SHUAA Capital returns to profit post-ADFG merger
• A return to profitability for the enlarged group in Q3, with net income of AED21.8 million and EBITDA of AED63.3 million delivered by ADFG’s contribution
• The Effective unification has created region’s leading Investment Banking and Asset Management platform, with c. $13 billion assets under management
• The retaining of earnings to AED153.8 million by strengthening of Dividend payment capacity
• Board is sure about accomplishing an entire year benefit, supported by pipeline of dynamic arrangements, progress on making perpetual capital vehicles and introductory acknowledgment of collaborations
• From 26 November 2019 it will be Included in the MSCI Emerging Markets Small Cap Index
United Arab Emirates: SHUAA Capital psc ("SHUAA Capital" or "the Group"), the DFM-recorded substance for the main Investment Banking and Asset Management stage in the area made by the merger of SHUAA Capital and Abu Dhabi Financial Group ("ADFG"), today declares its monetary outcomes for Q3 2019. This is the Group's first set of combined outcomes distributed after the transformational merger with ADFG finished on 1 August 2019, exhibiting the underlying advantages of the exchange coming through in Q3 benefits.
A strong Q3 budgetary execution mirroring ADFG's commitment.
Overall gain for the three months ended on 30 September 2019 was AED21.8 million, driven by an AED 31.2 million support from ADFG. Gathering EBITDA added up to AED 63.3 million and AED 101.4 million barring misfortunes identified with remote trade developments.
Results likewise show an extensively improved monetary record for the Group following the merger, with held income of AED 153.8 million. Building a post asset report is critical to the board's procedure of fortifying its ability for development and profit conveyance. An unmistakable spotlight on building lasting capital vehicles will drive repeating income streams in the Asset Management business, and the formation of a devoted non-center unit will help discharge capital, de-leverage the Group and refocus on giving capital-effective benefits in the Investment Bank.
A convincing vital stage for development
Post-merger, the augmented business presently speaks to the locale's driving Asset Management and Investment Banking stage, with enhanced income streams crosswise over seven nations including the UAE, Saudi Arabia and the UK. Coordination of the two organizations is well under route and on track, with new working fragments characterized and income and cost cooperative energies being figured it out.
The Asset Management business administers Assets under Management of c. $13 billion, giving solid incomes to the Group and supporting profit perceivability going ahead. Then, against a background of market headwinds and proceeding with geopolitical vulnerability, the Investment Bank reinforced its attention on capital effective organizations. SHUAA Capital's speculation banking business today is one of the most dynamic in the district. The Group has been commanded on various prominent capital market exchanges during the quarter, for example, the $135m sukuk for The First Group and the invert posting of PAL Holding and IHC on the Abu Dhabi Securities Exchange. Speculation banking bargain pipeline in the business is strong. In the interim, the business sectors business shows solid versatility especially inside the fixed pay business on the back of solid customer connections and item work out.
Looking forward, the Board is certain about the standpoint for the Group. The Group's consideration in the MSCI Emerging Markets Small Cap Index (which produces results on 26 November 2019) is demonstration of the advancement that has been made after the merger. In addition, the sound pipeline of arrangements in the Asset Management business implies that the Board is sure about accomplishing an entire year benefit. Remarking on the presentation, Jassim Alseddiqi, Group CEO, stated, "The combined Q3 results exhibit the early advantages of the transformational merger between SHUAA Capital and ADFG. Supported by ADFG's commitment to benefit, we are as of now observing the worth that the exchange is conveying for our investors in Q3, which saw SHUAA Capital come back to benefit. Likewise, with the solid stage presently set up crosswise over Asset Management and Investment Banking, we are amped up for the Group's future possibilities and understanding the noteworthy open doors for development accessible to us by working over the consolidated stage. We anticipate giving further subtleties on our methodology, business execution and progress on the mix with our 2019 entire year results discharge."