Business | Banking

Global market downturn impacts SHUAA Capital first-half results

SHUAA Capital, financial services institution, has reported that the first half results for the period ending September 30, 2008 showed the company incurring a net loss per diluted share of Dh0.475 for the first half of 2008 (1H2007: Net profit per share Dh0.226). The total net loss for the period was Dh371.1 million (1H2007: net profit Dh128.6 million).

  • Staff Report
  • Published: 13:54 November 3, 2008
  • Gulf News

Dubai: SHUAA Capital, financial services institution, has reported that the first half results for the period ending September 30, 2008 showed the company incurring a net loss per diluted share of Dh0.475 for the first half of 2008 (1H2007: Net profit per share Dh0.226). The total net loss for the period was Dh371.1 million (1H2007: net profit Dh128.6 million).

SHUAA's results were principally impacted by the global market downturn, which has affected all equity markets around the world. This especially affected the Principal Investments business, where 'mark to market' reductions in asset valuations were booked to operating income but remain unrealised; the Investment Banking business, where a number of major capital market transactions have been delayed due to the adverse market conditions.

SHUAA Capital's annuity fee business still performed well, although not at the pace seen in the first quarter, reporting an overall increase of operating income for the half year to Dh262.4 million (H1 2007: Dh133.1 million) and a net profit of Dh125.5 million (1H2007: Dh68.9 million).

This was led by the Asset Management, Brokerage and Private Equity divisions, which continued to outperform in falling markets. SHUAA's Finance subsidiary generated a record result of Dh39.3 million in operating income (1H 2007: Dh24.9 million) and a net profit Dh25.1 million (1H 2007 Dh15.3 million).

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