KUWAIT: The National Investments Company announced its financial results for the first half of 2024, in which the company achieved a net profit of KD 5.77 million at 7.24 fils per share, compared to the corresponding period of 2023, in which the net profit reached KD 4.23 million, 5.3 fils per share, an increase of 37 percent. These results position NIC as a distinctive investment banking brand and one of the largest investment companies in Kuwait and the region.
In a press release, Khaled Waleed Al-Falah – NIC’s Chairman of the Board, said that the company maintained the growth momentum in achieving financial profits for the first half of this year, 2024, maintaining the achievements of the first quarter, which came in line with the wise strategy and flexibility to adapt to the ongoing changes, which in turn proved its strength in addressing local and global economic challenges and achieving competitive advantage and success in the diversified businesses.
This resulted in significant gains in key financial indicators, with total assets growing by 9.21 percent to KD 266 million at the end of the first half of this year compared to KD 243.56 million value of total assets in the corresponding period of 2023, in addition to the increase in the total shareholders’ equity of the parent company by 4.45 percent to reach KD 183.71 million, compared to KD 175.88 million during the first half of 2023. Other comprehensive revenues grew during the first half of this year to reach KD 16.63 million compared to other comprehensive losses of KD 4.84 million in the corresponding period last year.
Al-Falah emphasized that NIC continues to benefit from its strategic, diversified approach to products and services. This strategy has helped the company maintain its position and enhance its leading role locally and regionally, ensuring sustained profitability in the first half of this year; supported by a solid base, high asset quality, selected investments, and prudent risk management, NIC achieved favorable rates in profitability indicators. This confirms the disciplined implementation of the company’s strategy, which impacted achieving the desired goals. The company’s strong foundation and careful investment choices have been pivotal in sustaining its financial health and driving growth.
Notable achievements
Al-Falah also stressed the level of professionalism with which NIC operates, which led to receiving distinguished awards by Euromoney for the second year in a row across the Wealth Sector and the Investment Banking Sector in the company, where the company won the "Kuwait’s Best for Family Office Services” and "Kuwait’s Best for Next-Gen” for 2024 and "Best Local Investment Bank in Kuwait 2024”. Among the notable achievements is the recognition by Forbes Middle East, recommending National Investments Company (NIC) as one of Kuwait’s most assertive asset managers.
Emphasizing NIC’s prudent strategy and wise vision of highlighting its positive role in society by adopting the concept of sustainability, the company’s first sustainability report for 2023 will be launched. This report aims to enhance the chances of consolidating a sustainable approach by adopting proactive responsibility in several areas. Al-Falah also referred to the company’s remarkable efforts in applying its vision in providing constructive ideas and outputs based on innovation and creativity in the future labor market to reach the desired results in increasing production and profit rates. NIC also continues to support and employ national cadres and enable women to benefit by 60 percent, proving the company’s commitment to providing all means to sustainably and positively develop their role in the labor market and giving summer training programs for students to develop their future skills.
Selective studies
Fahad Abdulrahman Al-Mukhaizim, Board Member and Chief Executive Officer at The National Investments Company, said: "We have ended the first half of 2024 with sustainable growth, as we focused on meeting the changing needs of customers and provide the best offers and services that rely on innovations and advanced digital technologies. Our plans and tactics have proven to be successful in all its sectors, positively impacted the number of current and potential investors, and helped increase the investment portfolios managed by the company for individuals and institutions locally and globally.
"The first half of 2024 was characterized by the excellent performance of some investment equity funds despite the factors driving the local market volatility, especially in the second quarter, which came due to regional geopolitical tensions and fears of a global recession after the slowdown in global inflation data, but some of our investment funds have already succeeded in achieving positive performance during the current year”, added Al-Mukhaizim.
During this period, the Financial Instruments team signed Market Maker service agreements with two listed companies, bringing the number of companies that NIC services to 12. This includes companies we have maintained among the Premier Market, which makes our company one of the largest investment companies in providing Market Maker service in Boursa Kuwait.
Al-Mukhaizim also praised the outstanding performance of the Financial Advisory Services Department, recording several accomplishments and deals worth more than $300 million in the first half of the year, including the completion of the private placement and listing of Beyout Investment Group Holding Company KSC on Boursa Kuwait’s Premier Market.
This is the first listing of its kind in more than two years. NIC has played an exceptional role as lead coordinator and joint lead book runner, financial advisor, and exclusive listing advisor for the listing process. The secondary offering of 30 percent of the company’s issued shares has commenced, and the number of requests exceeded 17 times the value of the offering during the initial allocation period, with an initial coverage of KD 771 million.
NIC also acted as the exclusive advisor for the first preferred share issue in the Kuwaiti market for the benefit of Action Energy Company. In addition, the company was appointed as an exclusive acquisition advisor for the acquisition of a strategic investment by a listed company and as a sale advisor to another listed and wholly owned hospitality company in Kuwait. NIC is also in the process of executing the private subscription process to increase the capital of Alrai Media Group; the evaluation procedures for a healthcare company for one of the leading banks in the Kuwaiti country have also been completed. Management is moving forward with a robust portfolio of investment deals, including capital offerings and mergers and acquisitions.
The Alternative Investments Department has also entered a mezzanine investment in Germany and is currently in the final stages of another investment in France. Both investments focus on the logistics and warehousing sector. The department is also working with its affiliate companies to restructure its investments in line with the company’s strategy.
The Wealth Management Sector recorded significant achievements during the first half of 2024, expanding its customer base and attracting investors to its various investment products. The sector achieved a 16 percent growth in new investment portfolios for the first half of this year. Additionally, many practices were implemented to develop and improve investor service and keep pace with the latest technologies.
Creative digital services
Al-Mukhaizim highlighted the company’s digital transformation strategy, emphasizing that a key aspect of their strategic investments in technology involves adopting modern financial technologies. This includes the development of advanced and innovative financial products designed to meet the evolving needs of customers in digital financial markets. Additionally, the company is committed to continuing national investments aimed at expanding and enhancing all digital services provided to customers. These efforts are focused on aligning digital transformation initiatives with the company’s broader strategic goals, ultimately driving business growth and overall success.