Dubai’s Shuaa Returns to Profit After Seven Quarters of LossesShaji Mathew and Stefania Bianchi
Shuaa Capital PSC, the investment bank controlled by Dubai’s ruler, posted its first quarterly profit in almost two years as the company’s asset management and investment banking divisions boosted revenue.
Shuaa, which has reported quarterly losses since the third quarter of 2011, said second-quarter profit was 1.3 million dirhams ($354,000) compared with a 15.9 million-dirham loss a year earlier, according to a statement to the Dubai stock market. Revenue rose 95 percent to 43.4 million dirhams.
The bank, 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 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 have continued to deploy our balance sheet lending to companies both in the U.A.E. and in Saudi Arabia, where there is significant demand for secured asset-backed lending,” Executive Chairman Sheikh Maktoum Hasher Al Maktoum said in the statement.
Shuaa’s assets at the end of June were 1.4 billion dirhams, including 241 million dirhams in cash, as well as a slight reduction in liabilities to 265 million dirhams.