Sunday 13, August 2017 by Jessica Combes

SHUAA Capital half yearly profits highest since 2009

 

SHUAA Capital, one of the region’s oldest integrated financial services firm has announced its financial results for the period ending 30 June 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 per cent increase in net profit, reaching AED 12.1 million, compared to Q2 2016 which saw a 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 30 June, 2017 the firm reported a net profit of AED 36.8 million, compared to losses in the corresponding period of last year–H1 2016 saw a net loss of AED 78.3 million. 

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

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 reached AED 57 million. General and administrative expenses stood at AED 17.8 million, down from AED 30.5 million in Q2 2016. 

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 $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 specialised service.