National Investments Company Announces Financial Results for Third Quarter of 2020
- NIC has maintained KD 25.773 million profits and distributable reserves, accounts for 32.3% of capital, despite COVID-19 pandemic and its impacts on the region’s economy
- NIC reported about KD 7 million hike in its total assets to reach KD 213.266 million compared to KD 206.401 million for the same period in 2019.
- Despite the unprecedented challenges the region and the whole world experienced due to COVID-19 pandemic and its repercussions on all markets, NIC managed to distribute KWD 7.18 million cash dividends to its shareholders for the year ended December 31, 2019.
- NIC affirmed the strength of its standing and its ability to overcome this exceptional situation and to possess all fundamentals and capabilities that qualify it to quickly recover COIVID-19 impacts, and always strives to preserve the interests of its clients at all fronts, especially in times of crisis.
- Our appointment as an advisor by Boursa Kuwait demonstrates the strength of our position in the market
- NIC reported KD 3,970 million profits for Q3 2020 and KD 3,756 million additional profits from comprehensive income
- NIC General profitable sectors managed to achieve more success in Q3, to be added to its achievements record
- NIC achievements and history qualify it to play a leading role in the local and Gulf markets
- NIC managed to maintain distribution of dividends to its clients shareholding in its commercial real estate investments in UK and USA, despite the global economic conditions associated with COVID-19 pandemic.
- NIC winning of global awards is a translation of its collective efforts. NIC has also intensified its strategic efforts in the field of social responsibility throughout the year and focused on meeting the needs and requirements of society during COVID-19 pandemic.
Mr. Hamad Al-Ameeri, Chairman of National Investments Company (NIC) said in a press release, “The Company has adopted a conservative policy that guarantees its stability amid the repercussions of the novel corona virus (COVID-19) pandemic, and stands on solid ground in view of the implementation of a deliberate strategy through which it always aims to preserve the interests of its clients at all fronts, especially at time of crises. NIC has maintained profits and distributable reserves of KD 25.77 million, accounts for 32.3% of capital, which was translated on the ground during the third quarter of this year (Q3 2020), as the strength of its assets and financial position had a great impact in overcoming these repercussions. According to these results, the Company record 3.33% hike in total assets compared to the same period of 2019. Al-Ameeri revealed that the Company’s net losses until 30 September amounted to KD 7.897 million, or 9.90 fils loss per share, compared to KD 11.866 million net loss or 14.87 fils loss per share for the six months ended on June 30, 2020
Al-Ameeri said that the total assets under trust managed by the Company amounted to KD 1.035 billion at the end of Q3 2020, pointing out that these good financial results recorded by the Company amidst 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.
Income of the Company
Al-Ameeri affirmed that the total income hiked and improved during the three months ended on September 30, 2020, amounting to KD 6.831 million, by an increase of 557% compared to the same period last year, which amounted to KD 1.226 million.
Al-Ameeri said that the reassuring financial results were a reflection of a long-term strategy adopted by the Company’s Board of Directors, which the Executive Management is implementing with high professionalism, emphasizing that these plans are grounded mainly on two important bases; diversifying sources of income and reducing risks, praising the efforts made by the Company’s Executive Management, which always works to translate the targets of the BoD, while sparing no effort to achieve the aspirations of shareholders and clients.
Listing Advisor to Boursa Kuwait
Al-Ameeri added that NIC, appointed as the Listing Advisor to Boursa Kuwait Securities Company, took over the coordination mandate between Boursa Kuwait and the Capital Markets Authority (CMA) that would follow the instructions contained in Law No. 7 of 2010, its Executive Regulations and the listing rules. NIC boasts the effective role it played as an advisor for this first-of-its-kind listing in the Kuwaiti capital market. The Company also aims and strives to safeguard the interests of its clients at all fronts.
Al-Ameeri affirmed that NIC was keen Boursa Kuwait to fulfill listing requirements while preparing the listing documentation, as the process was so ably accomplished by a highly qualified and experienced team. Listing Boursa Kuwait Securities Company on the Premier Market is a very important achievement, which will definitely contribute to the prosperity of the Kuwaiti economy. We also look forward to promising investment opportunities that will be enjoyed by all investors, at local and international fronts.
Al-Ameeri made reference to the holistic negative impacts of 2020, as COVID-19 pandemic is still casting its impacts over the country, and everyone knows that the pandemic has afflicted many economic sectors and is continuing to strongly affect the region and the whole world.
He added that the return of full stability to the markets will give companies a satisfactory opportunity to compensate for their losses and decline in performance, which calls for optimism at the beginning of the new year 2021.
In the same context, he stated that NIC pursues its vigorous efforts to enhance performance in the future, preserve its position and promote its leading role locally and regionally despite the hard prevailing economic conditions, emphasizing on providing the best services that help it maintain the interests of the Company’s clients and shareholders alike.
Q3 2020 Profits
For his part, Mr. Fahd Abdulrahman Al-Mukhaizeem, the Chief Executive Officer at NIC, confirmed that despite the daunting challenges faced by the whole world, NIC managed to achieve KD 3,970 million net profit for Q3 2020, and KD 3,756 million additional profits included within shareholders equity and classified under comprehensive income, as the Company’s sectors in general and the profitable sectors in particular made an effective contribution to achieving this outstanding result during Q3 2020. The Investment Banking “IB” team managed to contract with 16 new clients since the beginning of the year to carry out various investment activities that its excels at, including, compulsory acquisition, voluntary acquisition, restructuring, evaluations, listing agents, completion of deals on behalf of clients … etc.
MENA Quoted Investments Sector
The MENA Quoted Investments Sector team also contributed to maintaining the competitiveness of performance as for the performance of funds managed by the Company, as well as all types investment portfolios, as they managed to achieve investment returns outperformed the benchmarks at all markets.
Therefore, the achievements and history of NIC qualify it to play a leading role in the local and Gulf markets. It has initially been qualified as a market maker, which is a licensed entity aims to provide liquidity (supply and demand), as NIC always seeks to seize good investment opportunities that keep pace with the investment standards the Company have in place.
The Real Estate Investment Sector at NIC has made an excellent achievement by maintaining the level of services provided to the owners of third-party properties managed by NIC, and has recorded remarkable successes in this regard.
The Wealth Management Sector team is also studying clients’ needs, especially amidst the unprecedented crisis we are going through. Wealth Management team managed to keep pace with clients’ requirements and provide advice and guidance with regard to their investments, and also succeeded, through the notable performance of its work team, in attracting new capitals in various investment fields.
Al-Mukhaizim affirmed that NIC always relies on developing multiple perceptions and plans, to remain fully prepared to deal with any changes that may occur in the region’s markets to ensure the stability and balance of the Company’s performance.
Al-Mukhaizim said that the good performance achieved by NIC is the fruit of collective cooperation of the Company’s all staff, departments and sectors, extending his appreciation to the BoD and all employees of the Company, stressing that the efficient and smooth integration 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.
Al-Mukhaizim affirmed that NIC is always keen to develop a holistic plan for dealing with the challenges and developments that occur on the local, regional and global markets, aiming to keep abreast with them with decisions and procedures through which it maintains the Company’s capabilities and the rights of its shareholders. Accordingly, since the beginning of the crisis, NIC has sought to form a crisis management team from the best competencies it has, as the team has followed up all the investments of the Company and its valued customers.
Al-Mukhaizim said that NIC places top priority to intensifying communication with investment managers, especially in international real estate investments, which the Company has sought to acquire over the past three years. One of the key factors for the acquisition was the company leasing the commercial property in terms of its financial solvency and the type of activity in which it operates, as well as the company’s credit rating, which helps it face financial and operational difficulties.
Al-Mukhaizim pointed out that the total equity attributable to the equity holders of the Parent Company increased to KD 167.108 million at the end of Q3 2020, taking into account that the Company distributed KD 7.18 million as cash dividends for 2019.
Despite the unprecedented challenges during the first half of this year, NIC managed to maintain profits and distributable reserves of KD 25.773, which accounts for 32.3% of capital. The Company also continued to provide its services to all clients without disruption, and distributed cash dividends to shareholders for the FY 2019. Despite the global economic conditions associated with COVID-19, the Company managed to maintain distributions to its shareholders in its commercial real estate investments in the United Kingdom and the United States of America. A new payment will be distributed during this month to shareholders of Tesco investment at 9% for Q3 2020, and the same will be made to shareholders of Vanguard investment in the USA.
NIC also confirmed that it captured new investments and a number of new clients through the success of the Investment Banking Sector team in investing in the infrastructure, credit and IT sectors with a total amount of USD 6.5 million. Investment Banking Sector invested in income-generating investment funds in the global markets for the Company’s own account as well as the accounts of its clients. The IB sector also contracted with a number of clients to provide them with financial advisory services, which resulted in achieving KD 428,000 fees, in addition to new guaranteed future deals.
Al-Mukhaizim highlighted the awards won by the Company, including four awards from the leading platforms “Global Finance & Banking Awards” in 2020,The Global Economics and the Global Business Outlook, which all came as culmination of its notable performance, added to its successes record, pointing out that the Company has won several certificates and awards as the “Best Investment Company Kuwait 2020”, “Best Gulf Investor Relations Company 2020”, “Best CSR Initiatives Towards COVID-19 Award” and “World’s 100 Best Classification Award For Real Estate Management”.
Proactive Preventive Measures
Al-Mukhaizim stressed that NIC has always been proactive in taking all precautionary measures in order to ensure the protection of its staff and clients and to ensure the safety of visitors of Khaleejia Complex where its headquarters is located with the aim to maintain the business continuity at the Company’s workplace, and help strengthen the economy in line with the plans approved by the health and concerned authorities in the State, pointing out that NIC continued to provide support and advice to all clients during the total lockdown through online and digital services and its specialized team, with the aim to emphasize the quality level of service it provides to meet clients’ expectations and maintain their investments.
Thanks and Appreciation
At the conclusion of the statement, the Chairman of National Investments Company; Mr. Hamad Al-Ameeri extended his thanks and appreciation to the Board of Directors, the Executive Management and all staff 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 it have in place. He also extended special appreciation to NIC’s clients for their valued confidence in the Company, wishing continued bonds of cooperation to protect the interests of clients, as the Company spares no effort to preserve the public interest.
Al-Ameeri also expressed his wishes asking Allah almighty to protect Kuwait and its people from all evil and harm under the wise leadership of His Highness the Amir of the State Sheikh Nawaf Al-Ahmad Al-Jaber Al-Sabah and His Crown Prince Sheikh Meshaal Al-Ahmad Al-Jaber Al-Sabah, may Allah safeguard and protect them, and to raise this scourge from Kuwait and the whole world.