Total revenues increased by 77.5% to reach 9.2 million dinars (first quarter 2021: 5.2 million dinars) affected by the increase in fees and commission income in addition to the performance of the company’s investment portfolio.
Fee and commission income increased by 43.4% to 4.8 million dinars, which represents 52.5% of total revenues.
The assets under management during the first quarter grew by 10.1% to reach $16 billion at the end of March 2022 due to the performance of the portfolios and funds we manage for clients and the new funds that were attracted during the period.
Equity funds and managed portfolios continued to outperform their benchmarks.
The volume of real estate assets under management increased to nearly $1.5 billion, with a total area of 3.35 million square feet, with annual distributions of 7.7% to investors.
On the other hand, the focus of the private equity asset management team remains on implementing exit plans from companies in which private equity funds invest.
The team is studying a number of private equity deals in addition to many new investment initiatives and products, noting that the team continues to market the units of The JEDI Fund and offer it to professional clients in Kuwait after obtaining the approval of the Capital Markets Authority.
The Investment Banking team continued to advise clients and work on a number of transactions, whether in the debt capital markets, equity capital markets, or mergers and acquisitions, which are expected to be completed during the year.
The team was able to complete two merger and acquisition deals for clients during the second quarter of 2022.
The First Financial Brokerage Company, the financial brokerage arm, continued to improve its competitive position and was able to attract new clients from institutions and individuals benefiting from electronic trading services.
The company achieved an increase in the value of trading in the Kuwait Stock Exchange by 75% compared to the first quarter of the year 2021, and an increase in income from commissions by 78%.
During the first quarter, total assets increased by 4.3% to reach 135.3 million dinars, and the equity of the parent company’s shareholders increased by 6.8% to 64.5 million dinars as on March 31, 2022.
The company has a strong financial position and a long-term credit rating of “BBB” and a short-term rating of “A3” with a stable outlook by Capital Intelligence last revised in June 2021.
Speaking about the financial results, Faisal Sarkhouh, CEO, said: We are pleased with the results that reflect the robustness of our business model and the competitive performance of our products and services, taking advantage of the positivity witnessed by the financial markets in the region.
We were able to achieve growth in the volume of assets under management, attract new clients in addition to an increase in total revenue, fee income and net profit, and strengthen our financial position.