By Soren Billing
Dubai financial services firm chief says it has hired consultancy to help restructuring, form new strategy.
on Sunday posted a Q3 net loss of AED259m ($70.6m) and said that it has hired a consultancy to help the firm restructure and formulate a new strategy going forward.
Losses at the largest investment bank in the UAE narrowed to AED259m in Q3 from AED438.2m in the corresponding period last year on higher profit from business units including asset management and the company’s Saudi operations.
“While challenging market conditions persisted and reduced business activity over the summer months weighed on our results this quarter, we are seeing improved performance across our fee generating businesses,” said chairman Majid Al Ghurair.
The company has hired consultancy Bain & Company to re-focus the firm’s efforts on its fee generating businesses and to help it “formulate our future strategy against a changed regional landscape and new realities”.
took investment impairment charges of AED259m ($70.6m) and provisions of AED42.5m ($11.6m) in the quarter.
The move would have a long-term positive impact on the future of the firm, newly appointed chief executive Sameer Al Ansari said.
“In order to sharpen
’s quality of earnings going forward, we have taken decisive steps to improve the balance sheet, significantly increase liquidity and eliminate further downside risks emanating from non-fee-generating businesses, as evidenced by the prudent approach to recognise impairment charges on associates, available for sale investments and investments held to maturity,” he said.
Separately on Sunday, Dubai Investments Co posted a net profit of AED280.7 million ($76.25 million) in the third quarter, down 56 percent on the year earlier period, driven by lower income from property sales.
The conglomerate, which operates in the investment, manufacturing, dairy production and real estate sectors, posted a net profit of AED634.9 million in the third quarter of 2008.
Profit fell as income from the sale of properties slumped to AED77.7 million from AED419.69 million in the year earlier period, according to a statement on the Dubai bourse website.