x Abu Dhabi, UAEMonday 24 July 2017

Shuaa Capital losses drop by a third

Shuaa Capital reported its seventh consecutive quarter of losses but said it was primed for making "investments in growth" in the year ahead as it declared its restructuring programme to be showing signs of success.

Shuaa Capital reported its seventh consecutive quarter of losses but said it was primed for making "investments in growth" in the year ahead as it declared its restructuring programme to be showing signs of success.

The Dubai-based investment bank said its turnaround programme was resulting in a "consistently improving" bottom line as losses dropped by almost a third.

Shuaa reported net losses of Dh5.9 million in the first quarter of this year, 30.5 per cent narrower compared with the same period last year.

But revenues also fell to Dh36.1m, a decrease of 34.2 per cent compared with the corresponding period a year earlier.

The bank would attempt to grow its investment banking and asset management departments as global investors return to the Arabian Gulf, said Sheikh Maktoum Hasher Al Maktoum, Shuaa Capital's executive chairman.

"The reported result is consistent with our earnings guidance for 2013 and reveals the progress we have made on the strategic initiatives that were launched in 2012 to reduce our cost structure and expand our earnings capabilities through redeployment of our balance sheet," he said.

"Last year, we focused on liquidating non-core assets to generate cash and reduce liabilities. The year 2013 will be marked by investments in growth and positioning Shuaa for the market recovery, underpinned by our strong balance sheet and established brand."

Costs fell 36.9 per cent to Dh39.1m during the same period, below the bank's target.

The bank has entered the small and medium-sized enterprise lending market and said in January it intended to offer Islamic banking services to support Dubai's drive to become the "capital" of Islamic industries.

The bank's shares fell 2.2 per cent after the release of earnings to 65 fils each, although the shares are up 18.1 per cent this year.

 

ghunter@thenational.ae