Dubai’s Shuaa Capital reports Dhs20m in Q3 net profit

Dubai-based asset management and investment banking platform Shuaa Capital swung to profit in the third quarter of the year.

The company recorded Dhs20m in net profit attributable to shareholders for Q3, marking a significant turnaround from a net loss of Dhs170m in the previous quarter.

Read: Shuaa Capital reports net loss of Dhs170m for Q2 2022

SHUAA Capital delivers AED 20 million net profit in Q3 2022 driven by strong recurring revenues
شعاع كابيتال تحقّق أرباحاً صافية بقيمة ٢٠ مليون درهم في الربع الثالث من عام ٢٠٢٢ مدفوعة بالإيرادات المتكررة القويةhttps://t.co/H6SroRwAw7 pic.twitter.com/63SHkyUJOo

— SHUAA Capital (@SHUAA_Capital) November 11, 2022

In Q3, he group reported a net operating income (excluding one-off items) of Dhs14m compared to Dhs6m in Q2 2022. Meanwhile, Shuaa revenues of Dhs60m across all business segments in the third quarter.

The group’s asset management segment delivered Dhs31m in revenue, driven by a contribution from fee earning AuM (assets under management) within real estate as well as managed public and private market funds. The group’s investment banking business posted revenues of Dhs5m due to higher advisory and trading income compared to the second quarter, a statement added.

Revenues from the company’s corporate segment stood at Dhs24m, while the group’s cost-income ratio totalled 77 per cent in the third quarter, dipping from 90 per cent recorded in Q2.

“Cost optimisation initiatives are expected to continue with the cost-income ratio expected to meet management mid-term target of 65 per cent,” the company said in the statement.

“Despite the prolonged global market volatility, our core operating business remained resilient and delivered another strong set of recurring revenues across all business segments,” said Fawad Tariq Khan, group chief executive officer of Shuaa Capital.

“We remain committed to providing pioneering investment solutions to our clients, as evidenced by the project completion of The Broadway and the increase in the number of managed funds our clients have access to with the recent addition of $220m in new AuM to our discretionary portfolio management and funds in the third quarter of 2022.”

In March, the company announced the launch of SHUAA Venture Partners, a $250m Shari’ah fund, focused on venture debt investments.

Read: Dubai’s Shuaa Capital launches $250m venture debt fund