Waha Capital Q4 profit slides 15% to Dh121 million

02/02/2016 07:35 AST

Waha Capital, which owns a stake in the New York-listed airline leasing company AerCap, reported a second straight quarter of declining profit amid tough global economic and market conditions.

Net income fell 15 per cent to Dh121 million in the last three months of 2015 from Dh142.1m in the same period the previous year, the company said.

While the Abu Dhabi-listed investment firm did not give precise reasons for the drop during the fourth quarter, in the third quarter of last year it said that profit fell after income from capital market transactions plunged.

Global stocks plummeted in the third quarter before making a partial rebound ahead of the Federal Reserve’s rate increase in December as the US central bank begins to unwind its multiyear policy of low interest rates.

The MSCI All Country World Index, a benchmark of global equities, fell 10 per cent in the third quarter before rebounding 4.6 per cent in the fourth quarter. Waha Capital has been considering new investment opportunities as it looks to invest Dh4 billion in health care, education, energy and infrastructure.

Shareholders have been eag­erly waiting to hear from Waha Capital about its investment plans.

“In order to maximise return on equity in the coming years, we have launched a nimble, fee-generating investment management business, where we will offer access to our expertise and investment opportunities to third-party investors,” said the chief executive Salem Al Noaimi.

“Our strong business networks and experience of investing through multiple business cycles gives Waha Capital an edge as we look to deploy additional capital in high-potential sectors.”

Waha Capital has yet to comment on plans reportedly being made by Dunia Finance shareholders to sell their stakes. They include Mubadala Development, Temasek Holdings, a Singapore sovereign wealth fund, and A A Almoosa Enterprises, a local family-owned business. Waha Capital owns a 25 per cent stake in Dunia Finance.

The sale might attract a bidding war from banks seeking to tap high-yielding individual customers, according to analysts. Industry observers said one shareholder might buy the others out, or the firm might be sold in an initial public offering.

The National