By Staff writer
Investment bank plans to target wealth management in bid to turn around fortunes
Shuaa Capital posted
a net loss of AED156.2m ($42.53m) in the third quarter as adverse market
conditions pushed the investment bank into asset revaluations and provisions,
it said on Thursday.
compared to a AED0.2m net profit during the same period last year, were hit by
a revaluation of AED83.5m of non-core assets as well as provisions and a
one-time charge of AED41.2m.
volumes, stemming from market dislocation, also hit revenues which fell to AED14.2m
in the quarter, against AED51.8m in the same period in 2010.
appointed Michael Philipp as chief executive officer last month, reiterated it
would concentrate on its asset management, corporate advisory and institutional
The bank eked out a small second-quarter net profit in July
of AED0.6m ($163,354.2), helped by aggressive cost cuts. In the first quarter,
Shuaa said it would cut 10.7 percent of its staff, or 39 jobs, to reduce costs
following the regional turmoil which hit its quarterly results.
There are rumblings from a number of sources alleging that Shuaa Capital may have to lose many more staff than the original estimate.
A fading financial sector affects everything from the number of passengers on planes to room occupancy in hotels and most certainly the property and luxury goods sectors. There are just no jobs to go to, so yet more well paid executives will be bidding the UAE goodbye.
I also read that UBS were looking to pull yet more staff from unproductive markets.