Special Features
SHUAA returns to profit in Q2 2013
Dubai based financial services company Shuaa Capital PSC (SHUAA) reported a net profit for Q2 2013 of AED 1.3 million, up from loss of AED 5.9 million in Q1 2013 and loss of AED 15.9 million in Q2 2012 respectively. In a statement to the Dubai Financial Market, Shuaa said its total interest income is up 12 per cent to AED 25.2 million and net fees and commissions are up 44 per cent to AED 9.7 million over the prior quarter, driven by revenue growth in asset management (AED 4.9 million), investment banking (AED 2.0 million) and lending (AED 24.5 million)."This has resulted in a 20 per cent jump in total revenue to AED 43.4 million versus Q1 2013 revenues of AED 36.2 million," it said. "SHUAA’s balance sheet remains strong with total assets of AED 1.4 billion as of 30 June 2013, including AED 241 million in cash, despite further deployment of AED 183 million of capital to the lending businesses, which now stands at AED 697 million, as well as a slight reduction in liabilities to AED 265 million." Sheikh Maktoum Hasher Al Maktoum, Executive Chairman of SHUAA Capital, said, "SHUAA has continued to make good progress in the second quarter and this underlines our systematic approach towards generating long term sustained profitability.
The second quarter result continues to be in line with our 2013 earnings guidance. The engine room, centered on our market leading SME lending business, has performed well as we have continued to deploy our balance sheet lending to companies both in the UAE and in Saudi Arabia, where there is significant demand for secured asset backed lending. We are also pleased with the progress of our other businesses. Even if there continues to be limited equity capital markets activity we expect the full impact of our investments in the Capital Markets business, Credit initiatives and the further development of our Asset Management platform to augment and stabilise earnings in the quarters ahead."
