Wed 12-08-2020 22:41 PM
DUBAI, 12th August, 2020 (WAM) -- Shuaa Capital today reported a net profit attributable to shareholders of AED5 million and an EBITDA of AED125 million in the first half of 2020.
Excluding unrealised mark-to-market losses on portfolio investments, the H1-2020 net profit came in at AED164 million and EBITDA at AED284 million, the asset management and investment banking platform said in a statement today.
SHUAA’s first half financial results for 2020 affirmed the company’s ability to sustain its resilient revenue growth amidst severe global economic, financial and social impacts of the COVID-19 crisis and other market disruptions.
Commenting on SHUAA's H1-2020 results, Jassim Alseddiqi, Chief Executive Officer of SHUAA Capital, said: "In this unprecedented time, our first priority was and still is the health and safety of our employees. I am very proud of how our team has responded, by seamlessly transitioning to remote working and by continuing to put our investors and clients at the heart of what we do.
"We managed to remain profitable in the first six months of 2020 on the back of the dedication and commitment of our employees to continue on our strategic agenda. Whilst COVID-19 as well as the economic and geopolitical challenges will continue to impact overall business and market activity for some time, our business model is calibrated around seizing opportunities across economic cycles, geographies and products. Our pipeline of investment banking mandates has strengthened, and the launch of scalable new investment funds has commenced. We stay firm on our promise to deliver value for our clients and shareholders."
The company reported an operating income of AED86 million in Q2-2020, up by 19% quarter-on-quarter, as the Group continues to progress on improving the breadth and quality of its revenues. SHUAA has maintained disciplined working capital management while working closely with portfolio companies to ensure appropriate funding, as well as protecting client assets through the crisis.
The company’s operating businesses, asset management and investment banking, showed a strong sequential recovery in profitability in Q2-20 with EBITDA of AED41 million and AED8 million respectively.
SHUAA's asset management business maintained its solid base, with assets under management standing at USD 13.0 billion at the end of Q2-2020 compared to USD12.8 billion in the first quarter of 2020, furthering the company's ongoing plan to increase its stable and recurring revenue streams through permanent capital vehicles.
SHUAA’s investment banking business continues to increase its focus on capital raising and restructuring mandates while continuing to build on the success of its fixed income trading desk. During H1 the team acted as lead or co-lead arranger on transactions successfully raising over USD 500 million while executing fixed income flow in excess of USD 1.5 billion (20% year-on-year growth).
The investment bank’s model remains resilient despite periods of crisis and uncertainty and is actively involved in capital restructuring and raising mandates in excess of USD2 billion.