The Dubai-based bank made a profit of AED213m in the same period of 2007.

The figures for the October to December period takes its losses for the nine months to the end of 2008 to AED949m. During the same period in 2007, it made a AED342m profit.

“The financial year 2008 was an exceptionally difficult year for financial institutions worldwide and for all capital markets, including the GCC,” said the bank.

“As a result of major market dislocation, we suffered significant mark-to-market reductions in our asset valuations, both quoted and unquoted, in the last two quarters of the year which led to a significant loss.”

The statement added that the writedowns were conservative and that Shuaa did not expect further impairment charges on the investments.