Dubai investment bank records strongest full-year net profit since 2007
Shuaa swings to profit in fourth quarter thanks to turnaround strategy
Dubai-based Shuaa Capital swung to a profit in the fourth quarter and posted the strongest full year net profit in 2017 in ten years as the investment bank overhauled its operations and achieved broad-based growth.
Net profit in the three months ending December surged to Dh14.2 million compared with a Dh18.9m loss in a year-earlier period, the bank said in a statement on Wednesday. Fourth quarter revenue rose 22 per cent to Dh42.8m from Dh35.1m. Full year net profit surged to Dh74m from a loss of Dh132.5m.
“We certainly had our work cut out for us in 2017; from re-building the company’s foundation, to executing a new sector-specific strategy and optimizing divisional and human asset performance, the achievements of 2017 are solid proof that our new roadmap has put us on the path for long-term growth,” said Jassim Alseddiqi, chairman of Shuaa Capital. “Our pole positions in Capital Markets and real estate asset management are testament to how we are making a difference in an over-crowded financial marketplace. We will continue to seize strategic opportunities.”
Alternative investment company Abu Dhabi Financial Group, which has $6 billion in assets under management, bought a 48.36 per cent stake in Shuaa in 2016 and fleshed out a new strategy to turn around the struggling Dubai investment bank. The strategy focused on growing assets under its management, leveraging its balance sheet and increasing its business in Saudi Arabia and Egypt.
ADFG is the largest shareholder in Dubai-listed Shuaa.