The National Investments Company held the Analysts Conference for the first quarter of 2022 on Wednesday, May 18, 2022, and the conference was attended by Chief Executive Officer – Finance Jeresh Nair, Senior Vice President of Investment Banking Sector Bashar Khan, and Executive Vice President of Wealth Management Al-Muthanna Al Maktoum, who participated in the conference. The conference began with a brief presentation about the company and an overview of the positive financial results for the first quarter 2022, which demonstrated the outstanding performance and strong operational achievements of the company, which enhanced its financial position and had a positive impact on maintaining a strong financial position, high quality assets and the ability to achieve sustainable growth. Thanks to the success of the company’s strategy and the experience of the work team.
Gresh Nair gave a detailed explanation of the company’s financial position, and explained the company’s success in achieving exceptional high performance, with regard to its profits ending on March 31, 2022. The company announced a net profit of 15.4 million dinars and a profit per share of 19.3 fils through a statement. Income and other comprehensive income of 19.1 million dinars through shareholders’ equity, and the total comprehensive income for the first quarter of this year amounted to 34.5 million dinars.
And compared to the same period in 2021, the company achieved a profit of 3.8 million dinars through the income statement, with earnings per share of 4.7 fils and other comprehensive income of 3.1 million dinars, and a total comprehensive income of 6.9 million dinars.
Greish added that the return on average equity and on average assets amounted to 6.6% and 5.5% for each of them, respectively, during the first quarter of 2022, and the leverage ratio was only 1:0.21 on March 31, 2022, and the company’s quick liquidity ratio was 50.5%. The total assets and shareholders’ equity of the parent company increased to 328.6 million dinars and 251.3 million dinars, respectively, in the first quarter of this year, compared to 228.6 million dinars and 181.9 million dinars at the end of the first quarter of 2021.
Income and expense performance
Speaking of income and expenses, Greish explained the company’s performance excellence, as the total income amounted to 19.9 million dinars for the first quarter of 2022, compared to income of 7.1 million dinars during the same period in 2021, an increase of 180 percent.
Greish explained that the main factors that contributed to the increase in the company’s total income for the first quarter of 2022 are the result of profits from financial assets at fair value through profit or loss of 16 million dinars, and that one of the main factors that contributed to other comprehensive income during the first quarter From 2022 is the increase in the value of Kuwaiti investments priced at fair value through other comprehensive income of 17 million dinars.
Total expenses in the first quarter of 2022, including depreciation and provisions, amounted to 2.2 million dinars, which is equivalent to 2.2 million dinars for the comparative quarter of 2021, and administrative expenses amounted to 2.1 million dinars for the current quarter, which is slightly higher compared to 1.8 million dinars in The first quarter of 2021.
This increase was offset by a decrease in value losses and other provisions from 0.2 million dinars in 2021 to almost nothing during the first quarter of 2022.
Jereish also indicated that the income from management, brokerage and consultancy fees achieved a growth of 69% from 1.48 million dinars in the first quarter of 2021 to 2.49 million dinars during the first quarter of this year, and the growth was through brokerage revenues from one of our subsidiaries, which is Al Waseet Financial Business Company, which It grew by 96% and the management fee of funds and portfolios which grew by 39%.
The total assets owned by investments witnessed a growth of 13% during the first quarter of 2022, which amounted to 329 million dinars, compared to 291 million dinars during the same period in 2021, as a result of the increase in the value of investments at fair value through profit or loss and financial assets in value fair through other comprehensive income.
Assets under management in a trust capacity amounted to 1.31 billion dinars, as on March 31, 2022, compared to 1.09 billion dinars during the same period in 2021, with an increase of 20%, as the company’s efforts were continuing and efficiently in providing solutions and portfolio management services.
Greish stated that the MENA Quoted Investments sector has benefited from its success in seizing opportunities for the company’s funds and client portfolios, as the sector has developed detailed plans to take advantage of investment opportunities by transforming clients’ portfolios into attractive sectors through funds, portfolios and private investment portfolios to achieve positive returns, and we have enabled outstanding performance. In our investment funds, we aim to provide unique returns and distributions to unit holders in the Wataniya Fund 5.5%, Al Darij Fund 6.2%, Al Zajil Fund 4.5% and Mada Fund 3.6%. On the other hand, the service of the market maker has been expanded through 4 companies in different sectors of the market.
Jereish added that the National Investments Company continues to provide its advisory services, which included the completion of some major deals. The advisory team from the investment banking sector has completed two main mandates before the initial public offering of Ali Al-Ghanim Sons Company, and they are expected to be completed in 2022, and the sector is currently implementing several Operations from buying and selling with multiple specializations in the sectors of infrastructure, credit, information technology, health, food and beauty.
The Alternative Investments Department has also successfully completed investing in several investment funds managed by leading international companies in the field of private investment, financial technology and food, in addition to a regional e-commerce platform, a delivery company and an international clothing company, and is in the process of exploring new investments in international real estate, direct investment opportunities, and valuation of investments. current potential exits.
He explained that the real estate investment sector of the National Investment Company is working to develop and improve collection rates and portfolio revenues, in addition to working on developing automated systems to raise the percentage of customer satisfaction in the sector, achieving rental collection rates of 95%, and maintaining occupancy rates of 84% in the first quarter of 2022. .
For his part, Bashar Khan, Senior Vice President of Investment Banking Sector, explained that the company’s strategy is to build managed assets, through the development of international real estate products and an initial focus on investment capital, in addition to obtaining excellent opportunities for joint investment, including the Kuwait Stock Exchange, Kuwait Pour, FedEx Italy and Pantera. Capital, and the implementation of high-quality operations, with a focus on medium-sized clients, where we completed several key transactions, building specialized teams in capital markets and completing mergers and acquisitions and venture capital, which were identified as key growth areas for the company, and we continue to develop digital channels for the company’s clients in addition to to strengthen governance.
The studies indicated the company’s ability to identify and implement opportunities in the market, as it acquired a controlling stake in Boursa Kuwait in February 2019, and the share of national direct investments amounted to 14.4%. Since the acquisition, the Kuwait Stock Exchange has also undergone an IPO and a listing process, and the market price today is many times the cost of the acquisition, and a total return of 12.29 times (based on market values), in addition to the study of the Kuwait Pouring Company from the investment is the acquisition of an asset with a discounted price It has an intrinsic value that is much greater than the prevailing market value.