SHUAA reports Dhs8.2m net profit in Q1 2014 and Dhs64.1m revenues

April 13, 2014 10:57 am

SHUAA Capital reports preliminary and unaudited Q1 2014 results for the period ended 31 March 2014. Revenues were 77% higher at AED64 million in the first quarter 2014 compared to Dhs36m in the first quarter 2013. SHUAA’s net profit was Dhs8.2m versus a net loss of Dhs5.9m respectively. All core fee and interest generating business divisions posted a net profit.

On a sequential basis, net profit increased 118% from Dhs3.8m in the fourth quarter 2013, on revenues of Dhs64m. Higher income in the lending and investment banking divisions accounted for the majority of the quarter-on-quarter improvement.

Sheikh Maktoum Hasher Al Maktoum, Executive Chairman of SHUAA Capital said, “We are witnessing a strong recovery in the capital markets and investment banking arena, where we have been able to firmly position SHUAA as a market leader. Our asset management division continues to deliver solid performance and we see growing demand for our SME lending business.”

Financial highlights for the first quarter of 2014 include:
• Investment Banking posted a net profit of Dhs8.0m, making it the strongest performing division of the quarter. Investment Banking continues to perform well with the increasing number of IPOs and corporate transactions being worked on. In Q1 2013, the investment banking division recorded a net loss of Dhs0.87m.
• Lending generated a net profit of Dhs7.4m compared to a profit of Dhs2.6m in Q1 2013. Revenues were up 47% to Dhs30.8m, compared to Dhs20.9m generated in Q1 2013.
• Capital Markets witnessed a 66% jump in fees and commissions to Dhs3m compared to Dhs1.8m due to SHUAA’s stronger positioning in institutional sales and trading. Total revenues were Dhs3.3m, an increase of 59% compared to Dhs2.1m in Q1 2013. Net profit of the division was Dhs1.5m in Q1 2014.
• Asset Management saw an increase in year-on-year fees and commission income to Dhs4.8m from Dhs4.1m and produced a 65% increase in net profit of Dhs3.1m versus Dhs1.9m in Q1 2013.

• Corporate reported a net loss of Dhs11.8m in Q1 2014 which is in line with budget.

Sheikh Maktoum added: “The continued economic revival of the UAE over the last year has allowed us to start demonstrating our earnings capabilities. Our focus now is squarely on income generation in key divisions that will help us drive growth and value for clients and shareholders, while maintaining our cost discipline.

SHUAA is in the process of realising further revenue upside from the execution of its investment banking pipeline, the build-out of its global institutional standard sales and trading platform, the inflow of assets under management and the increase in financial leverage to fund accelerated origination activities of its SME lending business.”

SHUAA expects to publish its earnings release and interim condensed consolidated financial statements for Q1 2014 on Sunday, 11 May 2014.

For further information please contact:
Oliver Schutzmann
Head of Investor Relations & Corporate Communications
Tel: +971 4 319 9872