NIC Holds Analysts Conference for H1 2024 results
The National Investments Company held its Financial Analysts Conference for its H1 2024 results on Sunday, 13 August 2024. The conference was hosted by Mr. Mohammed Beig, Senior Chief Financial Officer, and Mr. Al Muthana Al Maktoum, Executive Vice President of the Wealth Management Sector, who presented a brief about the company, emphasizing the positive financial results achieved in H1 2024. The results prove that NIC is moving towards strengthening its leading position and achieving sustainable positive growth in its profits and that the company, in pursuit of its strategic objectives, always seeks to focus on basic investment activities by consolidating its sustainability approach.
Financial Performance
Mr. Mohammed Beig presented a detailed overview of NIC’s financial position. As shown in the income statement, during the first half of 2024, the company achieved a total income of KD13.2 million, a net profit of KD5.8 million, and a revenue per share of 7.2 fils, compared to the same period of 2023, when the total income was KD8.4 million, the net profit KD4.2 million, and 5.3 fils earnings per share.
He pointed out that the return on average shareholders’ equity and return on average assets reached 3.2% and 2.4%, respectively, and the leverage ratio reached 32.5% in the first half of this year.
Additionally, Mr. Beig said that the net book value per share reached 230 fils per share, and assets under credit management amounted to KD1.06 billion during the first half of 2024. Assets under management amounted to KD1.05 billion as of December 2023, where the net book value reached 217 fils per share, and assets under management amounted to KD1.08 billion as in the first half of 2023.
The company’s consolidated net profit for the first half of 2024 increased by up to 46%, with a value of KD6.2 million compared to KD4.2 million in the first half of 2023. The total income increased 56% to KD13.2 million compared to KD8.4 million in the first half of 2023. This increase is mainly due to gains achieved by NIC at fair value through profit or loss, as the S&P Kuwait index recorded a rise of 2.5% during the first half of 2024 compared to a decrease of 5.5% during the first half of 2023.
On the other hand, Mr. Beig explained that management incentives, brokerage, consulting, and services fees during the first half of 2024 amounted to KD4.8 million compared to KD4.6 million for the corresponding period in 2023.
Administrative expenses increased to KD5.2 million in the first half of 2024, compared to KD4.8 million in the corresponding period of 2023, in line with operating income, while financing costs increased to KD1.3 million, compared to KD0.8 million last year, due to new loans. Comprehensive income on a consolidated basis was KD16.6 million during the first half of this year, compared to a loss of KD4.9 million in the first half of 2023 due to an increase in the valuation of investments listed at fair value through other comprehensive income. Thus, the total comprehensive income for the first half of this year reached KD22.8 million compared to a total comprehensive loss of KD0.6 million in the first half of 2023.
He also referred to the total assets and shareholders’ equity attributable to the parent company, which amounted to KD266 million and KD183.7 million, respectively, during the first half of this year, compared to KD249.3 million and KD173.3 million for the same period last year. Around 80% of our total assets are investments, 11% are real estate, and the rest are other assets.
Unique Opportunities
During H1 2024, NIC provided advisory services to Action Energy Company in an initial public offering. It recommended a more strategic approach: pursue capital increase through a lead investor by issuing preferential shares. This approach was designed to enhance the company’s operational value and pave the way for the final listing on Boursa Kuwait.
It is also worth mentioning that NIC provided comprehensive support, which included identifying potential investors and obtaining regulatory approvals for issuing preferred shares. This strategic move resulted in a sovereign wealth fund’s full subscription of the preferred shares, marking Kuwait’s first issuance of convertible preferred shares.
Mr. Beig noted that during the second case study, NIC focused on the private placement of Beyout Investment Group (BIG). It aimed to enhance its corporate vision and attract a broader base of investors by listing its shares on Boursa Kuwait’s Premier Market. NIC played a vital role as joint coordinator and bookrunner of Beyout Group’s private placement and was the investment advisor and listing advisor throughout the process.
This deal was particularly significant, as it represented the first use of the book-building process in a private placement in Kuwait, allowing the final price of the offer to be determined based on market forces. This innovative approach has attracted significant interest from regional and international investors. As a result, Beyout Group was successfully listed on Boursa Kuwait’s Premier Market on June 11, 2024.
“NIC received three awards during the first half of 2024 in recognition of its accomplishments: ‘Best Local Investment Bank in Kuwait,’ ‘Kuwait’s Best for Family Office Services’ and “Kuwait’s Best for Next-Gen” for 2024 by Euromoney. The company was also nominated as the ‘Strongest Asset Manager in Kuwait’ by Forbes Middle East” concluded Mr. Beig.
Toward the end of the conference, NIC’s team stressed that the company is committed to continuing its regular and permanent communication with its customers and shareholders and to regularly informing them of developments in the company through the quarterly Analysts Conference.
