Dubai: Financial Services provider Shuaa Capital on Sunday reported a net profit of Dh8.2 million for the first quarter of 2014 compared to a net loss of Dh5.9 million in same quarter in 2013.
The company’s revenues were up 77 per cent at Dh64 million in the first quarter 2014 compared to Dh36 million in the first quarter 2013.
While the net profits were up 39 per cent year on year, on a sequential basis, net profit increased 118 per cent from Dh3.8 million in the fourth quarter 2013. Higher income in the lending and investment banking divisions accounted for the majority of the quarter-on-quarter improvement.
“We are witnessing a strong recovery in the capital markets and investment banking arena, where we have been able to firmly position Shuaa as a market leader. Our asset management division continues to deliver solid performance and we see growing demand for our SME lending business,” said Shaikh Maktoum Hasher Al Maktoum, Executive Chairman of Shuaa Capital
During the first three months of the year investment banking business posted a net profit of Dh8 million, making it the strongest performing division of the company. Investment banking continues to perform well with the increasing number of IPOs and corporate transactions being worked on. In the first quarter of 2013, the investment banking division recorded a net loss of Dh0.87 million.
Fees and commission
Lending generated a net profit of Dh7.4 million compared to a profit of Dh2.6 million in the first quarter 2013. Revenues were up 47 per cent to Dh30.8 million, compared to Dh20.9 million generated in the first quarter of 2013.
Capital Markets division witnessed a 66 per jump in fees and commissions to Dh3 million compared to Dh1.8 million. Net profit of the division was Dh1.5 million in the first quarter of 2014. Asset Management division saw an increase in year-on-year fees and commission income to Dh4.8 million from Dh4.1 million and produced a 65 per cent increase in net profit of Dh3.1 million. The corporate division reported a net loss of Dh11.8 million in the first quarter of 2014 which the company said was in line with its projections.
“The continued economic revival of the UAE over the last year has allowed us to start demonstrating our earnings capabilities. Our focus now is squarely on income generation in key divisions that will help us drive growth and value for clients and shareholders, while maintaining our cost discipline,” said Shaikh Maktoum
Shuaa expects further revenue upside from its investment banking pipeline, its global institutional standard sales and trading platform, the inflow of assets under management and an increase lending to small and medium enterprises. Shuaa stock closed at Dh1.72 on Sunday, up 0.58 per cent.
