Second consecutive profitable quarter despite sluggish revenues
Lower costs lift Shuaa Capital results
Shuaa Capital announced its second consecutive quarter of profitability, and its best six month results since 2009, thanks to lower provisions and reduced costs.
The Dubai-based investment bank said its net profit for the three months to the end of June reached Dh12.1 million, compared with a net loss of Dh50.8m for the same period a year ago, but down from Dh24.8m in the first quarter.
The return to profit came even as revenues remain flat compared with the first quarter, falling 32 per cent year-on-year to Dh30.4m for the three months to the end of June.
The bank’s provisions bill fell to Dh11m during the quarter from Dh57m in the same period last year, while general and administrative expenses fell 42 per cent to Dh17.8m over the same period.
“Our focus during the first six months of the year was two-fold, first to reinforce the foundations of the Group, and second to refocus and streamline our operations to create synergies across the business and with external partners,” said Shuaa’s general manager Fawad Tariq-Khan.
“Shuaa Capital’s healthy performance in 2017 is evidence that we are on the right path, and gives us a solid platform to build upon in the second half of the year.”
The bank’s income from proprietary investments stood at Dh22m for the quarter, with no comparison figures given for previous periods.
Shuaa earlier this month announced that it had bought 11 per cent of Kuwait-based Amwal International Investment for an undisclosed sum, as part its acquisition strategy to bolster its balance sheet.
Bahrain-based investment firm GFH said in June that it was withdrawing from talks to acquire Shuaa after failing to agree terms.