National Investments Company approves Q1 2021 Financial Results
NIC achieved positive results in Q1 2021 despite the economic conditions that the country is still experiencing
NIC achieved a net profit of KD 3.8 million, at 4.75 fils per share
In Q1 2021, other comprehensive income hiked to KD 3.2 million
NIC asset grew by 4.7%, approximately KD 228.6 million
In Q1 2021, total shareholders’ equity amounted to KD 181.9 million
In Q1 2021, assets under management amounted to KD 1.049 billion approximately
NIC outstanding performance in Q1 2021 reflects the success of its Executive Management that managed to maintain its leadership through steady earnings
Expanding new clients base and acquiring capital that has been injected into unique investment opportunities
NIC emphasizes attracting new investments and a number of new clients from M&A buy-side mandates, sell-side, restructuring and general advisory mandates in Q1 2021.
NIC is ready for all challenges and developments in the investment market locally, regionally and globally.
Mr. Hamad Al-Ameeri, Chairman of National Investments Company (NIC) said in a press release that the Company achieved good profits in the first quarter of 2021. The Company achieved positive results despite the economic conditions that the country is still experiencing. NIC achieved a net profit of KD 3.8 million at 4.74 fils per share for shareholders of the Parent Company in Q1 2021 compared to a net loss of KD 10.9 million at 13.71 loss per share in the same period of 2020. In Q1 2021, other comprehensive income also hiked to KD 3.2 million compared to KD 2.2 million in the first quarter of 2020.
In Q1 2021, NIC reported a growth in total assets of 4.7%, approximately KD 228.6 million, compared to KD 218.3 for the same period last year. In Q1 2021, the total shareholders’ equity amounted to KD 181.9 million, and the assets under management amounted to KD 1.049 approximately.
Al-Ameeri pointed out that NIC managed to report these good financial results despite the hard economic conditions that the region and the world are still experiencing due to Covid-19 pandemic and its repercussions on all economic markets. At the same time, we can say that NIC has the ability to adapt to the operating environment locally and regionally because it has a solid base compared to the results reported by other companies.
On the same front, Mr. Fahad Al-Mukhaizim, the Chief Executive Officer of NIC said that in Q1 2021, the Company achieved positive results and outstanding performance which reflected the success of the Executive Management in developing and building effective strategies capable of accurate and precise practices, and seizing investment opportunities that embody potential growth, and achieving distinctive financial returns, which spares no effort to achieve the aspirations of shareholders and clients.
Al-Mukhaizim also pointed out that the Wealth Sector team achieved positive performance in Q1 2021. Wealth Sector team managed to maximize the assets managed by the Company by expanding the new clients base and obtaining capital that was injected into unique investment opportunities. It is also worth noting that the investment returns of “TESCO” real estate project have increased from 9% to 10% annually, starting from the first quarter of 2021, achieving returns that outperform the prevailing rate.
Al-Mukhaizim emphasized that NIC has endeavored to capture new investments and a number of new clients, through the success of the Investment Banking Sector team, by investing in the infrastructure, credit and information technology sectors. Q1 2021 started with a strong pipeline of mandates, including IPO mandates, 4 M&A buy-side mandates, 4 sell-side, 1 restructuring and general advisory mandates. The Sector is also committed to two new investments in a Venture Capital Fund and a Hedge Fund. The Sector also contracted with several clients to provide financial advisory services, which resulted in additional fee income exceeding KD 65,000. The Sector has an excellent range of mandates for the remaining period of 2021.
Regarding the performance of the Company’s Real Estate Investment Sector, Al-Mukhaizim pointed out that NIC is developing its work procedures and is increasing marketing efforts for the units. NIC added one new property to its real estate management portfolio, and continues to increase the collection rate of its real estate managed portfolio, referring that there is 5% increase in revenues. NIC also focuses on preparing and marketing Al-Wataniya Resort in for the upcoming holidays by adopting well-thought-out marketing plans.
Al-Mukhaizim praised the exerted efforts and the outstanding performance of NIC during Q1 2021, which reflects the success of the Executive Management in developing and building effective strategies capable of accurate and precise practices, and seizing investment opportunities that embody potential growth, and achieving distinctive financial returns, which spares no effort to achieve the aspirations of shareholders and clients, affirming that the Company always relies on developing look ahead plans, to remain fully prepared for handling all variables in the local, GCC and global markets, adding that NIC is fully ready for all challenges and developments in the investment market locally, regionally and globally.
In conclusion, Al-Ameeri expressed his thanks and gratitude to the Company’s shareholders and clients, appreciating their confidence and support for NIC. Al-Ameeri also extended sincere thanks to the regulatory authorities, and praised the efforts of the Executive Management and all staff for their efforts, emphasizing on pursuing the ideal approach of the Company’s vision and strategy in continuing to serve clients based on the elements of systematic work, along with enhancing digital innovation in investment products and services.