SHUAA Capital (SHUAA) Q1 2025 earnings summary

Executive summary

• Net income reached AED 196 million in Q1 2025, reversing a Q4 2024 net loss of AED 161 million, reflecting a successful turnaround strategy and aided by AED 221 million in one-off gains from capital optimization.

• Revenues rose to AED 26 million in Q1 2025 from AED 17 million in Q4 2024, driven by investment banking and all business segments contributing to growth.

• Revenue grew 46% year-over-year.

• Operating income improved to AED 5 million from a net operating loss of AED 5 million in the previous quarter.

• Operating margin stood at 19%, supported by cost-saving initiatives and revenue consistency.

Financial highlights

• Q1 2025 net profit (core) was AED 1 million, compared to a loss of AED 18 million in Q4 2024.

• Total operating revenues reached AED 25 million in Q1 2025, up from AED 17 million in Q4 2024.

• Operating expenses fell by AED 2 million due to lower staff costs.

• Cost to income ratio improved to 81% from 129% in Q4 2024.

• Non-cash profit was AED 221 million, compared to a non-cash loss of AED 155 million in Q4 2024.

Outlook and guidance

• Management targets a cost to income ratio of 65% for FY 2025, leveraging ongoing revenue and cost optimization.

• Continued focus on reducing debt and managing liabilities through refinancing and settlements.

• Management remains focused on driving business growth, enhancing profitability, and delivering sustainable value.

• Confident in strengthening leadership position and contributing to regional market growth.