Shuaa Capital returned to full year profitability last year with the company achieving  an annual net profit of Dh2.8 million ($762,130), a significant improvement on 2012’s net loss of Dh59 million (16.059 million).
 
All core fee and income generating business divisions were profitable in 2013, a statement said.

Revenues reached Dh198 million, an increase of 44 per cent (2012: Dh137 million).  This was fuelled by improved activity from asset management, investment banking, capital markets and lending as well as strong gains from investments in Shuaa’s managed funds.

Operating expenses were reduced by Dh16 million to Dh174 million, mainly as a result of further reductions in general and administrative costs, it said.

In Q4 2013, Shuaa recorded revenues of Dh64 million (Q4 2012: Dh25 million) and a net profit of Dh3.8 million, versus a loss of Dh21m in Q4 2012. This improvement was supported by the Dh6 million increase in revenues from the investment banking division and an Dh17 million gain made from investments in Shuaa managed funds.

At the year-end 2013, Shuaa had total assets of Dh1.5 billion, an increase of Dh114 million compared to December 31, 2012. In line with the company’s forecast for 2013 and its strategy to invest its own resources into its lending business, the company’s cash positioned declined by Dh234 million to Dh189 million and liabilities increased to Dh376 million from Dh269 million. Overall, net assets were up fractionally at Dh1.1 billion. 
 
Commenting on the results, Sheikh Maktoum Hasher Al Maktoum, executive chairman of Shuaa Capital, said: “2013 was a very significant year for the company as we successfully completed the turnaround, returned to profitability and strengthened the foundation to grow Shuaa in the years ahead. All our business lines have responded to the positive market environment and emerging market opportunities.  We have a well-balanced business which will allow us to benefit from rising equity markets as well as build on our strong position in the SME credit market.

“The current year will see SHUAA step up its drive to increase revenues, including the introduction of new products from our asset management business, and the closing of more investment banking transactions that have been waiting for improved market conditions and increased lending activity.  With the deepened management team we are confident all the pieces are in place for Shuaa to perform well and meet its targets.” – TradeArabia News Service