NIC profits jump 307% to reach KD 15.4m in first quarter of 2022

KUWAIT: National Investments Company (NIC) approved the financial results for the first quarter of 2022.

Fahad Al-Mukhaizeem

It achieved a net profit of KD 15.4 million in the first quarter, an increase of 307 percent with earnings per share of 19.3 fils.

Fahad Al-Mukhaizim

• Exceptional results in the first quarter of the current year, supported by a balanced strategy that reacts positively with financial and economic indicators and achievement of outstanding and sustainable financial returns.
• Chief Executive Officer of NIC Fahad Al-Mukhaizim said financial results during the first quarter of the current year were supported by a balanced strategy that reacts positively with economic and financial indicators, with outstanding and sustainable financial returns. The outstanding performance reflected in the distinguished performance of the team to grab available investment opportunities, which resulted in effective growth in operational investment operations, which led to the success of the company and achieving the ambitions of shareholders and customers.

Al-Mukhaizim said NIC registered a 43.8 percent growth in total company assets of nearly KD 328.6 million, compared to the same period in 2021 of KD 228.6 million. As for total equity of shareholders, it reached KD 251.3 million during the first quarter of the current year. Managed assets reached nearly KD 1.3 billion compared to the same period last year, when they reached KD 1.05 billion.

Other comprehensive income during the first quarter of the current year rose to KD 19.1 million compared to KD 3.2 million during the first quarter of 2021, a rise of 506 percent. Al-Mukhaizim revealed an outstanding increase that reached 68.8 percent in services, incentives and consultations, reaching KD 2.5 million compared to the same period of 2021 when it reached KD 1.5 million.

Meanwhile, Al-Mukhaizim declared the outstanding performance of NIC funds during the first quarter of the current year, as the fund of returns of oil industry and services reached 18.95 percent, Wataniya investment fund reached 14.06 percent, Al-Darij investment fund 12.54 percent, and Zajil fund for services and communications reached 10.01 percent.

 

“With these cash dividends of over KD 11 million, we are the first company on the list of managers of investment shares funds at Boursa Kuwait that distributes profits following an international crisis, and achieving current competitive returns that reflect the successful strategy the company is using in managing its funds, and its keenness to achieve the best returns for unit holders who gave it confidence to manage their finances, as cash profits were distributed to the company funds. Profits of Wataniya fund were at 5 percent of book value, at 50 fils per unit for 2021 (with a current return that reached 5.5 percent). As for Darij investment fund, cash dividends were distributed at 3 percent of the book value at 30 fils per unit for the second half of 2021 (with a current return that reached 6.2 percent), in addition to distributing cash dividends for Zajil services fund at 5 percent of book value at 50 fils of each unit for the second half of 2021 (a current return that reached 4.5 percent).

Al-Mukhaizim said the performance of the wealth sector was positive during the first quarter of 2022 as the working team was able to achieve tangible results towards maximizing managed assets in the company through the expansion of the customer base and getting capital that targets unique investment opportunities. Efforts concentrated on reaching new groups of investors, especially institutional ones, through professionalism in managing assets and various investments based on innovative products that are suitable for various groups of customers, with calculated risks.

Al-Mukhaizim said NIC worked on attracting notable investments as well as a number of contracts with major establishments to present consultative services, through the success of the banking investment sector team in investing in the infrastructure, credit and information technology sectors.

In the first quarter of this year, the team began with a strong group of operations including leading the underwriting of Ali Alghanim and Sons Automotive Company in Kuwait as a main coordinator, and as a consultant of listing and investing in the main market of Boursa Kuwait, and getting ready for another underwriting and listing operation, and many public-private operations including consultations presented to get a human resources company based in UAE.

The sector also signed contracts with several customers to present financial consultations that resulted in achieving considerable financial fees and commitment in the technology fund, blockchain fund, a new healthcare project, and three emerging companies in their first stages and a special credit fund, in addition to contracting a strong group of deals for the next quarter.

About the performance of the real estate investment sector of the company, Al-Mukhaizim spoke about the factors restricting the sector and supporting it with experienced competencies in managing real estate portfolios, besides working on developing the computer systems to increase customer satisfaction. The sector was able to achieve unprecedented occupancy rates at all real-estate levels after overcoming the coronavirus crisis and returning to the previous operational levels, in addition to launching ambitious plans to develop and market chalets of Wataniya park for the upcoming summer season.