Second Quarter of 2018 Profits up 21%; SHUAA to Call for General Assembly to Approve Share Buyback and Cash Dividend for First Half of 2018

Business

Second Quarter of 2018 Profits up 21%; SHUAA to Call for General Assembly to Approve Share Buyback and Cash Dividend for First Half of 2018

SHUAA Capital psc today introduces its financial outcomes for the period finished 30 June 2018, with quarterly incomes enhancing to AED 30.8 million (Q2 2017: 30.4 million), and revenues up 21% to AED 14.6 million (Q2 2017: AED 12.1 million).

During this period SHUAA's subsidiary, Gulf Finance Corporation PJSC, effectively paid back in full its AED 450 million syndicated bank center increased from Abu Dhabi Commercial Bank in 2015 and maintains a solid liquidity setting on its balance sheet.

Fawad Tariq-Khan, Ceo of SHUAA Funding, said, "We have been extremely energetic during the initial half in building a platform for the future. Our Egypt and Saudi services in particular have actually achieved a solid development trajectory, and a lot more significantly, given our solid liquidity placement and current healings, we are now in a setting to take a look at making returns circulations to our investors for the very first time in 10 years". He added, Shareholder returns are key for the Board and management at SHUAA and we remain confident SHUAA can continue on its path to sustained profitability and expanding its platform throughout the region.

SHUAA's Asset Management business, which handles the growth of premium real estate jobs in both the Kingdom of Saudi Arabia and the UAE through a series of funds, has had a particularly solid quarter, with AED 10.5 million in revenues (Q2 2017: AED 5.6 million), and greater than increased its revenues to reach AED 4.6 million (Q2 2017: AED 1.3 million). The department is currently coming close to the final construction stages of a hospitality structure in a third Saudi city (Dammam), with a handover day to be announced quickly. Advancement works with a 2nd multi-purpose residential facility, the Wadi Al Hada project in Riyadh, continues completely pressure. At a Group level, significant strategies were additionally revealed regarding a strategic partnership with a famous Saudi property developer, Jabal Omar Development Company, for managing the growth of tasks in Mecca. A Memorandum of Understanding was also signed with UAE based National Bonds Company, towards turning out its very successful savings investment systems in the Kingdom. More details on both intended collaborations will certainly be revealed during the 2nd half of the year.

The Lending division, consisting of financing companies Gulf Financing Company UAE (GFC), and its Shari'ah-compliant sister company Gulf Finance Saudi Arabia (GFSA), likewise reported healthy and balanced results for the quarter, with AED 9.4 million in profits (Q2 2017: AED 19.4 million) and revenues of AED 4.4 million (Q2 2017: loss of AED 10.1 million).

The Resources Markets division, which includes the nation's most significant and most energetic Market Manufacturer and Liquidity Arrangement service provider, videotaped AED 8.3 million in earnings (Q2 2017: AED 4.0 million), with a loss of AED 0.7 million (Q2 2017: loss of AED 0.9 million). Integrated Stocks LLC remains in the top 10 list of UAE supply brokers operating in the UAE, while SHUAA Securities-Egypt remains to provide a solid performance having risen up the national rankings to declare a setting in the top 20 checklist of brokers in a short time period considering that commencing operations

Financial investment Banking advisory solutions taped a reduction in profits to AED 0.4 million (Q2 2017: AED 1.4 million), with a loss for the period of AED 0.4 million (Q2 2017: revenue 0.02 million).

The Business department, which is the main business line in charge of the Group's client facing operations, business growth and major investments, videotaped profits of AED 6.7 million (Q2 2017: AED 21.7 million) generally due to possession recoveries and gains on investments.

Since 30 June 2018, SHUAA's balance sheet and total assets were AED 1.6 billion (31 December 2017: AED 1.2 billion) with net properties at AED 884 million (31 December 2017: AED 899 million).

The Board of Supervisors also took the decision to recommend repayment of an interim returns to shareholders in addition to the previously introduced share buyback. The Company will be requiring a basic assembly meeting with investors during the third quarter to approve the share buyback, in addition to changing the Company's Articles of Organization in order to implement the payment of interim dividends.