Stock market volatility hits Q4 profits of Dubai's SHUAA

Financial services firm posts loss in Q4 but 2014 net profits rise ten-fold compared to previous year

SHUAA Capital, the UAE-based financial services firm, has reported a ten-fold increase in net profit for 2014 compared to the previous year but its fourth quarter performance was hit by stock market volatily.

The company said revenues reached AED213 million last year, with net profit of AED25.8 million, up by AED23 million compared to the AED2.8 million recorded in 2013.

But revenues for Q4 were AED25 million, down from AED64 million in Q4 2013 resulting in a net loss of AED14.8 million. This was due to the high volatility in the stock market during the fourth quarter, SHUAA said.

SHUAA said full-year operating expenses dropped to AED165 million from AED174 million in 2013 as rigorous cost control measures were maintained and further reductions in general and administrative costs were recorded.

SHUAA's balance sheet was further strengthened as total assets increased by AED117 million to AED1.6 billion at the end of the year.

Overall, SHUAA's net assets were up at AED1.1 billion.

Sheikh Maktoum Hasher Al Maktoum, executive chairman of SHUAA Capital, said: "We have had a steady start to 2015 and despite market volatility we remain confident that the business will continue to build on the earnings momentum generated in recent quarters.

"I look forward to supporting the new management team as they take the company on to the next stage of its growth."

In December, SHUAA said Sheikh Maktoum Hasher Al Maktoum will be stepping down as executive chairman and as board director this month.

He has presided over the company since May 2011 successfully turning the company around and positioning it for growth.

Related:
Join the Discussion

Disclaimer:The view expressed here by our readers are not necessarily shared by Arabian Business, its employees, sponsors or its advertisers.

NOTE: Comments posted on arabianbusiness.com may be printed in the magazine Arabian Business

Please post responsibly. Commenter Rules

  • No comments yet, be the first!

All comments are subject to approval before appearing

Further reading

Features & Analysis
A humbler Qatar still wants to punch above its weight

A humbler Qatar still wants to punch above its weight

Qatar has acquired more than $335bn worth of assets around the...

Saudi Arabia spends money to make money

Saudi Arabia spends money to make money

Tour of Asia by Saudi Arabia's King Salman advances drive to...

Soft money: will cash transactions soon be a thing of the past?

Soft money: will cash transactions soon be a thing of the past?

The rapid digitisation of banking in the UAE is enabling robots...

Most Discussed
sponsoredTracking