Shuaa Capital posts Dhs25m net profit in first quarter

DUBAI: Shuaa Capital, the leading asset management and investment banking plaform in the region, has announced Dhs25 million net profit for the first quarter of 2021.

A statement on its financial results for Q1 2021 said Shuaa achieved a 10-year record in quarterly profits, with net profit atributable to shareholders for Q1 2021, of Dhs25 million compared with Dhs262 million net loss atributable to shareholders in Q1 2020. with operating income increasing 132% year-on-year from Dhs19 million in Q1 2020 to Dhs 45 million in Q1 2021.

EBITDA generation also remained strong, at Dhs75 million for Q1 2021 compared with a negative EBITDA of Dhs202 million in Q1 2020, up Dhs277 million year-on-year. Furthermore, revenues saw an increase to Dhs102 million in Q1-2021 compared with Dhs72 million in Q1 2020, up 42% year-on-year driven by our recurring business which continues to trend above the average of the last four quarters, despite Q1 traditionally being Shuaa’s quietest quarter.

Although this is against a weaker 2020 comparative, as Q1 2020 saw the early effects of the global pandemic, these results represent the fourth consecutive quarter of profitability for the Group despite the continued impact of COVID-19 on the economic landscape, demonstrating the resilience of Shuaa’s diversified plaform.

The solid underlying performance also saw SHUAA achieve record profits for its Asset Management business. This was despite a slight decrease in assets under management to $13.9 billion compared with the record levels of $14.1 billion reached at the end of FY 2020.