SHUAA Capital, a UAE-based investment bank, has returned to profit after three quarters of losses. Net profit for Q2, 2009 was AED91.7 million, up 37% from AED67.1 million in Q2, 2008. Diluted earnings per share were AED0.086, versus AED0.067 for the same period last year.
Operating income during Q2 was AED169.1 million, as compared to AED176.6 million in 2008. The current quarter operating income was affected by positive effects on net income from investment securities of AED95.8 million, as compared to AED17.4 million during the second quarter of last year, an increase of 450%. Operating expenses recorded a drop of 27% year-on-year, from AED110.4 million in 2008 to 80.6 million in Q2, 2009.
Majid Al Ghurair, chairman of SHUAA Capital, commented: This was a very important quarter for SHUAA. The positive performance clearly demonstrates the strength of our franchise and our management’s ability to continue to operate successfully under the most difficult and demanding market conditions. To the background of the multitude of challenges we have faced, we are particularly heartened with this positive result.
Iyad Duwaji, CEO of SHUAA Capital, said: We are pleased that we have turned the corner after three very difficult quarters. The financial industry is a cyclical one and the downturn in this cycle has been the most severe in the past 80 years. Nonetheless, we remain positive on the outlook for our industry and SHUAA’s position as a market leader. We also continue to believe in the market opportunity the GCC region represents – both in the short and in the long term.
