Global reports KWD3.9 million revenues, KWD1.6 million net profit in First Quarter 2018
During Q1 2018, Asset Management generated KWD2.7 million (USD9.0 million) revenues and the Asset Under Management (AUM) grew by KWD 16.0 million (USD53.4 million) to KWD926 million (USD3.1 billion) stemming from both new money raising and performance driven AUM growth and affected by cash distributions to clients.
During the quarter, the real estate asset management team successfully completed the sale of the first property acquired as part of the UK National Commercial Real Estate Program in September 2015 and let to National Air Traffic Services (NATS), achieving total return of 23.6%, internal rate of return of 10.55% of which the income element represented 9.3% per annum.
Special situation asset management entered into a specialized asset management agreement with a regional group to manage a portfolio worth USD90mn. Private equity asset management exited two portfolio companies and plans distribution of the proceeds to clients during the second quarter.
MENA Asset Management continued to report competitive returns and its managed funds outperformed their respective benchmarks. The team received two recognitions by industry experts, “Best Kuwait Asset Manager” and “Best Saudi Equity Fund”.
During Q1 2018, the Investment Banking team generated KWD0.2 million (USD0.6 million) revenues from two M&A mandates in the financial and industrial sectors. The team is currently working on several mandates and has an interesting pipeline of M&A and advisory mandates.
On the brokerage front, Global made focused efforts to grow the institutional brokerage business and generated KWD0.3 million (USD0.9 million) revenues.
The Company’s continuous efforts to control and rationalize its cost base resulted in a decline of KWD0.6 million or 19% in the operating cost base to KWD2.5 million.
Hareb Al-Darmaki, Chairman of the Board of Directors, said: “The Company had an excellent start to the year; successfully closing several transactions, winning a number of new mandates and reporting positive results. The team’s efforts are highly recognized through the successful implementation of the fee-based business strategy thus maintaining high quality of revenues, which remains our priority.”
Sulaiman Mohammed Al-Rubaie, Deputy Chief Executive Officer, commented: “We are delighted by these financial results, which reflect the Company’s robust business model and trust of our clients and stakeholders in the Company. Despite the challenges, our team showed highest levels of commitment to continue creating value to all our stakeholders, through our resilient and robust fee-based business model, innovative strategies and execution capabilities.”
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