Shuaa Capital, a Dubai-based integrated financial services, has reported a 46.1 per cent increase in revenues to Dh116.2 million ($31.6 million) in the first half of 2014, compared to Dh79.5 million during the same period in 2013.

This significant revenue upswing stems from continuously growing client activity across the Group’s core businesses as well as gains from investment in Shuaa managed funds, a company statement said.

Net fees and commissions were Dh34.8 million, more than twice the Dh16.4 million recorded in H1 2013. This was led by the Investment Banking and Capital Markets units which posted Dh13.2 million and Dh6.4 million in fees and commissions, respectively.

Total expenses increased by 18.2 per cent to Dh95.0 million; this included an increase in interest expense to Dh 7.6 million and total provisions to Dh10.7 million.

Shuaa generated a net profit of Dh14.4 million during the first half 2014, an Dh 19.0 million improvement compared to a net loss of Dh4.6 million during the same period last year.

Sheikh Maktoum Hasher Al Maktoum, executive chairman of Shuaa Capital, said: “Shuaa delivered strong first-half performance despite the volatile operating environment towards the end of the second quarter. This reaffirms Shuaa’s successful strategy, solid financial position and the diversified operating model we have created to generate sustainable profitability throughout market cycles.”

As at 30 June 2014, Shuaa’s total assets were Dh1.47 billion, Dh22.8 million lower than at year-end 2013. Since the beginning of the year, cash and deposits with banks rose 21 per cent to Dh 229.4 million

Total liabilities decreased by Dh 43.8 million to Dh 332 million, a reduction of 11.7 per cent. Shareholder’s equity increased by Dh21.4 million to Dh1.13 billion. During the quarter, Shuaa completed a successful exit from Amwal.

During the second quarter of 2014, total revenues increased by20 per cent to Dh 52 million despite lower gains on investments in Shuaa managed funds. Led by a 96 per cent increase in net fees and commissions and a 27 per cent rise in interest income, 82 per cent of Shuaa’s revenues were generated from recurring fee & interest income in the second quarter.

Total expenses increased by 14.7 per cent to Dh 47.3 million, which included provisions of Dh 7.7 million. Shuaa’s net profit in the second quarter was Dh 6.2 million, a nearly five-fold increase from the net profit of Dh 1.3 million reported in Q2 2013. – TradeArabia News Service