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Leading asset management platform Shuaa Capital reported net operating income of AED6 million ($1.63 million) in the second quarter (Q2) of this year, compared to AED24 million in the first quarter, mainly due to transactions Income fell.
Shuaa and its subsidiaries (group) reported a net loss attributable to shareholders of AED170 million in the second quarter of 2022, compared to a net income of AED6 million in the first quarter of 2022. Non-cash charges (mark-to-market Shuaa managed funds, accrued charges and accelerated amortization of intangible assets) contributed to the performance.
During the second quarter, Shuaa achieved another strong set of recurring income across all of the group’s business segments, reaching AED64 million.
The Group’s asset management segment delivered a strong performance with AED33 million in revenue, driven by a strong contribution from recurring management fees, with additional fee income from assets under management expected to increase in the second half of the year.
The Group’s investment banking business reported revenue of AED 3 million as advisory and trading revenue was lower than in the first quarter, but is expected to be higher in the second half given the favourable trading pipeline.
As part of the global expansion of Shuaa’s wholly-owned subsidiary, Northacre, a new independent entity has been established in London, bringing together the Group’s property-related investment management, development management and asset management businesses under one platform. In addition to the real estate investment and asset management platform, Northacre will develop a US$3.6 billion portfolio of projects in the UK and GCC.
Despite heightened market volatility, revenue from the corporate segment remained strong at AED 28 million in the second quarter of 2022, led by Shuaa’s strong trading business.
The cost-to-income ratio of 90% in the second quarter of 2022 was higher than the 73% in the first quarter of 2022 due to lower revenue. However, additional cost optimization measures are expected to have an impact in the second half of 2022, according to a statement from Shuaa.
It added that the group continued to focus on deleveraging and to repay AED188 million in the first half of 2022.
Shuaa is well-positioned to benefit from growth in travel and tourism in the first quarter of 2022 due to higher oil production and a strong 6% growth in the non-oil sector, coupled with an 8.2% year-on-year growth in the UAE economy. The positive impact of Expo 2020. Furthermore, due to rising oil prices, the UAE and GCC will have budget surpluses, leading to an over-accumulation of capital that can be used for investment opportunities.
Fawad Tariq Khan, Group CEO of Shuaa Capital, said: “Despite a challenging quarter, our core operations remained resilient and delivered recurring revenue of AED64 million across all business segments. We have started to Group-wide activities to streamline our business.” By addressing non-cash expenses and cost optimisation measures, we will be profitable in the future. We remain committed to providing innovative investment solutions to our clients, as evidenced by the global launch of Northacre and the increase in the number of funds we manage. Customers can access. “- arab trade news agency
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