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Shuaa reports strong growth in core revenues

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The region’s leading asset management and investment banking platform said its net profit for 2021 excluding one-off charges was Dh227 million.



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A Staff Reporter

Published: Tue 29 Mar 2022, 7:53 PM

Last updated: Tue 29 Mar 2022, 7:55 PM

Shuaa Capital reported on Tuesday a full-year profit of Dh24 million after getting impacted by net one-off charges of Dh203 million.

The region’s leading asset management and investment banking platform said its net profit for 2021 excluding one-off charges was Dh227 million.

“The results demonstrate continued progress in delivering on the group’s strategic agenda. While net profit for Shuaa and its subsidiaries of Dh24 million was down 81 per cent year on year from Dh125 million in 2020, the result included one-off charges of net Dh 203 million in the fourth quarter mainly relating to valuation impairments following the decision to accelerate the restructuring of a legacy, illiquid investment portfolio,” the investment firm said.

“Our core revenues continue to show progress towards the high-quality revenues targeted within our strategy, with net fee and commission income up by 21 per cent year on year to Dh265 million in the year, while controlling expenses with operating expenses up 6.0 per cent year on year, with targeted strategic hiring across the business.,” Shuaa said in a statement.

Fadhel Al Ali, chairman of Shuaa Capital, said despite continued wider market instability, the firm has focused on continuing to deliver for its clients. “The model of partnering local capabilities has seen a number of high-profile successes in areas we can look to repeat this success, not least the Investment Banking team’s work on behalf of Anghami. We expect this model to continue to benefit both clients and shareholders in the future.”

Jassim Alseddiqi, group chief executive officer of Shuaa Capital, said the company has continued to progress during the year in broadening its client offering. “As we move towards the end of cleaning up legacy and non-core investments and portfolios, we will increase our focus on driving revenues and shareholder returns whilst maintaining a strict discipline on costs. We are continually looking for new ways to meet the demand from both existing and new clients and we remain confident about the numerous and long-term opportunities for our business which will create value for our shareholders,” said Alseddiqi. — issacjohn@khaleejtimes.com


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