Dubai investment bank Shuaa Capital reported on Wednesday it has broken even during the third quarter and said its turnaround was "on track".
The bank generated revenues of AED51.8m ($14.1m) and a small profit of AED0.2m ($54,460) in the three months to 30 September 2010, it said in a statement to the Dubai Financial Market.
This compares to a loss of AED269.3m ($73.3m) during the third quarter in 2009, the bank said.
“Recording a profit, albeit small is an important achievement in an extremely challenging environment characterized by the lowest market activity since 2004,” said MajidAl Ghurair, chairman Shuaa Capital, in a statement.
The company said it had made headway in strengthening its balance sheet during the quarter and had reduced its liabilities by AED206.1m ($56.1m).
"Our balance sheet is strong, de-risked and underleveraged. Our excellent liquidity position will allow us to reinvest and focus on the growth of our core businesses, most of which have recorded profits this quarter," said Sameer Al Ansari, Shuaa Capital CEO, in a statement.
Shuaa’s business units reported solid results during the third quarter despite low trading activity, the bank said. While it’s asset management and investment banking divisions moved back into profitability. However, its brokerage results were impacted by reduced client activity, the statement said.For all the latest business 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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