SHUAA Capital first half net profit for 2021 highest in decade

26

§  Q2 2021 net profit attributable to shareholders of AED 29 million and operating profit of AED 57 million, up 17% and 28% quarter-on-quarter

§  H1 2021 net profit of AED 54 million at its highest level in a decade and significantly increased from AED 5 million in H1 2020

§  Strong EBITDA generation at AED 79 million for Q2 2021, up 5% quarter-on-quarter, and at AED 153 million for H1 2021, up 23% year-on-year

§  Revenues of AED 140 million for Q2 2021, up 37% quarter-on-quarter, and AED 242 million for H1 2021, up 10% year-on-year, with cost-income ratio at 58% already better than target

§  Continued focus on executing strategy via significant hiring for growth, building new products and platforms for client journeys, and winding down non-core unit

Jassim Alseddiqi, Group Chief Executive Officer of SHUAA Capital

United Arab Emirates: SHUAA Capital psc (DFM: SHUAA), the leading asset management and investment banking platform in the region, has announced its financial results for Q2 2021. Net profit attributable to shareholders for Q2 2021 stood at AED 29 million, an increase of 17% quarter-on-quarter. Meanwhile, for the H1 2021 period, the Group recorded its highest first half year net profit in a decade of AED 54 million, up significantly from AED 5 million in H1 2020. Operating profit for Q2 2021 stood at AED 57 million, an increase of 28% quarter-on-quarter from AED 45 million in Q1 2021. EBITDA generation also remained strong, at AED 79 million for Q2 2021, up 5% quarter-on-quarter. EBITDA growth for H1 2021 was also strong year-on-year, up 23% to AED 153 million, further highlighting the upwards trend in SHUAA’s earnings capacity. Moreover, revenues saw a quarter-on-quarter increase of 37% to AED 140 million in Q2 2021 and a year-on-year increase in the first half of 10% to AED 242 million for H1 2021.

The Company also continues to strengthen its balance sheet thanks to its solid financials, with circa AED 400 million of borrowings and liabilities paid down in the past 24 months.

As of Q2 2021, SHUAA had USD 13.6 billion in assets under management, positioning it as the largest asset manager in the UAE and the largest listed asset manager in the Middle East (according to Forbes Middle East). Despite the continued impact of COVID-19 on the economic landscape, these results demonstrate the resilience and strength of SHUAA’s diversified platform and consistent ability to execute its growth strategy.

The Company has also made progress towards its target leverage ratio by continuing to pay down debt. As a result of the progress made, as of Q2 2021, SHUAA has recorded its lowest level of borrowings since the merger in 2019 translating to a leverage ratio of 127%, down from 139% at the end of 2020.

Commenting on SHUAA’s Q2 2021 results, Jassim Alseddiqi, Group Chief Executive Officer of SHUAA Capital,said: “SHUAA continues to go from strength to strength, as illustrated by our H1 results. Having recorded solid performance in Q1 2021, we have surpassed ourselves in Q2 to achieve an outstanding H1 2021 performance.”

“What’s more, we have clear sight of our growth potential via our pipeline of new funds and investments, underpinned by the expansion of our team to accelerate opportunities, particularly in areas such as fundraising, technology and our planned digital wealth platform. We are confident that SHUAA can continue on this strong growth trajectory, enabling us to realize further significant value for all stakeholders.”

About SHUAA Capital psc:

SHUAA Capital psc (DFM: SHUAA) is a leading asset management and investment banking platform, with c. USD 14 billion in assets under management. SHUAA Capital psc is recognized for its strong track record and pioneering approach to investing through a differentiated, innovative and global product offering focused on public and private markets, debt and real estate.

The asset management segment, one of the region’s largest, manages real estate funds and projects, investment portfolios and funds in the regional equities, fixed income and credit markets; it also provides investment solutions to clients, with a focus on alternative investment strategies. The investment banking segment provides corporate finance advisory, transaction services, private placement, public offerings of equity and debt securities, while also creating market liquidity on OTC fixed income products. The firm is regulated as a financial investment company by the Securities and Commodities Authority.