National investments Company approved H1 2020 financial statements with COVID-19 outbreak and its economic impact on the region
- NIC always aims and strives to maintain the interests of its clients at all levels, especially in times of crisis.
- The Company’s total assets post a slight hike of about KD 208.19 compared to KD 207.37 for the same period in 2019.
- Despite the unprecedented challenges experienced by the region and the world as a result of COVID-19 pandemic and its repercussions on all markets, NIC managed to distribute KD 7.18 million as cash dividends to its shareholders.
- NIC has proven its strong standing and its ability to overcome this exceptional situation and to have all constituents and capabilities that enable it to recover quickly from the epidemic impacts.
- Our contribution to support the society during this pandemic in reducing the economic repercussions that impacted some real estate sectors.
National Investments Company (NIC) approved the consolidated financial statements for the six-month period ended 30 June 2020, including a detailed analytical presentation of the exceptional circumstance impact of the novel coronavirus (COVID-19) on the performance of the company and its financial position during the first half of the fiscal year (FY) 2020, which resulted in succumbing losses of KD 11.9 million or 15 fils per share during the first half of 2020 compared to KD 9.2 million or 12 fils earning per share for the prior-year period. The Company’s total assets posts a slight growth of KD 208.9 million compared to KD. 207.37 million for the same period in 2019.
Despite the unprecedented challenges during the first half of this year, NIC managed to maintain profits and distributable reserves of KD 22.241, which account for 27.8% of the capital. The company also continued to provide its services to all clients without disruption, and distributed cash dividends to shareholders for FY 2019.
NIC pointed out that although the unprecedented challenges experienced by the region and the world due to COVID-19 and its impacts on all markets, it managed to maintain distributions to its shareholders in its commercial real estate investments in the United Kingdom and the United States despite the global economic conditions associated with COVID-19.
NIC completed the acquisition deal of Tesco project for a total value of £ 44.5 million with an annual return of 9% distributed on a quarterly basis, where the subscription for the offered shares was covered by 4 folds, which gives a clear indication of the investors’ confidence in NIC and the excellence of the real estate product. In respect of Vanguard project; it is a commercial real estate project located in Pennsylvania (USA) with a total value of USD 185 million, and an average annual return of approximately 8.2% during the investment period.
NIC also managed to capture new investments and a number of new clients through the success of the Banking Investment Sector team in investing in the infrastructure, credit and IT sectors with a total amount of USD 6.5 million. Banking Investment Sector invested in income-generating investment funds in the global markets for the company’s own account and as well as the accounts of its clients, achieving returns of exceeding 40% on capital. The sector also contracted with a number of clients to provide financial advisory services, which resulted in achieving KD 213,000 fees.
NIC incurred additional administrative expenses due to the outbreak of COVID-19. However, total general and administrative expenses decreased by 14% in H1 2020 compared to the same period in 2019, following the addition of the expenses of two subsidiaries jointly during the current period, which were not existing in the year-ago period.
NIC also kept on taking significant steps to support its clients and the local community. NIC made an effective contribution to reduce the economic repercussions that impacted some sectors, including the grant of rent relief to tenants in the investment housing and commercial sector during the total and partial lockdown.
The social responsibility activities NIC launches every year reflect harmony and community cohesion, especially towards the lower-income segments. This is not limited to a specific activity, but keeps up with the COVID-19 adverse impacts on the members of the community, and thus provides the assist and support appropriate to their situations and means under this serious crisis.
During the COVID-19 pandemic, NIC also continued to provide support and advice to all clients during the total lockdown, with the aim to emphasize the level of service quality, meet clients’ expectations and to maintain their investments and to enable the company continue the implementation of the deliberated strategy, in addition to the tireless effort, diversified options and studying all scenarios and most importantly giving the interest of shareholders and customers top priority.
Proactive Preventive Measures
NIC has always been proactive in taking all precautionary measures in order to ensure the protection of its employees and clients and to ensure the safety of visitors with the aim to maintain the business continuity at the company’s workplace.
In conclusion, National Investments Company emphasized the strength of its position, and its ability to overcome this exceptional situation imposed by COVID-19, wishing that this pandemic will soon end, stressing that it has all constituents and capabilities that enable it to recover quickly from the impacts of this pandemic, praying to God Almighty to raise this scourge and to protect and safeguard Kuwait and the whole world from all harm.