DFM Company net profit soars 411% to Dhs38.9m during the first three quarters of 2012

The Company's performance improved during the third quarter of 2012 with the quarterly net loss declining to Dhs1.7m compared to Dhs9.3m in Q3 - 2011.

The Company recorded a total revenue of Dhs155.5m at the end of Q3-2012 compared to Dhs145.1m during the corresponding period in 2011. The revenue comprised of Dhs121m of operating income and Dhs34.5m of investment returns. The Company expenses reached Dhs116.6 m compared to Dhs137.5m recorded during the first three quarters of 2011. During the third quarter of 2012, the Company's revenue reached Dhs36.8m compared to Dhs31.7m, whilst expenses amounted to Dhs38.5m in the same period compared to Dhs41m in Q3- 2011.

It is noteworthy that the DFM trading value significantly increased by 46.6% to reach Dhs40.4bn during the first nine months of this year compared to Dhs27.6bn in the corresponding period of last year. Furthermore, the trading value at the end of Q3-2012 surpassed levels achieved during the entire year of 2011 by 26%. Meanwhile, trading value decreased 9.9% to Dhs8.1bn in the third quarter of 2012 compared to Dhs9.03bn in the same period of 2011.

Abdul Jalil Yousef Darwish, Chairman of Dubai Financial Market (PJSC) said: "Since the beginning of this year, the DFM Company has relentlessly endeavored to create a thriving and supportive environment with the aim to restore normal market activity. For this purpose, we have accredited 3 new brokerage firms for Margin Trading in 2012, compared to one company to the previous year, raising the total number of DFM-licensed brokerages which offer this service to their clients, to 4. This is expected to leave a positive mark on the exchange's performance, and ultimately on the Company's revenue in the future. The total value of Margin Trading reached Dhs337.5m since the introduction of this mechanism and we believe that Margin Trading will gain momentum with the accreditation of more brokerage firms who have already applied. We are confident that DFM is well positioned for a new beginning given the various market infrastructure enhancements implemented over the last two years. Evidently, the best indication of this is the significant improvement in trading value and witnessing DFM as the best performing regional exchange with its general index increasing 20% year to date."

Essa Abdul Fattah Kazim, Managing Director and CEO of Dubai Financial Market (PJSC) said: "DFM is currently carrying out a series of measures to prepare its systems and procedures for the introduction of "Market Making" and three other supportive mechanisms including; "Securities Lending & Borrowing (SLB)", "Short Selling" and "Liquidity Providing". These measures include the introduction of an SLB system whereby OTC SLB transactions will be settled by DFM. We are also creating new trade types for Short Selling, Market Making and Liquidity Providing to facilitate the monitoring, reporting and settlement of such trades. Our plans also include developing relevant new business rules, obtaining regulatory approvals, and communicating with the DFM market participants to explain the new business model, to ultimately ensure the effective introduction of the new trading mechanisms."