005".
18
19
Management team
20
21
Management team
Rajeev Kakar
Venu Parameshwar
Executive Director and Chief Executive Officer
Chief Financial Officer
Rajeev is the Executive Director & Founder CEO of dunia.
He is also concurrently the Executive Vice President &
Regional CEO for CEEMEA region for Fullerton Financial
Holdings (FFH), a 100% owned subsidiary of Temasek
Holdings, in Singapore. In his additional role as the EVP
& Management Board member at Fullerton, Rajeev also
heads the consumer banking business globally for all
its Bank & Financial Services operations in China, India,
Indonesia, Malaysia, Pakistan, Vietnam and the UAE.
Rajeev has over two and a half decades in the banking
industry. He was formerly the Regional Head & CEO for
Citibank’s Global Consumer Bank, managing the Turkey,
Middle East & Africa region (TMEA), based out of Dubai.
In 1998, Rajeev started a new greenfield joint venture
finance company in India, between Citigroup and Suzuki
(Maruti). He ran this highly successful enterprise as its
Founder CEO & Managing Director, on its board, for over
two & a half years. In 2000, he moved to Cairo, Egypt
and was designated as the Country Head for Citibank
in Egypt, where he launched the Consumer Bank, which
then grew to be the leading financial brand in the
high potential Egyptian market. In July 2002, Rajeev
transferred to Turkey as Citibank’s Cluster Country Head &
CEO, for Turkey and Egypt. His role was expanded further
and in September 2003, took on the role as Regional
Head & CEO for Citibank, managing the rapidly growing
and complex regions comprising of the markets of Turkey,
Middle East, Pakistan & Africa (TMEA). In September
2009, Rajeev received ITP’s “CEO of the Year” Award for
Financial Services in the Middle East, in recognition of his efforts in establishing “dunia” as a pure greenfield operation,
amidst the global economic downturn. In 2010 and 2011, Rajeev was also recognized as one of Arabian Business’ “GCC
Power List India Top 100” which recognizes top Indians in the region for their business achievements. Rajeev joined Citibank
in 1987 in India, after completing a Bachelor of Technology in Mechanical Engineering from the Indian Institute of Technology
(IIT) Delhi and his Masters of Business Administration in Marketing & Finance from the Indian Institute of Management (IIM)
Ahmedabad.
Board Memberships, Board Committees & Affiliations
§)XOOHUWRQ)LQDQFLDO+ROGLQJV¨6LQJDSRUH0HPEHURIWKH*OREDO0DQDJHPHQW%RDUGZLWKHIIHFWIURP
§8QLYHUVLW\RI&KLFDJR%RRWK6FKRRORI%XVLQHVV¨86$0HPEHURIWKH*OREDO$GYLVRU\%RDUGZLWKHIIHFWIURP
§'XQLD)LQDQFH//&¨8$(([HFXWLYH'LUHFWRURQWKH%RDUGZLWKHIIHFWIURP
§)XOOHUWRQ6HFXULWLHV:HDOWK$GYLVRUV¨,QGLD&KDLUPDQRIWKH%RDUGZLWKHIIHFWIURP0HPEHURIWKH%RDUG5LVN
Committee, Board HR Committee & Board Audit Committee with effect from 2008
§)XOOHUWRQ,QGLD&UHGLW&RUSRUDWLRQ¨,QGLD0HPEHURIWKH%RDUG0HPEHURIWKH%RDUG5LVN&RPPLWWHHHIIHFWLYH
§$GLUD'LQDPLND0XOWL)LQDQFH7EN¨,QGRQHVLD0HPEHURI%RDUGRI&RPPLVVLRQHUV0HPEHURIWKH%RDUG5LVN&RPPLWWHH
& Board Audit Committee with effect from 2010
§63-DLQ&HQWHURI0DQDJHPHQW¨8$(0HPEHURIWKH,QGXVWU\$GYLVRU\%RDUGZLWKHIIHFWIURP
§,QGLDQ,QVWLWXWHVRI0DQDJHPHQW¨3$1,,01HWZRUN8$(0HPEHURIWKH%RDUGZLWKHIIHFWIURP
§9LVD,QWHUQDWLRQDO¨0HPEHURIWKH&(0($%RDUGEHWZHHQ
22
Ve n u h a s o v e r 2 5 y e a r s o f
experience in banking and finance
in a wide range of functions
and countries including India,
Australia, Korea, UAE and the UK.
His previous roles include Portfolio
Risk Manager – Citibank Australia,
Treasurer – Citibank Korea, CFO
and Treasurer – Citibank India,
Regional Consumer Treasurer –
Citibank CEEMEA and CFO – Citibank Turkey, Middle East and Africa. His last assignment was the Consumer CFO for the
EMEA region for Citigroup where he was responsible for the finance function across Citigroup’s consumer business in Western
and Central Europe and the Middle East. Venu is an Economics Graduate from the University of Bombay and has completed
his Masters in Business Administration from the Indian Institute of Management, Ahmedabad. He is also a Fellow member of
the Institute of Chartered Accountants of India.
Hend Al-Ali
Human Resources Manager
Hend has over 11 years of
experience in the HR field. Prior
to joining dunia, Hend was the HR
Recruitment Manager at Citibank,
UAE for several years where
she successfully carried out the
Emiratization program, which
was highly appreciated by the
government authorities. Before
joining Citibank, Hend also worked
in Mashreq Bank - Human Resources. She ran the Bank’s recruitment programs: Al Tumooh, Graduate Trainee program,
Summer Learning program, Core Time and Al Mashreq Al Mutamyez, as well as other work based learning schemes.
Hend started her career with GASCO in Abu Dhabi in 1999, after completing a Bachelor in Information Technology from
Higher Colleges of Technology from Dubai Women’s College. Hend was awarded the Dubai Human Development Award, by
the Dubai Economic Department, and is also a part of the Women Committee in the Banking Sector – which is run by the
Emirates Institute for Banking and Financial Studies.
23
Management team
Raman Krishnan
Mariam Elsamny
Chief Risk Officer
Marketing, Product and Corporate
Affairs Head
Raman has 25 years of varied
banking experience across India,
Singapore and Indonesia besides
the UAE. Raman’s last assignment
prior to joining dunia in 2008 was on
the Board of Directors of Permata
Bank, an Indonesian joint venture
between
Standard
Chartered
Bank and Astra International, an
Indonesian conglomerate, with
responsibilities for Risk Management. Before joining Permata Bank, Raman was in Standard Chartered Bank for over 15 years
in several functions. In his last assignment in Standard Chartered Bank, Raman was based in Singapore, heading the Business
Risk Review function for the Consumer Banking Group. Raman is actively involved in designing and rolling out risk training
programs aimed at improving risk literacy within dunia. He holds a business management graduate degree from the Indian
Institute of Management, Calcutta. Raman is also an Associate Member of the Institute of Chartered Accountants of India.
Ali Hurbas
Sanjay Kao
Strategic Analytics Head
Consumer Business Head
Ali started his career at AT&T
Universal Card Services in Florida,
U.S. in 1995, where he held various
roles in Finance, Marketing and
Card Analytics. In 1999, he joined
First USA Bank, now JP Morgan
Chase, as the Credit Policy Head
for card acquisitions, in Delaware,
U.S. In 2000, he returned to Turkey,
joining Citigroup as the Credit
Policy Head. This involved formulation of the credit policies for the business. Subsequently, Ali moved to the Strategic
Analytics Unit of the bank. Prior to joining dunia, Ali was with Citibank N.A. where he was Strategic Analytics Head for the
Middle East region and responsible for consumer banking analytics, covering UAE, Bahrain, Egypt and Pakistan, while based in
Dubai. Ali has an Industrial Engineering degree from Bogazici University in Turkey and an MBA from the University of Virginia’s
Darden School.
24
Mariam has over 15 years of
experience in Retail Banking and
Marketing. Her latest role prior to
joining dunia was with Citibank,
UAE as Marketing and Product Head
handling the bank’s retail products,
Marketing Communication and
Internet Channel for the bank.
Mariam has handled several key
start-up businesses during her 9 year stint with Citibank – Citibank Egypt, UAE and Russia – as well as dunia. Mariam began
her career with Procter & Gamble in Marketing. She is a double MBA holder from University of Chicago (2008) and from the
American University in Cairo (1997).
Sanjay brings a wealth of
experience and proven results in
consumer banking across products
and in multiple markets. Most
recently, he was the Head of
Consumer Finance for RBS Asia,
responsible for China, Taiwan,
Hong Kong, Singapore, Indonesia,
Malaysia, India and Pakistan. In
this role, he led the Asia Strategy
and P&L streamlining following the RBS acquisition of the ABN AMRO franchise. Prior to this, Sanjay held senior leadership
roles with Citibank in Asia Pacific, based in Singapore and Indonesia as well as positions in Egypt, Thailand and India. Sanjay
has also worked in the UAE from 2001 to 2003, when he held the position of Head of Marketing with Mashreq Bank. Sanjay
started his career with Unilever India as a management trainee, and took on sales and marketing roles during his 7 year stint
with them. He holds a Business Management Degree from the Indian Institute of Management, Calcutta and a Bachelor of
Technology in Chemical Engineering.
25
Management team
Barlas Balabaner
Mustafa Erim
Operations Head
Head of Audit
Barlas has worked in the banking
industry for almost 22 years in
various geographies including
Australia, Indonesia and EMEA.
He has diverse experience in both
Consumer and Corporate Banking
Operations
and
Technology
Management and M&A projects in
the areas of Infrastructure startups,
Branch Network expansion, Data
Center Operations, Technology Organization Management, Quality Assurance, Productivity, Financial Control, and Customer
Service Excellence. Barlas’ last assignment prior to joining dunia was the Operations and Technology Director for Citibank’s
Global Consumer Bank in Turkey and Executive Board Member of Citibank A.S. Barlas graduated from Bogazici University in
Istanbul with a BA in Economics.
Prior to joining dunia, Mustafa
held the role of Head of Audit for
Africa and Indian Ocean (2010
– 2011) and UK Retail Banking
(2007 – 2010) in Barclays Bank
PLC leading large teams to
deliver assurance and operational
advice. Before that, he was a
senior member of the Audit and
Business Advisory Services unit at
PricewaterhouseCoopers (PwC) UK between 1999 and 2007 and established the PwC Emerging Markets Risk Management
(EMRM) team delivering risk management advice to multinationals entering emerging markets. He also setup and led the risk
management consulting division in PwC Turkey from 1994 – 1999. Mustafa holds an MBA from Warwick Business School, UK
as well as a BS (Hons) Degree in Mathematics from the Middle East Technical University in Ankara, Turkey. In addition, he is
a Certified Information Systems Auditor (CISA) and holds an Islamic Finance Qualification (IFQ) from the Chartered Institute
for Securities & Investment (CISI).
Monindra Grover
Spiridon Goumas
Human Capital Head
Head of Compliance
Monindra has over 20 years of broad
based experience in HR generalist
and leadership positions with
leading Fortune 100 companies
like MasterCard, Citibank, Johnson
& Johnson, Glaxo Smithkline and
British Petroleum. He has had
diverse regional roles covering the
Middle East, Africa, South Asia and
Central Asia. His previous position
was as Vice President / Senior HR Business Partner – Human Resources for the Middle East and Africa region at MasterCard
International. Monindra is an Economics graduate from Delhi University and holds an MBA from the Xavier Labour Relations
Institute (XLRI), India.
26
Spiridon (Spiros) has had a seasoned
career of 25 years with several
leading financial institutions in
North America, Europe and now
Middle East, and apart from his
compliance expertise, he has also
a significant experience in retail
sales, middle and back office
senior positions. Prior to joining
dunia, he was based in Athens,
Greece, where he worked for both local and international financial services providers, including ING Bank, Citibank, The
National Bank of Greece, and T Bank (formerly Aspis Bank). Spiros was the Group Compliance Director for the National Bank
of Greece, where in essence he established the compliance function, after a successful career as Country Compliance Officer
responsible for all Citigroup entities in Greece and Cyprus, and a Senior Compliance Manager appointment with ING Bank
in Athens. Spiros started his financial services career in British Columbia, Canada, where he originally engaged with the Life
Insurance sector, followed by a subsequent initial position in retail banking. Spiros is a graduate of Athens College and also
holds a BA from Simon Fraser University, Canada.
27
shining brightly...
From start-up to breakeven to
profitability - the dunia story
dunia not only firmly
established a truly
customer centric
business model and
redefined the way
financial services are
offered in the UAE, but
also broke even. Amidst
the chaos of one of the
worst global financial
crisis the world has seen,
dunia grew steadily and
predictably, and posted
its maiden profit in the
year 2011.
2008 was an important year for dunia,
as it was the year of its launch. It was
the year that saw the culmination of
the team’s passion to build and deliver
a unique, new and differentiated
model of doing business in the
financial services space. It was a
new approach designed to serve
the large population of underserved
customers in the UAE, in the chosen
segments – the Consumer Mass
Market, Mass Market, and SelfEmployed Mass Market.
of the highest in the world, the UAE
had about 70% of the population
either underserved or completely
‘un-banked’. The market was
competitive and yet had a lot of
unmet customer demand. Right from
the start, dunia invested in setting
up a world class infrastructure,
attracting the right talent, instilling
across
the
organization
the
philosophy of customer service and
designing customer centric financial
solutions and processes.
On September 29th, 2008, Dunia
Finance LLC, opened its first branch
to customers. In the 30 months
that ensued, dunia not only firmly
established a truly customer centric
business model and redefined the
way financial services are offered in
the UAE, but also broke even. Amidst
the chaos of one of the worst global
financial crisis the world has seen,
dunia grew steadily and predictably,
and posted its maiden profit in the
year 2011.
For the next couple of years, as
the UAE market went through an
economic slowdown, dunia not only
continued to serve its customers but
also posted solid quarter on quarter
growth. More than 700 staff from
across the world joined dunia and
believed that financial solutions
could be offered differently. dunia’s
infrastructure and processes allowed
a seamless customer experience.
With a two-tiered Corporate Governance structure, a robust risk framework and an excellent analytics
capability, the company focused
early on balanced growth to ensure
reliability and predictability of
performance. With time, dunia’s range
of financial solutions expanded to
fulfil the various needs of customers
- transaction, saving, borrowing
and protection needs. The several
awards that were conferred early
in its lifecycle affirmed the
fact that the company was indeed
doing something very different in
the market.
When the company started its
operations, the market was said to
be saturated and the conditions were
beginning to get unpredictable and
turbulent. The company supported
by leading shareholders and a
seasoned management team braved
on, though its business model was
not as yet tested in the Middle East.
The UAE, with its 6 million
population from various ethnicities
and nationalities, presented a unique
opportunity to build a business
based on dunia’s approach. The
banking landscape in the country
consisting of over 50 banks and
financial institutions often led to
the perception of the country being
'over banked'. While the overall
GDP per capita still ranked as one
30
This is how dunia started off as a
green-field project, over 3 years ago,
and created a business that generates
predictable, profitable and sustainable
growth to transform the future.
On the path to greater
profitability...
At its core, dunia believes in a customer friendly
approach to business - right from crafting a unique
value proposition for its customers to designing
financial solutions, systems and processes capable
of consistently delivering on it.
dunia’s performance has consistently and
substantially improved year on year and the
business has achieved breakeven and is now
well on the way towards becoming one of
the substantive players in the market. While
2011 was dunia’s first year of profitability, the
business continues in all humility to remain
focused on always delivering on its core
objectives of serving its customers, adding
value to its employees, changing lives, building
futures, ensuring smiles and developing human
potential in even more ways.
To ensure that the business runs smoothly and
on target, dunia follows a balanced scorecard
approach which ensures that we remain
focused not only on the financials but also on
the driving factors of our financial strength –
the franchise, the people and the processes.
Using this approach, goals for all the critical
aspects of the business were set right from the
start and performance tracked. Since we track
our performance against various metrics that
impact the overall business, the organization
as a whole moves towards its financial goals
with greater ease. This approach has helped
dunia create a sustainable business and to
consistently enhance the shareholder value.
121%
year-on-year improvement in
Net Income which is AED 106
Mln better vs. prior year
31
Flawless execution through a balanced scorecard approach
Highlights

$UHFRUG$('0OQUHYHQXHDQG$('0OQQHWLQFRPH0OQDQG0OQKLJKHUYVUHVSHFWLYHO\
$EVROXWHH[SHQVHUHGXFWLRQRI$('0OQYHUVXVSULRU\HDU
&RVWRIFUHGLWUHGXFHGWRDORVVUDWHRISD
%UHDNHYHQDFKLHYHGPRQWKVDKHDGRISODQ

1HZVWUDWHJLFDOOLDQFHFUHDWHGZLWK
&OXE$SSDUHO
JLYLQJGXQLDDGGLWLRQDOSRLQWVRIVDOH
$VVHWJURZWKIXOO\VHOIIXQGHGWKURXJKJUDQXODUDQGWHQXUHGFXVWRPHUGHSRVLWVKLJKHUYV
([WHUQDOUHFRJQLWLRQDVDOHDGLQJ8$(EUDQGZLWKVWURQJFXVWRPHUDFTXLVLWLRQDQGODXQFKRIQHZFDSDELOLWLHV
Our Financials
Our Capabilities
)<QHWLQFRPHRI$('0OQ¥DSRVLWLYHVZLQJRI$('0OQYV\R\LPSURYHPHQW
GXQLDKDVGHPRQVWUDWHGH[FHOOHQFHWKURXJKDUREXVWDQDO\WLFVGULYHQFUHGLWDQGULVNPDQDJHPHQW
framework, which is bolstered by our technology-enabled and process-led customer centric approach
5REXVW ILQDQFLDO SHUIRUPDQFH UHIOHFWV VWURQJ JURZWK DQG LQFUHDVLQJ HIILFLHQFLHV DFURVV DOO EXVLQHVV
drivers:
– 54% growth in customer base to 89k – with tighter underwriting criteria to pace balance sheet growth
5HPRWH FKDQQHOV SURYLGH FXVWRPHUV ZLWK PXOWLSOH WRXFKSRLQWV WKURXJK D [ FRQWDFW FHQWHU
network of 19 financial centers, website, and dedicated RMs – making dunia accessible anytime,
anywhere
– 56% growth in customer assets to AED 556 Mln – prudently paced due to macro risk and tighter funding
GXQLDªV[FRQWDFWFHQWHUZLWKIXOO\PDQQHGDQG,95
– 226% growth in customer deposits to AED 242 Mln – increased reliance on customer funding sources
2XUPHPEHUVKLSLQ,&&68$(&HQWUDO%DQNªV&KHFN&OHDULQJ6\VWHPVLJQLILFDQWO\HQKDQFHGFROOHFWLRQV
effectiveness, increased operations efficiency, and achieved substantial cost saves throughout 2011
– 94% growth in revenue to AED 205 Mln
– 12% reduction in expenses to AED 133 Mln – reflecting successful strategic cost management focus
– Yield on customer assets increased to 40.3% – focus on tiered pricing for optimum risk-reward balance
– Contribution of fee revenue has increased to 31.5% – focus on growing multiple sources of fee income
– Cost-Income more than halved to 64.8% – continued focus on spend-smart initiatives
– 106% operating leverage – strong efficiencies with revenue growth far exceeding expense growth
– Cost of credit sharply reduced to 11.5% – strategic risk management and paced growth strategy
– 1.3x loss absorption capacity – reflecting strong ability to absorb volatility in operating or credit costs
– NPL cover maintained at a healthy 3.3x – reflecting prudent cover against inherent losse
– 6.6% return on equity – success of anticipatory steps to safeguard the business for predictable results
&RQWLQXHGIRFXVRQVSHQGVPDUWLQLWLDWLYHVWKURXJKRXWVRXUFLQJUHQHJRWLDWLRQZLWKYHQGRUVFRVW
sharing, and front-line focused incremental hiring, have delivered annual expense saves of AED 19
Mln vs. 2010
$VDUHVXOWRIVXVWDLQHGHIIRUWVRQUHGXFLQJH[SHQVHVGXQLDªVFRVWLQFRPHUDWLRKDVPRUHWKDQKDOYHG
to 64.8% in 2011, and the ratio of expenses to customer receivables has dropped to 28.1% in 2011
from 50.3% in 2010
6WUDWHJLF5LVN0DQDJHPHQWHQVXUHGIXUWKHULPSURYHPHQWVLQSRUWIROLRTXDOLW\WKURXJKDSDFHGDQG
diversified growth strategy, supported by extensive use of analytics, and a robust risk management
framework
2XUWLJKWFXVWRPHUVHOHFWLRQFULWHULDDQGXQGHUZULWLQJVWDQGDUGVUREXVWULVNPDQDJHPHQWFDSDFLW\
and processes, and strong focus on recoveries helped reduce cost of credit/ANR in 2011 by 24.9%
vis-à-vis 2010
FRPSOLDQFHZLWKDOOUHJXODWRU\UHTXLUHPHQWVLQSURGXFWSURFHVVGHVLJQDQGFRQWUROVZLWKD
well-defined and functioning corporate governance framework at both Executive Management and
Board of Director levels
Our Franchise
GXQLDFRPSOHWHGLWVUGIXOO\HDURIRSHUDWLRQVLQOLQHZLWKWKHFXVWRPHUYDOXHSURSRVLWLRQDQGIXOO
capabilities, and is now a very widely and well-known financial services brand in the UAE
/DXQFKHG VHYHUDO LQQRYDWLYH SURGXFWV LQFOXGLQJ H[SDQGLQJ /DERXU *XDUDQWHHV WR RWKHU UHJXODWRU\
authorities in the UAE, creative merchandising initiatives, and new training services through 'dunia
Academy'
Our
Our Franchise
People
GXQLDLVGULYHQE\DKLJKO\VHDVRQHGGLYHUVHDQGHQWUHSUHQHXULDOVHQLRUPDQDJHPHQWWHDPIURP
diverse backgrounds, and with multi-functional experience and expertise in multiple markets
around the world
2XUWHDPRIVWDIIRIZKLFKDUHLQFXVWRPHUIDFLQJUROHVHQDEOHVXVWRDOZD\VEHLQ
sync with evolving customer needs
([WHQVLYHGLVWULEXWLRQFDSDELOLWLHVFRPSULVLQJRIWUDLQHG50VILQDQFLDOFHQWHUVLQ$EX'KDEL'XEDL
and Sharjah; a 24x7 contact center with full sales and service capabilities; a world-class internet
banking platform
GXQLDªVVSHFLDOL]HGSURJUDPVIRU8$(1DWLRQDOVXQGHU©.DZDGHUGXQLDªVXFKDV$O7DPRXKIUHVK
graduates), Al Waaed (part-timers) and Al-Nukhba (experienced individuals), have considerably
helped in developing UAE national talent
$XJPHQWHGSURSULHWDU\GLVWULEXWLRQFKDQQHOVZLWKQHZrd Party alliances like Club Apparel, extending
dunia’s coverage and presence in Club Apparel outlets providing 350 additional points of sale across
the UAE
2XU HPSOR\HH GHYHORSPHQW SURJUDPV FRQVLVW RI D ZHOOGHILQHG JRDOVHWWLQJ DQG SHUIRUPDQFH
appraisal process for all staff, and a robust Rewards and Recognition, and Compensation and
Benefits framework
GXQLDKDVEHHQVXFFHVVIXOO\SRVLWLRQHGDVDGHSRVLWRU\LQVWLWXWLRQDQGLQFUHDVLQJO\VHOIIXQGHGEXVLQHVV
growth and minimized reliance on professional funding, with customer deposits growing 226% to
AED 242 Mln – 84% of the growth in customer assets in 2011 was funded through growth in customer
deposits
GXQLDªV LQKRXVH WUDLQLQJ FHQWHU ZLWK D FRPSUHKHQVLYH WUDLQLQJ ODQGVFDSH DQG FRXUVH FRQWHQW
for certification and licensing of staff ensured that the most competent people are available for
serving our customers
1HZ VWUDWHJLF DOOLDQFHV ZLWK &OXE $SSDUHO OHDGLQJ UHWDLOHU LQ 8$(*&& DQG *DS*XUX 8.EDVHG
promoter of community development) helped drive product innovation, brand building and customer
acquisition
6WURQJFRPPXQLW\IRFXV¥WKURXJKRXU
GXQLD&DUHV
SURJUDP¥OHYHUDJHGRIIGXQLDHPSOR\HHVDQG
customers in a spirit of volunteerism, rolling out several campaigns with positive impact across the
community
32
6WDIILQFOXGHVHPSOR\HHVDQGPDQDJHGRXWVRXUFHGRQDIXOOWLPHHTXLYDOHQWEDVLV
33
The first step on the moon, 1963
Mystery creates wonder and wonder is the
basis of man's desire to understand.
Neil Armstrong
H
ow did Neil Armstrong feel
when he took that first
step on the moon? How
did it feel to look down
on earth from a position
where no human had been
before him? Neil did something that we
hope to do everyday – he did something
different and novel.
Neil Alden Armstrong (born August 5, 1930)
is an American former astronaut, test pilot,
aerospace engineer, university professor, United
States Naval Aviator, and the first person to set
foot upon the Moon.
A participant in the U.S. Air Force’s Man In Space
Soonest and X-20 Dyna-Soar human spaceflight
programs, Armstrong joined the NASA
Astronaut Corps in 1962. His first spaceflight
was the NASA Gemini 8 mission in 1966, for
which he was the command pilot, becoming
one of the first U.S. civilians to fly in space. On
this mission, he performed the first manned
docking of two spacecraft with pilot David
Scott. Armstrong’s second and last spaceflight
was as mission commander of the Apollo 11
moon landing mission on July 20, 1969. On this
mission, Armstrong and Buzz Aldrin descended
Engel. His love for flying grew in him when his
father took 2-year-old Neil to the Cleveland
Air Races. On July 20, 1936, when he was 6, he
experienced his first airplane flight in Warren,
Ohio, when he and his father took a ride on
a Ford Trimotor (aka the “Tin Goose”). His
father’s last forced move was to Wapakoneta
(Auglaize County) in 1944, where Neil attended
Blume High School. Neil immediately began
taking flying lessons at the county airport, and
was just 15 when he finally earned his flight
A space shuttle launch 2012
Space research Radio Telescope
to the lunar surface and spent 2½ hours
exploring while Michael Collins remained in
orbit in the Command Module. Armstrong was
awarded the Presidential Medal of Freedom by
Richard Nixon along with Collins and Aldrin, the
Congressional Space Medal of Honor in 1978,
and the Congressional Gold Medal in 2009. Neil
Armstrong was born in Wapakoneta, Ohio, to
Stephen Koenig Armstrong and Viola Louise
certificate, before he yet had a driver’s license.
He was awarded a Bachelor of Science degree
in aeronautical engineering from Purdue
University in 1955, and, from the University of
Southern California in 1970, a Master of Science
degree in aerospace engineering. Armstrong
holds honorary doctorates from a number of
universities.
Excerpted from: http://en.wikipedia.org/wiki/Neil_Armstrong except quote and text appearing in orange.
Last modified on 1 May 2012 at 03:52. Wikipedia® is a registered trademark of the Wikimedia Foundation, Inc., a non-profit organization.
Text is available under the Creative Commons Attribution-ShareAlike License.
34
35
Steady and predictable growth...
’11
Since inception dunia has managed
to effectively prove the efficacy of
its business model and its unique
customer centric focus. dunia
constantly strives to innovate
and wow customers with a great
customer experience. There have
been many milestones which dunia
has achieved since launch.
‘09
‘10
-DQ_GXQLDHQWHUVLQWRSDUWQHUVKLSZLWK0DVWHU&DUG
Worldwide
-DQ_GXQLDODXQFKHVGXQLD)LQDQFLDO3ODQQHU
0DU_GXQLDODXQFKHV(GXFDWLRQ/RDQV
$SU_GXQLDODXQFKHV'XUDEOH*RRG/RDQV
$SU_GXQLDODXQFKHVGXQLD&UHGLW/LIH
0D\_+HQG$O$OLDZDUGHGWKH
(PLULWL]DWLRQ&KDPSLRQ
E\
Government of Dubai's Economic Department
0D\_5DMHHY.DNDUUHFRJQL]HGE\++5XOHURI6KDUMDKIRUKLV
special efforts in supporting and developing UAE Talent
0D\_/DXQFKRI
.DZDGHUGXQLD
(PLUDWL]DWLRQSURJUDP
0D\_GXQLDODXQFKHV$XWR/RDQV
0D\_GXQLDODXQFKHV&DU&DVKLQ/RDQV
-XQ_GXQLDZLQVDZDUGIRU
%HVW8VHRI7HFKQRORJ\
DW%DQNHU
Middle East Industry Awards
-XQ_GXQLDVLJQVDJUHHPHQWZLWK0LQLVWU\RI)LQDQFHWR
perform bank guarantee e-registration service
-XQ_GXQLDODXQFKHVGXQLD:DOOHW/LIH*XDUG,QVXUDQFH
-XO_WKHPSOR\HHMRLQVGXQLD
6HS_5DMHHY.DNDUDZDUGHG
&(2RIWKH<HDU)LQDQFLDO
Services'
6HS_GXQLDODXQFKHV'LDPRQG&UHGLW&DUG
'HF_GXQLDZLQV
6SHFLDO&65$ZDUG
DWWKH
Arabian Business Achievement Awards

‘08

0D\_WKHPSOR\HHMRLQVGXQLD
-XO_GXQLDLQFRUSRUDWLRQ
$XJ_%OXHSULQWLQJSKDVHFRPSOHWHG
6HS_GXQLDODXQFKHVEXVLQHVV
6HS_+DPGDQ%UDQFKRSHQLQJ
2FW_GXQLDODXQFKHV3HUVRQDO/RDQV
1RY_GXQLDODXQFKHV&RUSRUDWH
Deposits
1RY_GXQLDODXQFKHVGXQLD&UHGLW6KLHOG
'HF_GXQLDODXQFKHV3ODWLQXP*ROG
and Silver Credit Card range
'HF_GXQLDODXQFKHVGXQLD#ZRUN

-DQ_$O:DKDGD%UDQFKRSHQLQJ
-DQ_3DVVSRUW5RDG6HUYLFH&HQWHURSHQLQJ
0DU_0HGLD&LW\%UDQFKRSHQLQJ
$SU_.DUDPD6HUYLFH&HQWHURSHQLQJ
$SU_1DLI6HUYLFH&HQWHURSHQLQJ
$SU_5ROOD6HUYLFH&HQWHURSHQLQJ
$SU_0XVDOOD5RDG6HUYLFH&HQWHURSHQLQJ
$SU_1DWLRQDO3DLQWV6HUYLFH&HQWHURSHQLQJ
0D\_.QRZOHGJHDQG+XPDQ'HYHORSPHQW$XWKRULW\ (KHDA) signs MOU with dunia
0D\_GXQLDODXQFKHV:DJHV3URWHFWLRQ6\VWHP:36
Payroll Solution
0D\_'HIHQFH5RDG6HUYLFH&HQWHURSHQLQJ
0D\_0XVDIIDK,QGXVWULDO$UHD6HUYLFH&HQWHURSHQLQJ
-XQ_$O4XR]6HUYLFH&HQWHURSHQLQJ
-XQ_$O4XVDLV6HUYLFH&HQWHURSHQLQJ
-XQ_2XG0HWKD6HUYLFH&HQWUHRSHQLQJ

-DQ_WKHPSOR\HHMRLQVGXQLD
0DU_,PDJH&KHTXH&OHDULQJ6\VWHP,&&6LPSOHPHQWHG
0DU_GXQLDEUHDNVHYHQ
6HS_GXQLDODXQFKHVWKH&OXE$SSDUHOGXQLD&UHGLW&DUG
1RY_5DMHHY.DNDUUHFRJQL]HGLQ
*&&,QGLD3RZHU/LVW
2011' for 'Top 100 Indians' in the region
'HF_GXQLDODXQFKHV©GXQLD7RXFKªIRUJOREDOYROXQWHHULQJ
programs
'HF_GXQLD$FDGHP\LQWURGXFHVDZLGHUDQJHRIWUDLQLQJ
programs
-XO_GXQLDODXQFKHV&RPPHUFLDO$XWR/RDQV
-XO_'XEDL2XWVRXUFH=RQH6HUYLFH&HQWHURSHQLQJ
$XJ_GXQLDODXQFKHV)OH[L/RDQ)DFLOLWLHV
6HS_$O$LQ%UDQFKRSHQLQJ
6HS_.KDOLGL\D6HUYLFH&HQWHURSHQLQJ
1RY_5DMHHY.DNDUUHFRJQL]HGLQ
*&&,QGLD3RZHU/LVW
2010' for 'Top 100 Indians' in the region
'HF_0RURRU6HUYLFH&HQWHURSHQLQJ
'HF_0XVVDIIDK&RPPHUFLDO$UHD6HUYLFH&HQWHU
opening
'HF_GXQLD
VDQQXDOUHSRUWZLQV
+RQRUV$ZDUG
in International Mercury Awards
'HF_GXQLD
VDQQXDOUHSRUWZLQV
3ODWLQXP
Award' in the League of American Communication
Professionals (LACP) Award
’06 - ‘07
-DQ_VWHPSOR\HHMRLQVGXQLD
0DU-XO_GXQLDLVFRQFHSWXDOL]HG
6HS
$XJ
_3ODQQLQJ
blue printing phase to deliver a
unique customer focused
business model
36
37
flying high...
38
39
Customer centric approach that fuels our growth
Corporate
Affluent
Unique Value Proposition crafted for every customer segment
Commercial
Mass Affluent
SME
Self-Employed Mass Market
Salaried Mass Market
dunia’s business approach starts with understanding the unique
needs of our customers, designing comprehensive solutions
that cater to these needs and aligning the organizational
framework and technological backbone to ensure customer
delight at every dunia touch point. Through extensive market
research, we continuously strive to fine tune and perfect our
financial solutions so that we not only match our customers’
expectations but exceed them every time. dunia’s unique
segment based approach ensures that the customer experience
at every stage is nothing short of being exceptional.
Our segmented approach and organization's structure is
uniquely designed to focus on each target customer segment
and our specialized segment teams talk the ‘language’ of the
customer in each segment.
Each dunia customer segment is chalked out with a customer
promise and a Unique Value Proposition.
The Unique Value Proposition (UVP) designed for each segment
lays the foundations of a reliable and consistent customer
experience and continues to serve as a constant reminder of the
world class service we promise to give our customers. The UVP
for our customer segments was designed to create an offering
by building differentiation and relevance. Founded on the
premise that needs are customer based, as opposed to product
based, it provides unparalleled business solutions that fulfil the
individual requirements of different segments and individuals.
The value proposition for each segment is tailored to suit and
cater to the customer.
40
dunia offers to its ‘Mass Affluent’ customer segment, an array of financial solutions at their very doorstep. Professional
expertise on every financial solution offered is ensured as a one-stop shop option to optimize valuable time and energy.
dunia is designed to be a provider of a wide range of customized financial solutions through superior products, service
and relationship experience based on respect, with easy access through an empowered Relationship Manager, alternative
access channels for convenience and speed, to provide for a better lifestyle and future for self and family back home or
internationally.
duniagold customizes elite solutions for the exclusive needs of its most ‘Affluent’ members of the community. While providing
financial solutions that enhance their lifestyle, the state-of-the-art service ensures the speed and efficiency that is demanded
by their evolving life and business interests. duniagold was built to be a provider of customized and tailor-made solutions
that cater to the unique financial and lifestyle needs of affluent customers and meet their aspirational goals by providing a
wide range of financial products and services, while delivering these with exceptional service and convenience through a
single point of contact.
duniamoney was tailor-made to provide financial solutions to the 'Salaried consumers'. Simplification of processes ensured
that even the most unique of financial needs are implemented rapidly, while specialized product solutions catered to the
specific needs that are exclusive to this particular customer segment. duniamoney strives to offer a community based,
superior service and relationship experience based on empathy and respect, while delivering customers with easy credit and
simple savings products to meet their simple financial needs, in order to help them provide for a better future for self and
family back home.
duniatrade was the answer to the most pressing financial need of the ‘Self-employed consumers’. An often neglected and
under-served section of society, this segment needs financial services that were legitimate, thereby steering them away from
parallel, unreliable banking channels. duniatrade vows to be a caring community-based financial services provider designed
specifically to serve the unbanked or under-served self-employed, through a superior relationship experience, empathy and
respect, with convenient, fast and easy access to credit for their business and personal needs, to help them grow their
businesses and provide for a better future for self and family.
41
Financial solutions that match customer needs
The dunia One Account gives our customers the power of dunia’s financial solutions under a single
offering, whether it be individual customers or corporate clients. dunia provides a complete, one-stop
financial solution to our diversified range of customers with a superior menu of tailor-made products
and services supported by a wide distribution branch network.
As an individual
Customers have access to a range of financial solutions that cater to their transaction, saving,
borrowing and protection needs. dunia’s range of solutions include:
&UHGLWFDUGVWKDWRIIHUXQLTXHEHQHILWVDQGUHZDUGVZLWKHYHU\WUDQVDFWLRQ
3HUVRQDOORDQVHGXFDWLRQORDQVGXUDEOHORDQVWRFDWHUWRHDFKLQGLYLGXDOªVXQLTXHQHHGV
$XWRORDQVIRUQHZDQGXVHGFDUVDQGFDUFDVKLQORDQV
2YHUGUDIWOLQHZLWKIOH[LEOHUHSD\PHQWRSWLRQV
6LPSOHLQVXUDQFHSURGXFWVOLQNHGWRFUHGLWFDUGVDQGORDQVWKDWRIIHUSURWHFWLRQ
As a corporate customer
With dunia One, our corporate clients gain
access to:
$UDQJHRIILQDQFLDOVROXWLRQVLQFOXGLQJ
Corporate Depsoit Accounts, issuance
of Labour and Financial Guarantees,
and Wages Protection System (WPS)
payroll solution
6SHFLDOSULFLQJIRUFRUSRUDWHSURGXFWV
(DVHRIHQUROOLQJIRUPXOWLSOHVROXWLRQV
with a single partner
'HGLFDWHG &RUSRUDWH 5HODWLRQVKLS
Manager
$OOLQRQHDFFRXQWVHUYLFLQJ
,QWHJUDWHGDQGFRPSUHKHQVLYHRIIHULQJ
Transaction
&OXE$SSDUHO¥
dunia Credit Card
'LDPRQG&DUG
3ODWLQXP&DUG
*ROG&DUG
6LOYHU&DUG
3D\UROO&DUG
Saving
Financial
Guarantee
&RUSRUDWH'HSRVLWV
/DERXU*XDUDQWHHV
)LQDQFLDO*XDUDQWHHV
Explore the world of
financial services…
Borrowing
…with your dunia One
relationship
3HUVRQDOORDQ
$XWRORDQ
&DUFDVKLQORDQ
(GXFDWLRQORDQ
'XUDEOHORDQ
5HDG\&UHGLW
2YHUGUDIWOLQH
Protection
&UHGLW/LIH
&UHGLW6KLHOG
6HFXUH:DOOHW
Life Guard
When a corporate client establishes a
relationship with dunia, all the employees in
the company are automatically enabled to take
advantage of all our products at preferential
terms.
dunia also brings the world of financial
opportunities right to the workplace! The
GXQLD#ZRUN SURJUDP HQDEOHV HPSOR\HHV LQ
42
client companies to benefit from the strength
of their organization. We offer to the individual
employees and the corporate client, financial
solutions ranging from corporate deposits to
personal loans, durable good loans, car loans,
credit cards and financial planning - all bundled
with unmatched discounts, unique rewards,
exciting privileges and exclusive terms.
43
Service excellence is the key to our growth
dunia has created its business by forming
firm and long lasting relationships with its
customers. We build on this relationship by
having the right financial solutions for the
customer, providing him with multiple points of
access, responding promptly to his requests and
having his concerns addressed to by competent
people. Our processes have been fine-tuned to
deliver in a timely manner and we closely track
and improve the response time that it takes to
respond to a customer query. Our processes
have also been reengineered to be relatively
error free. In rare circumstances where an
error does occur, we pride ourselves in fixing
this error and responding to the customer with
courtesy in every step of the way to ensure
satisfaction with the problem resolution. Being
customer oriented means taking feedback
from the customer regularly and raising our
standards every time. In short, customer service
is a management theme in dunia and we go the
extra mile for our customers.
It is everyone’s responsibility in dunia to
be truly our customers' “world of financial
choices” and “best place to bank”. To facilitate
this experience, dunia has set up a 24-hour,
7 days a week state-of-the-art multi-lingual
contact center which is supported by the best
technology at the back-end, enabling it not
only to service customers, but also be a key
acquisition and customer deepening channel.
Customers not only seek superior servicing,
but also a means of getting requests fulfilled
in a timely and efficient manner. Through our
infrastructure, people, technology and partners,
we ensure that we can reliably and consistently
deliver on our customer promise.
Recognition for exemplary service
dunia was ranked 9th across service industries in
the UAE (financial institutions, airlines, telecom
companies, etc.) by Gulf News. This recognition is
a great tribute to the excellence service levels that
dunia has managed to achieve since inception.
World class service, at your doorstep...
Customer acquisition
Prospective customers are profiled over
the phone, leads created on the system and
automatically passed to the contact center’s
own acquisition team who meet customers and
handle the fulfilment process thereby enabling
a much shorter turnaround time.
Overall, dunia has managed to create a unique
platform whereby phone center officers are
enabled and empowered to fulfil customer
requests in the most efficient and timely manner.
Our contact center is effectively another dunia
branch with full capability.
dunia also has a Central Customer Service (CCS)
unit which is committed to serving the customer.
Through a team of people, each customer query
is addressed to and resolved in a timely manner.
In order to be as close to the customer as
possible, we have set up a dunia financial center
in every nook and corner of the country. Working
in close proximity with the customers means
an in-depth understanding of their specific
needs in life and vocation. dunia translates this
knowledge for the advantage of its customer in
terms of delivering a value proposition that is
both relevant and personalized.
The unique dunia experience is apparent to
the customer from the moment he/she steps
into the financial centers. The well trained and
friendly staff deliver world class service to all the
customers keeping in line with the commitment
to quality that spells the dunia difference.
This dedication and integrity permeates across
all levels of the organization making for the
dunia tradition.
The multiple touch points truly make
connecting with dunia easy and elementary
for all its customers. Electronic connectivity
is established via the website and e-business,
while phone contact is maintained through
the 24-hour dunia contact center and SMSes.
Personal contacts are ensured through
Relationship Managers, referrals, merchandisers
and dealers. Direct contacts are also established
via dunia’s presence at work, school, and malls,
where much needed and appropriate financial
44
products are provided to enable on-the-spot
solutions to the customers.
Operating a network of 19 financial centers
across the UAE, a 24-hour dunia contact center,
internet platform and a proactive sales force
made being anywhere and everywhere that
the customers were, a possibility. Each aspect
of the service delivery through these channels
is tracked by Key Performance Indices, various
metrics and ‘Vital Fews’ so that we always
ensure world class service is being offered
to our customers. Backed by a team who are
customer oriented to the core and available for
the customer at every stage enables the theme
of being the “world of financial choices” for our
customers a reality.
Relationship deepening
dunia’s automated rule engine and on-line
decisioning enables phone officers to identify
key product offerings that meet the customers'
profiles and needs and instantly offer them and
fulfil over the phone. Our phone officers are also
able to instantly fulfil customer needs over the
phone with no extra documents since they can
view all customer documents that are scanned
and available on dunia’s imaging system.
Relationship management
Our world class Customer Relationship
Management system developed on proprietary
technology provides a holistic customer
experience which is consistent irrespective
of the channel our customer comes through.
dunia phone officers have a 360° single view of
customer accounts. When a customer calls us,
our phone officers can view the entire range of
financial solutions the customer holds with us
and is able to guide him through the entire array
of financial solutions from dunia. Our automated
inquiry management system enables phone
officers to instantly log queries addressed to
other units for fulfilment of customer requests.
This ensures tracking of requests to ensure
timely resolution and closure. Our ‘System of
Knowledge’ platform is an all encompassing
directory of all products and services which
provides quick access to phone officers to
respond to customer queries.
45
Institutionalizing service levels at par with the best...
Our customer centric focus entails that we
understand the customers’ needs end-to-end
and deliver financial solutions with a service
level that is nothing short of being benchmarked
with the best.
The whole service aspect of dunia is carefully
46
tracked against preset performance goals,
so that the customer is ‘wowed’ in every
interaction.
Process related errors are actively tracked,
identified and immediately remedied. Every
query raised is acted upon in a timely manner
and resolved to the customer’s satisfaction. The
response time in resolving customer queries is
measured every single day and the performance
is tracked month on month. The focus on
proactively identifying and resolving customer
queries helps us in our efforts to build customer
loyalty. It is because of this customer loyalty that
over the years we have seen a steady stream of
customer referrals and this will only compound
as we grow. In fact, Gulf News, the most widely
distributed national-level English daily in the
UAE, ranked dunia 9th in the list of companies
across industries in the UAE for providing quality
customer service and experience.
47
People...our engine for growth
The focus on building the right infrastructure at dunia is only superseded by the human capital. The
best talent from around the world with multi-cultural and diverse experience, with a proven track
record of success and unique skills, makes dunia a great place to work in. dunia runs on human power.
We believe that this is probably the most sustainable energy force in the world when harnessed to its
optimum. The quality of the human capital remains the key pillar of dunia’s strength. That is precisely
why dunia invests extensively to enhance capabilities and hone efficiencies that match the objectives
of the company and a shared vision of sustainable growth and profitability. Training in functionalities,
values, ethics and technical certifications are part and parcel of the work environment at dunia.
Diversity and integration
Diversity at dunia is reflective of the diverse
experience, nationalities, genders, cultures and
potential of the people in the UAE. By nurturing
diversity in dunia, we create a stronger,
more sustainable, more sensitive, and a more
serving proposition.
48
Diversity is about building on differences in
skills, learnings, culture, etc. to achieve results. It
acknowledges the collective efforts and the passion
of a diverse group of people who have played a
pivotal role in dunia’s achievements. This eclectic
mix of our people brings to the forefront a unique
value to our customers beyond their expectations,
and helps them stay ahead. Equal opportunity,
acceptance and inclusive behaviour create an
environment that encourages people’s potential,
passion and entrepreneurial enthusiasm, which
translates automatically to the highest quality of
service to dunia's customers. Sourcing the
best talent from around the world spurs
every member of the team to work towards
achieving and delivering excellence in a professional
and responsible manner keeping in line with dunia’s
values. Attracting, sourcing and integrating highcalibre talent gives impetus to the individual, the
team and ultimately the organization, making dunia
a force to reckon with.
49
Empowered women as drivers for growth
At dunia, we take extra care and proactive steps to ensure that women are empowered across the
organization. As women tend to be the biggest influencers in society, by empowering them, we
empower societies at large. Women also have the greatest influence on youth which symbolizes the
future. This critical role that women play has a significant bearing on how the younger generation
views the world. By empowering women at dunia, we enable success through the power of their
positive influence on dunia's value system.
50
51
Be less curious about people and
more curious about ideas.
Marie Curie
T
he experts advised Madame
Curie to "forget it". They
agreed radium was a
scientifically impossible idea.
However, Marie Curie insisted,
"I can make it happen."
Marie Skodowska-Curie (7 November 1867
– 4 July 1934) was a Polish physicist and
chemist famous for her pioneering research
on radioactivity. She was the first person
honored with two Nobel Prizes—in physics and
chemistry. She was the first female professor at
the University of Paris, and in 1995 became the
first woman to be entombed on her own merits
in the Panthéon in Paris.
Her achievements included a theory of radioactivity (a term that she coined), techniques for
isolating radioactive isotopes, and the discovery
of two elements, polonium and radium. Under
her direction, the world's first studies were
conducted into the treatment of neoplasms,
using radioactive isotopes. She founded the
Curie Institutes in Paris and Warsaw, which
remain major centres of medical research today.
In 1903 the Royal Swedish Academy of Sciences
awarded Pierre Curie, Marie Curie and Henri
Becquerel the Nobel Prize in Physics, "in
recognition of the extraordinary services they
One of the first X-Rays
Modern day MRI
have rendered by their joint researches on the
radiation phenomena discovered by Professor
Henri Becquerel."
Curie was the first woman to be awarded a
Nobel Prize. Eight years later, in 1911, she
received the Nobel Prize in Chemistry, "in
recognition of her services to the advancement
of chemistry by the discovery of the elements
radium and polonium, by the isolation of radium
and the study of the nature and compounds of
this remarkable element." She is one of only
two people who have been awarded a Nobel
Prize in two different fields.
The physical and societal aspects of the work
of the Curies contributed substantially to
shaping the world of the twentieth and twentyfirst centuries. If the work of Marie Curie
helped overturn established ideas in physics
and chemistry, it has had an equally profound
effect in the societal sphere. To attain her
scientific achievements, she had to overcome
barriers that were placed in her way because
she was a woman, in both her native and her
adoptive country. She was ahead of her time,
emancipated, independent, and in addition,
uncorrupted.
Curie died in 1934 of aplastic anemia brought
on by her years of exposure to radiation.
Brain scan
Excerpted from: http://en.wikipedia.org/wiki/Marie_Curie except quote and text appearing in orange.
Last modified on 26 April 2012 at 05:43. Wikipedia® is a registered trademark of the Wikimedia Foundation, Inc., a non-profit organization.
Text is available under the Creative Commons Attribution-ShareAlike License.
52
53
Investing in human capital...
Building the UAE National
talent pool
People constitute the core pillar of society.
Developing the national talent pool therefore is
critical for the success and growth of a country.
At dunia, we are committed to strengthening
these pillars by empowering young Emiratis and
making them a valuable workforce on which
the entire nation can be built.
It is because of this commitment and desire
that we, at dunia, run several student and
management level programs that are designed
specifically to train Emiratis and imbibe in them
unique and relevant skills and knowledge to
successfully manage world class businesses.
They are introduced to the latest developments
in technology and processes while being
mentored and coached by experienced
professionals thereby making them well
equipped to take on the world!
'Kawader dunia' Program is an initiative that
enrols local talent into its fold by imparting
knowledge, inculcating work values and
skills and ultimately ensuring their
professional independence.
54
Armed with only the thirst to learn, the young
initiates are aptly guided and tutored at three
different levels depending on their entry level of
expertise - ‘Al Waaed’ meaning ‘The Promising’,
‘Al Tamouh’ meaning ‘The Ambitious’, and ‘Al
Nukhba’ meaning ‘The Elite’.
dunia's commitment to nurturing Emirati talent
stems from its inherent need as an organization
to give back to the country. It also aims at
engaging earnest and deserving talent into the
technique and expertise that created the success
story of a young and self-made enterprise in a
young and thriving economy.
UAE National talent
enhancement program
Al Waaed - undergraduate part-time program
This program offers an exciting and flexible
work experience with dunia, working in several
functions while studying. dunia’s aim is to
enrich the new generation with knowledge
and empower them by furnishing them with
opportunities to enter the corporate world at
an earlier stage of life. Upon joining dunia, the
selected candidates will go through a two-week
blended learning program that will include:
%XLOGLQJDILQDQFLDOVHUYLFHVEUDQG
0DUNHWLQJRIILQDQFLDOVHUYLFHV
&DPSXVWR&RUSRUDWH
&RUSRUDWH JRYHUQDQFH $0/ ,QWHUQDO
controls
&UHGLW DQG ULVN PDQDJHPHQW LQ D G\QDPLF
environment
:RUNLQJLQGLYHUVHWHDPV
Al Tamouh - graduate leadership program
Al Tamouh underlines the use of modern
educational tools. Our goal is to develop highpotential, well-trained UAE nationals who
will become future senior leaders. It starts
with a three month management certification
program run by dunia in collaboration with the
prestigious SP Jain Center of Management in
Dubai. The program includes:
&RXUVHVRQPDQDJHPHQWVXEMHFWV
/HFWXUHV E\ GXQLDªV EXVLQHVV OHDGHUV ZKR
will share their vision, experiences and
achievements
)LUVWKDQGH[SHULHQFHRIZRUNLQJLQEDQNLQJ
functions
7HDPFKDOOHQJHV
%XVLQHVVSODQGHVLJQDQGSUHVHQWDWLRQV
dunia’s training &
development and
progression
At dunia, the learning and development goals
are aligned to the overall business objectives.
Each employee in dunia is committed to serving
the customer and thereby the organization as
a whole is able to meet its business objectives.
The dunia training academy is the place where
every employee is initiated into the fold with core
functional and skill based training. The training
needs of employees are identified by function and
role to ensure that each role is staffed by people
who are well versed on the job requirements and
have the skills and knowledge required to perform
exceptionally well in all that they do. There are
also rigorous certification programs to build on
the employees' functional expertise. One of the
focus areas of training and development at dunia
are to ensure that the employees' full potential
and performance is improved and harnessed.
Employees are constantly on a learning path and
their performance on an upward trajectory.
Al Nukhba - Qualified professional program
This is a dynamic career growth program for
experienced professionals to advance to the top
in their area of expertise. As part of dunia’s high
potential program, experienced and seasoned
UAE nationals will be enrolled into leadership
programs, and external business school
diplomas and courses.
dunia is committed to the cause of building
the national talent pool. Our ‘Kawader dunia’
Program is designed to impart the best of
knowledge and knowhow to Emiratis at every
level - from those who are just starting out in
the work force to the experienced professionals.
'Kawader', which means pillars in Arabic, is a
program that invites and admits Emirati talent
into the world of financial services, which is
dunia, to be trained and honed by only the best.
55
dunia's Management
Associate Program
dunia also offers a Management Associate
Program. The program is staggered across several
levels, starting with training the employee on
functional skills, assigning him or her various
cross functional projects, designing a career
development plan and constantly providing
mentorship support. Leveraging on both external
and internal subject matter expertise, dunia
training academy is the place where quality
education is available to all the employees.
The creation of an environment that doubles as
a training ground even in the process of their
employment experience makes for a wholesome
and enviable skill set that one is endowed
with at dunia.
Training at dunia
Level 4
Leadership
Accelerating growth &
organizational success
Level 3
Organizational/
professional success
Being more effective
Level 2
Rewarding people...enabling success
Consequently, there are no limits to individual
development in dunia. The only limits that exist
are the ones that are set by the individuals for
themselves. dunia provides ample opportunities
to grow and further oneself depending on one’s
own ambition, performance and holistic skills.
Consistent performance and constantly raising
the bar of all employees at dunia is a key focus.
skills ensure team management and delegation
of responsibilities and finally, conceptual skills
deliver the edge to performance with strategies
that help function at organizational levels.
Varying levels of seasoning makes for the
ability to detect the ‘crème de la crème’ of
This first and crucial step initiates them into
the limitless growth club within dunia. dunia
provides them with the environment where they
can continually challenge their skills and the
boundaries of their knowledge which enables
them to grow.
Functional
Limitless growth
We constantly strive to attract people who
can think big and execute well. We believe
in attracting and developing the best human
capital – the kind of people who have the
requisite knowledge and skills that can be used
to power businesses and create value for all
our stakeholders.
dunia’s Total Rewards
Approach
At dunia, we follow an overall rewards
philosophy when developing specific strategies
and programs.
Compensation and benefits – dunia adopts
a competitive compensation and benefits
program that is benchmarked to the best-inclass employers in the industry. It is dunia’s
objective to pay fairly and reward for the job
dimension, seasoning and performance. We
encourage prospective candidates to join us for
development and career opportunities that we
offer to our employees.
Performance based rewards – Long-term and
short-term reward programs that directly impact
and influence the company goals are adopted
to ensure the company objectives are met and
employees are rewarded.
Recognition – Through recognition and reward
programs, the right behaviour critical for the
company’s success is encouraged.
56
Delivering business objective
Level 1
Compliance
Adhering to regulatory guidelines
Development – Employees are provided with
the right professional development avenues to
develop and hone their skills through coaching,
mentoring, classroom and on the job training.
Career opportunities – dunia recognizes that
all employees have aspirations and ambitions to
develop their careers. Therefore, opportunities
to realize employees’ career aspirations will
be provided based on their potential and skills.
The company focuses on growing its people as it
grows.
Progressing along in the pursuit of technical,
human and conceptual skills, one can decide
at every corner, between choices on their skills
and capabilities development. These choices
range from enhancing technical skills, acquiring
additional skills to diversification of skills that
ultimately equip them to perform in leading roles.
Constant encouragement and choices are made
available to the discerning employee guided
by key factors made up of, performance, job
dimensions and seasoning. Growth comes
naturally to employees who perform strongly,
deliver on their job dimensions by achieving their
skill requirements in terms of technical skills,
human skills, and conceptual skills and season
with the company.
Consistent and enduring performance is the
focus of all employees at dunia. This first and
crucial step initiates them into the limitless club
that keeps its doors open forever. As the business
grows, it develops the capability to provide
limitless growth avenues to each individual.
There are no limits for the right talent. dunia
provides myriad opportunities for its people to
grow and develop. The trajectory of growth of
each individual is driven by one’s own ambition,
performance and skills. The various dimensions
of the job are the key pegs that employees must
fasten to the ground to secure their climb up to
greater heights. Skills, knowledge, capability and
the ability to solve problems form the various
dimensions to any job that one may aspire to.
Technical skills ensure performance while human
the workforce. Dependent on nothing but the
employee’s potential to grow and perform, an
individual can measure up from being good to
excellent. Every role has the need for a set of
requisite skills within the job dimensions and
specific seasoning, all of which are indicators
that are monitored closely to ensure that the
employee is moving up on their growth graphs.
57
Raising the bar
At dunia, Performance Management is not just an
annual appraisal cycle that drives compensation
and benefits but a feature embedded in the daily
work life of each employee. The performance
management system does not merely evaluate
individuals annually but provides them with:
D FOHDU VHW RI JRDOV DQG H[SHFWDWLRQV IURP
each individual and their roles
D UHJXODU IHHGEDFN PHFKDQLVP ZKHUH WKHLU
supervisors and the management team work
together all year round to develop them as a
professional
DFRQWLQXRXVLPSURYHPHQWSURFHVVWKDWVKRZV
each employee his areas for improvement
and the means to improve himself through
support and constant mentoring
D WRRO WKDW GULYHV H[FHOOHQFH DQG DSSUDLVHV
employees on stringent standards and also
enforces a normal distribution curve called
the Excellence Curve, which helps dunia
identify top notch performers and develop
them into pillars of strength.
dunia's Got Talent!
dunia employees came together to showcase
their talent and celebrate the diversity that
they truly represent. They sang, danced and
performed stand-up comedy to an enraptured
audience. The event brought forth the cultural
diversity in dunia, where songs were played in
multiple languages and the dancing was to the
beats of music from across the world. In this
well attended event, dunia employees, across
functional areas, age groups, nationalities and
ethnicities came together, on stage, to put on a
spectacular show!
It’s a win-win situation
dunia is on an onward trajectory to success and
excellence and carries forward all its members,
clients and employees alike in the same spirit.
Every employee gets rewarded not just on
compensation but on a total rewards basis, which
includes compensation, benefits, performance
based rewards, growth, development, and
recognition. The reward principles are based on
creating value and positive impact in the lives of
dunia’s diverse and talented workforce.
58
59
Our credo
What we believe in.... what we live by....
Customer commitment
We proactively reach out to our customers and build meaningful relationships which make a
positive impact in their lives. Our commitment is realised through listening and understandng
their needs, and in the design and delivery of quality products and services. We treat them fairly
and with respect.
Value of our people
We have empathy, mutual respect, trust and unconditional support for each other. We recongnize
the leadership potential in every individual and provide opportunities to learn and grow. We are a
results oriented team and work together to achieve our goals and 'enable success'.
Serving the community
We serve our community by respecting their traditions and enriching their lives through our work,
spirit of volunteerism and resources. We are a responsible player and believe action is better than
words.
Striving for excellence
We have a passion to excel and strive for excellence in all that we do. We succeed when we have
exceeded customer expectations. We encourage creativity and innovation and always "THINK
BIG" to maximize our potential.
Integrity and ethics
Integrity and ethics are core of our value system and embedded in all that we do. We uphold dunia's
reputation with pride, and conduct our business with all stakeholders, customers and regulators
with the highest ethical standards, and transparency. We are accountable for our actions.
60
61
creating ripples...
62
63
Convenience through multiple channels
Framework for exceptional service
Our customer centric approach entails
maintaining service levels that are at par
with the best businesses in the world.
The focus is not only on offering a
bouquet of financial solutions, but also on
delivering them in a way that would bring
about a paradigm shift in how customers
could be served. Each element of the
customer journey is reviewed extensively
to find ways in which it could be enhanced
to create a seamless, consistent and
exceptional customer experience.
dunia’s award winning proprietary
technology platform was custom built
using service oriented architecture to
support a customer centric organization.
The systems are designed to achieve
efficiency for the organization and
provide greater ease and convenience
for the customers. Our focus has been on
building a relationship with the customer
in a way that all his financial needs
can be taken care of by a single entity.
It is our holistic use of technology that
empowers both the enterprise as well as
our relationship with customers.
Each element of the
customer journey is
reviewed extensively
to find ways in which
it could be enhanced
to create a seamless,
consistent and
exceptional customer
experience.
19 financial centers spread across the UAE
Our customer has access to one of the widest distribution networks in the UAE
across Abu Dhabi, Al Ain, Dubai and Sharjah.
24-hour contact center
Anytime of the day, any day of the week, our customer can talk to a dunia customer
service representative and have his queries resolved.
Dedicated personal Relationship Manager
Every dunia customer has a dedicated Relationship Manager who forms the first
point of contact with the customer and is always available to help.
dunia online
Through the dunia online service, customers can transact and view their account
details online. The service also allows customers to make utility bill payments, raise
service related issues and view their previous transactions.
Capabilities created today, for the future...
Superior service...guaranteed!
Customer focused approach
Our financial solutions are designed based on our clear understanding of customers'
needs through extensive and periodic research.
Automated Rule Engine
When a customer applies for a financial solution from dunia, our Automated Rule Engine
enables quick decisioning and consistency in underwriting.
Best-in-class CRM
We have designed a technology platform that enables a 360° view of our customers. At
every customer interaction point, a dunia representative is able to understand the full
relationship details of the customer and offer him solutions that match his unique needs.
Consolidated single statement
We offer holistic financial solutions, not isolated products. This is also reflected in
the full statement of accounts which the customer receives from us through physical
statements, e-statements, on-line and phone.
Tiered &
& value-based
value-based
Tiered
Each
ourcustomers
customersreceives
receives
the
benefits
of dunia's
pricing
and
Each of our
the
fullfull
benefits
of dunia’s
valuevalue
basedbased
pricing
and credit
credit facility
limit.
As customers
grow us,
with
us,become
they become
for enhanced
facility
limits. As
customers
grow with
they
eligibleeligible
for enhanced
credit
credit facilities
based
their performance.
facilities
based on
theiron
performance.
64
Our customers can talk to us at any time through any of dunia’s multiple channels. Our
technology and processes ensure that the customer would receive the same world class
service irrespective of the channel he chooses.
We at dunia have constantly recreated
ourselves to match the evolving needs
of our customers. We have worked hard
to setup the framework which is capable
of sustaining exponential growth. By
partnering with the best in class and
investing in the latest technology, we have
ensured that our systems stay up to date
and have proven capability of delivering
flawlessly. Our proprietary technology
platform is scalable and would allow us to
serve with ease the ever increasing base of
customers.
The processes are also designed to factor
in our fast increasing customer base. Since
our processes were designed to perform
at the highest level of efficiency possible
and moderated by adequate controls, they
have been tested and proven effective
in dealing with larger numbers and our
widening portfolio of financial solutions.
As each channel in dunia is connected to
our technology network and we also have
processes designed to serve our customer
base, this allows us to cater to the
expanding complexities of the business.
As the scale and size of the operations
increase, these systems will be able to
match up to the needs of the business in
a heartbeat.
By building a strong framework which is
both scalable and flexible, we have created
capabilities that will enable us well into the
future, to be able to consistently deliver
against the evolving needs of our customers.
Daily vital fews
We have established a robust set of
metrics to help us track performance
on a daily basis…
2SHQFXVWRPHUFRPSODLQWV
$YHUDJHWXUQDURXQGWLPHWR
resolve customer complaints
0RQWKRQPRQWKLPSURYHPHQW
in turnaround time to resolve
customer complaints
– Total service requests escalated
– Problem incidence
– Problem resolution satisfaction
– Timeliness of resolution
65
Technology at dunia
dunia has a unique customer centric business
model which is enabled through its state-of-theart technology. dunia’s proprietary technology
platform has been custom-built to support
dunia’s unique value proposition and aligned
to offer the customer an exceptional user
experience across all touch-points. The modular
platforms and distributed architecture, allows
for quick 'plug & play' solutions for various
business needs. The service oriented architecture
supports a customer centric organization and
achieves efficiency for the organization.
Analytics capabilities
Our Oracle-based CRM allows a 360° view of
customer accounts across all channels and
also delivers a consolidated single glance
statement to the customer. This technology also
determines customer eligibility and highlights
the appropriate basket of products that can be
offered to the customer. This enables an active
lead management process facilitating crosssell and relationship deepening initiatives and
also reduces dependence on intermediaries.
The Customer Relationship Management (CRM)
system is capable of creating a product set
for each customer but dunia does not force
products on customers. Instead, we appraise
our customers internally and have products
available should a customer require them at any
point in time.
dunia has a full-fledged datawarehouse
which provides for analytics based decisionmaking, enabling faster response times and
instant customer rewarding mechanisms. The
datawarehouse is used starting from the initial
contact with the customer in order to enable
tiered pricing based on customer straw profile.
Thereafter, it is used for relationship deepening
and cross-sell of relevant products. dunia’s stateof-the-art data warehouse granularly manages
every portfolio which not just analyzes risks
but manages revenue and response in a multi-
dimensional format to ensure predictability,
above and beyond what conventional systems
can deliver.
It also allows for analytics based decisioning
which is consistent, fair to the customer
and tailor-made to the customer’s unique
profile. dunia’s Credit Cycle Management
System, which comprises of Product Planning,
Credit, Acquisition, Credit Maintenance and
Collections, feed into the Analytics MIS and is
integrated with the data warehouse.
Our technology platform also supports our
unique business approach which empowers
the front end and enables paperless processing.
Our dynamic rule engine empowers our frontend
by allowing for instant credit decisioniong
that is quick, reliable and consistent.
The turnaround time is minimized for
the customer due to paperless fulfilment
process with image scanning capabilities for
remote decisioning.
66
67
The desire to fly is an idea handed
down to us by our ancestors...
Wilbur Wright
J
ournalists, friends, armed forces specialists, and even their father laughed at the
idea of an airplane when Orville and Wilbur Wright first mentioned their plan to
fly. "What a silly and insane way to spend money. Leave flying to the birds," they
jeered. "Sorry," the Wright brothers responded. "We have a dream, and we can
make it happen." As a result, a place called Kitty Hawk, North Carolina, became
the setting for the launching of their "ridiculous" idea.
The Wright brothers, Orville (August 19, 1871
– January 30, 1948) and Wilbur (April 16, 1867 –
May 30, 1912), were two Americans credited with
inventing and building the world's first successful
airplane and making the first controlled, powered
and sustained heavier-than-air human flight, on
December 17, 1903. In the two years afterward,
the brothers developed their flying machine into
the first practical fixed-wing aircraft. Although
not the first to build and fly experimental
aircraft, the Wright brothers were the first to
invent aircraft controls that made fixed-wing
powered flight possible.
The brothers' fundamental breakthrough was
their invention of three-axis control, which
enabled the pilot to steer the aircraft effectively
and to maintain its equilibrium. This method
became standard and remains standard on fixedwing aircraft of all kinds. From the beginning of
The Wright Brothers' first flight plane of 1903
Orville Wright
They gained the mechanical skills essential for
their success by working for years in their shop
with printing presses, bicycles, motors, and other
machinery. Their work with bicycles in particular
influenced their belief that an unstable vehicle like
a flying machine could be controlled and balanced
with practice. From 1900 until their first powered
flights in late 1903, they conducted extensive
glider tests that also developed their skills as
pilots. Their bicycle shop employee Charlie Taylor
became an important part of the team, building
their first aircraft engine in close collaboration
with the brothers.
In July 1899 Wilbur put wing warping to the test
by building and flying a biplane kite that had a five
foot wingspan. When the wings were warped, or
Airplane engines of today
their aeronautical work, the Wright brothers
focused on developing a reliable method of pilot
control as the key to solving "the flying problem".
All these secrets have been preserved for so
many years just so we could discover them!
system of aerodynamic control that manipulated
a flying machine's surfaces.
This approach differed significantly from other
experimenters of the time who put more emphasis
on developing powerful engines. Using a small
homebuilt wind tunnel, the Wrights also collected
more accurate data than any before, enabling
them to design and build wings and propellers
that were more efficient than any before. Their
first U.S. patent, 821,393, did not claim invention
of a flying machine, but rather, the invention of a
The Airbus A380
twisted, one end of the wings produced more lift
and the other end, less lift. Unequal lift made the
wings tilt, or bank: the end with more lift rose,
while the other end dropped, causing a turn in the
direction of the lower end.
In October 1911, Orville Wright returned to the
Outer Banks again, to improve the aircraft and
conduct tests for safety and stabilization with
a new glider. On October 24, he soared for nine
minutes and 45 seconds, a record that held for
almost 10 years, when Gliding as a sport began in
the 1920s.
Excerpted from: http://en.wikipedia.org/wiki/Wright_brothers except quote and text appearing in orange.
Last modified on 29 April 2012 at 11:01. Wikipedia® is a registered trademark of the Wikimedia Foundation, Inc., a non-profit
organization. Text is available under the Creative Commons Attribution-ShareAlike License.
68
69
dunia’s unique customer centric approach
Technology assisted, workflow enabled & analytics driven capability to ensure reliability &
consistency
At dunia, we create a differentiation through a customer-centric approach, rather than the conventional product push
approach. The customer is the center of all that we do and we understand that a customer seeks a relationship, not a
set of products.
The entire organization is aligned to best serve the customer needs. Our people, our processes and our products are the core
of what we offer to our customers. The entire customer experience is based on the finer detailed elements which enable the
best people to be trained and hired, the products to be relevant and differentiated and the processes to deliver consistently
and reliably, and without errors. Each functional department in dunia is aligned to ensure that it contributes towards creating
a ‘customer wow’.
0HDVXUHPDQDJHSURILWDELOLW\DW
customer level
7UDFN0HWULFV&RVW,QFRPH2SHUDWLQJ
Leverage, Expense / Assets, etc.)
ª5ªV¥5LVN5HYHQXH
/ Response
,QWHJUDWHG5LVN
approach
)RUPXODWHFURVVVHOO
policies
%XLOGDQLQWHJUDWHG
acceptance process
3URYLGHFXVWRPHU
enhanced value
- Solutions
- Recognition
- Advice
- Planning
- Guidance
- Fairness
9DOXH
Recognition
- Status, Visibility
- Esteem
- Rewards
- Events
- Special Pricing
6LQJOH&XVWRPHU
view
6WDWHRIDUWGDWD
warehouse
&XVWRPHU
Relationship
Management
system
People
7UDLQHG&RPSHWHQW
(PSDWKLF
5HVSRQVLYH
&XVWRPHU2ULHQWHG
(WKLFDO)DLU
Customer
Relationship
Products
Process
)XOOUDQJH
,QWHJUDWHGVROXWLRQV
/LIHVWDJHDSSURDFK
&URVVVHOOEHQHILWV
&XVWRPL]HGWRQHHGV
6XSHULRU6HUYLFH
6LPSOH
&RQYHQLHQW
(UURUIUHH
7LPHO\
&RPSHWHQW
)ULHQGO\
6XSHULRU6HUYLFH5REXVW
Delivery
6&0¥0D[LPL]H5HYHQXHIRU
Expense
'HVWUR\'H/D\HU2XWVRXUFH
'LIIHUHQWLDWHEHWZHHQ©%DG
expense & ‘Good’ expense
)RFXVFRPPXQLFDWLRQRQ
customer, not products
&OHDUEUDQGSRVLWLRQLQJ
2SWLPL]HPDUNHWLQJHIIRUWV
across products
7HVWDQG5ROORXW
$OLJQSURGXFWVWRFXVWRPHUV
needs
)XOOIXQFWLRQ
relationship based
interface
)RVWHUPXOWL
channel product
selling & servicing
%UDQFK3KRQH
RM, Internet
$SSURSULDWH
KPIs & variable
compensation
plans
%XLOGRQFXVWRPHU
relationship vs.
product pushing
7LHUHZDUGVFORVHO\
and demonstrably
to motivate people
to deliver value
Strategic Cost Management as an element of
sustained profitability
Strategic cost management at dunia means scrutinizing
every process to spot inefficiencies, identifying
the cost drivers and optimizing the expenditure to
enhance revenue lines at every level in the day to day
operations of its business. All operational decisions are
thought out to keep in line with an ideology of lean
transformation thereby enabling increased customer
value, growth and profitability. Business success
and long term sustainability meant that a
stringent cost management strategy was created
and adopted.
Creation of diverse strategies whereby customer
behaviour is monitored very closely and positive track
records are immediately rewarded with enhanced
credit facilities and an expansion in the available
product choices has further enhanced innovation at
dunia.
Productivity levels are relentlessly reviewed at
various points across the organization ensuring
that steps are in place to guarantee efficiency at
all times. The adoption of best practices viable in the
current environment with the right tracking measures
ensures that productivity is not stifled or compromised
at any level.
The organizational strategy at dunia requires keeping
costs and expenses in check at all times without
compromising customer expectations. Our strategic
and early investment in technology and straight
through processes (STP), helped ensure that expenses
do not grow at the same pace with revenue growth,
ensuring a strong positive operating leverage, while
becoming a "low cost provider".
dunia constantly strives to enhance its revenue
lines with an expanding array of financial options,
supported by extraordinary service. A state-of-the
art delivery mechanism meant increased costs at the
Our processes have been created to ensure an
exceptional customer experience at every interaction,
while providing the business with a predictable growth
designed to ensure profitability and sustainability.
Corporate Governance
Corporate Governance at dunia is a combination of the best
of international practices with a framework that is tailormade to comply with local practices and legal standards.
It is based on OECD principles, local regulatory guidelines,
legal regulations and best-in-class practices adopted by
reputed international banks and financial institutions.
dunia’s Corporate Governance entails a set of
institutionalized interactions between senior
70
initial stages but it also entailed garnering a growing,
dedicated and loyal client base that would never be
compromised at any stage.
management, Board of Directors, shareholders,
employees and other stakeholders, and a robust
framework of regulatory and corporate policies through
which dunia’s strategic objectives are established,
pursued, monitored and attained. The Corporate
Governance framework aids robust decision making
in dunia. It also facilitates continuous improvement in
relation to Strategy, Compliance, Performance and
Accountability.
71
A two-tier structure of Corporate Governance
Key aspects of risk management
Independent Risk
Management
Led by a Chief Risk Officer who reports directly to the CEO, the
risk management organization is responsible for management and
monitoring of credit, liquidity, market and operational risks across dunia.
It is independent of the revenue generating function.
Documental Risk
Management
Framework
A framework catering for granularity on management of various
risks and a well articulated delegated authority framework enables a
principles-based approach to management of risks with clarity on roles
and responsibilities, and assurance mechanisms for various stakeholders.
Risk Appetite
Risk appetite is clearly articulated through hurdle rates which are
translated into delinquency and loss benchmarks, against which regular
monitoring is done through a ‘Windows on Risk’
Strong Analytics
Orientation
A robust data warehouse capturing demographic, behavioural and
performance data along with tools and techniques enables drill down
analysis at all levels, facilitating objective decisioning.
Robust Assurance
Mechanism
Assurance is provided to various stakeholders that risks are wellmanaged and in line with agreed risk appetite. This is established
through self-assurance checks to formalized regular audits that provide
assurance to the Board of Directors.
Governance
Framework
The Board of Directors is responsible for setting risk appetite. Oversight
at the Board level is provided through the Audit Committee and the Risk
Committee. At the executive management level, there are committees
to provide oversight on the various risks (ALCO, Business Risk &
Compliance Committee and Credit Committee).
Strong Collection
& Rehabilitation
Process
A strong collection mechanism ensures that delinquency is managed
within desired levels. The collection mechanism also includes a
rehabilitation process, which aims to help the customer restructure his
financial situation.
Ongoing monitoring and evaluation is key to
dunia’s governance framework (with its four key
pillars viz. Strategy, Compliance, Performance,
and Accountability) and integrated into key
governance related documentation which
include for example, Strategic business plans,
Risk management plans, Financial planning,
budgeting & reporting, Corporate Governance
manual & Code of Conduct, Compliance &
Audit Charters, Accounting & Operational
policy manuals, IT & Security Management,
Fraud Controls, Quality Assurance manual and
Vendor Management.
72
dunia has an independent and effective Board,
the members of which are leaders in their own
right. The standing and diverse international
expertise of the Directors qualify them to
effectively fulfil their responsibilities to the
stakeholders by maintaining the highest ethical
and governance standards.
A two-tier framework oversees the efficient
execution of dunia’s corporate duties, while
ensuring responsible and transparent Corporate
Governance at every level of its functioning.
The Management Committee members form
the first tier, while the second tier consists of
the Board of Directors.
This framework has facilitated effective
oversight through a robust system of checks
and balances. Our Corporate Governance
structure provides for the independent handling
of the functional portfolios while catering
for continuous sharing of information and
knowledge, ensuring that accountability and
decision making go hand-in-hand, and retaining
ultimate answerability to the Board. The
Management Committees in dunia are designed
to ensure that the business is run in the most
efficient, profitable and sustainable manner
possible. The Board of Directors, which has the
ultimate responsibility to uphold the company’s
objectives, provides strategic direction to
dunia and facilitates the smooth running of
all operations through the functioning of
its sub-committees (Audit Committee, Risk
Committee and Employee Remuneration and
Compensation Committee).
Corporate Governance structure in dunia
Tier One Committees
The Management Committees ensure the management of balance sheet liquidity and Return
on Equity, management of the portfolio, and introduction and approval of products, services
and related limits; management of banking risks, risk limits and parameters in line with
corporate ethos; management, review and monitoring of credit risk and collection and risk/
reward optimization; management of monthly performance, its review and improvement;
management of the optimal use of IT resources and business needs; management of talent;
management of vendor relationships and disputes. dunia’s Tier One Committees are:
$VVHWDQG/LDELOLW\&RPPLWWHH
3URGXFW&RPPLWWHH
%XVLQHVV5LVNDQG&RPSOLDQFH&RPPLWWHH
&UHGLW5LVN&RPPLWWHH
([HFXWLYH2SHUDWLQJ&RPPLWWHH
,76WHHULQJ&RPPLWWHH
+XPDQ5HVRXUFHV&RPPLWWHH
9HQGRU0DQDJHPHQW&RPPLWWHH
Tier Two Committees
The Board Committees ensure that strategic goals are set and delivered, while smooth
business operations are in place. They ensure that sound business practices and controls are
in place across functions. They also monitor business performance closely and ensure risk
mitigants are in place. They also review employee policies, including compensation, to ensure
that they are fair and in line with market trends. dunia’s Tier Two Committees are:
$XGLW&RPPLWWHH
5LVN0DQDJHPHQW&RPPLWWHH
(PSOR\HH5HPXQHUDWLRQDQG1RPLQDWLRQ&RPPLWWHH
73
Predictable and sustainable growth through Governance,
Process Control, Risk Management....
Internal Audit and Controls
Internal Audit in dunia has enabled dunia to
regularly develop and periodically enhance its
set of comprehensive policies and procedures.
It has also helped strike a practical balance
between accountability and responsiveness.
Internal Audit at dunia is proactive and
provides independent assurance to the Board of
Directors.
A comprehensive mechanism of risk assessment
drives differential review cycles based on risk
levels. All units are independently reviewed
based on their review cycles (approved by
the Audit Committee) to identify possible
risks, safeguarding dunia from any potential
regulatory and corporate policy breaches.
Periodic reviews of key processes have
also ensured that gaps which are identified
are immediately addressed, productivity
enhancement measures are initiated and the
end-to-end processes are controlled.
As independent assurances need to be provided
to the Board and the senior management,
regular examinations and evaluation of the
policies, procedures and systems is undertaken.
This has facilitated the flow of a steady stream
of efficiencies into the system. In-house
compliance training programs conducted
reinforce across the organization its Code of
Conduct, ethics and regulatory compliance
requirements.
External Audit controls and Compliance &
Regulatory controls
dunia’s External Audit oversight with its ongoing review of policies and processes give
dunia a third-eye view of the business. dunia’s
performance is consequently enhanced as an
on-going process. Compliance & Regulatory
controls allow dunia to strictly comply with
the letter and spirit of the laws and regulations.
This means that in addition to implementing
the local regulatory requirements, dunia adopts
global standards and best-in-class practices.
With these controls and checks firmly in place,
dunia ensures compliance with internal policies
and external laws and regulations. These
controls are now inter-woven in the fabric of
the everyday business.
Fortified Risk Management to enable
comprehensive risk reward leverage
The Risk management framework at dunia has
allowed for judicious operations of its various
departments within acceptable and clearly
defined risk norms. The close interaction
between the Board and the senior management
team within the boundaries of a robust risk
framework has ensured effectiveness in
mitigating risks at dunia.
The foundation of the risk management
framework in dunia is based on a principlesbased approach. The core guiding principles of
dunia’s risk philosophy strongly emphasize capital
preservation of the company by building controls
to limit damage on account of event shocks and
ensuring sufficient liquidity at all times.
dunia’s risk management approach has helped
reduce earnings volatility. Through the use of
analytics and constant testing to understand
the impact of credit policies on portfolio
performance, risk management in dunia has
enabled predictability of performance.
By placing a premium on long-term strategic
decisions, our risk management framework has
ensured that our earnings are sustainable and
performance is consistent.
Risk Governance in dunia
To fortify and institutionalize the risk
management processes at all levels, dunia
created its 'Three Lines of Defense' model to
oversee its strategic, financial and operational
risks. The 'Three Lines of Defense' model
facilitates robust risk governance at various
levels of the organization.
At the first level of defense, risks are managed
at the line business units using maker-checker
controls and a self-assessment process (Risks
and Controls Self-Assessment – RCSA). The
RCSA template used in dunia provides a risk
description, captures the inherent risk in
each process, the control mitigants and the
residual risks. The line business unit also tracks
a set of key risk indicators applicable to the
business unit. Exceptions highlighted from the
RCSA review process and Key Risk Indicators
which breach benchmarks are escalated to
management along with material incidents/
exceptions which warrant management
attention. In addition, a Quality Assurance
process reviews the evidence of the selfassessment checks and performs sampling of
key controls to provide independent assurance
on the robustness of the underlying controls
and the self-assessment. The risks covered span
cross functionally in this Quality Assurance
process across the whole family of risks – credit,
market, operational, reputational, regulatory,
PR, Business Practice, vendor related,
employee related, customer remorse related,
strategic risks, technology risks, product risks,
competitive risks, compliance risks, people
risks, etc. The results of the sampling are graded
and clustered across the organization based on
severity, ageing, recentness and frequency.
The second level of defense is through the
management team with the Business Risk &
Compliance Committee (BRCC) and specialized
committees including the Assets and
Liabilities Committee, Vendor Committee for
procurement, Technology Steering Committee,
Credit Risk Committee, HR Committee for
employee matters, Service Committee for
customer issues, Regulatory Review Matrix
Review for regulatory compliance and monthly
proofing process for Internal Control, all form a
part of the risk management processes.
The third level of defense is provided through the
Board and the Board committees comprising the
Risk Committee, the Audit Committee and the
74
HR, Remuneration and Nomination Committee
get regular updates on all issues. Regular
reports on performance and Key Performance
Indicators that chart out performance trends
are shared with the Board.
Our approach towards
ensuring Risk-Reward balance
At dunia, our focus of business is not just on
returns, but on risk adjusted returns. There is a
clear culture of understanding the risk reward
relationship and leveraging this for profitable
growth. Consequently, the objectives and
policies of the business are guided by long term
risk-reward balance and sustainability rather
than short-term gains.
Our continuous focus on Credit Cycle
Management has brought about the required
disciplined rigor to maximize revenue while
minimizing risk.
Product Planning in dunia is done jointly by
the Marketing and Product team along with
the Credit Risk team who bring in experience
from multiple businesses and geographies.
A seasoned Analytics team supports this
process, ensuring that credit policies and
norms are crafted with the benefit of rigorous
data analysis. Every financial solution offered
by dunia is based on a deep understanding
of the customers’ profiles and their financial
patterns, enabling differential pricing based
on the underlying risk and adequate risk
adjusted spreads.
Since credit acquisition in dunia is done with
the help of a strong verification process, we
have minimized fraudulent and risky sources. A
risk grading mechanism based on demographic
criteria together with the use of Credit Bureau
data in underwriting also helps us minimize
acquisition of customers with a history of
credit underperformance. Credit Maintenance
paces growth to ensure risk is minimized with
the testing and subsequent scale up of low
risk profiles. Accounts are maintained with
extensive use of Analytics to identify revenue
opportunities. Thereafter, the Collections unit
uses robust capacity plans and credit scores
to assist clients in helping them make timely
payments in line with their agreed obligations
on their credit facility with us.
75
surging ahead...
76
77
Spearheading growth through alliances...
We believe that the world is flat. People
everywhere are connected to each other
through telephony and internet. In this new
reality, we recognize that in order to stay true
to our customer centric philosophy we also
need to rely on not just our conversation with
the customer but also the conversations that
customers have between themselves.
In order to enhance our capabilities, we have
built strategic alliances across sectors and
have brought in several innovations in the way
financial services are offered and delivered
in this market. By partnering with institutions
that complement the dunia brand, we have
effectively created an eco-system of excellence.
dunia - Club Apparel alliance
In order to provide more value and greater
choices to the customer, dunia entered into
a strategic alliance with the Apparel Group
which is one of the leading global fashions
and lifestyle brands conglomerates in the UAE.
Apparel Group franchises include international
high street labels such as Tommy Hilfiger,
Kenneth Cole, Aldo, Nine West and food outlets
like Cold Stone Creamery and Tim Horton’s, and
are spread across more than 350 outlets across
the UAE.
The alliance drives its strength from the fact
that both dunia and the Apparel Group are
innovative players in their respective sectors
and both understand the importance of a
customer centric approach to business.
This
co-brand credit card offers
T
unparalleled
value to the
u
c u s t o m e r,
along
with
ease of use,
flexibility
and speed to
help keep our
customers
ahead... The
launch of the co-brand credit card enhances
dunia’s range of financial solutions and
reinforces our commitment to offer unique,
customer centric solutions.
Universities
We believe that the leading companies of the
future will be the ones that control knowledge.
Interacting with teachers and students allows
us to know the latest on what is evolving in
different parts of the world.
S.P. Jain Center of Management
The institute’s Global MBA program was recently
ranked as 69th Best in Asia in 2011. Through our
Management Associate programs, dunia offers
students who successfully complete S. P. Jain
Center of Management’s Global MBA Program a
chance to kick start their career on the fast track.
The students in these programs are groomed
and trained to take on leadership positions and
run businesses. Functional experts from dunia
also visit the campus regularly to provide real
life insights into running of a business. This
greatly aids in the learning process and helps
cement the learning the student gains from the
classroom sessions.
Zayed University
Named after the founder of the UAE, the late
Sheikh Zayed bin Sultan Al Nahyan, the Zayed
University has become a center of excellence
through innovation, inspiration and education.
dunia has had a long and fruitful association
with the institute. dunia’s Kawader Program is
popular in the university and has generated a lot
of interest and enrolments.
Developing UAE national talent pool
The National Human Resource Development
and Employment Authority (TANMIA) was
established to increase the participation of
qualified and skilled UAE National talent in the
economy. It also aims to develop and enhance
the work skills and potential of the National
talent. For dunia, TANMIA was a natural
partner, as we are committed to achieving the
same objectives as TANMIA. Over the years
this partnership has flourished and TANMIA has
become part of dunia’s eco-system itself.
Business partners
dunia has one of the largest networks of auto
dealerships that is spread across Abu Dhabi, Al
Ain, Dubai and Sharjah. The wide dealership
helps our customers to choose the vehicle that
is just right for them. dunia has always believed
in forging partnerships with the best-in-class.
The technology in dunia is powered by the
biggest and the best names in their respective
fields. dunia’s proprietary technology platforms
uniquely integrates these systems to bring
together these divergent systems and enables
us to provide our customers with a seamless
experience, every time.
Newly launched Club Apparel – dunia Credit
Card giving customers unparalleled value
across 350+ stores in the UAE
78
79
dunia Academy
dunia Academy opens up an additional channel for dunia
to build its brand and talk to a wider customer base. These
programs are targeted at both individual customers and
corporate clients. We partner with leading organizations,
universities and business schools to have a distinguished
faculty. The faculty, along with our internal subject
matter experts, conducts these courses at our state of
art, fully equipped learning center to create a high-quality
learning climate.
Unique Value Proposition
&RQWHQW GHYHORSPHQW DQG GHOLYHU\ E\ VXEMHFW PDWWHU
experts & instructional designers
%DFNHGE\ULFKIXQFWLRQDOH[SHUWLVHFUHGLELOLW\JOREDOSDUWQHUV
6SHFLDOL]HGSURJUDPVIRUEDQNLQJDQGILQDQFH
7HVWHGEXVLQHVVVNLOOVSURJUDPVIRUIXQFWLRQDOHIIHFWLYHQHVV
3URIHVVLRQDOVXFFHVVDQGOHDGHUVKLSSURJUDPVUHOHYDQWWR
all industries
/RQJWHUPVROXWLRQDSSURDFKZLWKYDOXHEDVHGSULFLQJ
Programs offered
&RUSRUDWH7UDLQLQJFRXUVHV&RUSRUDWHFOLHQWV
are offered customized and tailored learning
solutions for an organization's training
needs. These programs are designed and
delivered by our subject matter experts who
have decades of experience in areas such
as consumer credit, wealth management,
technology solutions, banking operations,
personal effectiveness & leadership.
Product
Diverse Range of Courses
Price
Competitive Pricing
Convenience
Timing suitable for working
7UDLQLQJ DQG YRFDWLRQDO FRXUVHV GHVLJQHG
for individual customers and covers areas
ranging from technical knowledge to
attitudinal, skill and vocational programs.
Experience
High quality learning climate
Service
Faculty of inhouse & external specialists
dunia Academy
Creating learning partnerships for enabling
organizational and personal success through high impact,
dynamic solutions designed by specialists and seasoned practitioners
Risk
Literacy
Senior
Management
Functional
Skills
Leadership
Professional
Success
Certifications
Programs
Programs
Workshops
&RQVXPHU&UHGLW
3RUWIROLR0DQDJHPHQW
&KDQJH0DQDJHPHQW
1HZ/HDGHU
'ULYLQJ&XVWRPHU
6L[7KLQNLQJ+DWV
– Intermediate
– Advanced
(IIHFWLYH&RDFKLQJ
Management
– Basic
&DSLWDO0DQDJHPHQW
:LQ:LQ&RQYHUVDWLRQV
5$&(IRU5HVXOWV
7DUJHWHG6HOHFWLRQ
6HUYLFH([FHOOHQFH
0DQDJLQJ'LYHUVLW\
7UDLQWKH7UDLQHU
%XVLQHVV0DQDJHPHQW
6WUDWHJLF6HOOLQJ
(IIHFWLYH&ROOHFWLRQV
Workshop
:RUNLQJLQ'LYHUVH
,QWURGXFWLRQWR
Front End Staff
Consumer Lending
5HWDLO&RUSRUDWH
financial products
&UHDWLQJD6HUYLFH:RZ
6DOHV/HDGHUVKLS
7HOHSKRQH6NLOOV
/HDGLQJWHDPVIRUILUVW
3VRI6HOOLQJ
time managers
Teams
6HUYLFH(GJH
$FFRXQWLQJ%DVLFV
&OLHQW0DQDJHPHQW
%DVLFVRI7UHDVXU\
Delivery
80
Internal Experts
Practitioners
With ICCS, dunia can accelerate the cheque
clearing cycle and at the same time improve
traceability and accountability.
Assimilation
Management
&RQVXPHU&UHGLW
Image Cheque Clearing System (ICCS)
dunia was in the first round to qualify for the
certification with the Central Bank of the UAE
and successfully rolled out the Image Cheque
Clearing System (ICCS). Through the ICCS
system, dunia now has the ability to present
cheques drawn on various commercial banks
and receive returns directly, while exercising
greater control over post-dated cheques.
:LQQLQJ3UHVHQWDWLRQV
Centricity
/LTXLGLW\5LVN
Middle
Creating new capabilities...
Academians
Wages Protection System (WPS)
dunia’s value proposition has been extended to a
larger customer base through Wages Protection
System (WPS) introduced by the Central Bank
of the UAE and the UAE Ministry of Labour. This
far-sighted and proactive regulation has given
dunia an opportunity to serve its customer
segments even further. By getting certified
by the Ministry of Labour as both a ‘Bank of
Employer’ and an ‘Agent’, dunia has effectively
entered the salary processing and disbursal
market in a very attractive way.
Through dunia’s WPS payroll solutions,
companies can get rid of their month end
payroll processing hassles, while making
them compliant with the Ministry of Labour’s
regulations. This also allows both the company
and its employees to get access to and
take advantage of dunia’s wide range of
financial solutions.
This has also given dunia a transformational
opportunity to become a leading player in the
UAE market.
External Faculty
81
Our branding has a story to tell
Being a financial institution with a difference is something
we take great pride in. Honing systems and processes to
ensure a superb customer experience o f t e n meant
straying away from the tried and tested paths. It meant we
had to relook at the minutest details of the way financial
services are offered and how to improve and perfect each
one of them. And it was in this process that we created, finetuned and redefined elements that make the dunia story
such a successful one.
Our branding reflects these very values. It showcases the
confidence that comes with establishing a steady and
flawless track record. It reflects the strength of the dunia
business model, tested in very trying times.
The “We’re different. Guaranteed’ brand campaign
launched in 2011, furthered dunia’s commitment to always
innovatively meet customer needs and continue to create
unique and differentiated financial solutions.
82
83
Have the courage to follow your heart and intuition.
They somehow already know what you
truly want to become.
Steve Jobs
F
rom Apple, the billion-dollar
company he started in a mere
garage, to rising to the dizzying
heights of business as the most
innovative genius on the planet,
Steve Jobs didn’t just push
the boundaries by ‘thinking different’ he
set about to create newer, better more
amazing products that are today, defining
the way we live.
Steve Jobs was an American businessman,
designer and inventor. He is best known as
the co-founder, chairman, and chief executive
officer of Apple Inc. Through Apple, he was
widely recognized as a charismatic pioneer of
the personal computer revolution and for his
influential career in the computer and consumer
electronics fields.
Jobs was among the first to see the
commercial potential of Xerox PARC's mousedriven graphical user interface, which led to
the creation of the Apple Lisa and, one year
later, the Macintosh. During this period he
also led efforts that would begin the desktop
publishing revolution, notably through the
introduction of the LaserWriter and the
associated PageMaker software.
After losing a power struggle with the board of
directors of Apple in 1985, Jobs left Apple and
founded NeXT, a computer platform development
company specializing in the higher-education and
business markets. Jobs ran NeXT with an obsession
for aesthetic perfection.
After difficulties developing a new Mac OS,
Apple purchased NeXT in 1996 in order to use
NeXTSTEP as the basis for what became Mac OS
X. As part of the deal, Jobs was named Apple
advisor. As Apple floundered, Jobs took control
of the company and was named "interim CEO"
in 1997, or as he jokingly referred to it, "iCEO".
Under his leadership, Apple was saved from near
bankruptcy, and became profitable by 1998.
Apple's iPhone
4S
Apple's iPad
begins to sell
in Mainland
China
Steve Jobs at one of his last public addresses
In a speech Jobs gave at Stanford University
in 2005, he said being fired from Apple was
the best thing that could have happened to
him; "The heaviness of being successful was
replaced by the lightness of being a beginner
again, less sure about everything. It freed me
to enter one of the most creative periods of my
life." And he added, "I'm pretty sure none of this
would have happened if I hadn't been fired from
Apple. It was awful-tasting medicine, but I guess
the patient needed it."
Jobs was a demanding perfectionist who always
aspired to position his businesses and their
products at the forefront of the information
technology industry by foreseeing and setting
trends, at least in innovation and style.
Steve Jobs has widely been referred to as
"legendary", a "futurist" or simply "visionary",
and has been described as the "Father of the
Digital Revolution", a "master of innovation",
and a "design perfectionist".
Excerpted from: http://en.wikipedia.org/wiki/Steve_Jobs except quote and text appearing in orange.
Last modified on 2 May 2012 at 03:55. Wikipedia® is a registered trademark of the Wikimedia Foundation, Inc., a non-profit
85
84
Creating a better world...
dunia has always been in the forefront of addressing the most
pressing needs of the society. ‘dunia Cares’, our Corporate
Social Responsibility (CSR) initiative, aims to alleviate and
improve the conditions of the larger community where we
live. Our 'Save the Future' campaign ties together our various
initiatives relating to the key pillars of Education, Health,
Environment and Social improvement. At dunia, it’s not
just about offering financial solutions, but also contributing
to the greater community. dunia built its Corporate Social
Responsibility focus alongside its business since inception.
Every member of the dunia family works jointly with others
to bring about a change for the community and people,
however small or big. A few key examples of dunia's
successful CSR campaigns include dunia's Message in a Bottle
Campaign, dunia's National Blood Donation Drive, dunia's
Speak Easy English Teaching and the Ramadan initiative for
those less fortunate.
Ramadan initiatives
Iftar meals were prepared and distributed to those less
fortunate community members. dunia customers and staff
worked throughout the month to collect donations for iftar
meals and shoeboxes with daily hygiene necessities.
Over 1,000 meals and 2,500 items were collected and
donated to laborers across the UAE, putting a smile on their
faces...
Blood donation drives
dunia conducted multiple national blood donation drives
to help saves lives. dunia employees, its customers and the
larger community came together to participate in this noble
initiative. These blood donation drives were launched in
partnership with Al Wasl Hospital and saved hundreds of lives...
86
87
aiming higher...
88
89
Financial trends
dunia has delivered a robust performance in the face of a challenging operating
environment in 2011 – generating record-breaking revenue and profit, achieving
2011 summary financials
$PRXQWV
LQ$('0OQ
2009
2010
2011
reductions in absolute expenses and further improvements in portfolio credit quality,
forging new strategic alliances, and successfully setting-up a new line of business,
while remaining fully self-funded through customer deposits.
Customers (‘000s)
/RDQV$GYDQFHVWR&XVWRPHUV
Key financials highlights for 2011
'HOLYHUHGEUHDNHYHQLQ0DUFKPRQWKVDKHDGRI
plan)
0DLGHQ\HDURISURÔWDELOLW\ZLWKQHWLQFRPHRI$('0OQ
(121% y-o-y improvement)
0DLGHQ\HDURIGLYLGHQG
\R\JURZWKLQFXVWRPHUEDVHWRFXVWRPHUV
\R\JURZWKLQORDQVDQGDGYDQFHVWRFXVWRPHUVWR
$('0OQQHW
\R\JURZWKLQFXVWRPHUGHSRVLWVWR$('0OQ
(asset growth fully-funded by deposits and net income)
\R\JURZWKLQUHYHQXHWR$('0OQ
\R\UHGXFWLRQLQH[SHQVHVWR$('0OQ
&RVW,QFRPHPRUHWKDQKDOYHGWRUHVXOWLQJLQ
positive Operating Leverage)
\R\UHGXFWLRQLQ&RVWRI&UHGLWWRSD
\R\LPSURYHPHQWLQORVVDEVRUSWLRQFDSDFLW\WR
1.3x
UDWLRRILPSDLUPHQWUHVHUYHVWRUHFHLYDEOHV
FRPSDUHGWR8$(&HQWUDO%DQNPLQLPXPRI
\R\LPSURYHPHQWLQ5HWXUQRQ(TXLW\WR
dunia’s continued strong performance in 2011 was primarily
driven by the anticipatory steps taken by Management to
safeguard the business and deliver predictable results in a
stressed operating environment. These strategic realignment
measures include disciplined and tight customer selection,
focus on growing secured assets, risk-adjusted pricing, selffunding through customer deposits, accelerated strategic
cost management, prudent impairment provisioning, and
diversifying into new value-added businesses.
$OVRXQGHUSLQQLQJWKLVG\QDPLFÔQDQFLDOSHUIRUPDQFHZHUH
several strategic initiatives launched in 2011 including:
successfully setting-up a new line of business; launching
new and innovative products to bolster deposit-raising
efforts; enhancing the existing product suite and diversifying
fee-based revenue sources; forging new co-brand alliances
with leading players in other sectors to increase customer
acquisition and augment dunia’s proprietary distribution
capabilities; and aggressively focusing on raising granular,
tenured and lower-cost customer deposits to increase
reliance on customer funding sources and ensure selffunded business growth.
While dunia has already achieved the “profitability”
milestone in 2011 (less than 3 years since launch), the
above-mentioned strategic initiatives and the ongoing
discipline of realigning the operating model in-line with
its “test, grow and accelerate” approach, have positioned
dunia for stronger growth in 2012 and beyond.
%
CAGR
Improvement
(2009-2011)
(2011 v/s 2010)
(2011v/s 2010)
31.0
&XVWRPHU'HSRVLWV
32.2
Revenue
112%
133.2
12%
(1%)
Net Income
121%
-
Cost Income
Cost of Credit
123%
Operating Expenses
In addition to achieving profitability in March 2011 (breakeven 3 months ahead of plan), dunia’s full-year 2011 operating
results reflect strong performance on all parameters of the
Balance Scorecard – particularly on revenue, expenses, Net
Income, Return on Equity, and across key efficiency ratios
like Cost/Income, Operating Leverage and Loss absorption
capacity. Moreover, asset growth has been prudently paced
for optimum risk-reward balance, to ensure predictability of
business performance and to put less capital at risk in the
highly volatile and stressed macro-economic environment
prevailing in 2011.
Absolute
Improvement
Return on Equity
dunia achieved its maiden year of profitability in 2011 with net income of AED 18 Mln (a positive
swing of AED 106 Mln compared to 2010).This strong y-o-y performance in 2011 was driven by high
double-digit top-line growth (customer base by 54%, loans and advances to customers by 56%,
customer deposits by 226%, and revenue by 94%) and triple-digit bottom-line growth (net income
by 121% and Return on Equity by 123%). Despite this robust top-line growth, operating expenses
were 12% lower in 2011 on an absolute basis. And reflecting continuous cost efficiencies and
improvements in portfolio credit quality, Cost/Income and Cost of Credit ratios improved by 55%
and 25%, respectively.
While the y-o-y financial performance in 2011 was strong, over a two-year period from 2009 to
2011 dunia’s customer base has grown by 75%, loans and advances to customers by 79%, customer
deposits by 174%, and revenue by 112%, whereas operating expenses over this period have reduced
by 1% in absolute terms.
While dunia’s y-o-y performance in 2011 was strong on all
financial indicators, the following sections provide a more
detailed analysis of the business on key operating drivers
and their underlying performance trends, so as to present
better insights on dunia’s business momentum in 2012 and
beyond.
Continued strong top-line growth
&XVWRPHUVDQG/RDQV$GYDQFHVWR&XVWRPHUV
GXQLDªVFXVWRPHUEDVHKDVLQFUHDVHGWRLQGLYLGXDOVLQ
¥UHSUHVHQWLQJDLQFUHDVHYLVjYLV&XVWRPHU
growth was driven by several factors including: ongoing
improvements in sales productivity, increasing efficiency of
the sales and distribution infrastructure, and the launch of
new products and services in 2011.
90
GXQLDªV PHPEHUVKLS LQ WKH 8$( &HQWUDO %DQNªV :DJH
3URWHFWLRQ 6\VWHP DV D §&DWHJRU\ $¨ SURYLGHU RI SD\UROO
VHUYLFHV QRW RQO\ SURPRWHV ILQDQFLDO LQFOXVLRQ LQ WKH 8$(
but also served as a substantial source of new customer
DFTXLVLWLRQ IRU WKH EXVLQHVV $GGLWLRQDOO\ GXQLDªV QHZ
VWUDWHJLFDOOLDQFHZLWKWKH§$SSDUHO*URXS¨DOHDGLQJUHWDLOHU
91
ZLWK RYHU RXWOHWV LQ WKH 8$( VLJQLILFDQWO\ DXJPHQWHG
dunia’s proprietary distribution channels and customer
acquisition capabilities.
use of strategic analytics to drive several targeted cross-sell
and customer deepening initiatives in-line with dunia’s “test,
grow and accelerate” approach.
Total loans and advances to customers have increased
WR $(' 0OQ LQ ¥ UHSUHVHQWLQJ D JURZWK
compared to 2010. Overall growth in loans and advances to
customers was underpinned primarily through the increased
focus on sourcing secured assets, and through the extensive
On the other hand, new sourcing of unsecured lending
remained prudently paced and selective throughout 2011, to
optimize risk-reward leverage and ensure predictability in a
stressed and volatile operating environment.
Broad-basing the revenue mix ensures that dunia builds
greater resilience to margin compression risk, and has a
higher capacity to absorb any surprise volatility in operating
or credit costs, while simultaneously ensuring strong
operating leverage. These factors are essential for driving
predictable and sustainable growth.
dunia’s revenue mix in 2011 highlights the success of this
Revenue
(AED Mln)
Fee
54% customer growth
100% customer growth
2010 vs. 2009
80
88.6
40
2010 vs. 2009
450
200
356.7
2009
2010
2011
Customer base has grown to 89,000 in 2011
(54% y-o-y growth)
0
64.8
132% revenue growth
23.1
100
140.7
40
5% higher yield
35.4
44% fee/total revenue growth
2011 vs. 2010
38.4
2011 vs. 2010
50
2010 vs. 2009
40.3
40
29% fee/total revenue growth
2010 vs. 2009
30
30
20
20
10
10
31.5
21.8
16.9
82.9
0.3
0
20.5
2008
7.7
50
173.1
3.1
50
150
150
2008
9% higher yield
2010 vs. 2009
555.9
300
28.9
20
0
106% receivables growth
600
57.7
60
750
94% revenue growth
250
2011 vs. 2010
100
Interest
Fee/Total revenue
(%)
Customer asset yield
(% p.a.)
2011 vs. 2010
56% receivables growth
2011 vs. 2010
VWUDWHJ\ ¥ LQ DGGLWLRQ WR DFKLHYLQJ D \R\ UHYHQXH
growth, aggregate yields (comprising of interest and fee
income) on loans and advances to customers have further
LPSURYHGWRDKHDOWK\SDDQGWKHFRQWULEXWLRQRIIHH
based revenue has substantially increased from 22% in 2010
WR RI WRWDO UHYHQXH LQ UHIOHFWLQJ D \R\
improvement).
2009
2010
2011
5.9
2008
37.9
2009
2010
2011
While full year revenue has grown 94% in
2011, fee income has grown by 180%
compared to 2010, reflecting the focus on
increasing fee-based income
Loans and advances to customers have
increased to AED 556 Mln in 2011
(56% y-o-y growth)
0
2009
2010
2011
Yield on loans and advances to customers
have increased to a healthy 40% p.a.
(5% improvement vs. 2010)
0
2009
2010
2011
Contribution from fee income has increased
to 32% in 2011 from 22% in 2010
(44% y-o-y improvement)
Revenue
GXQLD JHQHUDWHG UHFRUGEUHDNLQJ UHYHQXH RI $(' 0OQ
LQ ¥ UHSUHVHQWLQJ D VLJQLILFDQW LQFUHDVH YLVjYLV
2010. Revenue growth in 2011 was highly broad-based
and diversified, driven not only by the strong growth and
increasing yields on loans and advances to customers, but
also from the new lines of business launched during the year.
Revenue
(AED Mln)
94% revenue growth
132% revenue growth
2010 vs. 2009
200
60
112% revenue growth
58.7
Qtr4 2010 vs. Qtr4 2009
15
6.2
2008
2009
2010
142% revenue growth
2011
Full-year revenue of AED 205 Mln in 2011
(94% y-o-y growth)
0
20.2
Dec 2010 vs. Dec 2009
12.0
10
30
45.6
50
20
33.7
106.0
100
Dec 2011 vs. Dec 2010
25
15
45
150
0
Qtr4 2011 vs. Qtr4 2010
75
205.5
69% revenue growth
74% revenue growth
2011 vs. 2010
250
In addition to the robust y-o-y revenue growth in 2011, the
underlying revenue momentum in recent months remains
VWURQJDVZHOOZLWK4WUUHYHQXHRI$('0OQEHLQJ
KLJKHU FRPSDUHG WR 4WU DQG 'HFHPEHU UHYHQXHRI$('0OQEHLQJKLJKHUFRPSDUHGWRSULRU
year – indicating continued strong revenue growth in 2012.
15.9
Qtr4-09
5
Qtr4-10
Qtr4 2011 revenue of AED 59 Mln
(74% higher vs. Qtr4 2010)
Qtr4-11
0
4.9
Dec 2009
Dec 2010
Dec 2011
December 2011 revenue of AED 20 Mln
(69% higher vs. December 2010)
Revenue Quality
6LQFHGXQLDªVLQFHSWLRQLQ6HSWHPEHUWKH0DQDJHPHQW
has relentlessly focused on building a richer and highly
diversified revenue base. The three predominant thrusts of
this strategy include maintaining healthy yields on loans and
92
*URZWKLQEXVLQHVVGULYHUVFRQWLQXHWRRXWSDFHJURZWKLQ
expenses
Operating Expenses
GXQLDªVWRWDORSHUDWLQJH[SHQVHVZHUHDW$('0OQLQ
– representing a 12% reduction compared to 2010. Even
after excluding one-timers in 2010, dunia’s total operating
H[SHQVHVLQZHUHVWLOOORZHUYLVjYLV
This y-o-y reduction in absolute expenses is a direct result
of the Management’s continuous focus on strategic cost
management initiatives, which not only helped in reducing
expenses, but more importantly enabled full leverage of
capabilities already built, so as to maximize revenue for
HYHU\ 'LUKDP VSHQW 7KLV RQJRLQJ GLVFLSOLQH KDV HQVXUHG
that growth in business drivers always exceed growth
in expenses, resulting in strong operating leverage and
sustainable profitability.
To illustrate the success of this “spend-smart” discipline,
GXQLDKDVDFKLHYHGDUHGXFWLRQLQDEVROXWHH[SHQVHVLQ
2011 while it has simultaneously grown its customer base by
ORDQVDQGDGYDQFHVWRFXVWRPHUVE\DQGUHYHQXH
E\
In addition to the y-o-y expense saves in 2011, the underlying
cost-reduction dynamics in recent months remains strong as
ZHOO ZLWK 4WU H[SHQVHV RI $(' 0OQ EHLQJ ORZHUFRPSDUHGWR4WUDQG'HFHPEHUH[SHQVHV
RI$('0OQEHLQJORZHUFRPSDUHGWRSULRU\HDU¥
indicating continued expense efficiencies in 2012.
advances to customers, risk-tiered pricing for optimum riskreward balance, and increasing the contribution from feebased revenue sources.
93
Core Expenses
(AED Mln)
Cost/Income and Expense/Customers receivables
(%)
4% lower expenses
2011 vs. 2010
200
2% expense growth
50
2010 vs. 2009
160
136.6
138.9
120.1
40
133.2
5% lower expenses
6% lower expenses
Qtr4 2010 vs. Qtr4 2009 Qtr4 2011 vs. Qtr4 2010
36.5
34.7
15
12
3% lower expenses 3% lower expenses
Dec 2010 vs. Dec 2009 Dec 2011 vs. Dec 2010
12.0
11.7
11.3
32.5
280
80
20
6
210
40
10
3
140
0
0
0
70
2008
2009
2010
2011
Qtr4 2009
Qtr4 2010
Qtr4 2011
Qtr4 2011 expenses of AED of 32.5 Mln
(6% lower vs. Qtr4 2010)
Dec 2009
Dec 2010
Dec 2011
December 2011 expenses of AED 11.3 Mln
(3% lower vs. December 2010)
&RUH([SHQVHVH[FOXGH$('0OQRIRQHWLPHLPSDLUPHQWRI,QWDQJLEOH$VVHWV
Strategic Cost Management
The above trends highlight the tight expense discipline and
cost controls implemented at dunia, resulting in strongly
positive operating leverage in 2011 – as y-o-y expenses are
reducing on an absolute basis despite continued strategic
investments in building long-term capabilities through new
products and services, and robust growth in customer base,
loans and advances to customers, customer transactions and
processing volumes.
Select examples of this on-going strategic cost management
approach include: all new hiring limited to the front-line
(and only for customer-facing and revenue-generating
roles), further realignment of costs towards the front-end
ZLWKEDFNPLGGOHRIILFHKHDGFRXQWIUR]HQDWOHYHOV
stretch assignments for senior team through consolidation
of roles, rigorous cost renegotiations with external service
providers such as IT vendors and landlords, and continued
tight controls and monitoring on all discretionary expenses.
$VDUHVXOWRIWKHVHVXVWDLQHGHIIRUWVRQLQFUHDVLQJUHYHQXH
while simultaneously reducing expenses (a “spend-smart”
discipline), dunia has achieved continued strong performance
in 2011 across key efficiency ratios such as Cost/Income,
expense over customer assets, and operating leverage.
Both these ratios are a strong reflection of the success in
2011 achieved from the on-going focus on strategic cost
0
350
2010 vs. 2009
51% lower cost/income ratio
44% lower expense/customer receivables
141.1
57% lower expense/
229.5
210
39% lower expense/
customer receivables
Qtr4 2011 vs. Qtr4 2010
2011 vs. 2010
130.9
50.3
2010
2009
140
64.8
28.1
2011
2011 full-year Cost/Income has more than
halved to 65% (51% better vs. 2010).
Similarly, Expense/Capital customer assets
have dropped to 28% in 2011
(44% better vs. 2010)
91.2
39.2
Qtr4 2009
Qtr4 2010
280
Dec 2010 vs. Dec 2009
243.4
210
55.4
23.9
Qtr4 2011
Qtr4 2011 Cost/Income has reduced to 55%
(46% better vs. Qtr4 2010)
Qtr4 2011 Expense/Customer assets have
dropped to 24% (39% better vs. Qtr4 2010)
81.7
70
0
37% lower expense/
Dec 2011 vs. Dec 2010
140
102.8
70
0
350
Qtr4 2010 vs. Qtr4 2009
280
53% lower expense/
Dec 2009
97.7
38.1
55.9
24.2
Dec 2010
Dec 2011
December 2011 Cost/Income reduce to 56%
(43% lower vs. December 2010)
December 2011 Expense/Customer assets
have dropped to 24%
(37% better vs. December 2010)
&RUH([SHQVHVH[FOXGH$('0OQRIRQHWLPHLPSDLUPHQWRI,QWDQJLEOH$VVHWV
2SHUDWLQJ/HYHUDJH-$:6
Operating leverage is another key indicator of operating
efficiencies, measuring the difference between revenue
growth and expense growth over a specific time period.
$ SRVLWLYH UHDGLQJ LPSOLHV WKDW UHYHQXHV DUH JURZLQJ
faster than expenses, which is a basic health-check on the
sustainability of profitability.
GXQLDKDVDFKLHYHGDQRSHUDWLQJOHYHUDJHRILQ
which shows that its y-o-y revenue growth rate far outstrips
the rate of growth in expenses.
,QDGGLWLRQWRD\R\RSHUDWLQJOHYHUDJHRILQ
the underlying trends in recent months remain consistently
SRVLWLYHDVZHOOZLWK4WURSHUDWLQJOHYHUDJHDW
DQG'HFHPEHURSHUDWLQJOHYHUDJHDWLQGLFDWLQJ
continued strong revenue-expense trajectory in 2012.
Operating leverage
(AED Mln)
Expense Efficiencies
dunia’s Cost/Income ratio, a key indicator of overall financial
DQG RSHUDWLQJ HIILFLHQF\ KDV PRUH WKDQ KDOYHG WR LQ
¥UHSUHVHQWLQJDLPSURYHPHQWFRPSDUHGWR
Similarly, dunia’s ratio of expenses to loans and advances
to customers, an equally important indicator highlighting
HFRQRPLHV RI VFDOH KDV GURSSHG WR LQ ¥
UHSUHVHQWLQJDLPSURYHPHQWYLVjYLV
64% lower expense/customer receivables
299.4
9
Full year expenses of AED 133.2 Mln in 2011
(4% lower vs. 2010)
94
350
30
120
Expense %
Cost/Income
Expense %
Revenue
management initiatives and the “spend-smart” discipline
being followed at dunia.
These sharply improving trends are not just evident on a 2011
full-year basis, but even recent months trends are heading
LQWKHULJKWGLUHFWLRQ¥ZLWK&RVW,QFRPHLQ4WU
ORZHU FRPSDUHG WR 4WU DQG 'HFHPEHU ORZHUYHUVXV'HFHPEHU¥LQGLFDWLQJFRQWLQXHGVWURQJ
expense efficiencies in 2012.
75
60
74% higher revenue
7% lower expenses
=81% positive JAWS
Qtr4 2011 vs. Qtr4 2010
45
36.5
25
58.7
0
20.2
Dec 2011 vs. Dec 2010
14.1
15
33.7 35.1
12.0
32.5
30
15
20
69% higher revenue
20% lower expenses
=89% positive JAWS
12.0
11.3
10
15.9
Qtr4 2009
5
Qtr4 2010
Qtr4 2011
Strong operating leverage of +81% in
Qtr4 2011 vs. Qtr4 2010
(74% revenue growth and 7% lower
expenses)
0
4.9
Dec 2009
Dec 2010
Dec 2011
Strong operating leverage of +89% in
December 2011 vs. December 2010
(69% revenue growth and 20% lower
expenses)
95
Continued improvement in portfolio credit quality
Cost of Credit
(%)
Cost of Credit
50
General Provision%
dunia’s portfolio credit quality continues to show substantial
y-o-y improvement, with the Cost of Credit ratio on loans
DQG DGYDQFHV WR FXVWRPHUV GURSSLQJ WR LQ ¥
UHSUHVHQWLQJDLPSURYHPHQWRYHU
The consistent y-o-y improvement in portfolio credit quality
is being driven by the Management’s strategy of pacing
growth and focusing instead on building a safer and more
diversified mix of customer assets. Key elements of this
“de-risking” strategy include: increased focus on sourcing
secured assets, extensive use of analytics to drive the “test,
growth and accelerate” approach, and highly selective
sourcing on unsecured lending. Further supporting this
strategy is a robust risk management framework covering
credit policy, credit operations and collections, and proactive
capacity build-up in advance across all risk management
functions.
dunia’s overall Cost of Credit comprises of two elements –
6SHFLILF3URYLVLRQVDQG*HQHUDO3URYLVLRQV6SHFLILF3URYLVLRQV
are based on dunia’s conservative policy of taking a 100%
provision on all customer loans and advances that are more
WKDQ GD\V SDVW GXH :KHUHDV *HQHUDO 3URYLVLRQV DUH
driven by dunia’s equally conservative policy of recognizing
portfolio impairment provisions based on net flow rates for
each delinquency bucket, in-line with IFRS standards.
*LYHQ WKH XQFHUWDLQ DQG YRODWLOH PDFURHFRQRPLF
environment prevailing since the time of dunia’s launch in
6HSWHPEHUWKH0DQDJHPHQWKDVFRQVLVWHQWO\IROORZHG
a policy of timely recognition of inherent credit losses in the
SRUWIROLRWKURXJKLPSDLUPHQWSURYLVLRQV*37KLVSURDFWLYH
approach has helped in building adequate loss absorption
capacity to insulate the portfolio from inherent as well as
unforeseen stresses.
To illustrate the success of this “de-risking” strategy, dunia’s
&RVW RI &UHGLW UDWLR KDV UHGXFHG E\ IURP LQ
WRLQGHVSLWHDLQFUHDVHLQORDQVDQG
advances to customers over the same period. In addition to
the y-o-y improvement in portfolio credit quality in 2011, the
underlying Cost of Credit trends in recent months are also
performing better compared to prior periods – indicating
continued improvement in portfolio credit quality in 2012.
$V D UHVXOW RI WKLV SUXGHQFH RI GXQLDªV WRWDO &RVW RI
&UHGLW LQ FRQVLVWHG RI *HQHUDO 3URYLVLRQV ZKLFK DV
expected, have significantly reduced in 2010 and 2011 as
the portfolio seasoned and overall credit quality improved.
6LPLODUO\ 6SHFLILF 3URYLVLRQV KDYH UHGXFHG IURP in 2010 to 10.3% in 2011 in-line with further improved
delinquency flows resulting from the “de-risking” strategy.
40
42% lower Cost of Credit %
30
2011 vs. 2010
20
15.3
1.4
13.9
12.0
10
0
11.5
1.2
10.3
2010
2009
2009
54% of overall Cost of Credit is General
Provisions, to insulate the portfolio from
inherent as well as unforeseen stresses
2011
2010
Overall Cost of Credit reduces to 15.3% p.a.
(42% lower vs. 2009), with sharp reduction
in General Provisions as portfolio seasons
2011
Overall Cost of Credit reduces to 11.5% p.a.
(25% lower vs. 2010), with continued
improvement in Specific Provisions in-line
with improving delinquency
6HFXUHG$VVHWV
$FKLHYLQJ D KHDOWK\ PL[ RI VHFXUHG DQG XQVHFXUHG DVVHWV
has been a cornerstone of the Management’s “de-risking”
VWUDWHJ\$VDUHVXOWRIWKLVIRFXVVHFXUHGDVVHWVUHSUHVHQW
23% of total new loan value sourced in 2011, and constitute
RI WRWDO ORDQV DQG DGYDQFHV WR FXVWRPHUV DV RI
'HFHPEHU
Secured/Total loan value sourced
(%)
173% growth
2010 vs. 2009
2% growth
Dec 2011 vs. Dec 2010
Stable
2011 vs. 2010
24.4
20
22.7
dunia’s well-diversified, balanced and better-quality lending
exposure is one of the primary reasons for the substantial
improvement in the Cost of Credit in 2011, leading to a
more predictable, profitable and sustainable financial
performance.
97% growth
Dec 2010 vs. Dec 2009
15
14.5
14.9
Dec 2010
Dec 2011
20
10
15
40
2010 vs. 2009
32
26.3
2011 vs. 2010
24
15.3
16
11.5
32
40
Qtr4 2010 vs. Qtr4 2009
28.4
Qtr4 2011 vs. Qtr4 2010
24
14.6
16
12.0
2009
2010
2011
2011 full-revenue Cost of Credit should be
reduced to 11.5% p.a. (25% better vs. 2010)
0
10
25.3
24
Dec 2011 vs. Dec 2010
14.8
16
5
5
Dec 2010 vs. Dec 2009
32
7.4
8.9
12.4
0
2009
2010
2011
Continued focus on building a well-diversified
balance sheet - secured assets represent 23%
of total loan value sourced in 2011
8
8
8
96
14.3
30
Cost of Credit
(%)
0
2010 vs. 2009
26.3
25
40
Specific Provision%
Qtr4 2009
Qtr4 2010
Qtr4 2011
Qtr4 2011 Cost of Credit has reduced to
11.5% p.a. (22% better vs. Qtr4 2010)
0
Dec 2009
Dec 2010
Dec 2011
December 2011 Cost of Credit has reduced to
12.4% p.a. (16% better vs. December 2010)
0
Dec 2009
In balance sheet terms, secured assets
represent 14.9% of total loans and advances
to customer as of December 2011, increasing
from 14.5% as of December 2010
5LVN$GMXVWHG<LHOGV5$<
Risk adjusted returns are another key indicator of the
portfolio’s profitability dynamics, measuring the net credit
margin between its earning capability (i.e. revenue yield)
and its credit quality (i.e. Cost of Credit). Therefore, size of
the net credit margin indicates the room available to absorb
operating expenses, to be able to generate a positive return
on assets.
dunia’s risk adjusted yields on loans and advances to
FXVWRPHUV KDYH LQFUHDVHG WR D KHDOWK\ LQ ¥
UHSUHVHQWLQJ D IXUWKHU LPSURYHPHQW YLVjYLV The increase in risk adjusted yields on loans and advances
to customer in 2011 was driven by increasing revenue yields
and reducing loss rates (i.e. Cost of Credit).
97
Risk Adjusted Yields (RAY)
(% p.a.)
18% higher RAY
Qtr4 2011 vs. Qtr4 2010
25% higher RAY
2011 vs. 2010
50
40
155% higher RAY
40
2010 vs. 2009
28.9
30
0
275% higher RAY
Qtr4 2010 vs. Qtr4 2009
24.6
2009
10
2010
2011
2011 full-year risk adjusted yields have
further improved to 28.9% p.a.
(25% higher vs. 2010)
0
452% higher RAY
Dec 2010 vs. Dec 2009
30
25.4
28.6
20
20
9.1
13% higher RAY
Dec 2011 vs. Dec 2010
50
40
29.0
30
23.2
20
10
50
10
6.6
Qtr4 2010
Qtr4 2009
Qtr4 2011
Qtr4 2011 risk adjusted yields have increased
to 29% p.a. (18% higher vs. Qtr4 2010)
0
4.6
Dec 2009
Dec 2010
Dec 2011
December 2011 risk adjusted yields have
increased to 28.6% p.a.
NPL coverage and impairment reserves
GXQLDªV13/FRYHUDVRI'HFHPEHULVDWDKHDOWK\OHYHO
RI [ ¥ UHPDLQLQJ VWHDG\ FRPSDUHG WR [ LQ 'HFHPEHU
2010.
$Q 13/ FRYHU RI [ SURYLGHV VXIILFLHQW ORVV DEVRUSWLRQ
capacity and further insulates the portfolio not only from
inherent credit losses, but also from any unforeseen stress
situations, thereby safeguarding the balance sheet from
potential shocks in the future.
loans and advances to customers less than 120 days past
GXHDVRI'HFHPEHUZKLFKLVZHOODERYHWKHPLQLPXP
UHTXLUHPHQWRIVWLSXODWHGE\WKH8$(&HQWUDO%DQN
While still substantially higher than the regulatory minimum,
the proportion of loans and advances to customers held in
impairment reserves has been consistently reducing from
LQ 'HFHPEHU WR LQ 'HFHPEHU WR
LQ'HFHPEHU¥IXUWKHUUHIOHFWLQJWKHFRQVLVWHQW
y-o-y improvement in delinquency flows and portfolio credit
quality.
$GGLWLRQDOO\GXQLDªVLPSDLUPHQWUHVHUYHVDUHDWRIWRWDO
4.8% impairment reserve
Dec 2010 vs. Dec 2009
5
4
NPL Cover > 3x
3.5
7.6
6
2
4
1
2
Avg ticket size
(AED Mln)
Deposits
(AED Mln)
226% deposit growth
2011 vs. 2010
300
240
180
130% deposit growth
Dec 2011
Continued healthy NPL cover of 3.3x in 2011,
remaining steady compared to 2010
Dec 2011 vs. Dec 2010
4.8
1.0
Increasing granularity through
lower deposit ticket size
0.6
0.5
74
60
0.4
0.3
32
2009
2010
2011
Customer deposits have increased to
AED 242 Mln by December 2011
(226% increase over December 2010)
0.0
0.3
Qtr2 2010 Qtr4 2010 Qtr2 2011 Qtr4 2011
In-line with the strategy to raise granular
deposits, average ticket size of customer
deposits has dropped to a healthy level of
AED 0.3 Mln by December 2011
Avg tenor
(Months)
Avg interest rate
(% p.a.)
4.1
0
Dec 2009
Dec 2010
Dec 2011
Ratio of impairment reserves to customer
assets has further reduced from 4.8% in 2010
to 4.1% in 2011, reflecting the significant
improvement in portfolio credit quality and
delinquencies in 2011
Proactive liquidity risk management
Liquidity and availability of funding is a key priority for any
financial institution, and is even more critical for a non-bank
financial institution like dunia. In recognizing this challenge,
the Management has single-mindedly worked on developing
multiple sources of long-term stable funding, and focused
98
1.2
0.9
2010 vs. 2009
120
Increasing tenure
strongly on positioning dunia as a deposit-taking institution
from inception.
$VDUHVXOWRIWKLVIRFXVRQSURDFWLYHOLTXLGLW\PDQDJHPHQW
dunia has been successfully positioned as a depository
18
10
23
24
Dec 2010
1.5
242
30
Dec 2009
Other key indicators on the customer deposit portfolio have
also improved substantially in 2011, including: average
WHQRU LQFUHDVLQJ WR PRQWKV IURP PRQWKV LQ ¥
reflecting the focus on building stable, long-term source of
FXVWRPHUIXQGVDQGDYHUDJHFRVWRIIXQGVUHGXFLQJWR
IURP LQ ¥ UHIOHFWLQJ WKH IRFXV RQ FRPSHWLWLYH
SULFLQJYLVjYLVWKHFRVWRISURIHVVLRQDOIXQGLQJ
4.1% impairment reserve
3.3
3
0
While deposit balances have grown strongly, deposit
FXVWRPHU EDVH KDV LQFUHDVHG E\ WR FXVWRPHUV
in 2011 – reflecting the strategy to minimize concentration
risk on customer funding. Consequently, the average size of
FXVWRPHUGHSRVLWVKDVUHGXFHGE\WR$('0OQLQ
2011 – thereby enhancing granularity of the portfolio and
reducing concentration risk.
10
8
3.4
dunia’s portfolio of customer deposits has increased to
$(' 0OQ LQ ¥ UHSUHVHQWLQJ D VLJQLILFDQW JURZWK YHUVXV $V D UHVXOW RI WKLV DFKLHYHPHQW of the growth in loans and advances to customers in 2011
was directly funded by growth in customer deposits. In
EDODQFHVKHHWWHUPVFXVWRPHUGHSRVLWVIXQGRIORDQV
DQG DGYDQFHV WR FXVWRPHUV DV RI 'HFHPEHU 7KLV LV
in-line with Management’s strategy to increasingly selffund business growth through customer deposits, while
minimizing reliance on professional funding sources.
0
Impairment reserves/Loans & advances
(%)
NPL Cover
(%)
institution, with a rapidly growing base of diversified and
granular customer deposits. In addition to sourcing corporate
deposits, dunia also raises deposits through the issuance of
/DERU *XDUDQWHHV IRU LWV FRUSRUDWH FXVWRPHUV ZKLFK DUH
cash collateralized).
18
18
15
6
12
4
6
2
0
Qtr2 2010 Qtr4 2010 Qtr2 2011 Qtr4 2011
On the other hand, the focus on sourcing
tenured, stable desposits has resulted in the
average tenor increasing to 23 months as of
December 2011
Reducing Cost of Funds
8
0
5.1
5.2
5.1
4.8
Qtr2 2010 Qtr4 2010 Qtr2 2011 Qtr4 2011
Similarly, the average cost of deposits have
reduced to 4.8% as of December 2011,
helping lower the overall cost of funding
for the business
$OOWKHDERYHSDUDPHWHUVDUHDVWURQJLQGLFDWLRQRIGXQLDªV
continued success in building a highly diversified, stable
and lower cost customer deposits portfolio. In addition to
raising customer deposits, dunia has successfully arranged
credit facilities from leading banks, which provide additional
liquidity buffers to safeguard the business in the event of any
contingency.
99
Return on Equity (ROE)
Strong value creation and shareholder returns
Operating Margin
KDV LQFUHDVHG WR $(' 0OQ LQ ¥ UHSUHVHQWLQJ D
VXEVWDQWLDOLQFUHDVHYLVjYLV
Operating margin is one of the key indicators of operating
profitability, measuring the difference between revenue
and operating expenses. Therefore, the absolute size of
operating margin indicates the cushion available to absorb
Cost of Credit, to be able to deliver a positive net income.
In addition to the robust y-o-y increase in operating margin
in 2011, the underlying momentum in recent months is even
VWURQJHUZLWK4WUPDUJLQRI$('0OQEHLQJ
KLJKHUFRPSDUHGWR4WUDQG'HFHPEHUPDUJLQ
RI$('0OQEHLQJKLJKHUFRPSDUHGWRSULRU\HDU¥
indicating strong margin growth in 2012.
$V D UHVXOW RI VWURQJ \R\ UHYHQXH JURZWK FRPELQHG ZLWK
lower absolute operating expenses, dunia’s operating margin
However, 2011 being dunia’s maiden year of net profit, a fullyear measure does not fully reflect the inherent strength of
Return on Equity (ROE)
(% p.a.)
20
10
2011 vs. 2010
35% improvement
6.6
2010 vs. 2009
258% higher margin
100
2011 vs. 2010
72.3
60
50
2019% higher margin
Qtr4 2011 vs. Qtr4 2010
30
50% higher margin
10
2010 vs. 2009
-20
(45.7)
-60
-30
10
26.2
93% higher margin
(1.4)
2010
2011
Full year 2011 Return on Equity of 6.6% p.a.
(123% better vs. 2010)
Dec 2010 vs. Dec 2009
(2.2)
Qtr4 2010 vs. Qtr4 2009
(18.4)
-40
(43.4)
2009
69% higher margin
15.2
-30
(28.2)
-40
-50
-2
(20.6)
8.9
62% improvement
-20
-30
6
2
Qtr4 2010 vs. Qtr4 2009
-10
Dec 2011 vs. Dec 2010
10
-10
-20
508% higher margin
Looking closer, dunia has already achieved a double-digit
Return on Equity of 12.2% p.a. in Qtr3 2011, which has
IXUWKHU LQFUHDVHG WR SD LQ 4WU ¥ LQGLFDWLQJ
continued improvement in shareholder returns in 2012.
20
0
-10
its profitability. Therefore, looking at more recent months
trends better illustrates the underlying profitability dynamics.
183% improvement
Qtr4 2011 vs. Qtr4 2010
123% improvement
0
Operating Margin
(AED Mln)
20
In-line with the robust performance across all measures of
the top-line and bottom-line, dunia has delivered a full-year
5HWXUQRQ(TXLW\RISDLQ¥UHSUHVHQWLQJD
LPSURYHPHQWYLVjYLV
-50
(47.7)
Qtr4 2009
Qtr4 2010
Qtr4 2011
However, recent months indicate even
stronger returns with double-digit Qtr4 2011
Return on Equity of 15.2% p.a.
-6
(7.1)
(91.0)
2009
-100
2010
2011
Maiden year of positive full-year operating
margin of AED 72.3 Mln in 2011
(258% higher vs. 2010)
-50
Qtr4 2009
Qtr4 2010
Qtr4 2011
Recent months indicate an even stronger
momentum with Qtr4 2011 operating margin
of AED 26.2 Mln (2019% higher vs. Qtr 2010)
-10
Dec 2009
Dec 2010
Dec 2011
December 2011 operating margin of
AED 8.9 Mln (508% higher vs. December
2010)
Net Income
In addition to achieving break-even in March 2011, dunia has
delivered its first full-year of profitability with a net income
RI$('0OQLQ¥UHSUHVHQWLQJDLPSURYHPHQW
over 2010. In absolute terms, dunia has achieved a positive
QHWLQFRPHVZLQJRI$('0OQLQGULYHQE\UHFRUG
breaking revenue growth, reducing operating expenses and
improving portfolio credit quality.
Net Income
(AED Mln)
121% NI improvement
2011 vs. 2010
25
0
25% NI improvement
18.1
2010 vs. 2009
10
-25
0
-50
-10
-75
-20
(87.8)
-100
-125
(116.5)
2009
174% NI improvement
Qtr4 2011 vs. Qtr4 2010
55% NI improvement
6
10.5
Qtr4 2010 vs. Qtr4 2009
2011
-40
146% NI improvement
Dec 2011 vs. Dec 2010
38% NI improvement
3.1
Dec 2010 vs. Dec 2009
-3
(14.3)
-6
(6.7)
-9
(32.0)
2010
3
0
-30
First full-year of profitability with net
income of AED 18 Mln in 2011
(121% vs. 2010)
100
20
While the bottom-line has improved 121% on full-year
basis in 2011, the underlying momentum on profitability in
UHFHQWPRQWKVLVHYHQVWURQJHUZLWK4WUQHWLQFRPH
RI $(' 0OQ EHLQJ EHWWHU WKDQ 4WU DQG
'HFHPEHU QHW LQFRPH RI $(' 0OQ EHLQJ EHWWHUFRPSDUHGWR'HFHPEHU¥LQGLFDWLQJFRQWLQXHG
strong profitability growth in 2012.
Qtr4 2009
Qtr4 2010
Qtr4 2011
Recent months indicate an even stronger
profitability momentum with Qtr4 2011 net
income of AED 10.5 Mln
(174% higher vs. Qtr 2010)
-12
(10.8)
Dec 2009
Dec 2010
Dec 2011
December 2011 net income of AED 3.1 Mln
101
A man, as a general rule, owes very little to what he
is born with – a man is what he makes of himself.
Alexander Graham Bell
T
hroughout his life, Alexander
Graham Bell had been interested
in the education of deaf people,
inspired to do something for
his deaf mother and wife.
Pursuing this ideal ultimately led
him to the invention of the telephone.
Alexander Graham Bell (March 3, 1847 – August 2,
1922) was an eminent scientist, inventor, engineer
and innovator who is credited with inventing the
first practical telephone. Bell's father, grandfather,
and brother had all been associated with work on
elocution and speech, and both his mother and
wife were deaf, profoundly influencing Bell's life's
The first telephone invented in 1876
voice by telegraph. Henry replied that Bell had
"the germ of a great invention". When Bell said
that he did not have the necessary knowledge,
Henry replied, "Get it!" With financial support
from Sanders and Hubbard, Bell was able to hire
Thomas Watson as his assistant and the two of
them experimented with acoustic telegraphy.
On June 2, 1875, Watson accidentally plucked
one of the reeds and Bell, at the receiving
end of the wire, heard the overtones of the
reed; overtones that would be necessary for
transmitting speech. That demonstrated to Bell
that only one reed or armature was necessary,
not multiple reeds. This led to the "gallows"
sound-powered telephone, which was able to
An old fashioned classic telephone
work. His research on hearing and speech further
led him to experiment with hearing devices which
eventually culminated in Bell being awarded the
first US patent for the telephone in 1876.
As a child, young Alexander displayed a natural
curiosity about his world, resulting in gathering
botanical specimens as well as experimenting
even at an early age, at the age of 12, Bell built
a homemade device that combined rotating
paddles with sets of nail brushes, creating a
simple dehusking machine that was put into
operation and used steadily for a number of years.
In March 1875, Bell and Pollok visited the famous
scientist Joseph Henry, who was then director of
the Smithsonian Institution, and asked Henry's
advice on the electrical multi-reed apparatus
that Bell hoped would transmit the human
Todays' mobile phone
transmit indistinct, voice-like sounds, but not
clear speech.
On March 10, 1876, Bell succeeded in getting
his telephone to work, using a liquid transmitter
similar to Gray's design. Vibration of the
diaphragm caused a needle to vibrate in the
water, varying the electrical resistance in the
circuit. When Bell spoke the famous sentence
"Mr Watson—Come here—I want to see you"
into the liquid transmitter, Watson, listening at
the receiving end in an adjoining room, heard the
words clearly.
In 1888, Bell became one of the founding
members of the National Geographic Society. He
has been described as one of the most influential
figures in human history.
Excerpted from: http://en.wikipedia.org/wiki/Alexander_Graham_Bell
Last modified on 29 April 2012 at 04:39. Wikipedia® is a registered trademark of the Wikimedia Foundation, Inc., a non-profit
102
103
IN FINANCE
blazing trails...
104
105
Directors’ report
Dear Shareholders,
Business evolution
Financial performance
Creating capabilities
The Directors present their report to the shareholders
together with the audited financial statements of Dunia
Finance LLC ("the company") for the year ended 31
December, 2011 and the financial position of the company
as at 31 December, 2011.
dunia delivered a record year in 2011, and achieved Net
Income breakeven in March 2011, and delivered its maiden
year of full profitability of AED 18.1 Million during fiscal
2011.
dunia had a record-breaking performance in fiscal 2011:
'HOLYHUHGEUHDNHYHQLQ0DUFK
0DLGHQ\HDURISURILWDELOLW\RI$('0LOOLRQ
3RVLWLYH1HW,QFRPHVZLQJRI$('0LOOLRQYV
0DLGHQGLYLGHQGDQQRXQFHGIRU
([FHOOHQW OLTXLGLW\ PDQDJHPHQW ZLWK DVVHW
growth fully
self-funded through granular and
tenured customer deposits – which grew 226%
by an incremental AED 168 Million during 2011
\R\JURZWKLQFXVWRPHUEDVHWRFXVWRPHUV
\R\ JURZWK LQ FXVWRPHU UHFHLYDEOHV WR $(' Million
\R\ JURZWK LQ FXVWRPHU GHSRVLWV WR $(' Million
\R\ JURZWK LQ GHSRVLW FXVWRPHU EDVH WR customers
&XVWRPHUDVVHWJURZWKIXOO\IXQGHGE\GHSRVLWVDQG
retained earnings
/RZGHSHQGHQF\RQSURIHVVLRQDOIXQGVQHWEDQNIXQGLQJRI
AED 3 Million)
\R\JURZWKLQUHYHQXHWR$('0LOOLRQ
\R\UHGXFWLRQLQH[SHQVHVWR$('0LOOLRQ
&RVW,QFRPHPRUHWKDQKDOYHGWR
SRVLWLYH2SHUDWLQJ/HYHUDJH
\R\UHGXFWLRQLQORVVUDWHFRVWRIFUHGLWWR
\R\LPSURYHPHQWLQ/RVV$EVRUSWLRQ&DSDFLW\WR
1.3x
UDWLRRI,PSDLUPHQW5HVHUYHVWR5HFHLYDEOHV[
of CB minimum)
\R\LPSURYHPHQWLQ52(WR
dunia has made excellent progress in enriching its proposition
and enhancing its capabilities in 2011. The company was
empanelled early by the Central Bank of the UAE to be a part
of its Image Cheque Clearing System (ICCS) platform. This
empanelment provides dunia with the strategic ability to
participate as a member of the outward clearing operations of
the Central Bank of the UAE. This new capability has resulted
in better customer service, lower costs, substantially reduced
processing times and more efficient cash management.
dunia continues to grow positively showing a continued
strong growth trend in the year ahead.
This new approach reinforces dunia’s commitment to its
customers with an assurance to continuously help our
customers be ahead, through a unique, differentiated and
relevant value proposition. Our new brand feel is in line with
our commitment to always go the extra mile for our valued
customers.
Background
The company, also known as “dunia”, was formally
established on 7 July, 2008 as a limited liability company
registered in UAE, having its registered office in Abu
Dhabi. dunia is a finance company formed as a strategic
partnership between Fullerton Financial Holdings Pte Ltd
- a wholly owned subsidiary of Temasek Holdings Pte Ltd
in Singapore; Mubadala Development Company PJSC - a
business development and investment company wholly
owned by the Government of Abu Dhabi; Al Waha Capital
PJSC - a diversified investments holding company and A A Al
Moosa Enterprises LLC - a leading local business house and
prominent real estate group in UAE.
Directors
dunia
welcomed
two
new
directors
to our
Board
of Directors
namely
Mr. Gan
Chee
Yen and
Mr. Mansour Al Mulla. We would like
to thank the outgoing directors Mr. Francis Rozario
and Mr. Khalid Al Qubaisi for their strong contribution
and support to the company in its formative years.
The directors of the company in office at the date of this
report are as follows:
1. Mr. Salem Rashid Al Noaimi, Chairman
2. Mr. Rajeev Kakar, Executive Director and Chief Executive
Officer
3. Mr. Gan Chee Yen, Director
4. Mr. Mansour Al Mulla, Director
5. Dr. Ahmed Khalil Al Mutawa, Independent Director
Share capital and share premium
The authorised, issued and paid up share capital of the
company is 550,000 shares (2010: 550,000 shares) of
AED 1,000 each (2010: AED 1,000 each), amounting
to AED 550,000,000 (2010: AED 550,000,000). Of these,
330,000 shares were issued at a premium of AED 110 each,
amounting to AED 36,300,000 (2010: AED 36,300,000).
The company’s capital adequacy ratio was 41.0%
(2010: 57.7%), significantly higher than the minimum
15% of stipulated by the Central Bank of the UAE.
106
All through 2011, the macro environment remained
challenging and the increased volatility of global financial
markets and interdependence of a fragile global economy
on the brink of a recession exposed businesses to changing
risks as a consequence. In this context, dunia's management
has been prudent and took a series of strategic actions
and early anticipatory steps to realign the business model
to weather these risks and ensure that financial and
profitability metrics are always met. The anticipatory steps
taken early, by dunia, helped deliver predictable results, as
a result of which dunia’s profitability, funding quality and
portfolio credit quality has continued to steadily improve,
and the strategic actions taken include:
3UXGHQWDVVHWJURZWKWDUJHWHGRQO\DWWHVWHGJRRG
segments to reduce capital at risk
$PRUHVHOHFWLYHFXVWRPHUWDUJHWGHÔQLWLRQDQG
tighter underwriting process
,QFUHDVHGIRFXVRQVHFXUHGDVVHWV
$YDOXHEDVHGSULFLQJVWUDWHJ\WRHQVXUHDEDODQFHGULVN
adjusted approach to building the portfolio
3URDFWLYHVWUDWHJLFFRVWPDQDJHPHQWIRFXVWREHD
low cost provider and ensure efficiencies on expense,
and to deliver a healthy positive operating leverage
for long term sustainable growth
3UXGHQWDQGSURDFWLYHLPSDLUPHQWSURYLVLRQLQJWREXLOG
adequate loss absorption capacity, to ensure long term
sustainability
$FFHOHUDWHGIRFXVRQEXLOGLQJEHWWHUTXDOLW\IXQGLQJ
strategy through a portfolio of granular and tenured
customer deposits, to mitigate concentration risk, and
also market risk inherent in professional fund sources
'LYHUVLÔFDWLRQRIUHYHQXHVWKURXJKDGGLWLRQRIQHZ
products and launch of transaction services, through
an active cross-sell process based on demonstrated
customer behavior, and a 360 degree customer centric
approach to ensure that customer needs are truly
understood
&RQWLQXHGIRFXVWREXLOGWKHEXVLQHVVSUXGHQWO\WR
attain break-even early so as to be self sustaining
and to limit earnings drag, critical for sustaining growth
3UXGHQWWHVWEDVHGDSSURDFKWRDFFHOHUDWLQJJURZWK
while ensuring a disciplined focus on building a
business model aimed to deliver a positive “Return
on Asset” and "Return on Equity” – so as to ensure
a predictable path to profitability which is important for
delivering longer term sustainability.
dunia has been prudent in loss recognition and its total
impairment reserves, including specific provisions for losses
recognized at 120 days past due, is at a healthy ratio of 18%
of customer assets.
We are also grateful to the Central Bank of the UAE for
recognizing dunia as a Category A provider of the Wages
Protection System (WPS) services which enables us to
contribute effectively to the national objective of delivering
greater financial inclusion through automated payroll
services. This has resulted in a healthy growth of our
transaction processing business and customers.
Franchise
Our brand
dunia also conducted a strategic brand review study, in
order to identify the “Big Ideal” or what dunia really stands
for and promises to deliver. The in-depth study and brand
analysis revealed that the dunia team believes that the
world would be a better place if promises were kept and
emphasizes its deep commitment to customers – hence,
our recent campaign was launched with the theme of
“We are different. Guaranteed".
Our people
We are pleased to recommend for the consideration of the
the shareholders a maiden dividend of AED 5 per share,
issued and paid up at a face value of AED 1,000 each.
dunia has focused on building adequate liquidity and grown
the customer deposit portfolio by AED 167.5 Million through
the year, ensuring that customer asset growth has been
entirely self funded through customer deposits and retained
earnings. dunia has also successfully renewed its bank
facilities which, together with our growing customer
deposits base, allows us a diverse source of funds to continue
to grow strongly ahead.
dunia is committed to developing strong human capital,
as we view it as a strategic advantage and an imperative
for growth. As part of this, we have special focus on the
development of UAE National talent and offer a wide range
of programs aimed at hiring and developing Emirati talent
from all levels – high school, college level and even midcareer hires.
107
Independent auditor's report to the shareholders of
Dunia Finance LLC
dunia also grows its talent base with a strong focus on
diversity. This focus on diversity has helped us attract
talent with global exposure, and a healthy ethnic and
gender mix. dunia employs individuals from all over the
world, and currently has employees from 26 nationalities
and who speak more than 27 languages. dunia believes
strongly in empowering women, who constitute 24% of
our workforce. To ensure that our human resources have
the necessary skills and knowledge required to create and
deliver value that our customers seek, we are passionate
about on-going training and development. In line with this
commitment, during 2011, dunia invested in an aggregate of
14,204 person hours in training and development activities
for our employees.
Creating alliances
dunia has formed a number of strong alliances and
partnerships to drive growth and build customer loyalty.
Our strategic alliance with the leading retail group ‘Apparel’
enables us to reach out to the mass affluent and affluent
customer segments through approximately 300 additional
points-of-sale in the UAE with a unique offering in the
market. As part of this alliance, the Club Apparel – dunia
Credit Card with its compelling value back offer of up to
12% back of spend, positions dunia as the provider of the
best value based card in the market.
dunia also introduced a range of merchandising offers to
our customers ranging from educational programs, hobby
courses and social volunteering opportunities through
partners which has helped dunia further cement our
customer relationships.
At dunia, we are passionate about helping solve the
pressing social problems of health, poverty, education and
environment that affect the masses to ensure sustainable
growth. As part of this effort in 2011, dunia led several
initiatives which included regular blood donation drives,
free iftar food distribution to the under-privileged during the
Ramadan months, and also a special “Message in the Bottle”
campaign aimed at building awareness amongst people of
the importance of the principle of “Reduce, Recycle, Reuse”
to help reduce our waste & our carbon footprint, so that we
live within the means of what our planet provides, instead
of exploiting its natural resources. The dunia “Paperweight
Challenge” was also launched, and over three weeks, the
dunia team collectively recycled over 2.6 tons of paper in
an effort to increase awareness on saving trees.
Auditors
The financial statements have been audited by
PricewaterhouseCoopers who retire and, being eligible,
offer themselves for reappointment.
Acknowledgement
The directors wish to specially recognise the co-operation
extended by every member of the dunia family and thank
them for their ongoing contribution. The directors are also
thankful for the wholehearted support received from the
Central Bank of the UAE, various Ministries of the UAE
Government, the company’s bankers and the company’s
valued customers.
The directors look forward to your continued support.
On behalf of the Board,
Social and community responsibility
dunia remains committed to being a good corporate
citizen and believes in doing good while doing business
in order to focus on sustainable growth. Therefore, to
achieve our goal of conducting business with a human
touch, we have weaved appropriate procedures and
practices in the day to day conduct of our business, and
also in the selection, training and development of our
employees who are the important face of the organization.
Rajeev Kakar
Executive Director and Chief Executive Officer
Report on the financial statements
Opinion
We have audited the accompanying financial statements
of Dunia Finance LLC (“the company”) which comprise the
statement of financial position as of 31 December 2011
and the statements of comprehensive income, changes
in equity and cash flows for the year then ended and a
summary of significant accounting policies and other
explanatory notes.
In our opinion, the accompanying financial statements
present fairly, in all material respects, the financial position
of the company as of 31 December 2011 and its financial
performance and its cash flows for the year then ended
in accordance with International Financial Reporting
Standards.
Management’s responsibility for the
financial statements
Management is responsible for the preparation and fair
presentation of these financial statements in accordance
with International Financial Reporting Standards and
for such internal control as management determines is
necessary to enable the preparation of financial statements
that are free from material misstatement, whether due to
fraud or error.
Auditor’s responsibility
Report on other legal and regulatory
requirements
$V UHTXLUHG E\ WKH 8$( )HGHUDO /DZ 1R RI DV
amended, we report that:
(i) we have obtained all the information we considered
necessary for the purpose of our audit;
(ii) the financial statements comply, in all material
respects, with the applicable provisions of the UAE
)HGHUDO /DZ 1R RI DV DPHQGHG DQG WKH
Memorandum of Association of the company;
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit
in accordance with International Standards on Auditing.
Those Standards require that we comply with ethical
requirements and plan and perform the audit to obtain
reasonable assurance whether the financial statements are
free of material misstatement.
(iii) the company has maintained proper books of account
and the financial statements are in agreement
therewith;
An audit involves performing procedures to obtain audit
evidence about the amounts and disclosures in the
financial statements. The procedures selected depend
on the auditor's judgement, including the assessment
of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those
risk assessments, the auditor considers internal control
relevant to the entity's preparation and fair presentation of
the financial statements in order to design audit procedures
that are appropriate in the circumstances, but not for the
purpose of expressing an opinion on the effectiveness
of the entity's internal control. An audit also includes
evaluating the appropriateness of accounting policies used
and the reasonableness of accounting estimates made by
management, as well as evaluating the overall presentation
of the financial statements.
(v) nothing has come to our attention, which causes us
to believe that the company has breached any of
the applicable provisions of the UAE Federal Law No
RI DV DPHQGHG RU RI LWV 0HPRUDQGXP RI
Association which would materially affect its activities
or its financial position at 31 December 2011.
We believe that the audit evidence we have obtained is
sufficient and appropriate to provide a basis for our audit
opinion.
(iv) the financial information included in the Directors'
report is consistent with the books of accounts of the
company; and
)XUWKHUDVUHTXLUHGE\WKH8$(8QLRQ/DZ1RRI
as amended, we report that we have obtained all the
information and explanations we considered necessary for
the purpose of our audit.
PricewaterhouseCoopers
1
6 March 2012
Amin H. Nasser
Registered Auditor Number 307
Dubai, United Arab Emirates
PricewaterhouseCoopers, Emaar Square, Building 4, Level 8, P O Box 11987, Dubai, United Arab Emirates
T: +971(0)4 304 3100, F: +971(0)4 330 4100, www.pwc.com/middle-east
W Hunt,
Hunt, AH
AH Nasser,
Nasser, PP Suddaby
Suddaby and
and JE
JE Fakhoury
Fakhoury are
are registered
registered as
as practicing
practicing auditors
auditors with
with the
the UAE
UAE Ministry
Ministry of
of Economy
Economy
W
108
109
Statement of financial position
Statement of comprehensive income
As at 31 December
Note
2011
2010
AED’000
AED’000
Year ended 31 December
2011
2010
Note
AED’000
AED’000
Assets
Cash and deposits with banks
5
55,851
63,144
Interest income
86,282
Loans and advances
6
555,876
356,651
Interest expense
(12,728)
(3,386)
Property and equipment
7
15,876
Intangible assets
8
Other assets
11,243
64,811
23,152
642,858
205,480
106,048
Total assets
Liabilities And Equity
10
74,073
11(b)
7,714
1,184
Borrowings
12
Provision for employees’ end of service benefits
13
4,207
3,433
Other liabilities
14
80,575
55,311
357,764
Customer deposits
Due to related parties
Total liabilities
Net interest income
Fees and commission income, net
20
Operating income
Impairment charge, net
21
(54,310)
(42,174)
General and administrative expenses
22
(125,655)
(140,057)
Amortisation and depreciation
7,8
(11,641)
18,117
(87,824)
-
-
18,117
(87,824)
1HWSURÔWORVVIRUWKH\HDU
Other comprehensive income
Total comprehensive result for the year
Equity
Share capital
15
550,000
550,000
Share premium
15
35,544
35,544
Statutory reserve
18
1,812
-
(302,262)
(318,567)
Total equity
Total liabilities and equity
642,858
Accumulated losses
These financial statements were approved by the Board of Directors on 1 March 2012 and were signed on its behalf by:
Chairman
The notes on pages 112 to 133 form an integral part of these financial statements.
110
Rajeev Kakar
Executive Director and Chief Executive Officer
111
Statement of changes in equity
Statement of cash flows
Issued
share capital
Share
premium
Statutory
reserve
Accumulated
losses
Total
AED’000
AED’000
AED’000
AED’000
AED’000
550,000
31,872
-
(230,743)
Provision for share issue expenses written back
-
3,672
-
-
3,672
-
-
-
(87,824)
(87,824)
Depreciation
550,000
35,544
-
(318,567)
Amortisation of intangible assets
Employees' end of service benefits
13
1,047
Impairment charge
21
43,201
12, 856
86,061
At 1 January 2010
At 31 December 2010
35,544
-
(318,567)
-
-
-
18,117
18,117
Transfer to statutory reserve
-
-
1,812
(1,812)
-
At 31 December 2011
550,000
35,544
1,812
(302,262)
2011
2010
AED’000
AED’000
18,117
(87,824)
7
6,546
8
2,486
Note
550,000
At 1 January 2011
Operating activities
1HWSURÔWORVVIRUWKH\HDU
Adjustments:
Disposal of intangible assets, property and equipment
Operating cash flow
Changes in operating assets and liabilities:
Employees' end of service benefits paid
13
(1,173)
(461)
Deposits with maturities over 3 months
5
56,144
(257,708)
(226,717)
Loans and advances
Other assets
(2,062)
4,577
Customer desposits
10
167,516
41,834
Other liabilities
14
25,264
(1,770)
18,826
(145,472)
1HWFDVKJHQHUDWHGIURPXVHGLQRSHUDWLQJDFWLYLWLHV
Investing activities
Purchase of property and equipment
7
(237)
(1,338)
Purchase of intangible assets
8
(11)
(432)
Net cash used in investing activities
Financing activities
11
6,530
(184)
Borrowings
12
54,784
Net increase in cash and cash equivalents
(6,365)
Cash and cash equivalents, beginning of the year
27,216
20,851
27,216
1HWFDVKXVHGLQJHQHUDWHGIURPÔQDQFLQJDFWLYLWLHV
Cash and cash equivalents, end of the year
112
5
113
Notes to the financial statements for the year ended
31 December 2011
1 Legal status and principal activity
Dunia Finance LLC (“the company”) was formally established as a
limited liability company on 7 July 2008 under the UAE Companies
Law. The company was licensed by the Central Bank of the UAE on
11 September 2008 to operate as a finance company.
The company's principal activity is providing customer centric
financial solutions to its target customer segments.
The company's registered address is Al Fardan Building, Hamdan
Street, PO Box 44005, Abu Dhabi, United Arab Emirates.
The shareholders of the company and their respective shareholding
are as follows:
Bugis Investments Mauritius Pte Ltd
(a wholly owned subsidiary of Fullerton
Financial Holdings Pte Ltd)
40%
Alpha Investment Company LLC
(a subsidiary of Mubadala Development
Company PJSC)
31%
Al Waha Capital - PJSC
25%
A A Al Moosa Enterprises LLC
4%
exchange rates of monetary assets and liabilities denominated in foreign
currencies are recognised in the statement of comprehensive income.
The following applicable new standard has been published and is
effective for the company's accounting periods beginning on
1 January 2011.
2.3 Intangible assets
5HYLVHG,$6
5HODWHGSDUW\GLVFORVXUHV
LVVXHGLQ1RYHPEHU
,WVXSHUVHGHV,$6
5HODWHGSDUW\GLVFORVXUHV
LVVXHGLQ
2003. The revised IAS 24 is required to be applied from 1 January
2011.
Management has assessed the impact of the above new standard
on the company's financial statements and has concluded that the
effect on the company's financial statements is not likely to be
material.
b. Standards issued and amendment to a published standard which
are not yet effective and have not been early adopted by the
company
2 Summary of significant accounting policies
The significant accounting policies applied in the preparation of
these financial statements are set out below. These policies have
been consistently applied to all the periods presented, unless
otherwise stated.
2.1 Basis of preparation
The company's financial statements have been prepared in
accordance with and comply with International Financial Reporting
Standards (“IFRS”). The financial statements are prepared under the
historical cost convention.
The preparation of financial statements in conformity with IFRS
requires the use of certain critical accounting estimates. It also
requires management to exercise its judgement in the process of
applying the company's accounting policies.
Changes in assumptions may have a significant impact on the financial
statements in the period the assumptions changed. Management
believes that the underlying assumptions are appropriate and that
the company's financial statements therefore present the financial
position and results fairly. The areas involving a higher degree of
judgement or complexity, or areas where assumptions and estimates
are significant to the financial statements are disclosed in Note 4.
114
a. Standard that is effective for the company's accounting period
beginning on 1 January 2011
The following applicable new standards and amendment to a
published standard have been issued but are not effective for the
financial year beginning 1 January 2011 and have not been early
adopted by the company:
$PHQGPHQWWR,$6
)LQDQFLDOVWDWHPHQWSUHVHQWDWLRQ
regarding other comprehensive income (effective 1 July 2012)
,)56
)LQDQFLDOLQVWUXPHQWV
¥FODVVLÔFDWLRQRIÔQDQFLDO
assets and financial liabilities (effective 1 January 2015)
,)56
)DLUYDOXHPHDVXUHPHQW
HIIHFWLYH-DQXDU\
:KLOHDGRSWLRQRI,)56LVHIIHFWLYHIURP-DQXDU\DQG,)56
13 is mandatory from 1 January 2013, earlier adoption is permitted.
The company is considering the implications of these standards,
their impact on the financial statements of the company and the
timing of their adoption. The adoption of the amendment to IAS 1
is not likely to have a significant impact on the company's financial
statements.
2.2 Foreign currency translation
a. Functional and presentation currency
The financial statements are presented in United Arab Emirates
Dirhams (AED), which is the company's functional and presentation
currency.
b. Translation and balances
Foreign currency transactions are translated into the functional
currency using exchange rates prevailing at the date of the
transactions. Foreign exchange gains and losses resulting from the
settlement of such transactions and from the translation at year-end
Software acquired by the company is stated at cost less accumulated
amortisation and impairment. Expenditure on internally developed
software is recognised as an asset when the company is able to
demonstrate its intention and ability to complete the development
and use the software in the manner that will generate future
economic benefits and can reliably measure the costs to complete
development. The capitalised costs of internally developed software
include all costs directly attributable to developing the software
and are amortised over its useful life. Internally developed software
is stated at capitalised costs less accumulated amortisation
and impairment. Subsequent expenditure on software assets
is capitalised only when such expenditure increases the future
economic benefits embodied in the specific asset to which it relates.
All other expenditure is expensed as incurred.
Project management and consultancy expenditure incurred as a
result of deployment of external specialist service providers are
capitalised when the company is able to demonstrate significant
economic benefit from the first time set up and validation of systems
as well as operating processes.
includes expenditure directly attributable to the acquisition or
construction of the asset as well as expenditure incurred on bringing
the asset to the working condition and location for its intended
use. Subsequent costs are included in the asset's carrying amount
or recognised as a separate asset, as appropriate, only when it is
probable that future economic benefits associated with the item
will flow to the company and the cost of the item can be measured
reliably. All other repairs and maintenance are charged to the
statement of comprehensive income during the financial period in
which these are incurred.
Depreciation is recognised in the statement of comprehensive
income on a straight-line basis, at rates calculated to reduce the
cost of assets to their estimated residual value over their expected
useful lives, as follows:
Office and other equipment
Leasehold improvements
Motor vehicles
Years
3-5
Up to 10
3-5
The assets' residual values and useful lives are reviewed and
adjusted, if appropriate, at each date of statement of financial
position.
The assets' residual values and useful lives are reviewed and
adjusted, if appropriate, at each date of statement of financial
position.
Accordingly with effect from 1 March 2011, the company has changed
the useful life for depreciating some leasehold improvements from
8 years to 10 years. The revised estimate of the useful life is applied
prospectively in accordance with IAS 8.
Accordingly with effect from 1 March 2011, the company has
changed the useful life for amortising acquired software from three
to five years to three to eight years. The revised estimate of useful
life is applied prospectively in accordance with IAS 8.
Gains and losses on disposal of property and equipment are
determined by comparing the sales proceeds to the carrying value
of the asset disposed and are taken into account in determining
RSHUDWLQJLQFRPHORVV
Intangible assets that are subject to amortisation are reviewed for
impairment whenever events or changes in circumstances indicate
that the carrying amount may not be recoverable. An impairment
loss is recognised for the amount by which the asset's carrying
amount exceeds its recoverable amount. The recoverable amount
is the higher of an asset's fair value less costs to sell and value in
use. For the purposes of assessing impairment, assets are grouped
at the lowest levels for which there are separately identifiable cash
flows (cash-generating units). Assets that suffered impairment are
reviewed for possible reversal of the impairment at each reporting
GDWH $Q LQWDQJLEOH DVVHW LV GHUHFRJQLVHG ZULWWHQ RII ZKHQ QR
future economic benefits are expected from its use or disposal and
loss on derecognition of asset is recognised in the income statement
for the period in which derecognition occurs.
2.5 Loans and advances
Loans and advances are non-derivative financial assets with fixed
or determinable payments that are not quoted in an active market.
2.4 Property and equipment
Loans and advances are initially recognised at fair value, which is
the cash consideration to originate the loan and advance including
any transaction costs, and measured subsequently at amortised
cost using the effective interest rate method. Loans and advances
are reported in the statement of financial position as loans and
advances to customers including interest receivable on the loans
and advances. Interest on loans is included in the statement of
comprehensive income and is reported as interest income. In the
case of impairment, the impairment loss is reported as a deduction
from the carrying value of the loan and advances, and recognised
in the statement of comprehensive income as impairment charge.
Property and equipment are stated at historical cost less
accumulated depreciation. The cost of property and equipment
The company assesses at the end of each reporting period whether
there is objective evidence that loans and advances are impaired.
115
Loans and advances are considered impaired and impairment losses
are incurred only if there is objective evidence of impairment as a
result of one or more events that occurred after the initial recognition
of the asset (a 'loss event') and that loss event (or events) has an
impact on the estimated future cash flows of the financial asset or
group of financial assets that can be reliably estimated.
The criteria that the company uses to determine that there is
objective evidence of an impairment loss include:
'HOLQTXHQF\LQFRQWUDFWXDOSD\PHQWVRISULQFLSDORULQWHUHVW
'HPLVHRIWKHGHEWRU
The estimated period between occurrence of a loss and its
identification is determined by management for each identified
portfolio. In general, the periods used vary between one month and
four months.
determined under the contract.
When a loan or advance is uncollectible, it is written off against the
related impairment allowance. If no related impairment allowance
exists, it is written off to the statement of comprehensive income.
Subsequent recoveries, if any, are credited to the statement of
comprehensive income. If the amount of impairment subsequently
decreases due to an event occurring after the write down, the release
of the allowance is credited to the statement of comprehensive
income.
Loans that are either subject to individual or collective impairment
assessment and whose terms have been renegotiated are no
longer considered to be past due but are treated as new loans.
In subsequent years, the asset is considered to be past due and
disclosed if contractually delinquent and renegotiated again.
While calculating effective interest rate, cash flows are estimated
considering all contractual terms of the financial instruments, but
not future credit losses. The calculation includes all discounts or
premiums that are an integral part of the effective interest rate.
Transaction costs are incremental costs that are directly attributable
to the acquisition, issue or disposal of a financial asset or liability.
Transaction costs include fees and commissions paid to agents
(including employees acting as selling agents), advisers, brokers
and dealers. Transaction costs do not include debt premiums or
discounts, financing costs or internal administrative or holding costs.
b. Fees and commission income
Fees and commission income that are integral to the effective
interest rate on a financial asset or liability are included in the
calculation of the effective interest rate to arrive at the amortised
cost of financial asset and financial liability.
2.6 Cash and cash equivalents
The company first assesses whether objective evidence of
impairment exists individually for loans and advances that are
individually significant and collectively for loans and advances that
are not individually significant. If the company determines that no
objective evidence of impairment exists for an individually assessed
loan or advance, it includes it in a group of loans and advances with
similar credit risk characteristics and collectively assesses them
for impairment. Loans and advances that are individually assessed
for impairment and for which an impairment loss is or continues
to be recognised are not included in a collective assessment of
impairment.
For the purposes of a collective evaluation of impairment, loans and
advances are grouped on the basis of similar credit risk characteristics
(i.e. on the basis of the company's evaluation process that considers
category type, past-due status and other relevant factors).
The impairment charge on a group of loans and advances is
collectively evaluated for impairment and estimated on the basis of
historical trends of the probability of default, timing of recoveries
and amount of loss incurred. Default rates, loss rates and expected
timing of future recoveries are regularly benchmarked against actual
outcomes to ensure they remain appropriate. Where historical
data is not sufficient to assess trends, market loss experience is
substituted using a lagged approach whereby loss rates are based on
movement of accounts from one stage of delinquency to another.
The amount of the loss is measured as the difference between the
carrying amount of the loan or advance and the present value of
estimated future cash flows (excluding future credit losses that have
not been incurred) discounted at the original effective interest rate
of the loan or advance. The carrying amount of the loan or advance
is reduced through the use of an allowance account and the amount
of the loss is recognised in the statement of comprehensive income.
If a loan or advance has a variable interest rate, the discount rate for
measuring any impairment loss is the current effective interest rate
116
Cash and cash equivalent comprise balances with less than three
months maturity from the date of acquisition, including cash in
hand, deposits held with original maturities of three months or less.
2.7 Other employee benefits
The amount payable to employees in respect of equity based
payment scheme, which are settled in cash, is recognised as an
expense with a corresponding increase in liabilities, over the period
that the employees become eligible to payment. The liability is
re-measured at each reporting date and at settlement date. Any
changes in the fair value of the liability are recognised as staff costs
in the statement of comprehensive income.
All other employee benefits are accrued as and when services are
rendered by the employees.
2.8 Provisions
Other fees and commission income are generally recognised on an
accrual basis as and when the service has been provided.
2.10 Employees’ end of service benefits
Pension contributions are made in respect of UAE national
employees to the UAE General Pension and Social Security Authority
LQDFFRUGDQFHZLWKWKH8$()HGHUDO/DZ1RIRU3HQVLRQ
and Social Security.
Provision is made for the end of service benefits due to expatriate
employees in accordance with UAE Labour Law for their periods of
service up to the date of these financial statements. The provision
for the end of service benefits is calculated annually by independent
actuaries using the projected unit credit method.
2.11 Leases
Provisions are recognised when the company has a present legal or
constructive obligation as a result of past events and it is probable
that an outflow of resources embodying economic benefits will
be required to settle the obligation, and a reliable estimate of the
obligation amount can be made.
The leases entered into by the company are operating leases.
Payments made under operating leases are charged to other
operating expenses in the statement of comprehensive income on
a straight-line basis over the period of the lease. When an operating
lease is terminated before the lease period has expired, any payment
required to be made to the lessor by way of penalty is recognised as
an expense in the period in which termination takes place.
5HYHQXHUHFRJQLWLRQ
2.12 Borrowings
a. Interest income and expense
Borrowings are recognised initially at fair value, net of transaction
costs incurred. Borrowings are subsequently carried at amortised
cost; any difference between the proceeds (net of transaction costs)
and the redemption value is recognised in the income statement over
the period of the borrowings using the effective interest method.
Interest income and expense is recognised in the statement of
comprehensive income using the effective interest rate method. The
effective interest rate is the rate that exactly discounts estimated
future cash receipts and payments through its expected life (or,
where appropriate, a shorter period) to the net carrying amount of
the financial asset or liability.
Fees paid on the establishment of loan facilities are recognised as
transaction costs of the loan to the extent that it is probable that
some or all of the facility will be drawn down. In this case, the fee
is deferred until the draw-down occurs. To the extent there is no
evidence that it is probable that some or all of the facility will be
drawn down, the fee is capitalised as a pre-payment for liquidity
services and amortised over the period of the facility to which it
relates.
2.13 Dividend on Ordinary shares
Dividends on ordinary shares are recognised in equity in the period
in which they are approved by the company's shareholders.
3 Financial risk management
The company's activities expose it to a variety of financial risks and
those activities involve the analysis, evaluation, acceptance and
management of some degree of risk or combination of risks. Taking
risk is core to the financial services business and these risks are an
inevitable consequence of being in business. The company's aim is
therefore to achieve an appropriate balance between risk and return
and minimise potential adverse effects on the company's financial
performance.
The company's risk management policies approved by the Board
of Directors are designed to identify and analyse these risks, to set
appropriate risk limits and controls, and to monitor the risks and
adherence to limits by means of reliable and up-to-date information
systems. The company regularly reviews its risk management policies
and systems. The Chief Risk Officer oversees risk management based
on policies approved by the Board of Directors. In addition, Internal
Audit is responsible for the independent review of risk management
and the control environment.
The main types of risk are credit risk, liquidity risk and market risk.
Market risk includes currency risk, interest rate and price risk.
3.1 Credit risk
The company takes on exposure to credit risk, which is the risk that a
customer or counterparty will cause a financial loss to the company
by failing to discharge an obligation. Credit risk is an important
risk for the company's business and management, therefore, the
company carefully manages its exposure to credit risk. Credit
exposures arise principally in lending activities and placement of
deposits and balances with the banks. There is also credit risk in
off balance sheet financial commitments such as unused credit card
limits and guarantees given.
The credit risk management and control function is overseen by the
Chief Risk Officer. The Business Risk and Compliance Committee
periodically reviews and monitors all applicable risk including credit
risk limits.
Exposure to credit risk is also managed through regular analysis
117
of the ability of counterparties to meet interest and repayment
obligations and by changing these limits where appropriate.
3.1.1 Credit risk measurement
In measuring credit risk of loans and advances to customers, the
company adopts the following approaches:
and ultimately proving to be not recoverable.
3.1.4 Maximum exposure to credit risk before collateral held or other credit enhancements
When there have been changes in economic, regulatory or
behavioural conditions, historical loss experience provides less
relevant information when the most recent trends in the portfolio
risk factors are not fully reflected in statistical models. In such
circumstances such risk factors are taken into account when
calculating the appropriate level of losses.
The following table analyses the company's maximum exposures to credit risk at their carrying amounts, as categorised by the market
segments and product types, all of which are in the United Arab Emirates.
(i) Individually assessed loan and advance
Salaried
mass market
Self employed
mass market
Salaried mass
affluent
Others
Total
AED’000
AED’000
AED’000
AED’000
AED’000
86,650
143,004
31,584
-
13,047
5,540
-
21,664
-
3.1.2 Risk limit control and mitigation policies
At each date of the statement of financial position, a case by case
assessment is carried out to identify whether there is objective
evidence that a loan and advance is impaired. This approach is
applied to loans and advances that are considered individually
significant. The loss includes the aggregate exposure to the
customer, and amount of expected receipts. The realisable
value of security and collaterals and the likelihood of successful
repossession will have to be considered as well as the likely
costs involved in recovery of outstanding amounts.
(ii) Collectively assessed loans and advances
Impairment is assessed on a collective basis to:
&RYHUORVVHVZKLFKKDYHEHHQLQFXUUHGEXWKDYHQRW\HW
been identified on loans and advances subject to individual
assessment.
Individually assessed loans for which no evidence of loss has
been specifically identified on an individual basis are grouped
together according to the credit risk characteristics for the
purpose of calculating an estimated collective loss. This
reflects losses incurred at the date of financial position which
will only be individually identified in future. The measurement
of the loss will factor in the:
- historical loss experience in portfolios with similar risk
characteristics;
- emergence period which is the time period between when
the impairment actually occurs till there is objective
evidence that impairment exists; and
- management's judgment as to whether the prevailing
economic and credit conditions could result in the actual
loss being higher or lower than that suggested by
historical experience.
&RYHUORVVHVIRUKRPRJHQHRXVJURXSVRIORDQVDQGDGYDQFHV
that are not considered individually significant.
Where adequate historical information is available, statistical
methods are used to calculate losses inherent in the portfolio.
Loss rates are calculated based on historical trends of
delinquency and default to estimate the likelihood of loans
and advances going through the various stages of delinquency
118
The company manages limits and controls concentration of credit
risk to individuals, employees of different industry sectors and
tenors. Such risks are monitored regularly and subject to an annual
formal review. Limits to banks are approved by the Board of Directors
and exposures within the limits tracked daily.
The company extensively uses analytics to monitor changes in
the credit profiles of its segmented portfolio. Analytical tools are
used to weigh the risk reward equation to aid decision making in
terms of lending to selected customer segments. Further monitoring
of delinquencies across the customer loan portfolio is aimed at
identifying trends and ensuring that the credit risk related to the
portfolio is pro-actively managed. The company has pre-defined
delinquency ratio ranges which will warrant appropriate remedial
action if the ranges are breached. Credit risk to professional
counterparties is managed by due diligence and evaluation of the
professional counterparty's credit risk which may include reference
to external credit ratings.
Collaterals are used as mitigating tools by the company. The principal
acceptable collaterals are:
(i) Mortgages over the vehicles for the auto loans and advances
(ii) Cash deposits for personal loans and advances to customers
and guarantees issued on behalf of customers
The maximum value of the loan and advance and the guarantees,
as well as the valuation frequencies are clearly documented in the
credit policy.
At 31 December 2011
On balance sheet assets:
Loans and advances
- Credit cards
- Personal loans
- Auto loans
- Loans secured by deposits
Deposit with banks
Other assets
Total
Off balance sheet items:
Unused credit card limits
Financial guarantees (Note 24)
Total
At 31 December 2010
On balance sheet assets:
Loans and advances
- Credit cards
- Personal loans
- Auto loans
- Loans secured by deposits
Deposit with banks
Other assets
Total
Off balance sheet items:
Financial guarantees (Note 24)
Total
83,477
55,413
3,721
55,413
3,721
261,238
48,816
638,521
77,674
13,327
65,076
-
204,460
65,076
77,674
13,327
178,535
-
78,150
-
14,354
12,113
16,711
-
56,772
123,847
874
-
62,733
3,524
107,117
214,110
52,556
874
62,733
3,524
130,238
43,178
201,241
66,257
-
-
-
106,612
72,214
-
3.1.3 Impairment and provisioning
The segmentation of loans and advances is used as a basis to assess the quality of the loans and effectively manage the credit risk.
The company establishes an allowance for impairment losses that
represents its estimate of incurred losses in its loan portfolio.
The main components of this allowance are a specific loss
component that relates to individual exposures, and a collective
impairment loss allowance for losses that have been incurred but
not identified, established for groups of homogeneous loans with
similar risk characteristics. Future cash flows from a group of loans
and advances that are collectively evaluated for impairment are
estimated on the basis of historical loss experience for assets with
credit risk characteristics similar to those in the group.
The total outstanding contractual amount of commitments towards unused credit card limits does not necessarily represent future cash
requirements, since these unused credit card limits may not be fully utilised and are revocable by the company.
Financial guarantees represent guarantees issued by the company on behalf of customers in favour of UAE Ministry of Labour and are
substantially secured by cash collateral (Note 10).
119
3.1.5 Loans and advances
6HWWLQJDQGPRQLWRULQJOLPLWVIRUWKHDERYHPHQWLRQHGSURFHVV
The gross amount of loans and advances, net of write offs, which are current and past due and the corresponding impairment allowances
are as follows:
Sources of liquidity are regularly reviewed and the company seeks to diversify funding sources and increase investor base to ensure
continuous access to debt markets. All liquidity policies and procedures are subject to review and approval by the Asset and Liability
Committee (“ALCO”).
As at 31 December
2011
2010
AED’000
AED’000
535,555
Past due up to 30 days
18,080
14,452
3DVWGXHGD\V
18,565
13,878
3DVWGXHGD\V
7,187
5,372
374,657
Current
Total
Impairment
3.2.1 Non derivative financial liabilities and liquidity risk
The table below presents the maturity profile of the cash flows payable by the company in respect of its non-derivative financial liabilities,
by remaining contractual maturities at the statement of financial position date. The amounts disclosed in the table are the contractual
undiscounted cash flows.
Less than 1
year
1-5 years
More than
5 years
Total
AED’000
AED’000
AED’000
AED’000
163,857
7,237
260,606
7,714
-
-
7,714
At 31 December 2011
Current
(4,780)
Customer deposits
Past due up to 30 days
(4,722)
(3,506)
3DVWGXHGD\V
(6,361)
Borrowings
12,820
-
Other liabilities
61,313
-
70,815
Total
(23,511)
(18,006)
Total
245,704
111,143
7,237
364,084
Net loan amount
555,876
356,651
At 31 December 2010
3DVWGXHGD\V
28,220
-
1,184
-
-
1,184
Borrowings
51,361
-
60,305
43,267
2,174
53,423
102,865
81,755
Customer deposits
There were no loans which were past due but not impaired at 31 December 2011.
Loans and advances of AED 22.2 million (31 December 2010: AED 16.2 million) have been written off to the statement of comprehensive
income. Loans and advances of AED 30.7 million (31 December 2010: AED 23.1 million) have been written off against the impairment
allowance.
Other liabilities
Total
3.2 Liquidity risk
Liquidity risk is the risk that the company is unable to meet its payment obligations associated with its financial liabilities when they fall
due and to replace funds when they are withdrawn. The consequence may be the failure to meet obligations to repay depositors and fulfil
commitments to lend.
The company's approach to managing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity to meet its
liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the company's
reputation.
The company's liquidity management process includes:
0DQDJLQJGD\WRGD\IXQGLQJWKURXJKDQWLFLSDWLQJDQGPRQLWRULQJIXWXUHFDVKÕRZUHTXLUHPHQWV
7KHSULPDU\WRROHPSOR\HGE\WKHFRPSDQ\LVWKHPDWXULW\PLVPDWFKDQDO\VLVZKLFKLQFOXGHVEHKDYLRXUDODVVXPSWLRQVRQGHEWVDQG loans repayments.
0RQLWRULQJEDODQFHVKHHWOLTXLGLW\UDWLRVPDUNHWPRYHPHQWVDQGLQWHUHVWUDWHIRUHFDVWV
120
121
3.2.2 Off balance sheet items
3.3.1 Interest rate risk
a. Unused credit card limits
Interest rate risk arises from mismatches in the interest rate profile of the company's assets and liabilities. Cash flow interest rate risk is
the risk that the future cash flows of a financial instrument will fluctuate due to changes in the market interest rates. The company takes
on exposure to the effects of fluctuations in the prevailing levels of market interest rates on both its fair value and cash flow risks. The
company strives to maintain an interest rate profile that will lead to financial performance consistent with its long term objectives.
The date of the contractual amount of the company's commitment towards unused credit card limits (Note 24(b)) is summarised in the
following table. However, the commitments to extend credit are revocable at the option of the company.
b. Financial guarantees
Financial guarantees represent guarantees issued by the company on behalf of customers in favour of UAE Ministry of Labour (Note
24(b)) and are also included in the following table based on the earliest contractual maturity date. The financial guarantees issued are
substantially collateralised by deposits received from the customers.
The ALCO sets limits on the level of mismatch of interest rate re-pricing that may be undertaken, which are monitored by the market risk
manager. Regular stress testing is performed using hypothetical scenarios to monitor the company's vulnerability to simultaneous shocks
on market risks. It gives an indication of the potential loss that arises in extreme conditions, facilitating the proactive management of
market risks in an environment of rapid market changes.
The table below summarises the company's exposure to interest rate risk. It includes the company's assets and liabilities at carrying
amounts, categorised by the earlier of contractual re-pricing or maturity dates.
c. Operating lease commitments
The future minimum lease payments under non-cancellable operating leases for properties as disclosed in Note 24(a) are summarised in
the following table.
d. Capital commitments
Capital commitments in respect of branch refurbishments and equipment and software purchases (Note 24(c)) are summarised in the
following table.
Less than
1 year
1-5 years
Total
AED’000
AED’000
AED’000
204,460
-
204,460
65,076
-
65,076
4,812
274,348
278,507
At 31 December 2011
Financial guarantees
Operating lease commitments
Total
At 31 December 2010
Operating lease commitments
Capital commitments
Total
106,612
-
106,612
-
3,333
7,275
10,608
350
-
350
122,212
7,275
3.3 Market risk
Up to 3
months
3 months to
1 year
1 year to
5 years
Over
5 years
Non-interest
bearing
Total
AED’000
AED’000
AED’000
AED’000
AED’000
AED’000
Effective
interest rate
At 31 December 2011
Assets
Loans and advances
-
-
-
55,851
1.61%
240,515
218,608
-
-
555,876
32.05%
-
-
-
-
-
Intangible assets
-
-
-
-
-
Other assets
-
-
-
-
11,243
11,243
-
277,460
218,608
-
50,037
642,858
Customer deposits
48,033
112,350
77,133
4,073
-
Borrowings
Employees’ end of service
benefits
-
-
-
7,714
-
7,714
7.34%
-
-
-
-
4,207
4,207
-
Total assets
Liabilities and equity
Other liabilities
-
-
-
-
80,575
80,575
-
Shareholders’ equity
-
-
-
-
-
71,712
112,350
77,133
4,073
642,858
205,748
141,475
(4,073)
(327,553)
Total liabilities
and equity
Interest rate
sensitivity gap
-
The company takes on exposure to market risk, which is the risk that fair value or future cash flows will fluctuate as a result of changes in
market prices. Market risk arises from exposure to currency and interest rate fluctuations. The ALCO meets regularly to review and provide
direction related to interest rate risk, currency risk and price risk in the company. It ensures that the exposures of the company are within
prudent levels.
The main measurement techniques used to measure and control market risks are outlined on the following page:
122
123
Up to 3
months
3 months to
1 year
1 year to 5
years
Over 5 years
Non-interest
bearing
Total
AED’000
AED’000
AED’000
AED’000
AED’000
AED’000
Effective
interest rate
The company does not have any significant foreign currency exposure since it's transactions are in UAE Dirhams or US Dollar and the UAE
Dirham is currently pegged against the US Dollar
At 31 December 2010
3.3.3 Price risk
Assets
Loans and advances
22,143
-
-
140,265
61,254
155,128
-
-
-
5,073
63,144
2.54%
4
-
356,651
30.08%
-
15,876
15,876
-
Intangible assets
-
-
-
-
-
Other assets
-
-
-
-
-
162,408
155,128
4
41,224
Customer deposits
31,455
16,346
26,272
-
-
74,073
4.86%
Borrowings
Employees’ end of service
benefits
-
-
-
1,184
-
1,184
7.34%
-
-
-
-
3,433
3,433
-
Total assets
Price risk is the risk that the value of the company's financial instruments will fluctuate as a result of changes in market prices caused by
factors other than interest rates or foreign currency movements. The price risk arises primarily from uncertainty about the future price of
financial instruments that the company holds. The company does not hold financial instruments whose value is affected by changes in
market prices and therefore it is not exposed to any price risk.
3.4 Fair value of financial assets and liabilities
The fair values of the company's financial assets and liabilities approximate their carrying values as reflected in these financial
statements.
Liabilities and equity
Other liabilities
-
-
-
-
55,311
55,311
-
Shareholders’ equity
-
-
-
-
-
86,423
16,346
26,272
-
80,836
128,856
4
(285,681)
Total liabilities
and equity
Interest rate
sensitivity gap
3.3.2 Currency risk
3.5 Capital management
The company's objectives when managing capital, which is a broader concept than the 'equity' on the face of balance sheets, is:
to comply with the capital requirements set by its regulator;
to safeguard the company's ability to continue as a going concern so that it can continue to provide returns for shareholders; and
to maintain a strong capital base to support the development of its business.
Capital adequacy is monitored regularly by the company, based on the guidelines stipulated by the Central Bank of the UAE. The minimum
capital requirement stipulated by the Central Bank of the UAE is 15%. The company calculates its capital adequacy ratio in accordance with
guidelines established by the Central Bank of the UAE prescribed as the ratio of total capital to total assets and is analysed as follows:
-
Interest rate sensitivity
The company is exposed to the effects of fluctuations in the prevailing levels of rates of interest on its cash flows.
Interest rate risk is assessed by measuring the impact of reasonable possible change in interest rate movements. The company assumes a
fluctuation in interest rates of 10 basis points (bps) in interest rate and estimates the following impact on the net result for the year and
equity at that date:
As at 31 December
Fluctuation in interest rates by 10 bps
2011
2010
AED’000
AED’000
33
The interest rate sensitivities set out above are illustrative only and employ simplified scenarios. The sensitivity does not incorporate
actions that could be taken by management to mitigate the effect of interest rate movements.
124
125
As at 31 December
2011
2010
AED’000
AED’000
5 Cash and deposits with banks
Tier 1 capital
Share capital
Share premium
Statuatory reserve
Accumulated losses
550,000
550,000
35,544
35,544
1,812
For the purpose of the cash flow statement cash and cash equivalents have been calculated as follows:
As at 31 December
(318,567)
(230,743)
Current year loss
-
(87,824)
Intangible assets
Total tier 1 capital
The company determines the appropriate discount and attrition rate at the end of each reporting period. In determining the appropriate
discount rates, the company considers the interest rates of treasury bonds that have terms to maturity approximately the terms of the other
employee benefits liability.
55,851
63,144
Less: deposits with maturities over 3 months
(35,000)
20,851
27,216
Tier 2 capital
-
-
Total tier 2 capital
-
-
On balance sheet
633,724
443,674
Off balance sheet
610
-
634,334
443,674
41.0%
57.7%
Personal loans
41.0%
57.7%
Auto loans
15%
15%
Risk weighted assets
Total risk weighted assets
Risk asset ratio on total capital base (%)
Risk asset ratio on tier 1 capital base (%)
Minimum risk asset ratio required by the UAE Central Bank
4 Critical accounting estimates and judgements
The company makes estimates and assumptions that affect the reported amounts of assets and liabilities within the next financial year.
Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of
future events that are believed to be reasonable under the circumstances.
Impairment losses on loans and advances
The company establishes an allowance for impairment losses that represents its estimate of incurred losses in its loan portfolio. The main
components of this allowance are a specific loss component that relates to individual exposures, and a collective impairment loss allowance
for losses that have been incurred but not identified, established for groups of homogeneous loans with similar risk characteristics. Future
cash flows from a group of loans and advances that are collectively evaluated for impairment are estimated on the basis of historical loss
experience for assets with credit risk characteristics similar to those in the group.
2010
AED’000
Total regulatory capital
2011
AED’000
Deposits with banks are placed with financial institutions in the UAE, and carry interest of 0.62% (31 December 2010: 1.1% to 3.5%) per
annum.
Deposits of AED 35,000,000 (31 December 2010: AED 35,125,000) have been pledged against guarantees issued by a bank on behalf of the
company.
6 Loans and advances
As at 31 December
2011
2010
AED’000
AED’000
83,477
52,556
Credit cards
107,117
374,657
Less: impairment allowance
(23,511)
(18,006)
555,876
356,651
18,006
14,222
Movement in provision for impairment:
At beginning of the year
Impairment charge for the year (Note 21)
Written off during the year
At end of the year
36,214
(23,123)
23,511
18,006
Other employee benefits
The present value of the equity based payment scheme included in other employee benefits depends on a number of factors that are
determined using a number of assumptions. The assumption used in determining the accrual for other employee benefits include the
discount and attrition rate. Any change in these assumptions will impact the carrying amount of other employee benefit obligation.
126
127
8 Intangible assets
7 Property and equipment
Office
equipment
Leasehold
improvements
Motor
vehicles
Work in
progress
Total
Consultancy
services
Computer
software
Work in
progress
Total
AED’000
AED’000
AED’000
AED’000
AED’000
AED’000
AED’000
AED’000
AED’000
601
28,402
11
283
(2,450)
(283)
(255)
11
(12,331)
Cost
$W'HFHPEHU
10,552
At 1 January 2010
Additions
Transfers
Amortisation charge
Write off
14,541
573
467
30,502
Additions
331
47
40
1,338
Transfers
31
436
-
(138)
(1,307)
-
-
(1,445)
At 31 December 2010
-
63
15,145
620
40
Additions
245
(8)
-
-
237
Additions
Amortisation charge
-
(2,486)
-
(2,486)
Transfers
40
-
-
(40)
-
At 31 December 2011
-
8,633
63
'LVSRVDOVZULWHRII
At 31 December 2010
Disposals
At 31 December 2011
(467)
-
(42)
(7)
-
-
15,388
14,575
620
-
30,583
2WKHUDVVHWV
Depreciation
At 1 January 2010
(3,837)
(227)
-
Charge for the year
(3,185)
(122)
-
(6,546)
'LVSRVDOVZULWHRII
84
836
-
-
At 31 December 2010
(6,186)
-
Charge for the year
(2,676)
(2,112)
(124)
-
Disposals
The effect of the revision in estimate on the current period is a decrease in the amortisation charge by AED 1 million.
37
(10,623)
3
(473)
-
40
As at 31 December
2011
2010
AED’000
AED’000
Prepaid expenses
5,184
4,114
Advances to employees
1,453
1,667
13
173
Accrued interest receivable
Deposits
Others
Net book value
At 31 December 2011
At 31 December 2010
4,765
7,161
6,280
8,404
147
271
40
15,876
Less: impairment allowance
844
3,880
2,510
11,374
(131)
(25)
11,243
The effect of the revision in estimate on the current period is a decrease in the depreciation charge by AED 0.3 million.
128
129
12 Borrowings
10 Customer deposits
As at 31 December
Corporate term deposits
2011
2010
AED’000
AED’000
74,073
As at 31 December
Bank overdraft
2011
2010
AED’000
AED’000
-
24,000
30,000
&XVWRPHUGHSRVLWVFDUU\DQLQWHUHVWUDWHRI'HFHPEHUSHUDQQXP
Term loan
24,000
&XVWRPHUGHSRVLWVRI$('PLOOLRQ'HFHPEHU$('PLOOLRQDUHKHOGDVFROODWHUDOIRUJXDUDQWHHVLVVXHGRQEHKDOIRIFXVWRPHUV
Transaction costs
(3,800)
(3,800)
Amortisation of transaction costs
838
11 Related party transactions and balances
Related parties comprise of shareholders and directors of the company, entities controlled by them and the key management personnel of
the company. During the period the company entered into the following significant transactions with related parties in the ordinary course of
business at mutually agreed terms and conditions.
a. Transactions with key managerial personnel
As at 31 December
2011
2010
AED’000
AED’000
12,814
15,714
676
1,547
Key managerial remuneration comprise:
Salaries and other short-term employee benefits
,QWKHFRPSDQ\KDGREWDLQHGDEDQNIDFLOLW\RI$('PLOOLRQFRPSULVLQJDQRYHUGUDIWFRPSRQHQWRI$('PLOOLRQDQGDWHUPORDQ
component of AED 150 million of which AED 30 million has expired unutilised in August 2011. The bank facility is unsecured, and has a final
maturity in August 2013. The term loan carries an effective interest rate of 7.3% (31 December 2010: 7.3%) per annum.
The maturity profile of the outstanding loan amount is disclosed in Note 3.2.1 and that of the undrawn facility at 31 December 2011 is as
follows:
As at 31 December
2011
2010
AED’000
AED’000
136,000
120,000
-
12,070
136,000
132,070
2011
2010
AED’000
AED’000
At beginning of the year
3,433
2,847
Charge for the year
1,047
Floating rate
Expiring within one year
b. Other related party transactions and balances
Expiring beyond one year
The company has the following transactions and balances due to related parties representing amounts paid by the shareholders for the purpose
of financing operating expenses incurred by the company and other contractual payments for services rendered.
As at 31 December
Related party transactions during the year
The balances due to related parties are payable on demand and bear no interest.
2011
2010
AED’000
AED’000
10,173
5,154
7,714
The bank facility has been arranged to help finance the expansion of the company's activities.
13 Provision for employees' end of service benefits
As at 31 December
1,184
Payments during the year
At end of the year
130
(1,173)
(461)
4,207
3,433
131
The provision for end of service benefits due to expatriate employees is made in accordance with the UAE Labour Law for their periods
RIVHUYLFHXSWRWKHEDODQFHVKHHWGDWH,QDFFRUGDQFHZLWKWKHSURYLVLRQVRI,$6DQDFWXDU\KDVFDUULHGRXWDQH[HUFLVHWRDVVHVVWKH
present value of its obligations as at 31 December 2011, using the projected unit credit method, in respect of employees' end of service
benefitspayable under the UAE Labour Law. The expected liability at the date of leaving the service has been discounted to its net
present value using a discount rate of 6.5% (2010: 7.5%). Under this method an assessment has been made of an employee's expected
service life with the company and the expected basic salary at the date of leaving the service. The actuary has assumed average annual
LQFUHPHQWSURPRWLRQFRVWVRI
16 Dividends
At the meeting held on March 1,2012 the Board of Directors proposed a cash dividend of AED 5 per share of AED 1,000 issued and paid up capital
amounting to AED 2,750,000 in respect of the year ended 31 December 2011( 2010: Nil).
Dividends are not accounted for until they have been approved at the Annual General Meeting and, accordingly, the proposed dividend
will be accounted for as an appropriation of retained earnings in the year ended 31 December 2012 after it has been approved by the
shareholders.
14 Other liabilities
17 Other employee benefits
2011
2010
AED’000
AED’000
Accrued expenses
32,034
Sundry creditors
23,714
1,815
As at 31 December
Deferred fee and commission income
Others
13,232
2,014
2,113
80,575
55,311
15 Share capital and share premium
2Q-DQXDU\WKHFRPSDQ\LPSOHPHQWHGDQHTXLW\EDVHGSD\PHQWVFKHPH§WKHVFKHPH¨ZKLFKHQWLWOHVFHUWDLQHPSOR\HHVWRFDVK
payments, determined on the basis of the book value of the shares of the company at the end of each of its financial years commencing
2011 to 2015 and subject to the condition that the company achieves its budgeted results during the expected seven year period covered by
the scheme.
The accrual in respect of the scheme as at 31 December 2011 is AED 10 million (31 December 2010: AED 8 million) and is determined on the
basis of the assumption that most of the eligible employees will remain with the company during the period covered by the scheme and the
company will achieve its budgeted results during each of the years covered by the scheme.
On 1 April 2011 the company implemented a Long Term Incentive plan in the form of a deferred cash plan payable over the next three years,
subject to the employee continuing his service with the company. These benefits are expected to be settled in April of three successive years after the
grant of the awards.
Share issue expenses were written back in the previous year since they were no longer considered to be payable by the company.
As on 31 December 2011 the accrual in respect of the scheme is AED 3.2 million (31 December 2010: Nil) and is determined on the basis of
the assumption that all the eligible employees will remain with the company during the period covered by the scheme.
Share capital
18 Statuatory reserve
As at 31 December
2011
2010
AED’000
AED’000
550,000
550,000
,QDFFRUGDQFHZLWKWKH8$()HGHUDO/DZ1RRIDVDPHQGHGDQGWKH8$(8QLRQ/DZ1RRIDVDPHQGHGRIWKHQHW
profit for the year is transferred to a legal reserve, until such time as the balance in the reserve equals 50% of the issued share capital. This
reserve is not available for distribution. Accordingly, AED 1.8 million was transferred to the statutory reserve on 31 December 2011.
Authorised, issued and paid up share capital:
550,000 shares of AED 1,000 each
Share premium
,QWHUHVWLQFRPHDQGH[SHQVH
2011
2010
AED’000
AED’000
2011
2010
AED’000
AED’000
152,670
83,215
Interest income
$WEHJLQQLQJRIWKHSHULRG\HDU
Provision for share issue expenses written back
At end of the year
31,872
-
on loans and advances
-
3,672
-
on deposits with banks
35,544
35,544
35,544
727
3,067
86,282
Interest expense
132
-
on customer deposits
8,180
3,036
-
on borrowings
4,548
350
12,728
3,386
133
23 Staff costs
20 Fees and commission income
Fees and commission income includes a sum of AED 25 million (31 December 2010: Nil) recognised from the provision of advisory services by
the company.
21 Impairment charge, net
2011
2010
AED’000
AED’000
Salaries and other short term benefits
2011
2010
Employees' end of service benefits
1,047
3,213
4,862
41,456
45,338
AED’000
AED’000
Impairment charge on loans and advances (Note 6)
36,214
Loans and advances written off
107
25
43,201
a. Operating lease commitments
(4,280)
(1,027)
The future minimum lease payments under non-cancellable operating leases for properties are as follows:
54,310
42,174
Impairment charge on other assets
Recovery of loans and advances
24 Contingent liabilities and commitments
2011
2010
AED’000
AED’000
No later than 1 year
4,812
3,333
Later than 1 year and no later than 5 years
7,275
-
-
10,608
204,460
65,076
106,612
22 General and administrative expenses
Outsourced services
2011
2010
AED’000
AED’000
46,712
Staff costs (Note 23)
41,456
45,338
Occupancy costs
11,817
6,435
6,413
Advertising, publicity and promotional expenses
3,712
Legal and professional fees
1,108
278
Information technology expenses
Loss on disposal of fixed assets
Other expenses
Later than 5 years
12,856
14,610
125,655
140,057
b. Commitment to extend credit and guarantees
The total outstanding contractual amount of commitment towards unused credit card limits does not necessarily represent future cash
requirements, since these credit card limits may not be fully utilised and are revocable at the option of the company.
Financial guarantees represent guarantees issued by the company on behalf of commercial customers in favour of UAE Ministry of Labour and
are substantially collateralised by customer deposits.
c. Capital commitments
$W'HFHPEHUWKHFRPSDQ\KDVQRFDSLWDOFRPPLWPHQWV'HFHPEHU$('
134
135
flashing forward...
136
137
Corporate Head Office
Dunia Finance LLC
P.O. Box 44005
Abu Dhabi, UAE
24-hour contact center
+9714-42-dunia (38642)
www.dunia.ae
138