SHUAA Capital reports 42% jump in total revenues

SHUAA Capital stated that its net loss was AED35.3 million for the quarter as compared to net loss of AED28.6 million in the corresponding quarter of 2015; non-lending business lines — investment banking, asset management and capital markets — recorded a consolidated net profit of AED3.3 million. The group’s lending business recorded provisions of AED46.3 million as against AED18.1 million in Q3 2015.
Net fees and commissions were up 52 percent to AED13.9 million (AED9.2 million in Q3 2015). 
Total interest income was lower at AED35.1 million (AED42.1 million in Q3 2015), while ongoing control over general and administrative expenses maintained Q3 2015 levels at AED32 million, and in spite of a series of new appointments across the firm. 
Group’s total expenses were AED87.3 million as against AED61.5 million in Q3 2015, mainly due to a rise in lending related provisions for small and medium enterprises (SMEs).
While total revenues for the nine-month period ended Sept. 30, 2016 edged up slightly to AED138.7 million as against AED138.1 million in 2015, net loss for the nine-month period was AED113.6 million as against AED28.6 million in 2015.
Abdul Rahman Hareb Rashed Al-Hareb, chairman of SHUAA Capital, commented: “As volatility across regional markets persists, we remain focused on our strategy of realigning and strengthening our business lines through product diversification and the appointment of revenue-driving staff. And while we are beginning to see positive results of this strategy on our core revenue lines, there continues to be stress on our lending division.” 
Al-Hareb added: “I would also like to emphasize our strong business model in the Saudi market. The first of three hospitality projects were recently completed and handed over for operations, thus marking a significant milestone since the firm’s foray into the Kingdom. Saudi Arabia remains a vital market for us, and we will continue to pursue strategic growth opportunities there alongside our partners.”

Source: Arab News