Dubai-based Shuaa Capital on Thursday reported a net loss of AED56.5 million ($15.3 million) in the first half of 2019 due to one-off costs related to its merger with Abu Dhabi Financial Group (ADFG).
The company's net loss in H1 compared to a profit of AED26.3 million in the year-earlier period.
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.
Shuaa said in a statement that revenues for the second-quarter of 2019 increased to AED47.5 million, up from AED30.8 million, while it saw a net loss of AED31.6 million compared to a AED14.6 million profit in Q2 2018.
The financial services provider said its losses also included final provisions of about AED13.5 million towards exposure to legacy investments.
It added that 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.
The company also announced the appointment of Masood M Sharif Mahmood to the board who currently serves as CEO of Yahsat and previously worked in Mubadala’s Information and Communications Technology unit.
Fawad Tariq-Khan, CEO of Shuaa Capital, 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."
As of June 30, Shuaa’s balance sheet and total assets were AED2.2 billion, with net assets at AED762.2 million.For all the latest banking and finance news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
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