NIC’s financial indicators demonstrated a striking performance in Q1 2024: Al-Falah
KUWAIT: The National Investments Company (NIC) has unveiled its financial results for the first quarter concluded on March 31, 2024.
The company has made a significant stride, achieving a net profit of KD 4.1 million, 5.15 fils per share, compared to the same period of 2023 when a net profit of KD 1.07 million was achieved, 1.3 fils per share, an increase of 282 percent. The total assets under management witnessed a notable growth, and the total shareholders’ equity of the parent company was KD 195.81 million by the end of Q1 2024.
In this regard, Khaled Waleed Al-Falah, Chairman of the Board for the National Investments Company, said, “The company has achieved remarkable profits in the first quarter of 2024. We have recorded a solid start to the current year in achieving the main objectives of the company’s strategy and strengthening its leading position, solid base and outstanding operational performance, which resulted in recording attractive profits in all major financial indicators, in addition to its ability to maintain the interests of its customers with high efficiency.
Al-Falah explained that despite the recent escalation of regional geopolitical tensions, the company has continued to grow its business model and solid foundations supported by flexible strategic diversification, seizing promising opportunities, and reducing risks. National Investments also underscores its commitment to adaptability, resilience, and long-term stability.
Al-Falah stated that the NIC recorded an 11.37 percent increase in the total assets, which amounted to KD 277.66 million at the end of the first quarter of this year, compared to KD 249.30 million at the end of last year and KD 18.45 million growth in other comprehensive revenues by 362 percent compared to other comprehensive losses of KD 7.03 million during the same period the previous year, and an increase in comprehensive revenues by 479 percent, which amounted to KD 22.55 million compared to the same period last year, where comprehensive losses amounted to KD 5.96 million.
Al-Falah explained that NIC continues its considerate efforts toward performance excellence, maintaining its position and enhancing its leading role locally and regionally despite the economic conditions, providing the best services that retain the interests of the company’s customers and shareholders, as well as providing diverse and innovative investment products according to the requirements of its customers to achieve their investment goals, in terms of management and communication processes, which contributes to achieving geographical investment diversity and expanding the scope of the company’s investment services to new regional and international zones through the company’s prudent strategy.
Solid leadership position
Al-Falah confirmed the level of professionalism followed by NIC, which resulted in the Wealth Management Sector achieving prestigious awards from Euromoney International for the second consecutive year. In 2023, NIC was granted the ‘Best Wealth Management Company in Kuwait’ award, while in 2024, The National Investments Company received two distinguished awards, the ‘Best Services Provider for Family Businesses” and “Best Next Generation Services Provider” in Kuwait for 2024. Among the notable achievements is NIC becoming part of Forbes Middle East’s list as one of Kuwait’s most assertive asset managers.
Al-Falah added that NIC supports the sustainability concept, adopts proactive responsibility in several areas, and is about to launch a sustainability-focused report soon. This is under NIC’s prudent strategy and wise vision, highlighting its role in social responsibility within the community.
Regarding the digital transformation strategy, NIC continues to offer solutions for its customers, who have responded positively to these digital services, which align with customer requirements based on the company’s strategy. Al-Falah also referred to the company’s remarkable efforts within the CSR field, as the National Investments Company sponsored the Marketing Management Club at Kuwait University’s College of Administrative Sciences during the current quarter by supporting several educational and academic activities and events, which aim to support the college’s students through educational initiatives that include providing specialized training courses within the field of investment and financial work.
During the holy month of Ramadan, NIC has provided financial support to the Kuwait Food and Relief Bank, a humanitarian association with unmistakable humanitarian fingerprints that plays a significant and leading role in community service initiatives.
Opportunities and successes
Fahad Abdulrahman Al-Mukhaizim, Board Member and Chief Executive Officer of the National Investments Company praised the remarkable performance and efforts of the Financial Advisory Services Department in attracting distinguished investments and advisory services as the value of deals so far reached nearly half a million US dollars, it included several investment transactions comprising the completion of Kuwait’s first preferred share issuance, and also obtaining a non-binding acquisition letter for sale from a strategic investor, as well as a new authorization to increase the capital of a listed entity and a robust set of advisory transactions covering IPOs, mergers, and acquisitions.
As for the Alternative Investments Department, Al-Mukhaizim explained that NIC obtained the approval of the concerned authorities to market a real estate credit fund, in addition to continuing its efforts to exit several previous investments, which were represented in the exit of a group of assets in two companies in which it is invested, in addition to joining an investment consortium to acquire a stake in a group of hospitals in the GCC.
The MENA Securities Sector verified astonishing performance for its investment funds during Q1 2024, reflecting the management’s excellence and success in adopting strategies to achieve financial returns for the company’s customers and superiority to its counterparts in the market. Al-Wataniya Investment Fund, one of the most significant traditional local funds, achieved a positive performance during the first quarter of 2024 compared to local conventional equity funds worth more than KD 50 million. Al-Wataniya Fund is the best-performing fund compared to its counterparts during the current quarter. Al-Darij Investment Fund, the local Sharia-compliant fund, also achieved positive returns during the current quarter.
For GCC funds, Zajil, a telecommunications and services fund, we achieved attractive returns in the first quarter of 2024. Al-Mukhaizim added that NIC shows great interest in local market-making and clarified, “We performed a critical duty in enhancing the role of this industry within Boursa Kuwait by increasing the trading volume on the stocks we create the market for. We expanded our portfolio as a market maker to cover several companies listed on Boursa Kuwait. We have attracted new clients to 13 companies, reinforcing NIC’s position as a leading local market maker service provider.
On the other hand, Al-Mukhaizim said that during the first quarter of this year, the Wealth Management Sector was able to attract capital and enhance assets under management by providing new investment opportunities and services despite the geopolitical and economic challenges in the region. These challenges resulted in a decline and economic instability, considering the globally divergent economic data. These efforts have translated into an increase in new investment portfolios of 7 percent. The real estate investment sector witnessed a significant improvement and saw an increase in occupancy rates in the company’s properties and properties managed by it during the first quarter of this year to unprecedented rates of 100 percent in some properties and maintaining the continuation of work in renting vacant units to raise the occupancy rate to a record rate. A residential property has been sold in the Al-Mahboula area, and the company maintained a strong occupancy rate of 89 percent at the time of sale.
Digital transformation services
Al-Mukhaizim stated that NIC will continue to offer new options for the electronic trading service and several other advantages for customers’ smooth and flexible use. NIC has also developed an electronic real estate system to enable tenants to follow up on all matters related to their units, such as maintenance requests and electronic payments, as well as the follow-up of property owners of their assets and financial flows, in addition to strengthening and implementing cybersecurity protocols, improving network performance and modernizing infrastructure, to align digital transformation initiatives with the company’s strategic objectives, which contributes to business growth and success in general.
