SHUAA Capital increases revenues by 62% to AED 277.2 mn for H1
SHUAA Capital today announced its half year revenues ending on 30 September 2007 surged to AED 277.2 million, a 62% rise over the first half of the same period last year, and net profits of AED 128.6 million, a rise of 22% respectively.
Earnings per share were up to AED 0.226 per share from AED 0.179, which represents a year on year rise of 18%.
Mr. Majid Saif Al Ghurair, Chairman of SHUAA Capital, said: ''Market conditions are favorable. It is clear to us that the financial services industry in the GCC will continue its rapid development. Integration of the GCC region into global financial markets is also increasing pace. SHUAA Capital will continue to be at forefront of these developments." Mr. Iyad Duwaji, SHUAA Capital's Chief Executive Officer, added: "We have built up a lot of momentum over the last six months. Our operating income trends mirror the performance of our fast growing franchise. The performance in our core businesses provides a solid base for future earnings growth and we are well positioned to capture the benefits that would result from increased activities in our various business lines." Operating income climbed by AED 65.2 million to AED 208.5 million, representing an increase of 46% over the first six months of last year.
''The consolidation of our brokerage business, higher fees and commission income from investment banking and asset management as well as income from investment securities drove this increase, which more than offset the decline in income from investments. Interest income, which accounted for 19% of revenues, grew to AED 53.3 million, amounting to an increase of 27% versus the first half of 2007/08. Income from associates increased by 14% to AED 17.2 million, accounting for 6% of net revenues, he said.
While top line growth was strong, general & administrative expenses also increased from AED 36.4 million to AED 76.3 million. This is a direct result of the fast growth in the number of employees, with headcount increasing from 170 to 270 over the past 12 months. Additional costs are accrued from SHUAA Capital's expansion into Saudi Arabia, and offices in Beirut and Cairo. Operating costs were also up due to provision accruals of AED 23 million for employee benefits. Interest expenses were up by 57% to AED 42.6 million at mid year. This is the result of increased leverage from AED 789.6 million in the first half of 2006/07 to AED 1,197.7 million in 2007/08 respectively.
SHUAA Capital's total assets increased by 26% to AED 3.3 billion from AED 2.6 billion at 30 September last year. Shareholder's equity stood at AED 1.6 billion, which is 11% higher than at mid year 2006/07. Gearing (Total Assets/Total Equity) was 44%. We continue to expect a return on opening equity for the full year to reach 20% for the year and return on assets of 11%.
Source
Earnings per share were up to AED 0.226 per share from AED 0.179, which represents a year on year rise of 18%.
Mr. Majid Saif Al Ghurair, Chairman of SHUAA Capital, said: ''Market conditions are favorable. It is clear to us that the financial services industry in the GCC will continue its rapid development. Integration of the GCC region into global financial markets is also increasing pace. SHUAA Capital will continue to be at forefront of these developments." Mr. Iyad Duwaji, SHUAA Capital's Chief Executive Officer, added: "We have built up a lot of momentum over the last six months. Our operating income trends mirror the performance of our fast growing franchise. The performance in our core businesses provides a solid base for future earnings growth and we are well positioned to capture the benefits that would result from increased activities in our various business lines." Operating income climbed by AED 65.2 million to AED 208.5 million, representing an increase of 46% over the first six months of last year.
''The consolidation of our brokerage business, higher fees and commission income from investment banking and asset management as well as income from investment securities drove this increase, which more than offset the decline in income from investments. Interest income, which accounted for 19% of revenues, grew to AED 53.3 million, amounting to an increase of 27% versus the first half of 2007/08. Income from associates increased by 14% to AED 17.2 million, accounting for 6% of net revenues, he said.
While top line growth was strong, general & administrative expenses also increased from AED 36.4 million to AED 76.3 million. This is a direct result of the fast growth in the number of employees, with headcount increasing from 170 to 270 over the past 12 months. Additional costs are accrued from SHUAA Capital's expansion into Saudi Arabia, and offices in Beirut and Cairo. Operating costs were also up due to provision accruals of AED 23 million for employee benefits. Interest expenses were up by 57% to AED 42.6 million at mid year. This is the result of increased leverage from AED 789.6 million in the first half of 2006/07 to AED 1,197.7 million in 2007/08 respectively.
SHUAA Capital's total assets increased by 26% to AED 3.3 billion from AED 2.6 billion at 30 September last year. Shareholder's equity stood at AED 1.6 billion, which is 11% higher than at mid year 2006/07. Gearing (Total Assets/Total Equity) was 44%. We continue to expect a return on opening equity for the full year to reach 20% for the year and return on assets of 11%.
Source
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