National Investments Company Holds Analysts Conference for Q1 2025

National Investments Company (NIC) successfully held its Analysts Conference for the first quarter of 2025 on Tuesday, May 13. The event featured the participation of Sulaiman AlDerbas, Managing Director of the Strategy Sector; Mohammed Baig, Senior Director of the Accounts and Management Reporting Department , AlMuthanna AlMaktoum, Managing Director of the Wealth Management Sector.

The conference commenced with a brief presentation on the company’s profile and an overview of its Q1 2025 financial results. NIC showcased a strong financial performance during the quarter, underscoring the strength of its financial position and the continued success of its well-founded investment strategy. The company’s ability to sustain profit and return growth has been instrumental in achieving its clearly defined strategic objectives, which center on delivering exceptional value. This includes providing alternative investment solutions tailored to high-net-worth individuals and institutional investors across the region.

Financial Performance Overview – Q1 2025

During the Analysts Conference, Mohammed Baig presented a detailed review of the financial performance of NIC for the first quarter of 2025.

The company reported total revenues of KD 10.6 million and a net profit of KD 6 million, translating to earnings per share (EPS) of 7.5 fils. This marks a significant improvement compared to Q1 2024, when revenues were KD 8.4 million, net profit reached KD 4.1 million, and EPS stood at 5.1 fils.

Mohammed Baig highlighted the company’s solid financial performance, noting that the return on average equity (ROAE) reached 2.9%, while the return on average assets (ROAA) stood at 2.2%—a testament to NIC’s effective capital deployment and asset management strategies. The company maintained a healthy leverage ratio of 33.5% as of March 31, 2025, reflecting a balanced and prudent capital structure.

He further reported that the book value per share increased to 269 fils as of March 31, 2025, compared to 246 fils in the same period of the previous year, indicating a steady enhancement in shareholder value.

NIC’s consolidated net profit for the first quarter of 2025 surged by 47% year-on-year, reaching KD 6.5 million, up from KD 4.4 million in Q1 2024. This significant increase was driven by strong operational performance and effective investment strategies. Total revenues for the quarter amounted to KD 10.6 million, reflecting a 27% growth compared to KD 8.4 million in the corresponding quarter of 2024. This growth was largely attributed to favorable revaluations of investments measured at fair value through profit or loss, highlighting the company’s ability to capitalize on market opportunities and deliver consistent returns.

Income from management fees, performance incentives, brokerage, and advisory services increased to KD 3.3 million in Q1 2025, reflecting a strong 37.5% year-on-year growth compared to KD 2.4 million in the same period of 2024. This improvement underscores the company’s ability to generate recurring revenue through value-added services and strengthened client relationships.

Administrative expenses rose to KD 3.2 million, up from KD 2.6 million in Q1 2024, in line with the expansion of business operations and higher activity levels across key segments. The increase reflects the company’s investment in talent, systems, and infrastructure to support long-term growth.

Financing costs also climbed to KD 0.7 million, compared to KD 0.6 million a year earlier, primarily due to new borrowing activities undertaken to support growth initiatives and capitalize on market opportunities.

On a consolidated basis, other comprehensive income for the first quarter reached KD 10.8 million, contributing to a total comprehensive income of KD 17.3 million. This figure reflects the company’s robust earnings and effective risk management strategies, alongside favorable valuation gains within its investment portfolio.

As of March 31, 2025, NIC’s total assets stood at KD 310.5 million, up from KD 283.5 million at the end of 2024. Equity attributable to the parent company reached KD 214.1 million, compared to KD 197.4 million, further reinforcing the company’s strong balance sheet position. Notably, approximately 82% of NIC’s total assets are investment holdings—demonstrating its focused investment-led strategy—including 9% allocated to real estate. The remaining assets are held in cash and other liquid or diversified instruments, ensuring flexibility and liquidity within the portfolio.

Promising Opportunities and Strategic Outlook

Sulaiman Al-Derbas underscored the continued strong performance of National Investments Company’s funds and portfolios. Throughout 2024, NIC’s funds led across several categories, including large-cap local equities, Sharia-compliant GCC equities, and local Sharia-compliant funds. This momentum has successfully extended into the first quarter of 2025, with the Wataniya Fund delivering exceptional returns and securing a top-tier position among large-cap equity funds.

Despite challenging market conditions across the GCC—particularly in Saudi Arabia, where the S&P Saudi Index declined by 2.4%—NIC’s portfolios achieved a robust year-to-date return of 9.55%, reflecting the strength and resilience of its investment strategies.

Thanks to its deep-rooted experience, NIC attracted three new clients during Q1 2025, adding approximately KD 750,000 to its assets under management (AUM). The company is also in the process of developing a range of innovative investment products, scheduled for launch in the second half of the year.

In line with its expansion strategy, NIC has broadened its Market Maker services to support a growing number of listed companies—now totaling 15 clients.

AlDerbas reaffirmed NIC’s commitment to its long-term strategic vision, which focuses on four primary objectives:

• Enhancing operational agility by adopting a technology-driven, flexible operating model that supports long-term excellence.
• Establishing a regional distribution network to provide seamless access to global investment opportunities.
• Expanding the product offering through strategic partnerships, with a focus on alternative investments that redefine industry standards and generate added value.
• Delivering tailored investment solutions that meet evolving client needs with precision and innovation.

Looking ahead, NIC’s five-year strategic roadmap aims to:

• Increase AUM to KD 2.7 billion
• Achieve a 12% return on equity
• Capture a significant share of the GCC alternatives space, targeting alternatives to comprise 40% of managed client assets
• Expand its regional footprint, particularly in Saudi Arabia and the UAE
• Provide advisory services to 25 clients by 2029

In conclusion, NIC reiterated its unwavering commitment to transparency and stakeholder engagement. The company will continue to keep its clients and shareholders regularly informed through its quarterly Analysts Conferences.