9% of the capital as cash dividends

March 18, 2020

The Board of Directors recommends distributing nine fils per share or 9% of the capital as cash dividends

Al-Ameeri: KD 10.727 million NIC profits in 2019
Positive results are a clear indication of the balanced approach adopted by NIC
The local economic situation between achievements and challenges

Al-Ameeri:

The profits were realized despite the challenges and geopolitical fluctuations the Boursa Kuwait, Gulf and global Stock Exchanges are going through
The Executive Management deserves praise, and our plan is built on two bases; diversifying sources of income and reducing risks
Many achievements in 2019 by completing a number of outstanding local and international investment deals

Al-Mukhaizim:

We work according to conservative investment policies and have a reassuring financial base and income-generating assets
Shareholders equity increased to KD 180.913 million and our portfolios outperformed the market benchmarks
We care for excellence and diversity of our investments to meet the needs of all clients
The Companys funds have achieved rewarding returns and the investments have received global awards as a translation of our collective effort
NIC acquired a commercial property (Tesco) in UK at £ 5 million.

National Investments Company announced its financial statement for the year ended December 31, 2019, as the companys total assets reached KD 214.901 million, an increase of 8.93% compared to 2018.

According to a press release, the total equity attributable to the equity holders of the Parent Company increased by 1.91% to KD 180.913 million, and the net profit reached KD 10.727 million. Total comprehensive income for the year amounted to KD 20.329 million, and the total expenses reached KD 8.431. Earnings per share stood at 13 fils per share.

The Companys Board of Directors made a recommendation to the Ordinary General Assembly to distribute nine fils per share or 9% of the capital as cash dividends.

Managed Assets

Al-Ameeri said that the total assets managed by the company amounted to KD 1.033 billion at the end of 2019, pointing out that the total assets value increased to KD 214.901 million, an increase of 8.93% compared to KD 197.279 million for the same period of last year.

Al-Ameeri pointed out that these good financial results recorded by the company came in light of the challenges and geopolitical fluctuations experienced by the GCC and global markets, which reflects the success of the plans adopted by the company and its capabilities in dealing with all developments.

Approved Plans

Al-Ameeri said that the reassuring financial results were a reflection of a long-term strategy adopted by the companys BoD, which the Executive Management is implementing with high professionalism, affirming that these plans are based mainly on two important bases; diversifying sources of income and reducing risks, praising the efforts made by the companys Executive Management, which always works to translate the aspirations of the Board, which spares no effort to achieve the aspirations of shareholders and clients.

Collective Cooperation

For his part, Mr. Fahad Abdulrahman Al-Mukhaizim, CEO of NIC said that the company relies on developing multiple perceptions and plans, to remain fully prepared to deal with any changes that may occur in the regions markets to ensure the stability and balance of the companys performance.

Al-Mukhaizim said that the good performance achieved by NIC is the result of collective cooperation of employees and all sectors and departments, extending his appreciation for the support of the BoD and all employees of the company, stressing that the commitment of the human resources working in the company to achieve the pre-set goals always pays off in terms of selecting good investment opportunities and achieving the desired returns.

Shareholders Rights

Al-Mukhaizim affirmed that NIC is always keen to develop a comprehensive plan to deal with the challenges and developments that occur on the local, regional and global markets, aiming to keep pace with them with decisions and procedures through which it maintains the companys capabilities and the rights of its shareholders.

He pointed out that the total equity attributable to the equity holders of the Parent Company increased to KD 180.913 million at the end of 2019, taking into account that the company distributed KD 6.38 million as cash dividends for 2018.

Income of the Company

Al-Mukhaizim affirmed that the total comprehensive income at the end of 2019 increased to KD 20.329 million, an increase of 32.56% compared to KD 15.336 million for the same period last year. Total income amounted to KD 15.336 million, a decrease of 26% compared to KD 20.839 million at the end of 2017. Total expenses decreased by 25% to KD 7.327 million at the end of 2018 from KD 9.828 million at the end of 2017. Earnings per share stood at 9 fils per share compared to 12 fils per share at the end of 2017.

Assigned Mandates

Al-Mukhaizim added that NIC has successfully completed many mandates and projects assigned to it, referring that NIC acted as Subscription Agent in the capital increase shares of Warba Capital Holding Company at a total value of $ 25 million

Al-Mukhaizim affirmed that NIC portfolios are characterized with diversification that enables them to meet the needs of all clients, and thus maintain its leading role in the market.

Investment Banking

Al-Mukhaizim said that 2019 was a landmark year for Investment Banking Sector at NIC, both for advisory services and alternatives. In the Financial Advisory Services Dept., NIC embarked on 12 new mandates, and for the management of alternative investments, NIC completed a number of main deals during 2019. This included leading the consortium that acquired 44% equity stake in Boursa Kuwait. In addition, the department structured its first real estate club deal, which involved acquiring a 117,000 sq.ft. retail building in Manchester (UK) leased to Tesco, generating a cash yield of 9% per year.

Investment Portfolios

In the context of the press release, Al-Mukhaizim said that the performance of the portfolios managed by the company was positive, and in 2019, WMS had the greatest impact in attracting a new and diversified clients base, including government agencies, companies and high net worth individuals, in addition to boosting relationships with existing clients as an essential goal by offering innovative investment products and solutions.

Funds Performance

In respect of the performance of investment funds managed by NIC, Al-Mukhaizim said that Al Wataniya Investment Fund, which invests in listed equities on the Boursa Kuwait, and equities of the companies unlisted in Kuwait achieved a return of 19.53% with net asset value of the fund reaching KD 136.9 million. Mawarid Industrial and Petroleum Services Fund, which invests in Sharia compliant local and Arab equities, achieved during the year a return of 3.94%. Similarly, Zajil Services and Telecommunications Fund, which invests in Sharia compliant local and Arab equities, achieved a return of 10.23%. Al Darij Investment Fund, which invests in Sharia compliant GCC equities, achieved during a return of 8.04%. Al Mada Investment Fund, which invests in Sharia compliant GCC equities, achieved during the year a return of 6.06%.

Real Estate Sector

In terms of the Real Estate Investment Sectors performance at NIC which manages real estate portfolios, Al-Mukhaizim said that it was outstanding. The size of trading for the residential sector increased by 16% and the commercial by 5% in the local real estate market. As for the performance of the real estate investments at NIC, the size of the portfolios managed for third parties increased by 37%, bringing the total number of properties managed by the sector to 70 including commercial, industrial and investment properties. In addition, the sector maintained the level of revenues with reducing expenses by 9%.

Market Fluctuations

Al-Mukhaizim added that the positive results achieved by NIC, and maintaining its excellent indicators, were due to its ability to keep pace with the fluctuations of the local and Gulf investment market, stressing its constant endeavor to seize good investment opportunities that live up to advanced investment standards available in the local and global investment market, with a focus on more opportunities, and operating and income-generating assets.

Global Awards

Al-Mukhaizim highlighted the five awards won by the National Investments Company, from “Global Finance & Banking Awards” as the Best Investment Company in Kuwait for the second time in a row, and the award for the Best Investment Management Company in the Arab Gulf, as well as the award for the Best Gulf Investment Advisor for the year 2019, and also an award The Fastest Growing Company among the investment companies in Kuwait for the year 2019 from the magazine “International Finance Awards”, the last of which is the award for the Best Asset Manager in Kuwait for the year 2019 from the magazine “Mena Fund Manager” specialized in investment funds in the Middle East and North Africa, and this honor reflects the successful record and outstanding performance of the Company.

At the end of the statement, the Chairman, Mr. Hamad Al-Ameeri, extended his thanks and appreciation to the Board of Directors, the Executive Management and all employees of the company for their efforts to continuously strive to achieve this performance and positive growth that is always in line with the strategic plan.

We also ask God Almighty, to protect Kuwait and its people from all evil and harm, asking God Almighty to raise this scourge from Kuwait and the whole world and to include us with the breadth of His mercy and forgiveness

March 18, 2020