Shuaa Capital revenues up 46pc in H1
Dubai, July 15, 2014
Leading UAE investment bank Shuaa Capital has reported a 46.1 per cent increase in revenues totalling to Dh116.2 million ($31.6 million) in the first half of the year, as compared to Dh79.5 million in the same period last year.
The unaudited financial results for the period ended June 30 showed a net profits of Dh14.4 million, up Dh19 million from a net loss of Dh4.6 million reported during the same period last year.
All core fee and interest generating business division posted a net profit with significant progress coming through in asset management, investment banking and lending, said a statement.
Sheikh Maktoum Hasher Al Maktoum, executive chairman, said: “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.”
The bank recorded Dh52 million in revenues during the second quarter of the year and a net profit of Dh6.2 million.
Meanwhile, the asset management division reported a net profit of Dh4.2 million during Q2, a sequential improvement over Q1.
Investment banking continued to post solid results during the period with a net profit of Dh4.5 million from a number of advisory and IPO mandates. The team has also strengthened the execution pipeline and has been mandated by a number of clients for prospective IPOs.
Capital Markets reported improved net profit of Dh1.8 million underpinned by improvements in both interest income and net fees and commissions.
Lending reported strong results with a net profit of Dh7.0 million in Q2 as the growing SME market in the UAE and Saudi Arabia continues to offer significant opportunity to grow market share.
Corporate, the centralised corporate cost-centre, generated a loss of Dh11.2 million in Q2, 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. 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,” said Sheikh Maktoum.
The bank is set to publish its interim condensed consolidated financial statements for H1 on August 6. - TradeArabia News Service