Shuaa, the Dubai-based investment bank, reported a third-quarter net profit on Wednesday driven by growth in its core asset management and lending business.

Shuaa made a net profit of Dh3.6 million ($980,100) in the third quarter compared with a loss of Dh13.9 million in the corresponding period in 2012.

Revenue for the quarter was Dh54.8 million, up 57 percent from Dh34.9 million in the prior year period.

This is the first time Shuaa has reported two consecutive profitable quarters since the onset of the financial crisis in 2008, it said.

Shuaa maintains its strong balance sheet with total assets standing at Dh1.5 billion as of September 30. Loans, advances and finance leases rose by Dh114 million during the third quarter totalling to Dh845 million at the end of the period.  Consequently the group’s cash position was down 16 per cent to Dh202 million and total liabilities increased from Dh265 million to Dh372 million over the quarter, it said.

HH Sheikh Maktoum Hasher Al Maktoum, executive chairman, said: “We are pleased to report two successively profitable quarters. The improved market environment in the UAE drove client activity and our core businesses generated solid results. Shuaa’s positive performance reflects the progress we have made on strategic, operational and financial initiatives. We are encouraged to see higher quality fee and interest income generation during the quarter, which now accounts for 75 per cent of quarterly revenue. The economic recovery in the UAE balances our revenue expectations for the year and unlocks Shuaa’s operating leverage in our market facing businesses." - TradeArabia News Service