Shuaa Capital, a premier financial services company in the UAE, said its revenues for the second-quarter increased to Dh47.5 million ($13 million), up from Dh30.8 million ($8.38 million) from the corresponding 2018 quarter thus representing an increase of 54.4 per cent.
Announcing the results for the six months ending June 30, Shuaa Capital said it had registered Dh31.6 million in losses compared to Dh14.6 million profits last year, with an H1 2019 loss of Dh56.5 million, compared to a profit of Dh26.3 million in H1 2018 reflecting the one-off transaction costs relating to the combination with Abu Dhabi Financial Group (ADFG), as well as final provisions of Dh13.5 million towards exposure to legacy investments.
The second-quarter financial results will be the final set of earnings that Shuaa releases as a stand-alone entity, with third-quarter results to combine the earnings of the new and enlarged financial group of companies, stated the Dubai-based financial services provider.
In another development, Shuaa Capital has appointed Yahsat CEO Masood M. Sharif Mahmood to the Board of Directors. Mahmood had previously worked in Mubadala’s Information and Communications Technology unit.
On the solid performance, CEO Fawad Tariq Khan said: “Shuaa’s final set of quarterly earnings reflect the completion of expenses and provisions relating to the merger as well as legacy investments. More importantly, our operating lines continue to grow in revenue and these will continue to serve as crucial elements for the new and enlarged entity well into the future.”
Following the completion of the merger, the various teams at Shuaa and ADFG are now investing considerable joint efforts building a solid long-term road map for this newly created regional financial powerhouse. We look forward to announcing our Q3 and Q4 results.”
As of June 30, 2019, Shuaa’s balance sheet and total assets stood at Dh2.2 billion, while the net assets soared to Dh762.2 million.
With the final regulatory approvals for the merger now obtained and Shuaa having increased its share capital, the company will be calling for a general assembly meeting with shareholders, to increase the number of its Board members as well as approve the transitioning of the Shuaa Capital name and brand to ADFG, as previously disclosed, he added.