Dubai-based investment bank Shuaa Capital has reported net profits of Dh2.8 million for the year 2013. The profits are small but significant in that they mark a turnaround for the bank, which witnessed a net loss of Dh59 million in 2012.
In a media statement issued this morning, Shuaa said its Q4 2013 revenues rose to Dh63 million, an increase of 153 per cent compared to revenues of Dh25 million in the fourth quarter of 2012. Net profit for the last quarter of 2013 was circa Dh3.8 million, compared to net loss of Dh21 million in the fourth quarter of 2012.
Total revenues generated in 2013 were approximately Dh198 million, a 44 per cent increase versus Dh137 million in 2012. All revenue generating business divisions were profitable in 2013 and contributed to this strong performance, the investment bank said in its statement.
Shuaa reported total assets of Dh1.5 billion at year-end 2013, an increase of Dh116 million compared to December 31, 2012. In line with the company’s forecast for 2013 and its plans to grow its lending business by redeploying balance sheet and increasing liabilities, cash declined by Dh234 million to Dh189 million and liabilities increased to Dh377 million from Dh269 million. Shuaa’s leverage ratio at year-end 2013 was 0.23.
“We reached our financial targets thanks to a relentless team effort and improved market conditions which have accelerated revenue growth across our core businesses. This, together with continued rigorous cost control has produced this significant result and marks the turning point for the company,” said HH Sheikh Maktoum Hasher Al Maktoum, Executive Chairman of Shuaa Capital.
“The 2013 results clearly demonstrate the success of our strategic transformation,” he added. “Shuaa has now reached a new level in terms of balance sheet strength, risk profile and profitability.”