SHUAA Capital Narrows Losses in Q3 2024

SHUAA Capital, a leading asset management and investment banking platform in the UAE, has reported its financial results for the third quarter of 2024. The company has made significant strides in narrowing its net loss to AED 22 million, a notable improvement from the AED 29.5 million loss in the previous quarter. This positive trend underscores SHUAA's commitment to achieving sustainable profitability through strategic initiatives.

The company has been actively optimizing its balance sheet, making necessary valuation adjustments and impairments on legacy investments, particularly in the UK. These actions are part of a broader business transformation aimed at optimizing SHUAA's capital structure. Earlier in the year, SHUAA reached an agreement with bondholders to amend terms, significantly reducing the company's leverage by over AED 500 million. This was facilitated by the issuance of two Mandatory Convertible Bonds, pending regulatory and shareholder approvals.

SHUAA's management believes these efforts have better positioned the company for future growth, allowing it to leave behind past challenges. The focus is now on increasing Assets under Management (AuM), securing new mandates, and strengthening relationships with clients and creditors. Wafik Ben Mansour, Group CEO of SHUAA Capital, expressed satisfaction with the progress made despite challenging conditions, emphasizing that the capital optimization plan is in its final stages.

Financially, SHUAA reported revenues of AED 19 million for Q3 2024, with a year-to-date total of AED 69 million. The adjusted net operating income showed a loss of AED 5 million, reflecting ongoing strategic investments. However, the cost-income ratio remains high at 125%, indicating room for efficiency improvements.

Given the company's strategic direction and ongoing transformation, the outlook for SHUAA Capital is optimistic. Investors may consider holding their positions as the company continues to implement its growth strategies and strengthen its market position. As SHUAA deepens client relationships and attracts top talent, it is poised for a new phase of sustainable growth and enhanced market leadership.