Struggling Shuaa Capital's Q1 loss narrows

Dubai investment bank said Q1 loss pared to US$2.31m on back of cost cutting
Struggling Shuaa Capital's Q1 loss narrows
Shuaa Capital said its cost cutting measures helped narrow its first quarter losses.
By Claire Valdini
Mon 07 May 2012 02:40 PM

Shuaa
Capital, the Dubai investment bank struggling to boost revenues,
said its cost cutting measures helped narrow its first quarter losses.

The firm, which helped float
ports operator DP World several years ago, said its first quarter loss narrowed
to AED8.5m (US$2.31m) compared to a AED26.3m loss during the same period last
year.

“Our
business turnaround strategy continues to make good progress and positions us
well for 2012 and beyond,” HH Sheikh Maktoum bin Hasher Al Maktoum, executive
chairman of Shuaa Capital, said in a statement.

“Whilst
we have made strong progress on cost cutting we are turning our attention to
generating revenues.  This shift in focus will gather momentum as we build
out our core capabilities in the areas of credit, asset management and
advisory,” he added.

Shuaa Capital said its costs
and expenditures declined 7.4 percent to AED62.1m for the first three months of
the year. Revenue for the same period more than doubled to AED55m while total
assets declined to AED1.57bn from AED1.6bn a year earlier.

One of the Arab world's
largest investment banks and once symbol of the sector's potential in the
region, Shuaa Capital was hit by the 2008 global financial downturn, with asset
impairments erasing profits.

The company, which has had
several management changes in recent years, appointed former ABN Amro banker,
Colin Macdonald, as its new chief executive last month.

Last year, the firm
implemented job cuts as it looked to move away from its retail brokerage
business after markets in its home base declined and losses mounted.

Shuaa Capital said in
October that it plans to expand its asset management and advisory business in
Abu Dhabi, Saudi Arabia and Kuwait and will focus on high net-worth family
businesses and small- to medium-sized companies as well as institutional
clients.

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