Hamad Al-Ameeri
* NIC achieved KD 22.352 million profits at 28.07 fils per share for the first nine months of 2021
* NIC maintained profits and distributable reserves of KD 44.401 million, constituting 55.65% of the capital
* NIC reported an excellent growth in total assets of 30.45%, approximately KD 278.208 million, compared to KD 213.266 million for the same period last year
* Total assets under management amounted to KD 1.129 billion at the end of Q3 2021, compared to KD 1.035 billion for the same period last year
* Other comprehensive income achieved an outstanding hike in Q3 2021, reaching KD 20.935 million, compared to KD 1.130 million for the same period last year
* Despite the unprecedented challenges the region witnessed, total shareholders' equity amounted to KD 207.441 million while NIC distributed approximately KD 9 million of cash dividends to its shareholders in 2020
* An exceptional hike of 46.48% in the management, brokerage and advisory fee income that reached KD 5.881 million compared to KD 4.015 million for the same period of 2020
* The Q3 financial results reflect the ability of NIC to maintain the interests of clients, especially during the crisis and enhance its position as one of the largest investment companies in terms of revenue. The results also reflect its ability to overcome all exceptional situations as well as to adapt to economic crises locally or regionally
Fahad Al-Mukhaizim
* The distinguished performance of NIC reflects the success of its staff and reinforces its presence and its leading position as one of the largest and most prestigious investment companies in Kuwait and the region
* NIC started 2021 with number of M&A mandates, sell mandates, restructuring and diversified advisory mandates
* Outstanding performance and successful record ratios in the first nine months of 2021 with the return of Al-Wataniya Investment Fund jumping to 291.70% since inception
* NIC is a market maker on the shares of Boursa Kuwait and Gulf Cable
* NIC launched NICTRADE digital platform for trading in more than 80 global markets which attracted demand of many customers to take advantage of its exclusive features
* NIC launched the "Client Portal" platform that enables customers to access all services and products in the easiest way
* The investment funds of NIC achieved record performance in the first nine months of 2021
* Winning 5 global awards during 2021 reflects the collective efforts while NIC maintains record track of CSR
KUWAIT: The National Investments Company (NIC) has approved the consolidated financial statements for the third quarter ended September 30, 2021, which included a detailed analytical overview of its performance and financial position. Chairman of the National Investments Co Hamad Al-Ameeri said that NIC reported profits of KD 22.352 million at 28.07 fils per share for the first nine months of 2021, compared to a loss of KD 7.897 million at 9.9 fils loss per share in the same period of 2022. In Q3 2021, NIC reported an excellent growth in the company's total assets of 30.45 percent, approximately KD 278.208 million, compared to KD 213.266 million for the same period last year.
Assets under management
Al-Ameeri said that NIC total assets under management (AUM) in fiduciary capacity amounted to KD 1.129 billion at the end of Q3 2021, compared to KD 1.035 billion for the same period last year. Despite the challenges and fluctuations that the region is still experiencing, NIC maintained profits and distributable reserves of KD 44.401 million, constituting 55.65 percent of the capital. Other comprehensive income also achieved an exceptional hike in Q3 2021, reaching KD 20.935 million, compared to KD 1.130 million for the same period last year. Al-Ameeri explained that the good financial results NIC achieved reflected its successful plans and the potential it enjoys in coping with all developments.
Shareholders' equity
Al-Ameeri highlighted the total shareholders' equity of the parent company, which amounted to KD 207.441 million at the end of Q3 2021, compared to KD 167.108 million to the same period last year, taking into consideration that the company distributed cash dividends to shareholders for the year end 31/12/2020 approximating KD 9 million. Al-Ameeri also shed light on the outstanding hike of 46.48 percent in the management, brokerage and advisory fee income that reached KD 5.881 million compared to KD 4.015 million to the same period of 2020.
Approved plans
Al-Ameeri pointed that the reassuring financial results were a reflection of a long-term strategy adopted by the company's BoD and implemented by the Executive Management with high professionalism. He stressed that this strategy is mainly based on two important pillars: diversifying sources of income and reducing risks. Al-Ameeri praised the efforts by the company's Executive Management and the aspirations of the Board of Directors and shareholders and customers it keeps tirelessly achieving.
Al-Ameeri went on to say that despite the economic conditions, NIC continues its relentless endeavor to improve its future performance, maintain its position and enhance its leading role locally and regionally. This confirms its pursuit to provide the best services that maintain the interests of the company's clients and shareholders alike.
Collective efforts
Meanwhile, Fahad Abdulrahman Al-Mukhaizim, the Chief Executive Officer of NIC, confirmed that the company always depends on multiple scenarios and plans, to remain fully prepared to deal with potential developments the region's markets could witness and ensure stable and balanced performance. He added that the good performance of NIC is a result of collective collaboration among the company's employees, departments and sectors, expressing his appreciation to the BoD and the company staff.
Al-Mukhaizim stressed that the efficient endeavor by the company staff to achieve the predetermined plans always pays off in terms of seizing opportunities and achieving the desired returns as well as other goals. He pointed out that NIC achieved positive results in Q3 2021 and captured many new investments in the infrastructure, credit, information technology and private equity sectors, noting that NIC started the year 2021 with a strong pipeline of mandates, including a number of M&A buy-side mandates, sell-side mandates, restructuring as well as general advisory mandates.
Leadership
Al-Mukhaizim said that NIC has built specialist teams in key potential areas such as equity capital markets, mergers and acquisitions, and venture capital as part of its long-term strategy that provides NIC with an excellent platform to execute flagship transactions. In 2021, NIC completed the financing mandate for a leading fitness and lifestyle business and has listed Al-Safat Investment Company, a full-fledged investment-licensed company with a capital of $85.2 million. In addition, the team started a strong pipeline of other mandates, including a buy-side transaction for a leading logistics company, one of Kuwait's largest multi-sector businesses. And, it is currently working on two flagship pre-IPO mandates, expected completion in 2022 and 2023, as well as contracts to provide general advisory services.
Good distributions
Al-Mukhaizim said that NIC succeeded during 2021 in upholding customers' needs, focusing on investing in the sectors with different performance in the pandemic and expanding the offering of new products to increase their diversity and attract new customers. There were distributions to customers holding shares in the Company's real estate investments in the UK and the USA, as well as increasing the annual returns from 9 percent to 10 percent of its real estate investment in the UK Manchester area.
Al-Mukhaizim added that the investment banking services advisory team focused on supporting companies, founders and investment capitalists who are likely to move into several industries, including financial services, data security, software, transport, health care and food. This strategy also aims to invest in projects and companies with clear abilities to make substantial impact on their own industries and the markets in the region.
An example of these deals, and in line with expanding its investment strategy in the technology sector, the Company succeeded recently in investing in the "Pipe Technology" company which specializes in financial technology. In addition to being a fast-growing company, which is based in the US, it is the first trading platform for recurring revenue in the world with an estimated value of $2 billion. The value of this company shot up in under a year since its launch in 2020, making it one of the fastest financial technology companies in history to reach this rating. In addition to investing in "Pipe" the NIC invested recently in several global and regional investment capital funds.
It also participated in direct investments, including "NotCo", one of the largest food technology companies, and "DarkTrace" which specializes in electronic defense. Al-Mukhaizim went on to say that the NIC also co-invested with a group of its customers in two projects to develop logistics warehouses in Europe, namely in Italy and Germany. The first project, a warehouse in Italy, was leased to (FedEx). As for the other project in Germany, a leasing contract was signed with a major company in the logistics sector. The two projects are expected to bring in annual returns of 8 percent and 8.5 percent respectively.
Distinctive performance of the company's funds
In addition, the NIC has announced that its investment funds achieved record performance rates in the first nine months of 2021, thanks to its sound policies, the prudent performance of the funds management team and the company's expertise in managing investment shares funds.
Commenting on this performance, Al-Mukhaizim said that Al-Wataniya Investment Fund performed well, with returns of 25.35 percent in the first nine months of the current year, an increase of 291.70 percent since its inception. As for Gulf funds, he said that Mawarid Fund for industrial and petroleum services recorded the highest performance, outperforming equity funds inside Kuwait with 37.23 percent revenues in the first nine months of the year.
Al-Mukhaizim added that the NIC has an outstanding record of special relationships with customers and long-term partnerships which depend on deep trust, prudent and professional wealth management and offering integrated products to customers along with solutions, schemes and adoption of the latest investment approaches in wealth management. In 2021, approximately $75 million of new capitals was attracted from investment funds and portfolios.
Launching 'The Market Maker'
Al-Mukhaizim pointed out that as part of the NIC efforts to introduce services and products that keep up with the customers' aspirations and ambitions, the Company launched the "Market Maker" in Boursa Kuwait starting August 22, 2021. The Boursa Kuwait Co, share was chosen to be the first application of this service, with the Gulf Cable Co. following suite. More companies are expected to be added in the near future.
Al-Mukhaizim maintained that the NIC was keen on introducing the Market Maker services in Boursa out of the desire to provide liquidity to the company using the service by providing it with buying orders and selling offers. The service aims to achieve a continuous balance between supply and demand and to reduce the gap between the buying and selling prices, as well as providing prices continuously and realistically, offering the necessary quantities for both buying and selling and finding out the equilibrium price through entering orders and offers.
Sophisticated digital services
Al-Mukhaizim said that NIC always seeks to transform its business into fully-fledged digital business using artificial intelligence. The company has launched NICTRADE digital platform for trading in Boursa Kuwait, GCC and USA markets in addition to 80 global markets. This adds value to customer experience when utilizing advanced technology through the website or the mobile trading apps.
He added that the NICTRADE service enables customers to trade and invest in professional financial instruments, such as exchange-traded funds (ETFs), options contracts in US market (Options), real estate funds (REITs) and many financial instruments listed in international markets, in addition to the possibility of activating price change alerts or up-to-date news. This service also enables access to trading accounts and information about the market movement.
"Keeping pace with the digital transformation of business at the level of local and regional investment companies, NIC has successfully launched the electronic portal service for customers through the company's website. The innovative "Client Portal" platform will facilitate the digital investment process and enable customers to access all services and products in the easiest way, not to mention saving time and raising the level of automation, while achieving the company's strategic goals in offering high quality services," Al-Mukhaizim said.
He explained that National Investments Co highlighted its business model that aims at acquiring customer satisfaction by providing products and services specifically designed to meet the requirements and needs of customers and achieve their short-term or long-term goals based on clear transparency standards and mutual agreement between customers and company officials about the levels of risk that are determined in advance. This enables NIC to gain solid reputation and places it among the major companies in Kuwait and the region.
Prestigious awards
Thanks to the company's tireless efforts and distinguished performance during 2021, NIC received many prestigious awards from major specialized international platforms. These awards in various fields of work and at different periods of time, are certificates of appreciation and praise from the largest and most international providers following up on the performance of financial and investment institutions in the region and the world. Al-Mukhaizim said that NIC's winning of the current and previous awards is a strong motivation towards enhancing its performance and achieving permanent success thanks to the tireless efforts and valuable contributions of all the company's departments, which believe in the need to enhance work practices and raise them to the highest international levels.
He explained that: "The awards reflect the superiority of NIC in innovation, achievement, strategy implementation, and progressive and inspiring changes that occur within the financial sector. They also confirm that the company is on the right track, and that it operates with institutional maturity and transparency that guarantee customer satisfaction, especially in light of the professionalism it applies in all its activities or through dealing with various regulatory and supervisory authorities.
On the other hand, as part of its efforts to maintain its leading position among private sector companies at the humanitarian level and to consolidate its role as one of the largest investment companies in Kuwait, NIC maintains a proven track record of CSR. Also, NIC is committed to its role in society as part of a strategic plan prepared and implemented by the company, by participating in various fields of humanitarian, social and charitable work, especially through community contributions, raising awareness and community participation. During recent years, NIC has made a qualitative leap in its social plans, as it considers this a duty dictated by its national sense to contribute to economic development which has a direct and effective impact on the development and growth of society.
Al-Mukhaizim stressed that the mission and vision of NIC require it to maintain playing its vital and effective role in various sectors in Kuwait, GCC and international markets, continuing its efforts in developing the resources of its customers by providing the best investment opportunities that achieve the highest returns, as well as maintaining work system and institutional strategy to provide positive performance, create new paths for growth, seize distinguished opportunities, and aspire towards leadership.
Recognition and appreciation
In conclusion, Al-Ameeri expressed his thanks and gratitude to the Company's BoD, Executive Management and all staff for their efforts in achieving this performance and positive growth which is in line with the company's strategic plan. He also expressed his appreciation to the clients and shareholders of NIC for their precious confidence, wishing for continued cooperation to maintain the interests of clients where the company tirelessly maintains efforts to preserve the public interest.