- Board of Directors approved a cash dividend of 45% of the capital, at 45 fils per share
- Outstanding financial results achieved during 2021, a net profit of KD24.4 million and 31 fils per share
- NIC managed to proof being one of the powerful entities which can stand firm when facing the market changes
- Superb achievements and incredible performance by employees of all departments have contributed to the remarkable returns achieved in 2021, and reflected their professionalism and expertise
- NIC has strengthened its financial position and raised its standard among others within the investment sector, which resulted to a major increase in trading its shares
National Investments Company (NIC) has recently held its Annual General Meeting (AGM) and Extraordinary General Meeting (EGM) at the company’s premises at Al Khaleejiya Tower. Meetings were conducted virtually and were attended by 77.227% of the shareholders.
Mr. Hamad Al Ameeri, Chairman of the Board, has welcomed the attendees who mainly represented the board, executive management and shareholders and has expressed his appreciation of their continuous support and valued trust, which contributed to the success achieved.
Al Ameeri has first presented the board’s report, which included major achievements of 2021, he also highlighted the company’s key activities, financial position, the independent audit report, income statement, consolidated financial statements and final reports for the fiscal year ended December 31, 2021, as well as the governance report, audit committee and board members’ bonuses.
Chairman Al Ameeri has also confirmed obtaining shareholders approvals on agendas of both AGM and EGM, which included revising article numbers (14) and (48) of the statute. At the meetings, the board of directors has approved a cash dividend of 45% of the capital, at 45 fils per share (eliminating treasury shares) for the fiscal year ended on 31 December 2021, for shareholders registered in the company’s records in accordance with applicable due dates and rules.
“2021 was an exceptional year, full of factors and happenings which has indeed affected the global, regional, and local economies, mainly the after-effects of the pandemic which has proven that solid entities are mostly the ones able to survive. This is what The National Investments Company has shown over the past year with its flexible and strong financial situation, emphasizing on the team’s ability to achieve the ambition of customers and shareholders” confirmed Al Ameeri
Assets and Returns
Al Ameeri has also shed the light on the outstanding financial results achieved during 2021, translated into a net profit of KD24.4 million, 31 fils per share, in comparison with losses that have reached KD2.7 million, 3 fils per share during the same period last in 2020.
The board of directors also recommended the distribution of cash dividends, which is considered the largest in the past 10 years, equivalent to 45 fils per share, a decision that reflects the company’s strong financial position and cash abundance, which helped coping with market instability and capturing investment opportunities.
Al-Ameeri has also expressed his gratitude to the company’s team, whom their remarkable efforts and continuous support helped achieving the successes and accomplishments witnessed today and increases the ability of the company to fulfill its commitment to reach its objectives, boost the confidence of its customers and shareholders, while continuing to move towards preserving the company’s earnings, and looking forward to achieving further progress and excellence in the near future.
Stock Exchange Promotion
Not only Boursa Kuwait but also the regional and global stock exchanges have witnessed a positive year during 2021, post the tremendous losses faced worldwide in 2020 due to the pandemic. Boursa Kuwait has recorded a remarkable performance at all indicators, since the year has carried many positive elements and reasons at all levels, economic, political and/or health.
Following the upgrade of Boursa Kuwait in the MSCI Emerging Markets Index, the market has witnessed a rise in the size and value of trading in comparison with the same period in 2020, the trades in the first quarter of 2021 has coincided with listed companies’ 2020 financial statements announcements which were accompanied by the boards of directors’ recommendations to distribute grant shares or cash to shareholders, factors which reinforced the increase in purchasing momentum on shares of operating companies in general, and the banking sector in particular, as their distributions gained about 43.6% of the total distributions of the stock exchange of about KD 1,201 million.
Superb Achievements and Incredible Performance
Mr. Fahad Al Mukhaizim, CEO of National Investments Company said that the achieved results and financial stability came as a consequence for the wise strategy and clear vision to invest in the privatization of Boursa Kuwait, by leading a distinguished consortium of local financial institutions and a global operator to acquire 44% of the capital in 2019. Which has had a significant financial impact on the company’s success by steady profits and double and sustainable returns as well.
Al Mukahizim also highlighted a 23.9% increase in total shareholders’ equity for the parent company to KD 216.8 million by the end of 2021, compared to KD 175 million during the same period in 2020. Despite all the challenges the region has faced during 2020 and 2021, the company has decided to distribute cash dividends for the fiscal year ended December 31, 2020, of approximately KD 8.8 million.
As for the total revenues, the other comprehensive income has exceptionally increased in 2021 by 584% to KD 25.6 million, compared to KD 3.7 million for the same period in 2020. The company’s total managed assets reached KD 1.09 billion by the end of 2021, despite the global economic recession and declining global investment values.
“The unique performance our investment fund has witnessed in 2021 reflects the success of the executive management in adopting and applying effective strategies, their ability to apply strict and accurate work approaches and practices, and achieve distinctive financial returns, while proofing its superiority over its market counterparts. National Investments Company has carried out cash distributions that exceeded KD 11 million, after going back to the mechanism of half-year distributions to be the first company on the list of investment equity fund managers on Boursa Kuwait which distributes cash dividends after the global crisis” clarified Al Mukhaizim
On the level of managing the advisory services at The National Investments Company, Al Mukhaizim stated that the department has excellent technical knowledge and very high ability in identifying, negotiating, and implementing outstanding sources of transactions in local and regional markets. It started with number of merging and acquisition dealings, completed sell-side authorization, restructuring and other general advisory authorizations in the first quarter of 2021 and the successful listing of Safa Investment Company, which attracted strong investor demand and performed well after listing. The department also served as a buying consultant for Boursa Kuwait, supporting their acquisition of a majority stake in KPC, and acting as a manager for the mandatory acquisition offer of Kuwait and Middle East Financial Investment Company. The advisory team has also provided evaluation and strategic advice for two leading technology companies and offered pre-IPO consultancy to a family group and completed a restructuring of a consumer services company.
On the real estate sector, National Investment Company and Altum Capital have managed to increase the annual returns from 9% to 10% through its UK real estate investment in Manchester which was acquired in 2019 with a total value of £44.5 million. The subscription for the shares offered was covered by the equivalent of 4 times. The department’s last investment of the year was a partnership with G Squared to invest in Bombas.
Al-Mukhaizim also reported that the National Investments Company was able strengthened its financial position and raised its standard among others within the investment sector, noting that trading in the company’s shares has witnessed dramatical improvement during 2021 and the company’s share price has significantly increased, while the investments have succeeded in operating the service of Market Maker on Boursa Kuwait starting on August 22, 2021, both shares of Boursa Kuwait and Gulf Cable Company were selected and added to the list, and is expected to add more companies which will be announced over the coming period.
“The performance of the real estate investment was positive despite the financial crisis” said Al Mukhaizim and emphasized on the outcome of restructuring the real estate investment sector to improve its performance, mainly strengthening the team by adding more professionals with experience within the sector, while developing the work procedures and increasing marketing efforts for units. Considering these efforts, revenues were increased by 3.64%, with success in maintaining the occupancy rate without decrease.
National Investments Company has also managed to lead the way in introducing a comprehensive digital vision by launching NICTRADE, which is an electronic service that allows customers to trade within Boursa Kuwait and more than 80 other regional and global stock markets, through modern user- friendly applications, aiming at enhancing customers experience when using the websites or the trading app on smart phones or tablets, in addition to the customer platform, which is a digital communications platform that allows customers to pursue their investments easily 7 days a week at any time, with complete confidentiality, privacy, security and greater flexibility.
On corporate social responsibility (CSR) level, the company has focused this year on fulfilling the requirements of people in real need, to do that, the company has launched series of initiatives such as the collaboration with The Kuwait Food Bank for to prepare Ramadan food supplies, Suhour meals and clothing for Eid.
During 2021, NIC has received five global awards, which reflects the company’s efforts to achieve major accomplishments. The awards include Asset Manager Company of the Year by Global Banking & Finance, The Fastest Growing Investment Firm in Kuwait by International Financial Awards, Best Wealth Management Company by Global Business Outlook, Best Innovative Portfolio Management Company by International Financial Awards and Best Investment Management Company by International Business Award
Finally, Mr. Hamad Al Ameeri, Chairman of the Board has expressed his sincere gratitude to members of the board, executive management, and the company’s team on their constant hard work to accomplish this terrific performance and therefore achieve the growth which go with our strategic plans.