UAE-based investment bank sees loss shrink to US$5.6m on cost-cutting
UAE investment bank Shuaa Capital said it narrowed its fourth quarter net loss by about 82 percent as it cut costs, increased revenues and reduced its non-core assets as it continued to restructure.
The Dubai-based bank, which was hit by the global financial crisis, said its fourth quarter net loss shrank to AED20.7m (US$5.6m) from AED111.9m in the same period a year earlier.
Shuaa said it reduced full-year 2012 net loss by about 80 percent to AED59m from a AED293.8m loss the year before as the company restructured.
"Despite the volatile market environment in 2012, SHUAA’s financial results for the full year are in line with our market guidance,'' Sheikh Maktoum Hasher Al Maktoum, Executive Chairman, said in an emailed statement.
"We successfully completed four major turnaround initiatives, including the rightsizing programme, the reduction in non-core assets, the transformation of our industry leading balance sheet by strengthening our liquidity position and the announcement of a clear strategic, financial and operational roadmap with a focus on recurring revenue generation," Sheikh Maktoum said. "SHUAA is now in a unique position to focus on growth which will result in a stronger performance in 2013," he added.
The bank's total revenues increased 38 percent in 2012 to AED137.3m, while expenses fell 45 percent to AED199.3m in the year.