KUWAIT: Global Investment House (“Global” or the “Company”), a regional asset management and investment banking firm headquartered in Kuwait, with offices in major capital markets in the MENA region, yesterday announced its financial results for the first half ended 30 June 2017 reporting a net profit of KD2.7 million ($8.8 million) compared to a net profit of KD0.9 million ($3.0 million) in H1 2016, total revenues of KD8.4 million ($27.7 million), and fee and commission income of KD5.8 million ($19.1 million) representing 69 percent of total revenues. Asset Management business generated KD5.3 million ($17.6 million) revenues during the first half.
At 30 June 2017, Asset under Management (AUM) stood at KD1.0 billion ($3.3 billion). During the first half, the real estate asset management team closed two acquisitions and placement in the United Kingdom involving equity raising of GBP28 million. Several funds managed by the Company outperformed their respective benchmarks and peers.
During H1 2017, the Investment Banking team generated KD0.4 million ($1.4 million) revenues from three mandates, ranging from advisory to M&A mandates. The team is currently working on several regional 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 take advantage of high double-digit increase in market turnover. During H1 2017, Brokerage fee revenues stood at KD0.5 million ($1.7million). The Company’s co-investments in its own funds and other principal investments generated KD1.80 million ($5.9 million) of realized gains, dividend income and fair valuation gains.
Following the annual general meeting and the extra-ordinary general meeting of the shareholders held on 22 June 2017, we have recently completed various legal and regulatory formalities associated with a KD22.9 million ($75.6 million) capital reduction to be implemented by cancelling 229 million shares (around 29.14 percent of the number of shares owned by each shareholder excluding treasury shares) and paying 100 fils or par value per share in lieu of each cancelled share to shareholders registered on 2 August 2017.
The cash distribution to shareholders through capital reduction has been facilitated by the company’s healthy capital structure involving adequate capital, sufficient liquidity and no debt.
Hareb Al-Darmaki, Chairman of the Board of Directors, said: “The Company produced excellent financial results during the first half, reporting a many fold increase to the net profit. Continued profitability of Asset Management business resulted from effective implementation of our strategies and positive sentiment in the regional equity markets.”
Abdul wahab Al-Halabi, Director & 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.”