* Q3 loss 13.9 mln dirhams vs 156.2 mln yr-ago
* Investment losses shrink to 1.1 mln dirhams in Q3
* Q3 total revenues 34.9 mln dirhams vs 16.3 mln dirhams
(Adds details, share price)
DUBAI, Nov 11 Shuaa Capital, the
Dubai-based investment bank which has cut jobs in a cost
reduction move, posted a lower third-quarter loss on Sunday
aided by lower provisions and a sharp drop in investment-related
Shuaa, which hired ex-ABN Amro banker Colin MacDonald as
chief executive in April, had a third-quarter loss of 13.9
million dirhams ($3.78 million), compared with 156.2 million
dirhams for the year-ago period, it said in a bourse statement.
One of the Arab world's largest investment banks and once a
symbol of the sector's potential in the region, Shuaa is among a
group of regional investment firms struggling to stay afloat
after a slump in the value of its investment portfolio.
But the bank is now embarking on a new strategy, focused
more on growing its lending business, as part of a turnaround
plan under Chairman Sheikh Maktoum bin Hasher al-Maktoum, a
member of Dubai's ruling family.
"The third quarter results prove that we took the right
decisions to reduce our cost base against the uncertain market
environment, exit non-core businesses and investments, focus on
liquidity management, and reduce the volatility in our asset
base," al-Maktoum said in the statement.
Shuaa appointed MacDonald as CEO to replace Michael Philipp
who stepped down after just six months in the
Losses from investments for the quarter shrank to 1.1
million dirhams from 79.3 million dirhams a year-ago, while
provisions, the amount set aside to meet bad debts, fell to 1
million dirhams from 34.5 million dirhams in the previous year.
Total revenues more than doubled to 34.9 million dirhams
from 16.3 million dirhams in the year earlier period.
Shuaa has cut jobs and slashed operating costs in the wake
of a sharp drop in investment banking and brokerage revenues, a
mainstay for the bank during the boom years.
The bank, which also runs an asset management division, is
hoping that the strategy shift will return it to "positive
territory" in 2013 and consistent profitability thereafter. It
expects a loss in 2012.
For 2013, Shuaa expects to generate somewhere between a net
profit of 6 million dirhams and a net loss of 18 million
dirhams. In 2012, losses are expected to be in a range of 40
million dirhams to 60 million dirhams, Shuaa said in the
The investment bank's shares are down more than 90 percent
from a 2008 peak. The stock has fallen 24 percent in the past
year but is up 8.7 percent year-to-date.
($1 = 3.6730 UAE dirhams)
(Reporting by Dinesh Nair; Editing by Amran Abocar and Rachna