May 14 (Bloomberg) -- Shuaa Capital PSC, the investment bank controlled by Dubai’s ruler, said its first-quarter loss narrowed after reducing costs by 37 percent.
The net loss was 5.9 million dirhams ($1.6 million) compared with 8.5 million dirhams a year earlier, Shuaa said in an e-mailed statement today. Revenue fell to 36.2 million dirhams from 55 million dirhams because of lower investment returns on managed funds and a drop in fees, it said. Costs fell to 39.2 million dirhams from 62 million dirhams.
Shuaa, which has reported annual losses since 2008 as the global financial crisis led to a drop in volumes on local stock markets, completed a restructuring program to reduce non-core assets, cut jobs and generate recurring revenue. The company stopped offering retail brokerage and said in October it plans to boost lending to small and medium-sized businesses and high-net-worth individuals to improve profit margins.
“We are now focused on enhancing our revenue generation capabilities in asset management and investment banking where opportunities are starting to emerge as global investors are re-engaging with GCC markets,” Executive Chairman Sheikh Hasher Al Maktoum said in the statement.
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