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Earnings Release: SHUAA Capital Half Yearly Profits Highest Since 2009

10 August 2017

-         Group achieves 124% growth in profits quarter on quarter reaching AED               12.1 million (Q2 2016: net loss of AED 50.8 million)

-          Half yearly profits increase 147% to reach AED 36.8 million (H1 2016 net                loss of AED 78.3 million)

-          Significant fall in provisions continues

-          Restructuring and streamlining of business segments complete

-          Regional expansion of real estate and brokerage units on high priority

Continuing the streak of achievements as part of the revival of its legacy across the Middle East and North African financial sector, SHUAA Capital, the region’s oldest integrated financial services firm today announces its financial results for the period ending June 30, 2017, delivering its second consecutive profitable quarter, and highest half-yearly results since 2009.

The second quarter of 2017 saw SHUAA Capital reporting a 124% increase in net profit, reaching AED 12.1 million (Q2 2016: net loss of AED 50.8 million), with the continued swing back to profitability driven by proprietary investments, advisory transactions and management fees of real estate funds. For the six months ending June 30, 2017, the firm reported a net profit of AED 36.8 million, compared to losses in the corresponding period of last year (H1 2016: net loss of AED 78.3 million).

Total revenues in the second quarter of 2017 were AED 30.4 million (Q2 2016: AED 44.6 million, while total revenues for the first half of 2017 stood at AED 62.2 million (H1 2016: AED 90.1 million)

 Income from proprietary investments during the same period reached AED 22 million, while provisions reduced significantly to AED 11 million compared with the corresponding period of 2016 (Q2 2016: AED 57 million). General and Administrative expenses stood at AED 17.8 million (Q2 2016: AED 30.5 million).

 Fawad Tariq-Khan, General Manager of SHUAA Capital, said, “Our focus during the first six months of the year was two-fold, first to reinforce the foundations of the Group, and second to refocus and streamline our operations to create synergies across the business and with external partners. SHUAA Capital’s healthy performance in 2017 is evidence that we are on the right path, and gives us a solid platform to build upon in the second half of the year.”

The performance of SHUAA Capital’s investment banking operations was a notable highlight during the second quarter of 2017. The firm was assigned as lead manager and underwriter for Dar Al Takaful’s AED 50 million rights issue, co-lead manager for the US$105 million Initial Public Offering of ENBD REIT, while other buy-sell side advisory transactions are in the pipeline for the third quarter of this year. On a capital markets front, the first half of the year saw SHUAA as the biggest and most active Market Maker in the UAE, engaging with all three markets, the Dubai Financial Market, the Abu Dhabi Securities Exchange and Nasdaq Dubai, with plans for further regional expansion of this specialized service. 

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