(Updates with analyst comment in eighth paragraph.)
Oct. 6 (Bloomberg) -- Shuaa Capital PSC, the investment bank controlled by Dubai’s ruler, named former Credit Suisse Group AG board member Michael Philipp as chief executive officer effective immediately. He replaces Sameer Al Ansari.
Before joining Shuaa as a board member on Oct. 2, Philipp was a member of the group executive board of Credit Suisse Group from 2005 to 2008, Shuaa said in an e-mailed statement today. He was previously chairman and CEO of Credit Suisse Europe, Middle East and Africa. Philipp held several positions at Deutsche Bank AG between 1995 and 2002, including head of its asset management unit.
“The appointment comes at a time of strength and opportunity for Shuaa,” the Dubai-based bank said in the statement. “Michael will be instrumental in accelerating our revenue enhancement program, executing our growth strategy and enhancing our delivery of performance for clients and shareholders.”
Shuaa, the United Arab Emirates’ largest investment bank, has reshuffled its staff over the past year and eliminated jobs as it sought to cut costs after it was affected by a global economic slowdown. The bank appointed Sheikh Maktoum Hasher Al Maktoum as chairman in May and said that month it would eliminate 39 jobs as it sought to cut costs.
The bank’s head of brokerage and research Walid Shihabi has also left the company, Shuaa said in a separate statement today. The “day-to-day operations” will continue to be managed by Fozan Al Mofleh, General Manager of Shuaa Securities LLC, it said.
Shihabi rejoined Shuaa in July 2010 as head of Shuaa Securities after leaving the bank the previous year. He replaced Amer Halawi as the head of research in April. Former CEO Ansari joined the bank in 2009 and was previously head of Dubai International Capital LLC.
Shuaa reported a profit of 600,000 dirhams ($163,000) in the second quarter after two consecutive quarterly losses amid political turmoil in the Middle East. The company is expected to report third-quarter results next month. The shares advanced 3.2 percent to 80 fils in Dubai trading today, trimming the loss over the past year to 28 percent.
The bank’s “cost and income ratios” are expected to improve “dramatically” over the next four years, Jaap Meijer, head of banks research at HC Securities, wrote in an e-mailed report today.
“For Shuaa, this is due to gradual normalization of its revenue, which is currently under sharp pressure due to trading results and investment losses, and further cost cutting,” he said.
Dubai Banking Group PJSC took control of Shuaa in August 2009 with a 48.4 percent stake and replaced Iyad Duwaji as CEO with Al Ansari.
--Editors: Shaji Mathew, Shanthy Nambiar
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