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Shuaa Capital reported a net loss attributable to owners of AED 87.2 mn in 1Q 2024, compared to net income of AED 14.7 mn in the same period last year, primarily on the back of non-cash impairments related to legacy assets, it said in its earnings release (pdf). Net operating income improved sharply during the period, rising to AED 5 mn, up from the AED 14 mn loss reported in the prior quarter on the back of cost savings.
The firm’s revenues fell 49% y-o-y to AED 30 mn during the quarter, according to its financial statements (pdf). The firm’s asset management unit reported first quarter revenues of AED 25 mn, while the investment banking division lined up AED 4 mn, mainly driven by the capital markets business.
REMEMBER- Shuaa is pushing ahead with an ambitious turnaround plan. The firm has been undergoing major restructuring after substantial losses in 2023. Shuaa reached an agreement with bondholders in April to extend the payment terms for some USD 150 mn worth of bonds, and appointed a new management team and Wafik Ben Mansour as its CEO as part of its capital optimization plan. The investment bank has fully settled around AED 500 mn (USD 136 mn) in margin facilities with multiple UAE banks.
And more restructuring is in the works: The firm plans to issue a total of AED 642.5 mn of mandatory convertible bonds as part of its capital optimization plan, with the bond issuances pending regulatory approvals.
NATIONAL BANK OF UMM AL QUWAIN-
National Bank of Umm Al Quwain’s (NBQ) net income after tax fell 5.4% y-o-y to AED 109 mn in 2Q 2024, according to its quarterly financials (pdf. Net income after tax rose 11.8% y-o-y to AED 285.4 mn in 1H 2024, on the back of an “increase in operating income and effective cost optimization strategies,” according to the bank’s earnings report (pdf). The lender’s net interest income inched up by 16% y-o-y during the period to AED 337 mn.
