Jasim Al Seddiqi Image Credit: Courtesy: GFH

Dubai: Shuaa Capital turned a profit in the third-quarter, as the Dubai-based financial services provider published its first set of consolidated results after merging with Abu Dhabi Financial Group.

The company said it posted net income of Dh21.8 million for the three months ended September 30, with ADFG contributing profits of Dh31.2 million.

Dubai-listed Shuaa Capital merged with private alternative investment firm Abu Dhabi Financial Group (ADFG) earlier this year in an all-share reverse takeover deal, with the new and larger entity rebranded as ‘ADFG’ and listed in Dubai.

Shuaa posted Dh31.6 million in losses during the second quarter, after incurring certain merger-related one-off costs, which only piled onto prior-quarter losses of Dh24.9 million, brought on by higher expenses arising from its exposure to the now-bankrupt Abraaj.

“Underpinned by ADFG’s contribution to profitability, we are already seeing the value that the transaction is delivering for our shareholders in Q3, which saw Shuaa Capital return to profit,” said Chief Executive Officer Jassim Alseddiqi.

“The board is confident about achieving a full year profit, underpinned by pipeline of active deals,” the company said, adding that integration of the two companies is “well under way and on track”.

ADFG, which already owned 48 per cent stake in Shuaa before the merger, now owns 58 per cent of the enlarged entity with Shuaa’s existing shareholders owning the rest. The larger firm has $12.8 billion in assets under management.