Dubai: Shuaa Capital said on Thursday its recurring revenues from core fees and income generating business divisions helped to improve its net profit to Dh25.8 million in 2014 compared to the Dh2.8 million recorded in 2013.
Revenues increased to Dh213 million compared to Dh198 million recorded in 2013. The result was driven by strong gains recorded in the asset management, investment banking and SME (small and medium enterprises) Lending divisions.
Operating expenses dropped to Dh165 million from Dh174 million in 2013 as rigorous cost control measures were maintained and further reductions in general and administrative costs were recorded.
“We have had a steady start to 2015 and despite market volatility we remain confident that the business will continue to build on the earnings momentum generated in recent quarters,” said Shaikh Maktoum Hasher Al Maktoum, Executive Chairman of Shuaa Capital in a statement.
Shuaa’s balance sheet was further strengthened as total assets increased by Dh117 million to Dh1.6 billion at the end of the year. Throughout 2014 Shuaa has seen a continued improvement in balance sheet structure, and the company maintains a strong liquidity position, ending the year with a cash position of Dh365 million compared to Dh189 million at the end of 2013.
Liabilities increased to Dh459 million from Dh376 million as a new partially used syndicated loan facility of Dh500 million was secured in the fourth quarter of 2014. Overall, Shuaa’s net assets were up at Dh1.1 billion.
Shuaa’s SME lending division, consisting of Gulf Finance and Gulf Finance Saudi Arabia, recorded annual revenues of Dh131 million representing a 26 er cent increase from Dh104 million in 2013, and an eightfold increase in net profit to Dh33.4 million.
