SHUAA Capital (SHUAA) Q2 2025 earnings summary

Executive summary

• H1 2025 net profit reached AED 214–217 million, reversing a net loss of AED 117–126 million in H1 2024, supported by AED 240 million in non-recurring gains and capital restructuring, including MCB conversions.

• Q2 2025 revenues were AED 23 million, down from AED 26 million in Q1 2025, mainly due to lower asset management fees; investment banking income grew.

• Operating income held steady at AED 5 million, with cost efficiencies and stable fees.

• Total comprehensive income for H1 2025 was AED 220 million, compared to a loss of AED 146 million in the prior year.

• Major capital restructuring included MCB conversion and issuance, resulting in 1,123 million new shares in Q1 2025.

Financial highlights

• H1 2025 revenues were AED 48–48.97 million, up 2% year-over-year, driven by investment banking.

• Q2 2025 operating margin improved to 22% from 19% in Q1 2025.

• Cost-to-income ratio improved to 78% from 81% in Q1 2025, with a target of 65% for FY 2025.

• Operating expenses fell by AED 3 million quarter-over-quarter, mainly from lower staff and G&A costs.

• Earnings per share improved to AED 0.06 from a loss per share of AED 0.05 in H1 2024.

Outlook and guidance

• Management is committed to further reducing debt and achieving a 65% cost-to-income ratio through ongoing optimization and revenue-enhancing initiatives.

• Management considers the going concern basis appropriate, citing operational profitability, liquidity, and ongoing loan restructuring negotiations.

• AED 295 million in borrowings are due within the next 12 months, with a key term loan reclassified as current due to covenant breaches.

• Focus remains on sustainable profitability and operational efficiency.