News

15 November 2016

Global reports KWD8.9 million fee revenues, KWD1.6 million net profit for 9M 2016

Global reported fee revenues of KWD8.9 million and net profit of KWD1.6 million for the nine months ended 30 September 2016 despite extremely challenging market environment and its adverse effect on the regional equity markets, investment banking deal flows and new money raising efforts.

During 9M 2016, the Asset Management business remained resilient with KWD1.0 billion of assets under management. Our asset management teams remained focused on launching products and services best suited to our clients’ investment needs offering recurring income / yield accompanied with low volatility as an alternative to low interest rates. The teams also distributed KWD44 million to clients in form of cash dividends and proceeds from successful exits. Investment banking team was mandated to assist clients in Kuwait, Saudi Arabia, Bahrain and Oman ranging from advisory to M&A mandates, two of which were successfully closed during the period.

 

The Company’s continuous efforts to control and rationalize its cost base resulted in reducing our operating cost base by KWD 1.2 million in 9M 2016, a 13.0% reduction.

 

Global has a healthy capital structure with no external debt and a capital base of KWD88.2 million.

 

Hisham S. Al-Otaibi, Chairman said: “Focusing on fee based businesses and cost rationalization have paid back during these challenging times. What differentiates us is the quality of our income; over 90% is fee based and less than 15% is generated from dealing with related parties.”

 

Maha K. Al-Ghunaim, Vice Chairman & Group CEO, said: “Despite the challenges the markets are witnessing especially in the MENA region, we were able to report profits for seven consecutive quarters thanks to the fee based business strategy.”

 

She concluded: “With expectations that such challenges will last for some time, we remain committed to continue creating value to all our stakeholders by offering investment products and services suitable for clients’ needs in these challenging times.”

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