SHUAA reports Dh14.4m net profit in H1 2014

Dubai (WAM): SHUAA Capital yesterday reported preliminary unaudited H1 2014 financial results for the period ended June 30, showing an increase of 46.1 percent in revenues at Dh116.2 million compared to Dh79.5 million in the same period last year. Net profit was Dh14.4 million during H1, an Dh19.0 million improvement against a net loss of Dh4.6 million reported in the first half of 2013. All core fee and interest generating business divisions posted a net profit with significant progress coming through in Asset Management, Investment Banking and Lending. Sheikh Maktoum Hasher Al Maktoum, Executive Chairman of SHUAA Capital said: "SHUAA has had a strong first half with continued improvement in both top and bottom line results, further supporting our return to sustained profitability. This is a result of our earlier decision to keep investing balance sheet resources into SME Lending and to position the business to capture improved capital market activity." In Q2 revenues were Dh52.0 million (Q2 2013: Dh43.4 million) and net profit was Dh 6.2 million (Q2 2013: Dh 1.3 million). Q2 saw further sequential improvement over preceding quarters across the core business lines. This reflects SHUAA’s enhanced operational efficiency and ability to grow its fee and interest income. Asset Management reported a Q2 2014 net profit of Dh 4.2 million a sequential improvement over Q1 2014 and Q2 2013. During the quarter, SHUAA Asset Management was awarded, for the second consecutive year, "Best U.A.E. Equity Fund" by Zawya Thomson Reuters. Investment Banking continued to post solid results in Q2 2014 with a net profit of Dh4.5 million from a number of Advisory and IPO mandates. During the period SHUAA was sponsor and joint book runner for the successful Emirates REIT IPO. The team has also strengthened the execution pipeline and has been mandated by a number of clients for prospective IPOs. Capital Markets reported improved net profit in Q2 2014 of Dh 1.8 million underpinned by improvements in both interest income and net fees and commissions. Lending reported strong results with a net profit of Dh7.0 million in Q2 2014 as the growing SME market in the U.A.E. and Saudi Arabia continues to offer significant opportunity to grow market share. Corporate, the centralised corporate cost-centre, generated a loss of Dh 11.2 million in Q2 2014, similar to Q1 despite lower gains on investments in SHUAA managed funds as seen in the first quarter. Sheikh Maktoum added: "The economic outlook for the U.A.E. remains strong and gives us confidence that we can continue to build out our market positions as we look ahead to the second half of 2014. To the backdrop of increased client activity, we have expanded our core businesses and hired new talent. We believe that we are in a strong competitive position to increase our market share as institutional investors look to access our markets and local businesses continue to execute on their growth plans." SHUAA expects to publish its interim condensed consolidated financial statements for H1 2014 on 6 August 2014. – Emirates News Agency,