The National Investor, the Abu Dhabi-based investment bank, reported a decline in profit as returns from investments fell.
Profit fell to Dh15.7 million in the year to the end of March from Dh68.7m a year earlier, according to a stock exchange filing. The investment bank was hit by a loss of Dh8m on investments carried at fair value and Dh7.3m in expenses relating to legal case involving a Dubai property project.
The weakening price of oil and falling stock markets have hurt UAE investment banks and brokerages. Shuaa Capital, the Dubai-based investment bank earlier this month said it swung to a loss in the first quarter as corporate transactions slowed.
An S&P report in February warned that the broader UAE banking sector would have a less profitable year in 2015, as low oil prices hit economic growth, business confidence and corporate transactions.
IPO activity has already begun to slow, according to a report from PwC, as future uncertainty over the oil price and its impact on share prices makes tapping the region’s equity markets less attractive.
abouyamourn@thenational.ae
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