Kuwait National Investments Company achieved net profit growth of 22.4 million Kuwaiti dinars, with a profit equivalent to 28.1 fils per share. The company also achieved a profit of 20.9 million Kuwaiti dinars as other comprehensive income through shareholders’ equity. The total comprehensive income amounted to 43.3 million Kuwaiti dinars during the first nine months of 2021.
The company’s total assets under management increased by 12.3% to reach 1.13 billion Kuwaiti dinars.
During the Analysts Conference for the nine months of 2021, Chief Financial Officer Girish Nair said that the National Investments Company succeeded in achieving good performance during the first nine months of this year compared to the same period last year when the company registered a loss of KD 7.9 million through the income statement with 9.9 fils loss per share. The total comprehensive loss for the first nine months of 2020 was KD 6.8 million.
Girish added that NIC’s Return on Average Equity (ROE) and Return on Average Assets (ROA) for the first nine months of 2021 was 11.7 percent and 10 percent, respectively. The company’s total assets increased 30 percent to KD 278.2 million compared to KD 213.3 million for the same period of 2020.
Nair explained that NIC’s total proprietary assets have registered a growth of 25.7 percent during the first nine months of 2021 to KD 278 million compared to KD 221 million at the end of 2020, mainly on account of appreciation in value of FVTPL and financial assets at fair value through other comprehensive income (FVOCI), and partly to the increase in leveraged assets.
He added that the shareholders’ equity attributable to the parent company increased to KD 207.4 million for the first nine months of 2021 compared to KD 167.1 million as of September 30, 2020.
Nair said that the total income amounted to KD 32.2 million for the first nine months of 2021, compared to an income of KD 1.1 million during the same period of 2020.
He explained that the major contributors to the recovery of NIC’s total income for the first nine months of 2021 was the gain from financial assets at fair value through profit or loss (FVTPL) of KD 21.3 million in addition to the increase in value of Kuwaiti quoted investments at fair value through other comprehensive income (FVOCI) of KD 17.9 million.
He added that the administrative expenses of KD 5.4 million for the first nine months of 2021 were slightly higher than the same period of 2020 due to the increase in the subsidiaries’ operating expenses due to the increase in operations.
Meanwhile, he said that the Alternatives Department has successfully completed an investment in a student housing project in Orlando, Florida, USA. Currently, NIC is in the final stages of due diligence to invest in a leading regional VC platform specializing in delivery.
Executive Vice President from Investment Banking at National Investments Company said that the four essential strategic elements NIC are employing to grow its business and strengthen its competitive position are: building AUM according to three initiatives that revolve around developing products with a focus on venture capital and international real estate products. In this regard, NIC is building a strong placement team by hiring competent private bankers to support growth, build a solid reputation and bring co-investment opportunities to the company’s investors such as Boursa Kuwait, Kuwait Foundry, VINCO and FedEx.