Dubai: Investment bank Shuaa Capital generated revenues of Dh93.8 million in the first half of 2010 compared to Dh155.2 million in the comparable period last year, citing "extremely hostile market conditions".
It however improved its bottom line to a loss of Dh37.1 million compared to a loss of Dh106.2 million last year primarily from lower expenses and provisions as well as gains on investments and portfolio.
For the second quarter of 2010, Shuaa reported revenues of Dh33 million, about a third of the Dh92.6 million it generated in the same period last year. Second-quarter net loss was Dh56.6 million compared to a profit Dh91.7 million, due almost entirely to losses on investments.
"Regional markets have experienced the lowest levels of trading activity since 2004 during the first half of the year and investor confidence has continued to weaken significantly," said Majid Al Ghurair, Chairman of Shuaa Capital.
"We do not believe that these conditions can persist indefinitely. We continue to implement the measures defined in our new strategy and improve our future earnings capabilities. I am confident that Shuaa is on the right track, leaving us well poised to exploit the market recovery when it comes."
Chief Executive Sameer Al Ansari said: "Despite extremely challenging market conditions, our fee-generating businesses have proved to be resilient and we have significantly improved our financial stability during the first half of 2010.
