Shuaa Quarterly Loss Narrows as Costs Drop After RestructuringZahra Hankir
Shuaa Capital PSC, the investment bank controlled by Dubai’s ruler, said fourth-quarter loss narrowed as it reduced costs by 72 percent after restructuring.
The net loss was 20.7 million dirhams ($5.6 million) compared with 112 million dirhams a year earlier, Shuaa said in an e-mailed statement today. Revenue climbed 25 percent to 25.2 million dirhams, while fourth-quarter expenses dropped to 39.2 million dirhams.
Shuaa, which has reported annual losses since 2008 as the global financial crisis led to a drop in volume 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.
“The reduced scale of our industry and the renewed need for capital and advisory expertise are playing out in our favor,” Shuaa said.
Total assets slipped to 1.4 billion dirhams at the end of 2012 from 1.6 billion dirhams the year earlier. Shuaa expects results of between a loss of 18 million dirhams and profit of 6 million dirhams in 2013, it said in November.
Shuaa shares surged 9.1 percent in January, the best start of a year since 2009, after declining 0.2 percent in 2012. That compared with a gain of 20 percent for the DFM General Index last year.