A recommendation to distribute the highest cash dividends in NIC history at 45 fils
National Investments Company Profits Climb to 1,018%
- NIC recorded in 2021 the highest profits at all levels of KD 24.4 million, at 31 fils per share
- The Board of Directors recommends the distribution of the largest cash dividends in the past ten years, equivalent to 45 fils per share
- NIC started 2021 with M&A transactions, sell-side mandates, restructuring and various advisory services, promoting digital innovation in investment products and services, in addition to keeping pace with the rapid changes in the world of business and finance
- The NIC exceptional performance over more than three and a half decades, included outstanding successes in its various activities, which placed it in the ranks of the leading companies not only in Kuwait, but in the region as well
- NIC confirms its position as one of the largest investment companies in terms of revenue and profitability, supported by positive results and its ability to overcome all crises and extraordinary situations
- The international awards won by NIC in 2021 were the result of a collective effort, in addition to intense strategic efforts in CSR throughout the year, which focused on meeting the needs and requirements of society
- Significant growth of 31.2% in total assets, reaching KD 290.6 million compared to the same period at the end of 2020, which amounted to KD 221.4 million
- In 2021 the volume of AUM jumped to KD 1.09 billion, compared to KD 1 billion in the same period ending in 2020
- Profits and distributable reserves increased to KD 48.4 million, representing 60.7% of the capital, compared to KD 31.5 million in 2020
- A remarkable increase of 584% in other comprehensive revenues through comprehensive income during the current year 2021, reaching KD 25.6 million, while other comprehensive revenues reached KD 3.7 million in 2020
- Growth rate of 23.9% in total shareholders’ equity, reaching KD 216.8 million, compared to KD 175 million in the same period in 2020, despite the challenges the region experienced in 2020 and 2021
- An exceptional increase of 47.5% in the management, brokerage and advisory fee income, amounting to KD 9.1 million, compared to KD 6.2 million in 2020
- Outstanding performance in achieving record ratios and good returns on most of our investment funds in 2021, with Al Wataniya Investment Fund reporting an increase of 27.8%, Mawarid Fund for industrial and petroleum services achieving a 30%, return, Zajil Fund for Services and Telecommunications recording a return of 15.5%, and finally the Al Mada Investment Fund achieving a 31.6% return
- The strategic decision by the NIC owners to invest mainly in the privatization of Boursa Kuwait Company had a distinct material impact on the financial position of the company
The National Investments Company (NIC) approved the consolidated financial statements for the year ended December 31, 2021. The statements included a detailed analytical presentation of the company’s performance and financial position.
In a press statement, the Chairman of the National Investments Co., Mr. Hamad Al-Ameeri disclosed that in 2021 NIC went on to achieve outstanding results in its performance, with profits of KD 24.4 million at 31 fils per share, for the fiscal year ending on December 31, 2021, compared to a loss of KD 2.7 million, a loss of about 3 fils per share, for the same period at the end of 2020.
The Board of Directors also recommended the distribution of the largest cash dividends in the past ten years, equivalent to 45 fils per share.
Al-Ameeri added that the financial results for 2021 were positive, noting that the company started the year 2021 with a strong set of investment operations for the benefit of its customers, including several M&A transactions and sell-side mandates, and restructuring as well as other general advisory services. NIC also attracted several new investments in infrastructure, credit, IT and private equity.
Al-Ameeri pointed out the exceptional performance achieved by NIC over three and a half decades, which resulted in remarkable successes in its various activities, placing it among the leading companies not only in Kuwait, but also in the region, therefore confirming its position as one of the largest Investment companies in terms of revenue volume and profitability supported by positive results, the ability to overcome all crises and exceptional circumstances, and reaffirm their ability to maintain the interests of their customers with high efficiency and without interruption. Enhancing profits and operational revenues, as well as diversifying sources of income, are some of the pillars of NIC’s work model, within the framework of a conservative policy that ensures achieving the highest returns for shareholders with the lowest possible risks. This is the basis of NIC strategy.
Al-Ameeri went on to say that the improvement in global and local economic conditions in 2021 enabled NIC to strengthen its position in the financial sector and raise its standing in the investment sector, noting that trading in the company’s shares has improved in general in 2021 and that the company’s share price has increased significantly, and that the company has also succeeded in operating the Market Maker service in Boursa Kuwait, starting August 22, 2021. The shares of Boursa Kuwait and Gulf Cable Company were selected to join the list, with more expected to be added in an announcement to be made in the coming days.
Al-Ameeri added that integrating the digital transformation process is part of the company’s business strategy, pointing out the efforts made by the company’s work team to move forward with the realization of Vision 2022, which is based on an advanced digital strategy that keeps pace with rapid changes in the markets and the investment sector by providing innovative services and quality products with the help of the latest technology, as well as the adoption of smart digital solutions that contribute to meeting the needs and requirements of our customers and shareholders in full.
Al-Ameeri revealed that this strategy is based on achieving several other integrated goals and objectives, such as providing innovative business solutions, digital investment platforms, enhancing service quality and operational efficiency, accelerating the automation of internal processes and procedures, strengthening internal control, improving resource management, strengthening governance, and monitoring the budget and the operational and capital expenditure.
At another level, and as a culmination of the company’s tireless efforts and distinguished performance during 2021, NIC was honored by several prestigious international platforms specialized in business and finance. These awards were made on different occasions as testimonies of appreciation and praise from major global monitors of the performance of financial and investment institutions in the region and the world.
The NIC contributions and initiatives in carrying out its social responsibility have consolidated the company’s position through community contributions, raising of awareness and involvement that have a direct and concrete impact on the development and growth of society.
Meanwhile, Mr. Fahad Abdulrahman Al-Mukhaizim, the Chief Executive Officer of NIC confirmed that the company witnessed a year of strong performance and operational achievements that strengthened its financial position by the end of the fiscal year 2021. NIC was able to overcome the conditions that prevailed in Kuwait and the world as a result of the pandemic and its consequences such as the curfew and lockdown since the beginning of 2020.
He added that the approved plans and strategic visions reflected the success of the company’s work team, strengthening its position in the financial sector and raising its standing in the investment sector as one of the largest and most prestigious investment companies in Kuwait and the region. In 2021, the company recorded a remarkable rise in profits, amounting to KD 27 million, and achieving outstanding performance at the level of the company’s projects in Kuwait and the region. This was reflected in the continued growth of profit ratios and strong financial results.
Al-Mukhaizim said that NIC reported an excellent growth in the company’s total assets of 31.2% by the end of 2021, amounting to KD 290.6 million, compared to KD 221.4 million for the same period last year.
He praised the 8.4% increase in the total assets under management (AUM) that amounted to KD 1.09 billion at the end of 2021, compared to approximately KD one billion for the same period last year, despite the challenges and fluctuations that the region experienced. Also, NIC registered higher profits and distributable reserves of KD 48.4 million, constituting 60.7% of the capital, compared to KD 31.5 million for the same period last year. Other comprehensive income also achieved an exceptional hike in 2021, reaching KD 25.6 million, an increase of 584% compared to KD 3.7 million for the same period last year.
Al-Mukhaizim said that despite the challenges the region witnessed in 2020 and 2021, the total shareholders’ equity of the parent company rose by 23.9% to KD 216.8 million in 2021 compared to KD 175 million to the same period last year, taking into consideration that the company distributed cash dividends to shareholders for the year end 31/12/2021 approximating KD 8.8 million.
He also shed light on the outstanding hike of 47.5% in management, brokerage and advisory fee income that reached KD 9.1 million compared to KD 6.2 million in the same period of 2020.
Al-Mukhaizim explained that NIC’s Financial Advisory Services (FASD) achieved exceptional success in 2021. The company successfully supported a leading fitness and lifestyle business in securing debt and listed Al Safat Investment Company, a full-fledged investment-licensed company with a capital of USD 85.2 million. In addition, it supported a buy-side transaction for a leading logistics company, one of Kuwait’s largest multi-sector businesses, while it is also working on two flagship pre-IPO mandates, with expected completion in 2022 and 2023 as well as contracts to provide general advisory services.
He went on to say that the NIC also co-invested with a group of its customers in two projects to develop logistics warehouses in Europe, namely in Italy and Germany. The first project, a warehouse in Italy, was leased to (FedEx). As for the other project in Germany, a leasing contract was signed with a major company in the logistics sector. The two projects are expected to bring in annual returns of 8% and 8.5% respectively.
There were distributions to customers holding shares in the Company’s real estate investments in the UK and USA, as well as an increase in the annual returns from 9% to 10% of its real estate investment in the UK Manchester area.
In addition, Al-Mukhaizim has announced that NIC`s investment funds achieved record performance ratios in 2021, thanks to the performance of the funds management team and the company’s expertise in managing investment shares funds.
Commenting on this performance, Al-Mukhaizim said that Al Wataniya Investment Fund performed well, with returns of 27.8% in 2021, an increase of 297% since its inception. Mawarid Fund for industrial and petroleum services recorded return of 30%, while Zajil Services & Telecommunications Fund achieved a good return of 15.5%. In addition, Al Mada Investment Fund achieved a return of 31.6% in 2021.
He added that NIC has an impressive track record of relations with clients and long-term partnerships that depend on great confidence and prudence in professional wealth management and in providing integrated products, solutions and plans as well as adopting the latest investment methods in wealth management. In 2021, new capital was attracted from clients of funds and portfolios, amounting to approximately USD $150 million.
He praised the thoughtful strategy and the insightful vision of the owners of NIC by mainly investing in the privatization of Boursa Kuwait through leading a consortium of local financial institutions and a global operator to acquire 44% of the capital in 2019. This strategy later proved the correctness and success of the company’s decision to seize the investment opportunity, which resulted in an influential and distinctive growth in the value of the investment and had a significant financial impact on NIC`s success in reaping profits and achieving sustainable returns as well.
Al Mukhaizim concluded that the company`s owners are looking forward to 2022 with a positive outlook in terms of growth and maintaining an organizational structure that is keen to provide positive performance, create new paths, continue efforts in developing resources, and provide the best investment opportunities with highest returns.
In conclusion, Al-Mukhaizim extended his sincere thanks and appreciation to the Board of Directors and all staff at NIC for their constant efforts to achieve this outstanding performance and growth. He also expressed his appreciation for the clients and shareholders of NIC for their precious trust, wishing everyone continued cooperation and success.