The Banking Executive Magazine - March 2022 Issue

SHUAA Capital SHUAA CAPITAL REPORTS STRONG FULL YEAR 2021 RESULTS REFLECTING STRONG CORE BUSINESS PERFORMANCE SHUAA Capital, the leading asset management and investment bank- ing platform in the region, has re- ceived board approval for its audited financial statements for the fiscal year ended 31 December 2021. The FY 2021 results demonstrate continued progress in delivering on the Group’s strategic agenda. While net profit for SHUAA and its sub- sidiaries (the “Group”) of AED 24 million was down 81% year on year from AED 125 million in 2020, the result included one-off charges of net AED 203 million in the fourth quarter mainly relating to valuation impair- ments following the decision to ac- celerate the restructuring of a legacy, illiquid investment portfolio. SHUAA’s net profit on a like for like basis would have been AED 227 mil- lion in 2021. These net charges in- creased by AED 16 million from the Group’s preliminary results, follow- ing a final valuation assessment of certain illiquid assets. While EBITDA also declined, from AED 349 million in FY 2020 to AED 218 million in 2021 due to these valuation impair- ments, adjusting for the effect of the one-off adjustments it would have risen to AED 421 million. Our core revenues continue to show progress towards the high-quality revenues targeted within our strategy, with net fee and commission income up by 21% year on year to AED 265 million in the year, while controlling expenses with operating expenses up 6% year on year, with targeted strate- gic hiring across the business. the BANKING EXECUTIVE 32 ISSUE 159 MARCH 2022