Wednesday 20 June 2018

Shuaa swings to $2.2m Q1 net profit

Dubai, April 13, 2014

Leading UAE investment bank Shuaa Capital has registered a Dh8.2 million ($2.23 million) net profit in the first quarter of 2014 compared to a net loss of Dh5.9 million for the same period the previous year.

The Dubai-based lender said the revenues were 77 per cent higher at Dh64 million in the first quarter compared to Dh36 million last year. All core fee and interest generating business divisions posted a net profit for the period ended March 31, 2014.

On a sequential basis, the net profit increased 118 per cent from Dh3.8 million in the fourth quarter of 2013, on revenues of Dh64 million. Higher income in the lending and investment banking divisions accounted for the majority of the quarter-on-quarter improvement, said a statement from Shuaa.

Shuaa said the investment banking sector posted a net profit of Dh8 million, making it the strongest performing division of the quarter. The sector continues to perform well with the increasing number of IPOs and corporate transactions being worked on.

In the first quarter of 2013, the investment banking division had recorded a net loss of Dh0.87 million, said the company statement.

Lending generated a net profit of Dh7.4 million compared to a profit of Dh2.6 million last year. Shuaa's revenues surged 47 per cent to Dh30.8 million, compared to Dh20.9 million generated in the same period last year.

Executive chairman Sheikh Maktoum Hasher Al Maktoum said: “We are witnessing a strong recovery in the capital markets and investment banking arena, where we have been able to firmly position Shuaa as a market leader. Our asset management division continues to deliver solid performance and we see growing demand for our SME lending business.”
Shuaa said its capital markets unit witnessed a 66 per cent jump in fees and commissions which rose to Dh3 million compared to Dh1.8 million due to Shuaa’s stronger positioning in institutional sales and trading.

Sheikh Maktoum pointed out that the continued economic revival of the UAE over the last year had allowed the bank to start demonstrating its earnings capabilities. "Our focus now is squarely on income generation in key divisions that will help us drive growth and value for clients and shareholders, while maintaining our cost discipline," he added.-TradeArabia News Service

Tags: UAE | investment | Shuaa capital | asset |

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