Dubai’s Shuaa Capital aims for H2-2022 turnaround after heavy Q2 loss

Dubai: Lower trading revenues from its investment banking division dented Shuaa Capital’s second quarter numbers, with net operating income at Dh6 million against Dh24 million in the first three months of the year. It resulted in a net loss of Dh170 million in the April-June period against a net income of Dh6 million in the first.

In the first six months, Shuaa recorded losses of Dh192.55 million against a profit of Dh68.19 million a year ago. Losses sustained during the second quarter was particularly severe at Dh143.91 million.

“Non-cash expenses (mark-to-market of Shuaa managed funds, accrued expenses, and accelerated amortization of intangible assets) contributed to results,” said a statement.

Shuaa reckons that much of the bad news has already been reflected in its financials. It cites reasons for a more solid second-half:

“Despite a challenging quarter, our core operating business remained resilient and delivered recurring revenues of Dh64 million across all business units,” said Fawad Tariq Khan, Group CEO. “We have embarked on a Group-wide exercise to streamline our business by addressing non-cash expenses and cost optimization measures to position us for profitability in the future. We remain committed to providing innovative investment solutions to our clients, as evidenced by the global launch of Northacre and the increase in the number of managed funds our clients have access to.”