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Mon 10 Aug 2015 01:57 PM

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Dubai's Shuaa sees Q2 net profit slump despite revenues rise

Head of UAE-based financial services firm says he remains upbeat despite subdued market sentiment

Dubai's Shuaa sees Q2 net profit slump despite revenues rise

Shuaa Capital, the UAE-based financial services firm, on Monday said that its net profit for the second quarter of 2015 fell significantly despite a small rise in revenues.

Second quarter net profit dropped to AED1.7 million ($462,824) compared to AED6.2 million during the same quarter in 2014, while revenues rose to AED59.7 million from AED57 million in the year-earlier period.

Net profit for the first half of 2015 slumped to AED100,000 compared to AED14.4 million for the first half of 2014, the company added in a statement.

"Shuaa's balance sheet in the second quarter remains in good health as we invest and make progress in growing our business divisions," said Abdul Rahman Hareb Rashed Al Hareb, chairman of Shuaa.

"Although general market sentiment has remained subdued due to macroeconomic and geopolitical issues, we are encouraged by a number of positive developments within the business that we believe will set the scene for higher recurrent revenue generation in the second half of the year and beyond."

He said Shuaa maintains a strong balance sheet and a solid liquidity position with total assets of AED1.8 billion.

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