National Investments posts 64% YoY profit hike in Q1 2019

May 19, 2019

Al-Ameeri

• KD 48 million net profit for the first 3 months of 2019, at 6.87 fils per share
• NIC is persistently renewing its role as a major player within the national market and economy
• We aim to boost profits and operating revenues and diversify sources of income under a conservative policy.

Al-Mukhaizim

• Strong performance of the companys investments and a high flow of promising opportunities, from which we capture the most appropriate
• A big leap in total comprehensive income of 87% reflects the companys successful strategy
• NICs plan is based on diversification and a strong & solid base that ensure its stability

Mr. Hamad Ahmed Al-Ameeri, Chairman of the Board of Directors of the National Investments Company announced that NIC posted positive profits for the first quarter of 2019 amounted to KD 5.478 million, or 6.87 fils per share, an increase of 64% compared to KD 3.333 or 4.15 fils per share for the year-ago period. The value of managed assets has increased to about KD 1.06 billion, an increase of 1.21% compared to KD 1.046 at the end of 2018.

Al-Ameeri affirmed that these financial results reflect the companys strategy aimed at enhancing profits and operating revenues and diversifying sources of income under a conservative policy that ensures achieving the highest returns for shareholders with the least possible risks.

Fruit Reaping

In a press release on the first interim financial statements of 2019, Al-Ameeri said that despite the challenges in various markets, NIC continued to reap the fruits of its investment vision and focus on promising opportunities with a risk-return deliberate pace.

He added that NIC is no longer vulnerable to the fluctuations of the capital markets, in light of restructuring its investment portfolio and the acquisition of promising investments that give the company a return for several years, in addition that it has a defensive characteristic, and its market value increases at the same time.

Confident and Aspiration

In a related context, Al-Ameeri affirmed his great trust in the companys executive management, that translated the aspirations of BoD and met the ambitions of shareholders by continuing to preserve the companys gains as one of the leading houses in the asset management sector and historically one of the largest market makers, pointing to the renewal and continuation of the companys role as a key player within the national economic system.

Vision and Stability

For his part, CEO of the National Investments Company, Mr. Fahad Abdulrahman Al-Mukhaizim, said that NIC adopts an investment map based on investment diversification, pointing out that the positive financial results for the first quarter of 2019 were not coincidental, but rather the result of persistent efforts, good preparations and sound planning, affirming that NIC moves steadily with financial stability, which enables it to continue to achieve further good results in the future.

Al-Mukhaizim pointed out that the total shareholders equity of the parent Company increased by 4.35% to KD 184.084 million compared to KD 176.402 million at the end of Q1 2018.

He emphasized that these positive results were achieved as a result of the noticeable operating performance of all operational and investment activities under NIC umbrella, noting that NIC achieved a growth in total comprehensive revenues by 87.05%, as it increased from KD 3.506 million in Q1 2018 to KD 6.558 million in Q1 2019.

Al-Mukhaizim said that the total revenues increased by 47.54% amounting to KD7.849 million at the end of Q1 2019 compared to KD 5.320 million the same period in 2018, and total expenses increased by 3.74% to reach KD 1,580 million compared to KD 1.523 million at the end of Q12018, in a reflection of the investment expansions and maximizing operational returns for certain opportunities.

Financial Base

In the same context, Al-Mukhaizim said that NIC relies on a strong and solid financial base under its diversification strategy, pointing out that there are investments in which NIC has contributed, which represents a big addition, for example it owns a major share in the capital of the Boursa Kuwait Company, achieved in a public auction professionally organized by the Capital Markets Authority.

He expected that such an investment would have a positive impact on the companys performance during the coming period, indicating that any non-generating investment would be included in the exit program in the future if necessary.

Al-Mukhaizim added that the total assets of the company amounted to KD 206.583 million at the end of Q12019 compared to KD 196.547 million for the same period of 2018, an increase of 5.11%.

Growth and Strength

Al-Mukhaizim added that these positive results and other developing financial indicators came to confirm the strength of the companys financial position and its ability to cope with the fluctuations of the difficult operating environment locally and regionally, and they are clear evidence of the success of the conservative policy based on prudent risk management and a deliberate balance between expenditures and revenues in accordance with the principle of transparency set and dedicated by BoD in all company operations.

Al-Mukhaizim emphasized that the Executive Management is determined to continue  its vigorous efforts to enhance the performance of the companys funds and investment portfolios to outperform benchmark indicators.

Al-Mukhaizim affirmed that NIC continues to pursue its tireless and earnest efforts to capture good investment opportunities that meet its aspirations, and income-generating assets in order to keep on enhancing performance in the future and maintaining the Companys position and strengthening its leading role locally and regionally, in a manner that serves the interests of customers and shareholders alike, through achieving the highest real cash flows.

Al- Mukhaizim extended his thanks and appreciation to the Board of Directors, praising their continuous support, the executive management and all employees of the company for their efforts to achieve this positive performance and growth, which is obviously consistent with the companys strategic plan.