Monday 28 September 2020

Shuaa Capital reports $44.6m net profit for H1

DUBAI, August 13, 2020

Shuaa Capital has reported a net profit of AED164 million ($44.6 million) and EBITDA at AED284 million during the first half (H1) of the year, the asset management and investment banking platform said.

The company has also reported net profit attributable to shareholders of AED5 million and an EBITDA of AED125 million in the first half of 2020, according to a Wam report.

Shuaa’s first half financial results for 2020 affirmed the company’s ability to sustain its resilient revenue growth amidst severe global economic, financial and social impacts of the COVID-19 crisis and other market disruptions.

Jassim Alseddiqi, Chief Executive Officer of Shuaa Capital, said: "In this unprecedented time, our first priority was and still is the health and safety of our employees. I am very proud of how our team has responded, by seamlessly transitioning to remote working and by continuing to put our investors and clients at the heart of what we do.”

"We managed to remain profitable in the first six months of 2020 on the back of the dedication and commitment of our employees to continue on our strategic agenda. Whilst COVID-19 as well as the economic and geopolitical challenges will continue to impact overall business and market activity for some time, our business model is calibrated around seizing opportunities across economic cycles, geographies and products.

“Our pipeline of investment banking mandates has strengthened, and the launch of scalable new investment funds has commenced. We stay firm on our promise to deliver value for our clients and shareholders,” he added.

The company reported an operating income of AED86 million in Q2-2020, up by 19% quarter-on-quarter, as the Group continues to progress on improving the breadth and quality of its revenues. Shuaa has maintained disciplined working capital management while working closely with portfolio companies to ensure appropriate funding, as well as protecting client assets through the crisis.

The company’s operating businesses, asset management and investment banking, showed a strong sequential recovery in profitability in Q2-20 with EBITDA of AED41 million and AED8 million respectively.

Shuaa's asset management business maintained its solid base, with assets under management standing at $13.0 billion at the end of Q2-2020 compared to $12.8 billion in the first quarter of 2020, furthering the company's ongoing plan to increase its stable and recurring revenue streams through permanent capital vehicles.

Shuaa’s investment banking business continues to increase its focus on capital raising and restructuring mandates while continuing to build on the success of its fixed income trading desk. During H1 the team acted as lead or co-lead arranger on transactions successfully raising over $500 million while executing fixed income flow in excess of $1.5 billion (20% year-on-year growth).

The investment bank’s model remains resilient despite periods of crisis and uncertainty and is actively involved in capital restructuring and raising mandates in excess of $2 billion.


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