Shuaa Capital saw total revenues grow to Dh48.7 million ($13.2 million) in the third quarter of the year, a 42 per cent increase on Q3 2015 when total revenues were Dh34.3 million ($9.33 million).

Net loss was Dh35.3 million ($9.6 million) for the quarter as compared to net loss of Dh28.6 million ($7.78 million) in the corresponding quarter of 2015; non-lending business lines (Investment Banking, Asset Management and Capital Markets) recorded a consolidated net profit of Dh3.3 million ($898,216). The group’s lending business recorded provisions of Dh46.3 million ($12.6 million) (Q3 2015: Dh18.1 million/$4.98 million).

Net fees and commissions were up 52 per cent to Dh13.9 million ($3.7 million) (Q3 2015: Dh9.2 million/$2.5 million). Total Interest Income was lower at Dh35.1 million ($9.5 million) (Q3 2015: Dh42.1 million/$11.4 million), while ongoing control over General and Administrative expenses maintained Q3 2015 levels at Dh32 million ($8.7 million), and in spite of a series of new appointments across the firm. Group total expenses were Dh87.3 million ($23.7 million) (Q3 2015: Dh61.5 million/$16.7 million) mainly due to a rise in SME lending related provisions.

While total revenues for the nine month period ended 30 September 2016 edged up slightly to Dh138.7 million ($37.7 million) (2015: Dh138.1 million/$37.5 million), net loss for the nine months period was Dh113.6 million ($30.9 million) (2015: Dh28.6 million/$7.7 million).

Abdul Rahman Hareb Rashed Al Hareb, chairman of Shuaa Capital commented, “As volatility across regional markets persists, we remain focused on our strategy of re-aligning and strengthening our business lines through product diversification and the appointment of revenue-driving staff. And while we are beginning to see positive results of this strategy on our core revenue lines, there continues to be stress on our lending division.”
 
Al Hareb added, “I would also like to emphasise our strong business model in the Saudi market. The first of three hospitality projects has recently been completed and handed over for operations, thus marking a significant milestone since the firm’s foray into the kingdom. Saudi Arabia remains a vital market for us, and we will continue to pursue strategic growth opportunities there alongside our partners." - TradeArabia News Service