SHUAA Capital delivers Dh20 million net profit in Q3 2022

Third quarter net operating income (excluding one-off items) of Dh14 million compared to Dh6 million in Q2 2022

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In the third quarter, SHUAA delivered another set of strong recurring revenues of Dh60 million across all business segments of the Group. - File photo
In the third quarter, SHUAA delivered another set of strong recurring revenues of Dh60 million across all business segments of the Group. - File photo

Published: Fri 11 Nov 2022, 2:02 PM

Last updated: Fri 11 Nov 2022, 2:04 PM

SHUAA Capital psc, the leading asset management and investment banking platform in the region, has announced its financial results for Q3 2022. In the third quarter, SHUAA and its subsidiaries (the "Group") reported a net profit attributable to shareholders of Dh20 million compared to a net loss of DH170 million in the previous quarter. The Group reported a net operating income (excluding one-off items) of DH14 million compared to DH6 million in Q2 2022 as recurring revenues continue to build a stable moat and cost optimization measures taken earlier starting to improve profitability.

Further consolidation of recurring revenues and continued cost optimization initiatives


In the third quarter, SHUAA delivered another set of strong recurring revenues of Dh60 million across all business segments of the Group.

* The Group’s Asset Management segment delivered a healthy performance of Dh31 million of revenues, driven by the strong contribution from fee earning AuM within real estate as well as managed public and private market funds.


* The Group's Investment Banking business reported revenues of Dh5 million due to higher advisory and trading income compared to the second quarter.

* Northacre recently announced project completion of The Broadway, a $1.5 billion+ contemporary residential and mixed-use development with unrivalled views across Westminster and St James’s Park in London.

* Revenues from our Corporate segment remained robust at DH24 million amidst prolonged market volatility. In line with our strategy of divesting non-core assets, we expect revenues from the corporate segment to run off in the coming quarters.

* The cost-income ratio of 77% in Q3 2022 is significantly lower than the 90% in Q2 2022. Cost optimization initiatives are expected to continue with the cost-income ratio expected to meet management mid-term target of 65%.

Fawad Tariq Khan, CEO, Shuaa Capital. - Supplied photo
Fawad Tariq Khan, CEO, Shuaa Capital. - Supplied photo

Commenting on SHUAA's Q3 2022 results, Fawad Tariq Khan, Group Chief Executive Officer of SHUAA Capital, said: "Despite the prolonged global market volatility, our core operating business remained resilient and delivered another strong set of recurring revenues across all business segments. 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 USD 220 million in new AuM to our Discretionary Portfolio Management and funds in the third quarter of 2022.”

Positioned to benefit from the GCC's strong growth outlook

SHUAA is well positioned to benefit from the GCC's positive economic outlook despite the weak global backdrop. The International Monetary Fund (IMF) projects that the Middle East will be one of the global growth outperformers in 2022. The UAE is forecast to grow 5.1% this year, while Saudi Arabia is expected to grow 7.6% in 2022, the fastest among the Fund’s main forecasts. Higher oil prices this year have led to GCC budgets running surpluses, strengthening sovereign balance sheets, and resulting in a surplus of capital being available for investment opportunities.


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