Shuaa Capital pulls back losses to $73m

01 November 2009

Investment bank narrows quarterly loss and repays AED100m of debt

UAE investment bank Shuaa Capital has reported a loss of AED269.7m ($73.5bn) in the third quarter of the year, following a loss of AED438.5m in the same period of 2008.

The bank said it made impairments of AED259m and provisions of AED42.5m during the three months to the end of September. The bank’s operating loss during the period was AED164.3m.

Shuaa also said it had repaid AED100m of debt. It has also appointed advisory firm Bain & Company to help develop a new business plan for the company.

Total assets held by the company stood at AED3.3bn, compared to AED3.6bn in June 2009. The investment banking division reported a loss of AED1m during the third quarter, and the brokerage business reported profits of AED2.5m, a fall of 65 per cent compared to the second quarter when profit was AED7.2m.

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