Dubai: Dubai-based investment bank Shuaa Capital said its fourth-quarter net loss narrowed to Dh20.7 million compared to a net loss of Dh111.9 million during the period last year, it said in a statement.
The firm’s revenues rose 25 per cent to Dh25.2 million compared to Dh20.1 million in the fourth quarter of 2011.
Shuaa ended the year 2012 with a strong balance sheet and liquidity, considerably improved its bottom line result and regained its standing in the regional financial services industry.
The net loss for 2012 was Dh59.0 million, an 80 per cent improvement on 2011’s Dh293.8 million loss. This result is within the forecast range that Shuaa communicated in October 2012.
The improvement was driven primarily by the successful completion of the restructuring and rightsizing programme.
Total expenses for the year were reduced by Dh163.0 million. General and Administrative expenses were down Dh37.7 million as the number of staff was reduced and processes made more efficient. The Lending business recorded a Dh13.7 million expenses increase in line with its expansion plans in the UAE and Saudi Arabia. All other business units recorded a significant decrease of expenses totalling Dh51.4 million. This represents a year-on-year improvement of 29 per cent.
During the first half of 2012, Shuaa incurred charges related to the Company’s restructuring programme, which only started to have a positive impact on General and Administrative expenses during the second half of 2012. The full impact of the 2012 restructuring programme is expected to be recognised in 2013 with an additional cost improvement of 10 per cent.
