Shuaa ends quarter down but year up

Shuaa Capital swung to a loss in the fourth quarter as volatile stock markets hit earnings.

But strong performances in lending and asset management enabled the Dubai investment bank to report a nine-fold increase in profit for the year.

In the fourth quarter, Shuaa sustained a loss of Dh14.8 million, compared with a profit of Dh3.8m in the final quarter of 2013.

Annual net profit reached Dh25.8m, up from Dh2.8m in 2013. The overall result represents Shuaa’s second year of profits following five years of negative returns.

Full year revenues increased from Dh198m to Dh213m.

Sheikh Maktoum Hasher Al Maktoum, the outgoing chairman, said: "During 2014 our investment banking division worked on a number of public and private transactions, the funds in our asset management unit outperformed the market, we saw continued expansion of our capital markets division and solid growth in our SME lending business." At the same time, diligent cost control measures remained a top strategic priority, he said.

“We have had a steady start to 2015 and despite market volatility we remain confident that the business will continue to build on the earnings momentum generated in recent quarters,” Sheikh Maktoum said. “I would like to thank shareholders for their support as we have positioned the company for the future. I look forward to supporting the new management team as they take the company on to the next stage of its growth.”

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