Financial services group Shuaa Capital swung to a net profit in the first quarter, helped by its asset management business and lower expenses.   

Shuaa posted a 19.5 million dirhams ($5.3 million) first-quarter net profit on Monday, after a 202 million net loss in the 2009 period. Its asset management business made an 8.3 million dirhams profit, compared to an 11.2 million loss in 2009.

One of the region's largest investment banks, Shuaa suffered heavy losses in 2009 as a result of the global financial crisis.   

Chief executive Sameer Al Ansari spent his first few months reducing the company's risk profile since taking on the role in August.

Shuaa is active in asset management, brokerage, private equity and investment banking. In February, the bank said it wants to triple its fee income in the next three years, focus on Saudi Arabia and turn profitable again in 2010.

Ansari said the bank would benefit from the ongoing market recovery.   

Shuaa said in April it won't suffer any significant loss related to a default by Kuwait's Gulfinvest International default on a 200 million dirham loan.

The bank said it already booked a provision for the loan guarantee in its 2009 results.
 In 2009, Shuaa was embroiled in a legal dispute with Dubai Banking Group, part of Dubai Holding, which led to the latter obtaining a 48.4 percent stake in Shuaa. - Reuters