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28 March 2024

Shuaa reports small profit for H1

Sheikh Maktoum Hasher Al Maktoum, Executive Chairman of SHUAA Capital. (SUPPLIED)

Published
By Staff

Dubai-based Shuaa Capital today reported preliminary unaudited financial results for the six-month period ended June 30, 2014.

Revenues were 46.1 per cent higher at Dh116.2 million in the first half 2014, compared to Dh79.5m in the same period in 2013, it said in a media statement.

Net profit was Dh14.4m during H1, a Dh19m improvement versus a net loss of Dh4.6m reported in the first half of 2013.

All core fee and interest generating business divisions posted a net profit with significant progress coming through in asset management, investment banking and lending.

“Shuaa has had a strong first half with continued improvement in both top and bottom line results, further supporting our return to sustained profitability. This is a result of our earlier decision to keep investing balance sheet resources into SME Lending and to position the business to capture improved capital market activity,” said Sheikh Maktoum Hasher Al Maktoum, Executive Chairman of Shuaa Capital.

In Q2, revenues were Dh52m (Q2 2013: Dh43.4m) and net profit was Dh6.2m (Q2 2013: Dh1.3m).

The firm’s asset management division reported a Q2 2014 net profit of Dh4.2m. Its investment banking division posted a net profit of Dh4.5m as a result of increased advisory and IPO mandates. During the period, Shuaa was sponsor and joint book runner for the successful Emirates REIT IPO.

Its capital markets department reported net profit in Q2 2014 of Dh1.8m underpinned by improvements in both interest income and net fees and commissions. The bank’s lending business reported net profit of Dh7m in Q2 2014.

However, Corporate, the centralised corporate cost-centre, generated a loss of Dh11.2m in Q2 2014, similar to Q1 despite lower gains on investments in Shuaa managed funds as seen in the first quarter.

“The economic outlook for the UAE remains strong and gives us confidence that we can continue to build out our market positions as we look ahead to the second half of 2014,” added Sheikh Maktoum.

“To the backdrop of increased client activity, we have expanded our core businesses and hired new talent.  We believe that we are in a strong competitive position to increase our market share as institutional investors look to access our markets and local businesses continue to execute on their growth plans.”