Sunday, 7 February 2010 at 08:24, Reuters, Dubai
Dubai's Shuaa Capital narrowed its net loss 73 per cent in the fourth quarter, as the investment bank's brokerage and private equity operations returned to profit and its corporate division curbed losses.
The investment bank said in a statement that it cut its fourth-quarter net loss to Dh154.3 million ($42.02m) from a loss of Dh577.4m a year earlier.
Shuaa reported a net loss of Dh529.8m for 2009 – including investment impairment charges of Dh312.2m and provisions of Dh210.5m – compared to a loss of Dh889.6m in 2008.
"We ... have passed critical milestones on our own path to recovery. Our brokerage, asset management, finance and private equity business produced positive contributions to the bottom line but write-downs and provisions offset these profits during 2009," Chairman Majid Al Gurair said in the statement.
Impairment charges amounted to Dh53.2m and Shuaa took provisions of Dh89.8m in the fourth quarter, the statement said.
Several banks in the Gulf Arab region have posted weaker earnings due mainly to the global economic slowdown and provisions for loan losses.
Shuaa's corporate division's loss fell to Dh162.4m in the quarter from a loss of Dh573.3m a year earlier, while the brokerage made a profit of Dh4.9m, rebounding from a loss of Dh2.4m in the year-earlier period.
The private equity division recorded a profit of Dh3m, compared to a loss of Dh8.8m in the last quarter of 2008.
Short and medium-term debt was reduced to Dh483.3m at end-2009 from Dh1.38 billion a year earlier, the statement said.
Consider also reading:
Shuaa Capital narrows loss to $73.45m in Q3
UAE economy to be upbeat in 2010: Shuaa
Gulf investor confidence falls in January: Shuaa
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