SHUAA Capital psc (DFM: SHUAA), the leading asset management and investment banking platform in the region, has announced its Q1 2023 financial results. Net profit attributable to shareholders was AED 15 million, up 60% compared to Q4 2022.
Group Financial Highlights
| Income Statement | Q1 2023 | Q4 2022 | % QoQ |
|---|---|---|---|
| Revenues | AED 59.7m | AED 59.3m | +1% ⇧ |
| Expenses | (AED 31.9m) | (AED 52.8m) | (40%)⇧ |
| Net Profit | AED 14.7m | AED 9.2m | +60% ⇧ |
| Key metrics | Q1 2023 | Q4 2022 | % QoQ |
|---|---|---|---|
| Cost-Income Ratio | 53% | 89% | (36%)⇧ |
| Leverage Ratio | 1.02 | 1.05 | (3%)⇧ |
Key financial review
- Total revenues of AED 60 million in Q1 2023 driven by recurring revenue generation across all segments
- Cost to income ratio at 53% in Q1 2023, significantly lower than 89% in Q4 2022 due to stable revenue base and firm cost discipline
- AED 15 million net profit driven by the outperformance from real estate business, resilient fee performance from managed funds and robust trading and advisory fees
- Balance sheet metrics continue improvements with disciplined approach to simplification of balance sheet and deleveraging debt liabilities
- Deleveraging to continue in 2023, with a further AED 400 million of debt reduction identified this year
Segmental review
- Asset Management, which encompasses investments funds and managed accounts across real estate, public and private markets and debt, reported first quarter revenues of AED 54 million in management and performance fees, up +30% since Q1 2022
- Investment Banking, which provides corporate finance advisory, equity and debt capital markets, M&A, sales and trading, recorded an upward trend in revenues of AED 6 million (+7% compared to Q1 2022) with higher growth in trading revenue offsetting lower advisory fees as no significant transactions were closed during the period
- Corporate segment, which manages principal investments, treasury and other shared services, reported no material revenues (Vs. AED 43 million in Q1 2022) following asset disposals and deconsolidation
Delivering on our strategic priorities
SHUAA’s mission is to create sustainable value for clients, employees and shareholders by engineering innovative investment solutions and differentiated product offerings for institutional clients and high-net-worth individuals. The move towards simplifying our balance sheet has reduced volatility of earnings and allows the team to deliver on recurring revenues and shareholder returns.
“Our first quarter results demonstrate continued progress against SHUAA’s focused strategy to deconsolidate and diversify while delivering strong operating income and sustainable returns to our investors and shareholders,” said Fawad Tariq Khan, Group Chief Executive Officer of SHUAA Capital. “We continue to remain resilient and look forward to providing our clients with unparalleled investment offerings at accretive returns. SHUAA’s long track record of delivering best-in-class services speaks for itself, and we will continue to exceed expectations as we pursue new opportunities and expand our horizons.”
