Press Release
SHUAA Capital reports strong profitability
for the first quarter of 2023
United Arab Emirates, 10 May 2023: SHUAA Capital psc (DFM: SHUAA), the leading asset
management and investment banking platform in the region, has announced its Q1 2023
financial results. Net profit attributable to shareholders was AED 15 million, up 60% compared to
Q4 2022.
Group financial highlights
Income Statement Q1 2023 Q4 2022 % QoQ
Revenues AED 59.7m AED 59.3m +1% 5
Expenses (AED 31.9m) (AED 52.8m) (40%) 5
Net Profit AED 14.7m AED 9.2m +60% 5
Key metrics Q1 2023 Q4 2022 % QoQ
Cost-Income Ratio 53% 89% (36%) 5
Leverage Ratio 1.02 1.05 (3%) 5
Key financial review
§ Total revenues of AED 60 million in Q1 2023 resilient fee performance from managed
driven by recurring revenue generation across funds and robust trading and advisory fees
all segments
§ Balance sheet metrics continue improvements
§ Cost to income ratio at 53% in Q1 2023, with disciplined approach to simplification of
significantly lower than 89% in Q4 2022 due to balance sheet and deleveraging debt
stable revenue base and firm cost discipline liabilities
§ AED 15 million net profit driven by the § Deleveraging to continue in 2023, with a
outperformance from real estate business, further AED 400 million of debt reduction
identified this year
Segmental review
§ Asset Management, which encompasses § Investment Banking, which provides
investments funds and managed accounts corporate finance advisory, equity and debt
across real estate, public and private markets capital markets, M&A, sales and trading,
and debt, reported first quarter revenues of recorded an upward trend in revenues of AED
AED 54 million in management and 6 million (+7% compared to
performance fees, up +30% since Q1 2022 Q1 2022) with higher growth in trading
revenue offsetting lower advisory fees as no
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significant transactions were closed during services, reported no material revenues (Vs.
the period AED 43 million in Q1 2022) following asset
§ Corporate, which manages principal disposals and deconsolidation
investments, treasury and other shared
Delivering on our strategic priorities
SHUAA’s mission is to create sustainable value for clients, employees and shareholders by
engineering innovative investment solutions and differentiated product offerings for
institutional clients and high-net-worth individuals. The move towards simplifying our balance
sheet has reduced volatility of earnings and allows the team to deliver on recurring revenues
and shareholder returns.
"Our first quarter results demonstrate continued progress against SHUAA’s focused strategy to
deconsolidate and diversify while delivering strong operating income and sustainable returns
to our investors and shareholders,” said Fawad Tariq Khan, Group Chief Executive Officer of
SHUAA Capital. "We continue to remain resilient and look forward to providing our clients with
unparalleled investment offerings at accretive returns. SHUAA's long track record of delivering
best-in-class services speaks for itself, and we will continue to exceed expectations as we pursue
new opportunities and expand our horizons.”
Ends
Press Contacts
SHUAA Capital psc ASDA’A BCW
Hani El Abid Omar Nasro
Head of Marketing and Communications Account Director
Tel: +971 4 3199 723 Tel: +971 4 450 7600
Email: helabid@shuaa.com Email: omar.nasro@bcw-global.com
www.shuaa.com www.asdaa-bcw.com
About SHUAA Capital psc
SHUAA Capital psc (DFM: SHUAA) is a leading asset management and investment banking
platform. SHUAA Capital psc is recognized for its strong track record and pioneering approach
to investing through a differentiated, innovative, and global product offering focused on public
and private markets, debt, and real estate.
The asset management segment, one of the region’s largest, manages real estate funds and
projects, investment portfolios and funds in the regional equities, fixed income, and credit
markets; it also provides investment solutions to clients, with a focus on alternative investment
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strategies. The investment banking segment offers corporate finance advisory, transaction
services, private placement, public offerings of equity and debt securities, while also creating
market liquidity on OTC fixed-income products. The firm is regulated as a financial investment
company by the Securities and Commodities Authority.
To learn more about SHUAA Capital, please visit:
§ Website: www.shuaa.com
§ Twitter: https://twitter.com/SHUAA_Capital
§ LinkedIn: https://www.linkedin.com/company/shuaa-capital
§ Facebook: https://www.facebook.com/SHUAA.Capital.psc
Cautionary Statement Regarding Forward-Looking Information:
This document contains forward-looking statements. Forward-looking statements are neither historical facts nor assurances of future performance.
Instead, they are based only on our current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies,
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"may," "should," "will" and similar references to future periods.
Examples of forward-looking statements include, among others, statements we make regarding:
§ Expected operating results, such as revenue growth and earnings.
§ Anticipated levels of expenditures and uses of capital.
§ Ability to identify and merge with a target and access to capital markets.
§ Current or future volatility in the capital and credit markets and future market conditions.
Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult
to predict and many of which are outside of our control. Our actual results and financial condition may differ materially from those indicated in the
forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. Important factors that could cause our actual
results and financial condition to differ materially from those indicated in the forward-looking statements include, among others, the following: Our
ability to maintain adequate revenue levels and cost control; economic and financial conditions in the global markets and regional markets in which
we operate, including volatility in interest rates, commodity and equity prices and the value of assets; the implementation of our strategic initiatives,
including our ability to effectively manage the redeployment of our balance sheet and the expansion of our strategic businesses; the reliability of our
risk management policies, procedures and methods; continued volatility in the capital or credit markets; geopolitical events; developments and changes
in laws and regulations, including increased regulation of the financial services industry through legislative action and revised rules and standards
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result of new information, future developments or otherwise. Please remember that past performance may not be indicative of future results.
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Sentiment: neutral