News

24 July 2019

Global reports KWD8 million revenues, KWD2.6 million net profit in 6M 2019

Global announced its financial results for the six months period ended 30th of June 2019 reporting a net profit of KWD2.6 million (USD8.7 million) compared to KWD2.9 million (USD9.7 million) in same period 2018, total revenues of KWD8.0 million (USD26.3 million), 7.3% increase compared to last year. Fee and commission income stood at KWD5.6 million (USD18.6 million), an increase of 14% compared to 6M 2018 and representing 70.7% of total revenues.

On the corporate level, the team continued working closely with KAMCO Investment Company to strive for successfully concluding the merger to create one of the largest, strongest, and a more efficient player in the regional investment services sector namely asset management, investment banking and brokerage. Following the board of directors’ approval of the advice of the independent investment advisor, including the asset valuation report, and its recommendation for the Extraordinary General Assembly to approve the merge with KAMCO according to the swap ratio recommended by the investment advisor, the draft merger contract was submitted jointly with KAMCO to the Capital Market Authority and received approval on 21st of July 2019.

 

On the operational level, fee-based businesses (asset management, investment banking and brokerage) generated revenues of KWD6.7 million (USD21.9 million), 9.4% increase compared to same period of 2018. Asset Management business contributed to KWD5.9 million (USD19.4 million) in revenues and total assets under management stood at KWD860 million (USD2.8 billion).

 

Asset Management continued to report competitive performance for its managed funds and portfolios resulting in recognitions from industry leaders. Several funds managed by the Company outperformed their respective benchmarks and peers with the “Global Premier Market Index Fund" reporting 23.8% returns since the beginning of the year becoming the best performing fund in the Kuwaiti market. Furthermore, the Real Estate Asset Management team successfully completed the sale of a property in Edinburgh owned by its clients within the UK National Commercial Real Estate Program, achieving total return of 27.3%, internal rate of return of 10% of which the income element represented 8.14% per annum.

 

Investment Banking team continued to work on several mandates and has an interesting pipeline of M&A and advisory mandates. On the other hand, brokerage generated revenues of KWD0.8 million (USD2.5 million), 29% increase compared to the same period last year. In addition to the increased liquidity in Boursa Kuwait, gaining market share has also contributed to the growth thanks to the effective execution of the institutional brokerage business strategy and the new business generated from KAMCO.

 

Faisal M. Sarkhou, Chairman of the Board of Directors, said: “We are delighted by the results reported and the efforts put by the team to continue offering quality services to clients while effectively engaging in the merger transaction with KAMCO. The synergy witnessed between teams from Global and KAMCO reflects the potential we foresee to create value to all our stakeholders after the merger.”

 

Sulaiman Mohammed Al-Rubaie, Chief Executive Officer, commented: “Driven by effective implementation of its fee business strategy, the results were achieved during challenging times; geopolitically and while undergoing significant internal tasks as part of the merger process. We look forward to successfully conclude the merger and focus our efforts on growing the business and further enhancing our offerings to clients.”

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