Middle East

NIC Holds Financial Analysts Conference on H1 2022 Results

Kuwait: The National Investments Company held a financial analyst meeting on August 9, 2022 to announce its first half 2022 results. The meeting was actively attended by Mr. Girish Nair, Chief Financial Officer of NIC and Mr. Bashar Khan, Senior Vice President of Al-Muthana Al-His President of Investment Banking Division. Executive Vice President – ​​Wealth Management Sector Maktoum provided an overview of the company and highlighted the positive financial results achieved in the first half of 2022. This result reflects the company’s outstanding performance and solid operational performance, which has led to the maintenance and strengthening of its financial position. , quality assets and the ability to achieve sustained growth. All this thanks to effective strategies and a competent and experienced team.

Girish Nair

financial position

Grish presented a detailed report on the company’s financial position and outstanding performance achieved by June 30, 2022. The company announced a net profit of KD 12 million, 15 fils per share and another comprehensive income of KD 8.3 million for his shareholders. Total comprehensive income in the second quarter was KD 20.3 million, compared to KD 15.1 million, or 18.9 fils per share in the same period last year. Other comprehensive income he reached KD 7.9 million and total income he reached KD 23 million.

Girish said that in the first half of 2022, average return on equity and average return on assets reached 5.7% and 4.5% respectively, while the leverage ratio was just 25.4% as of June 30, 2022, giving the company immediate It added that the liquidity ratio was 46.8%. percent.

Total assets and shareholders’ equity belonging to the parent company increased to KD 275.9 million and KD 209.2 million respectively in the first half of this year, compared to KD 239.5 million and KD 189.2 million in the first half of 2021.

Income and expenditure results

Girish said the company’s performance was outstanding, with total revenue of KD 17.3 million in the first half of 2022, reflecting a 21% decline, compared to KD 22 million achieved in the same period of 2021. is emphasized.

He also said the key drivers behind the company’s total revenue growth in the first half of 2022 were profit and loss of KD 2.7 million, dividend income of KD 7.5 million at fair value due to management fees, brokerage fees and consulting fees. Revealed to be profits from financial assets. Another key factor contributing to overall other earnings in the first half of 2022 was the increase in the value of Kuwaiti investments priced at fair value through additional comprehensive earnings of KD 7.9 million.

The total cost for the first half of 2022 includes value reduction and allocation of KD 4.03 million, which is equivalent to the same period of 2021 of KD 4.31 million. This increase was offset by value losses and other allocation declines from his 200,000 KD in 2021 to almost nil in the first half of 2022.

Girish also noted a 56% increase in income from management, brokerage and consulting fees, from KD 3.6 million in the first half of 2021 to KD 5.6 million in the first half of this year. This growth was driven by brokerage income from one of our subsidiaries, Al-Waseet Financial Business, up 47%, and management fees from funds and portfolios up 30%. Consulting expenses and other income he increased by 306%.

Total invested assets decreased by 5% to reach KD 275.9 million in the first half of 2022 compared to KD 290.6 million in the same period by the end of 2021. This is the result of his 35.9 million KD dividend of 45 fils per share in 2021. Assets managed on behalf of other companies increased from KD 1.09 billion by the end of 2021 to KD 1.13 billion as of June 30, 2022, an increase of 3.7%.

Al-Mutana Al-Maktoum

important event

Mr Girish said: to achieve positive returns. Outstanding performance of our investment funds, providing returns of 6.6% to Alwathaniyah Fund unit holders, 5.6% to Daliji Investment Fund, 0.4% to Zazir Services and Telecommunications Fund and 0.4% to Mawaleed Industrial and Petroleum Services Fund I was able to do. Meanwhile, the Market Maker service has expanded and added 7 new companies, bringing him to 9 companies in total.

Girish went on to say that The National Investments Company continues to provide advisory services, including the completion of several significant transactions. The Bank Investment Sector Advisory Group said he completed two major approvals before the IPO. The first was for Ali Alghanim and Sons Automotive, where NIC acted as coordinator and listing consultant, as well as as issuing manager and IPO underwriting agent for National Consumer Holding Company (NCHC), Boubyan Petrochemical Company and Education. He acted as investment consultant in the merger of Holding Group and as investment advisor in the merger of Safa Investment Company and Cap Corp Investment Company.

Alternative Investment Management has also successfully invested in several funds managed by leading international companies in the fields of private investment, finance, food and technology. The other fund will invest in personal finance and private property, regional e-commerce platforms, shipping companies and international clothing companies, assessing current investments while seeking new opportunities in the global real estate and direct investment space. We are looking for investment opportunities. for potential exits.

The real estate investment sector continues to pursue domestic and foreign real estate investments through a comprehensive survey of investments and assets in and out of Kuwait, working to develop and improve recovery rates and portfolio returns, achieving a rental recovery rate of 81%. and maintain. The occupancy rate for the first half of 2022 is 85%.

Bashar Khan

thoughtful planning

Bashar Khan, senior vice president of investment banking, said the company’s strategy is to develop international real estate products and an initial focus on venture capital, in addition to seizing opportunities for co-investment, including Boursa. said it is focused on building managed assets through Kuwait, Kuwait Foundry, FedEx Italy, Tiger Global. Through high-quality business execution, particularly focused on medium-sized clients, the Company has completed many significant transactions, established a dedicated team in the capital markets, and has identified mergers, acquisitions, and investments as key growth areas. and completed venture capital. for the company.

Mr Khan commended National Investments’ performance in the initial public offering of Ali Al Ghanim Sons Automotive Company and National Investments’ pioneering role in the public offering process. Impressive results achieved by the company, including over 11 times oversubscribing and the demand volume is unprecedented, surpassing 1 billion KD, and the company completed the entire transaction within a week of closing the subscription. Has completed. The company will continue to develop digital channels for its customers and strengthen governance.

Research and Opportunity Acquisition

The study has demonstrated the company’s ability to identify opportunities in the market, including taking control of Boursa Kuwait in February 2019, with a 14.4% share of direct state investment since the acquisition. , shares of Boursa Kuwait are also now available for public offering and listing. , and today’s market price is more than double the purchase cost, achieving a gross return of 11.09x (based on market value), more than double.

In addition to Kuwait’s Foudary study, this study adheres to acquiring properties at a discounted price with value far greater than the prevailing market value. This investment also provided a path to fair value as we acquired a 20% stake in him in January 2019 and took steps to achieve fair value. Most of the equity in the trade was restored and the total market value-based return was 1.27x. A 15-year lease agreement was signed, similar to the FedEx-leased Italian distribution warehouse project investment study, and in 18 months he achieved an 8% annual cash return and his 9% net internal return rate. is expected to produce .

Finally, an investment in Pipe Technology is a financial technology-focused company that acquires the capital it needs without reducing ownership as a result of accepting or forcing the entry of new capital into the company. We provide solutions to clients with recurring income streams by obtaining foreign loans.

To conclude the meeting, NIC representatives confirmed that the company will keep in touch with shareholders and customers about the latest developments NIC is witnessing through its quarterly analyst meetings.

https://www.kuwaittimes.com/nic-holds-financial-analysts-conference-for-h1-2022-results/ NIC Holds Financial Analysts Conference on H1 2022 Results

Back to top button