The Dubai-based investment bank lost Dh14 million in the third quarter, pledging to cut costs further.
Shuaa Capital narrows losses in ongoing drive to cut costs
Losses at Shuaa Capital narrowed to almost Dh14 million in the third quarter after the Dubai-based investment bank continued to cut costs.
"The third quarter results prove that we took the right decisions to reduce our cost base against the uncertain market environment, exit non-core businesses and investments, focus on liquidity management, and reduce the volatility in our asset base," the bank said in an emailed statement.
Net loss in the third quarter stood at Dh13.9 million, from a loss of Dh156.2 million in the same quarter last year. The company's guidance estimates a loss of Dh40 million to Dh60 million for the full year. Shuaa said it expects to "generate between a net profit of Dh6 million and a net loss of Dh18 million" next year.
"Management will seek to continue to drive down operating expenses where possible," the statement added.
Shuaa was hit hard after the global financial crisis wiped the value off assets and cut access to credit. The company's right sizing programme, introduced last year, has helped cut costs.
The company's operational cash outflow reached an average of Dh4 million per month, compared to Dh10.2 million per month last year. The company expects that figure to be reduced to Dh3.5 million by the end of the fiscal year.
"The market downturn has forced many competitors to close or retrench, leaving Shuaa well positioned for the next equity cycle," it said.
Shuaa's shares were unchanged at 60 fils during early trading on the Dubai Financial Market.