Feb 14 2012 |
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Shuaa earnings hit by unit restructuring
By Abdul Basit DUBAI - Investment bank Shuaa Capital on Monday declared a net loss of Dh294 million for 2011 mainly because of a restructuring in its brokerage business.The majority of the loss, Dh129.9 million, is directly attributable to brokerage that includes one-off costs related to closing down the Shuaa Securities offices in Jordan and Egypt, as well as significantly reducing its presence in Abu Dhabi and Riyadh.
The company, which has reduced its headcount by 39 per cent so far, will continue its rightsizing programme with a further headcount reduction of 55 employees in 2011, primarily from retail brokerage.
"The board took the tough but necessary decision to exit retail brokerage and focus on providing sales and trading services to institutions, family offices and high-net-worth individuals. This entails closing down Shuaa's brokerage operations in Jordan and Egypt as well as significantly reducing the company's presence in Abu Dhabi and Riyadh," Shuaa said in a statement.
"We have pulled out of the loss making retail brokerage business, reduced our risk positions and are now implementing a new strategy," Shuaa Capital chairman Shaikh Maktoum bin Hasher Al Maktoum said.
"We have entered 2012 with a better financial position, a more resilient operating model and a new strategy that focuses on building out our revenue enhancement programme," Shuaa Capital chief executive Michael Philipp said.
Shuaa Capital reported better performance for its SME finance and asset management business.
Revenues from Shuaa's SME finance business was declared at Dh61.2 million, compared to the same figure in 2010 while its profit slightly reduced to Dh23.9 million, compared to Dh23.4 million in 2010. Asset management revenues decreased to Dh23.8 million over Dh31.7 million in 2010, but profit increased to Dh5.2 million, compared to Dh1.2 million.
© Khaleej Times 2012
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