Shuaa swings to small Q3 profit

Investment bank Shuaa Capital on Wednesday swung to a third-quarter profit, buoyed by gains in its investment banking business.

Shuaa posted a profit of Dh0.2 million in the three months to Sept. 30, up from a loss of Dh269.26 million in the same period last year.

The company, one of the Gulf Arab region's largest investment banks, was hit hard by the global financial downturn as impairments related to troubled assets erased profits.

"Recording a profit, albeit small, is an important achievement in an extremely challenging environment characterised by the lowest market activity since 2004," said Majid Al Ghurair, chairman of Shuaa Capital in a statement.

The company said its investment banking division recorded a profit of Dh2.9 million for the third quarter, up 625 per cent over the previous year.

Shuaa said its investment banking division is finalising two mergers and acquisitions transactions, working on two private placements and sees the syndicate and trading desk becoming more active, despite weak market conditions.

Last month, chief executive Sameer al-Ansari told Reuters Middle East Investment Summit that the firm has mandates for five initial public offerings (IPOs) in the UAE.

Shuaa in February said it aimed to triple its fee income in the next three years, as it struggled to become profitable again.