National Investments Company Holds Analysts Conference for Q3 2024 Financial Results
National Investments Company held its Analysts Conference for the third quarter of 2024 on Tuesday, November 5th. The conference was attended by the Managing Director of the Strategy Sector, Mr. Sulaiman Al Derbas; Senior Director of Finance and Accounts, Mr. Mohamed Baig; Managing Director of the wealth Management Sector, Mr. Al Muthana Al Maktoum, who presented a brief about the company and shed light on the positive financial results achieved in Q3 2024, in which NIC has proven that it is taking successful and practical steps in strengthening its leading position and achieving sustainable positive growth in its profits and that the company, in pursuit of its strategic objectives, always seeks to focus on basic investment activities by consolidating its sustainability approach.
Financial Performance
Mr. Mohamed Baig reviewed a detailed report about NIC’s financial position. As shown in the income statement, the company achieved a total income of KD22.1 million, a net profit of KD10.2 million, and a return per share of 12.8 fils, compared to the same period of 2023, when the total income reached KD9 million, a net profit of KD2.5 million, and earnings per share of 3.2 fils.
He pointed out that the return on average shareholders’ equity and return on average assets reached respectively 5.6% and 4.3%, and the leverage ratio reached 31.3% in the third quarter of this year.
The net book value per share amounted to 238 fils per share, the assets under management as a credit amounted to KD1.07 billion during the third quarter of 2024, and the assets managed to KD1.05 billion as of 31 December 2023, when the net book value reached 217 fils per share and the assets managed to KD1.06 billion.
On the other hand, Mohammed Baig pointed out that the company’s consolidated net profit for the third quarter of 2024 increased by up to 338% with a value of KD11.3 million compared to KD2.6 million in the third quarter of 2023. The total income for the third quarter of 2024 witnessed an increase of 146%, amounting to KD22.1 million, compared to KD9 million in the third quarter of 2023. This increase is mainly due to the profits that the National Investments Company achieved at fair value through profit or loss, as the S&P Kuwait index recorded a rise of 4.9% during the third quarter of 2024 compared to a decrease of 5.6% during the third quarter of 2023.
He also highlighted that the fees for management, incentives, brokerage, consulting, and services during the third quarter of 2024 amounted to KD7.2 million compared to KD6.4 million for the corresponding period in 2023.
Administrative expenses increased to KD7.8 million in the third quarter of 2024, compared to KD6.6 million in the corresponding 2023, in line with operating income, while financing costs increased to KD2 million, compared to KD1.2 million last year due to new loans. Comprehensive income on a consolidated basis was KD29.4 million during the third quarter of this year, compared to an extensive loss of KD3.7 million in the third quarter of 2023. Thus, the total other comprehensive income consolidated for the third quarter of this year amounted to KD18.1 million compared to a total comprehensive loss of KD6.3 million in the third quarter of 2023. This is mainly due to the increase in the valuation of investments listed at fair value through other comprehensive incomes.
Mr. Mohammed Baig also referred to the parent company’s total assets and shareholders’ equity, which amounted to KD272.2 million and KD189.6 million, respectively, during the third quarter of this year, compared to KD249.3 million and KD173.3 million for the same period last year. Most of our total assets, approximately 82%, are investments, 10% are real estate, and the rest are other assets.
Special Opportunities
Mr. Sulaiman Al Derbas said that NIC had offered strategic consulting services to Action Energy Company, which issued the first convertible shares in Kuwait. NIC also supported Bayout Investment Group Holding Company K.P.S.C. in its private placement as joint lead coordinator and underwriting agent, in addition to acting as an investment advisor and exclusive listing agent for the listing process.
Building on this momentum, NIC played a significant role as the exclusive advisor for selling a minority stake in a company listed on Boursa Kuwait’s Main Market to one of the company’s clients during the third quarter of this year. This achievement confirms NIC’s long-standing experience executing financial transactions and emphasizes its commitment to providing advisory solutions to its clients locally and regionally.
Finally, Mr. Sulaiman Al Derbas proudly noted that NIC received three awards during the nine months of 2024 in recognition of our efforts, including Best Local Investment Bank in Kuwait, Kuwait’s Best for Family Office Services, and Kuwait’s Best for Next-Gen for 2024 by Euromoney Magazine. The company has also been named Kuwait’s Most Powerful Asset Manager by Forbes Middle East.
At the end of the conference, National Investments Company confirmed that it will constantly contact its shareholders and customers through the quarterly analyst conference to keep them up to date with any developments
