Shuaa Capital (p.s.c) · DFM:SHUAA
Shuaa Capital (p.s.c) — Q3 2020 Earnings Presentation
22 slides from Shuaa Capital (p.s.c)'s earnings presentation, Nov 12, 2020
Slide 1: Q3 2020 Earnings Presentation
Q3 2020 E a r n i n g s P re s e n ta t i o n 12 November 2020 © 2020 SHUAA Capital psc. All rights reserved
Slide 2: Executive Summary
Executive Summary Delivering solid performance Net profit at AED59m in Q3-20, EBITDA at AED114m including AED19m of impairments 9M-20 EBITDA at AED239m indicating strong earnings capacity of Group despite seasonal slowdown in Q3 AuM increased by 5% QoQ to US$13.6bn driven by net new money, m
Slide 3: Q3 2020 – Net Profit Performance
Q3 2020 – Net Profit Performance Quarter-on-Quarter Net Profit1 Commentary AEDm 37m Solid Q3 net profit at AED59m: Continued strong EBITDA generation 267 92m Positive mark-to-market effects on investment portfolio Absence of one-off transactions in quarter 59 64 Proactive negative valuation
Slide 4: Q3 2020 – Revenue Performance
Q3 2020 – Revenue Performance Quarter-on-Quarter Revenues Commentary AEDm 107m 226.5 30 Operating income with stability of fee & trading business (21m) Decline vs. Q3-19 mainly driven by (23%) absence of carried interest recognition 120.1 Positive impact from recurring management fees 89.5 43 19
Slide 5: Q3 2020 – Expense Performance
Q3 2020 – Expense Performance Quarter-on-Quarter Expenses Commentary AEDm 67m Provisions G&A Staff Costs Other Expenses 180.3 48 (14m) QoQ expenses at contained levels with (18%) negative effects driven by 113.6 51 81.2 47 AED2m swing in FX losses Q2 to Q3 60.5 66.9 relating to borrowings and curr
Slide 6: Q3 2020 – Other Income Performance
Q3 2020 – Other Income Performance Quarter-on-Quarter Other Income Commentary AEDm Finance Costs Associates P&L Other Income/Exp2 FV Gains/Losses1 246.3 78m 41.1 Other income with AED66m positive contribution driven by 209 66.0 220 AED22m improvement in value of 22 11.5 associate investments with
Slide 7: Quarterly 2020 Net Profit by Segment
Quarterly 2020 Net Profit by Segment Asset Management Investment Banking Corporate AEDm AEDm AEDm 4 Net 37 Profit 32 230 (2) (2) (5) 66 29 Q2 20 Q3 20 Q3YTD 20 Q2 20 Q3 20 Q3YTD 20 Q2 20 Q3 20 Q3YTD 20 Revs. 48.6 27.8 114.5 13.2 6.0 22.3 24.0 34.8 89.8 EBITDA 41.1 4.6 65.1 7.5 (0.3) 6.3 278.5 109.8
Slide 8: Synergy realization continues
Synergy realization continues Revenue & Cost Synergies Commentary Target vs. Q3YTD 20 Achievement AEDm Revenue Synergies Cost 55% Synergies % Achievement 54.6 on Target 16 Realization of synergies well on track 90% 30.3 55% of target synergies achieved Further initiatives underway to accelerate
Slide 9: Non-core asset reduction remains on track
Non-core asset reduction remains on track Non-Core Unit Evolution Commentary AEDm 39% 121m 113 8 39% reduction since July 37 2019 Focus on p&l neutral asset 403 disposals Further progress expected in Q4 245 0 NCU Net Assets Cash Proceeds Cash Proceeds Non-cash NCU Net Assets NCU Target 31 July
Slide 10: Q2 vs Q3 2020 – AUM Development
Q2 vs Q3 2020 – AUM Development AUM Evolution Commentary US$m 645m 5% 13,601 Significant gain in total AUM over the quarter driven by Net new money from new fund launch Positive performance in investment portfolios 12,956 Positive foreign exchange effects relating to GBP assets Q2 2020 Q3 2020
Slide 11: We have defined our strategic levers…
We have defined our strategic levers… Strengthen and Diversify products and services Scale the platform and grow core businesses within core businesses operate more efficiently Expand regional footprint1 Grow fixed income platform Increase operational efficiency Grow asset management business Grow p
Slide 12: …and we are now in execution mode
…and we are now in execution mode Strengthen and grow core businesses Diversify products and services within core businesses Scale the platform and operate more efficiently ICC Fund Platform SHUAA Financing Opportunities Fund SHUAA Bond Issuance The first Sharia-compliant funds within an Fund focuse
Slide 13: Appendix
Appendix
Slide 14: Quarterly P&L
Quarterly P&L AEDm Quarterly Financials YTD 2020 vs YTD 2019 Variance Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 YTD YTD QoQ Variance YTD 20 vs 2019 2019 2019 2019 2019 2020 2020 2020 2019 2020 YTD 19 Interest income 0 44 9,553 5,531 15,128 5,563 3,212 5,677 2,464 9,597 14,452 4,855 Interest expense 0 0 (4,096) 2,568
Slide 15: Balance Sheet Summary
Balance Sheet Summary AED '000 30-Sep 30-Jun 31-Mar 31-Dec 30-Sep 30-Jun 31-Mar 2020 2020 2020 2019 2019 2019 2019 Assets Cash and deposits with banks 329,863 327,993 293,701 360,193 297,852 63,790 51,572 Receivables and other debit balances 191,588 225,997 187,943 159,775 184,829 46,859 55,254 Loan
Slide 16: Segmental Financials Q3YTD 2020
Segmental Financials Q3YTD 2020 Public Private Investment Asset Investment Principal AED '000 Real Estate Banking Markets Non-core Others Corporate YTD 2020 Markets Markets Solutions Management Banking investment Net fee and commission income 61,662 15,549 2,077 3,946 83,234 0 1,508 1,508 73,494 4,6
Slide 17: Segmental Financials Q3 2020
Segmental Financials Q3 2020 Public Private Investment Asset Investment Principal AED '000 Real Estate Banking Markets Non-core Others Corporate Q3 2020 Markets Markets Solutions Management Banking investment Net fee and commission income 19,689 6,885 692 436 27,702 0 828 828 29,321 2,141 36 31,498
Slide 18: Segmental Financials Q2 2020
Segmental Financials Q2 2020 Public Private Investment Asset Investment Principal AED '000 Real Estate Banking Markets Non-core Others Corporate Q2 2020 Markets Markets Solutions Management Banking investment Net fee and commission income 21,405 5,201 694 2,943 30,243 0 517 517 21,620 1,293 14 22,92
Slide 19: Segmental Financials Q1 2020
Segmental Financials Q1 2020 Public Private Investment Asset Investment Principal AED '000 Real Estate Banking Markets Non-core Others Corporate Q1 2020 Markets Markets Solutions Management Banking investment Net fee and commission income 20,568 3,463 692 567 25,289 0 163 163 22,552 1,172 29 23,753
Slide 20: Disclaimer
Disclaimer THIS PRESENTATION IS BEING PROVIDED TO YOU SOLELY FOR YOUR INFORMATION. THIS PRESENTATION MAY NOT BE PUBLISHED OR FURTHER DISTRIBUTED, DIRECTLY OR INDIRECTLY, IN WHOLE OR IN PART, TO ANY OTHER PERSON IN ANY JURISDICTION WHERE, OR TO ANY OTHER PERSON TO WHOM, TO DO SO WOULD BE UNLAWFUL. By
Slide 21: Cautionary Statement Regarding Forward-Looking Information
Cautionary Statement Regarding Forward-Looking Information This document contains forward-looking statements. Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on our current beliefs, expectations and assumptions regarding the
Slide 22: SHUAA Capital psc Head Office
SHUAA Capital psc Head Office: The H Hotel Dubai, Offices Tower, Level 15, Office No. 1502 P.O. Box: 31045, Dubai, United Arab Emirates Tel: +971 (4) 330 3600, Fax: +971 (4) 330 3550, E-mail: info@shuaa.com, Website: www.shuaa.com 22 A financial investment company licensed and regulated by the U.A.E