SHUAA Capital reports second consecutive quarter of profitability

DUBAI: Dubai-based SHUAA Capital reported its second consecutive quarter of profitability, and the highest half-yearly results since 2009 on lower expenses and steep cuts in provisions.
Net profit for the three months to June rose 124 percent to Dh12.1 million, from a net loss of Dh50.8 million of the same period last year, driven by “proprietary investments, advisory transactions and management fees of real estate funds.”
Total quarterly revenues however fell 32 percent to Dh30.4 million from Dh44.6 million previously. Provisions fell by almost 81 percent to Dh11 million from Dh57 million last year, while general and administrative expenses were 42 percent lower Dh17.8 million from Dh30.5 million a year ago.
SHUAA said first half net profit was at Dh36.8 million, compared with the Dh78.3 million of the same period last year, while total revenues slipped to Dh62.2 million from Dh90.1 million a year ago.
“Our focus during the first six months of the year was two-fold, first to reinforce the foundations of the group, and second to refocus and streamline our operations to create synergies across the business and with external partners,” Fawad Tariq-Khan, the general manager of SHUAA Capital, said in a statement.
“SHUAA Capital’s healthy performance in 2017 is evidence that we are on the right path, and gives us a solid platform to build upon in the second half of the year.”