- “Managed Shares” by “Kamco Invest” achieved an excellent performance to be among the best in Kuwait
- The company is characterized by the quality of its revenue thanks to its business model which focuses on the diversification of revenue sources
Kamco Invest, a local non-bank financial company that manages assets for clients, held a virtual conference on Tuesday for analysts, the company’s shareholders and its mortgage holders to brief them on the company’s performance during the first 3 months. ended March 31, 2022.
The conference was attended by Faisal Sarkhouh, CEO, Hana Taha, Chief Financial Officer, and Mustafa Zantout, Head of Marketing and Investor Relations Department, who opened the conference with a summary of the company and an overview of the major events facing the world. seen and the performance of the financial markets during this period.
Sarkhouh gave a detailed breakdown of the company’s financial position and performance for the first quarter. The company has achieved many achievements through its business model focusing on the diversification of sources of revenue and quality of revenue.
Sarkhouh said Kamco Invest’s total revenue increased by 77.5% to reach 9.2 million dinars (compared to 5.2 million dinars for the first quarter of 2021), while revenue from fees and commissions increased by 43.4% % increased compared to the same period in 2021 to 4.8 The company made a net profit of 3.6 million dinars (earnings per share 10.53 fils) compared to 1.5 million dinars in the same period in 2021 (earnings 4.52 fils per share).
Sarkhou attributed the increase in total revenue compared to the same period in 2021 to the significant growth in the company’s core business, which was reflected in revenue from fees and commissions, in addition to the positive impact of market performance on the company’s investment portfolio.
Sarkhouh touched on the quality of revenue that characterizes Kamco Invest thanks to its business model that focuses on diversifying sources of revenue from fees and commission income, representing 52.5% of total revenue, in addition to the company’s performance. investment portfolio.
Growth in the company’s business
Sarkhouh highlighted the company’s core business, which includes asset management, bank investments and financial intermediation. % to $ 16 billion as of March 31, 2022 due to new investments and the excellent performance of asset management.
Equity funds managed by Kamco Invest continued their outstanding performance during the period to be among the best performing Kuwaiti funds. The KAMCO Premier Market Index Fund achieved 19.22%, the Kamco Investment Fund 16.71%, while the Al-Durra Islamic Fund achieved 14.31%.
The volume of assets under management increased to nearly $ 1.5 billion, covering 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 of companies in which private equity funds invest.
The team studies a number of private equity transactions in addition to many new investment initiatives and products, noting that the team continues to market the units of an innovative capital investment fund and offer them to professional clients in Kuwait after obtaining the capital’s approval. is. Markets Authority.
The Investment Banking team continued to advise clients and work on a number of transactions, whether in the debt capital markets, share capital markets, or mergers and acquisitions. The team was able to complete two merger and acquisition transactions for clients during the second quarter of 2022.
Al-Oula Financial Brokerage Company, the financial brokerage arm, continued to improve its competitive position and was able to attract new clients from institutions and individuals who benefit from electronic trading services.
The company achieved a 75% increase in the value of trading in the Kuwaiti Stock Exchange compared to the first quarter of the year 2021, and an increase in commission income of 78%.
Company’s financial position
Chief Financial Officer at Kamco Invest Hana Taha touched on the company’s financial position and credit rating as the company maintained a long-term credit rating on “BBB” and a short-term rating on “A3” with a stable outlook by Capital Intelligence in It was last reviewed in May 2021.
Shareholders’ share increased to 64.5 million dinars, as of March 31, 2022, by 6.8%, compared to the end of December 2021.
Total assets also increased by 4.3% to reach 135.3 million dinars, where cash and cash equivalents represent 25% and the investment portfolio represents 57.6% of total assets.
Taha also touched on the company’s liabilities, which rose 2.3% to 67 million dinars at the end of March 2022. The ratio of net debt to shareholders’ equity was 0.17 times (31 December 2021: 0.16 times).
performance of financial markets
In terms of financial market performance, Mustafa Zantout, Head of Marketing and Investor Relations, indicated that global stock markets declined during the first quarter of 2022, which was affected by the US Federal Reserve’s announcement of faster-rate interest rates than expected to increase with inflation. continues at record levels in addition to the aftermath of the conflict between Russia and Ukraine.
On the other hand, the rise in the GCC markets continued despite global pressure with the rise in oil prices.
The overall Gulf Cooperation Council’s MSCI index rose 17.7% during the first quarter of 2022, the largest increase since the second quarter of 2009, with Abu Dhabi and Qatar rising the highest with 17, respectively. 2% and 16.4%. , while the Kuwait Stock Exchange rose 15.7%.