KUWAIT: The National Investments Company’s Board of Directors has approved the company’s consolidated financial statements for the fiscal year ended 31 December 2022, a year, which has witnessed a fruitful and successful performance on both financial and operational levels, despite the local and global economic challenges and difficulties. The company achieved stable financial performance reflected in the last fiscal year’s results thanks to its successful strategic vision and diversification approach aimed at providing sustainable returns and maximizing shareholder value.
Solid financial position
Bader Nasser Al-Kharafi, Chairman of the National Investment Company, said: “The financial results achieved by the company during the fiscal year ended December 31, 2022, were supported by a moral optimism, as the company began the year 2022 to intensify its efforts to strengthen its position within the financial sector as well as its ability to preserve the interests of its customers, which led to solidifying its position in the investment sector further. In addition to utilizing opportunities to achieve distinctive value in the long term for its shareholders by diversifying sources of income and enhancing profits and operating income to achieve the highest returns and the lowest possible risks”.
Al-Kharafi also explained that the past year had witnessed many transformations, such as the high inflation rates, the Russian-Ukrainian war, the supply chain disruptions, the negative consequences of the pandemic, and several other crises. Despite all, NIC has strengthened its position in the Kuwaiti market and maintained its ability to achieve growth rates. NIC has also continued with its investment strategy, which effectively contributed to the growth of the company’s operating business and financial results while providing advanced services to customers-digital marketing promotional campaigns were going on to interact with the growing customer base.
“NIC has continued to follow a sustainability approach in achieving annual profits and remarkable growth in all key financial indicators,” said Al-Kharafi and noted that favorable rates were achieved in terms of profitability indicators and return on both average assets and average shareholders’ equity, improving asset quality indicators and succeeding in maintaining reasonable cost and revenue ratios at the same time. The company has recorded KD 8.7 million as net profit, 11 fils per share, during the financial year ended December 31, 2022, compared to KD 24.4 million at 31 fils per share during the comparative period ended December 31, 2021.
Al-Kharafi went through NIC’s financial indicators during the past year; the company’s total assets amounted to KD 271 million by the end of 2022, and total Assets Under Management (AUM) in a fiduciary capacity have increased to approximately KD 1.121 billion, compared to the same period during the year 2021, where it reached about KD 1.088 billion, while the total shareholders’ equity of the parent company reached KD 199 million. Other comprehensive revenues amounted to KD 9.4 million.
Regarding dividends, the Board of Directors of National Investments Company has recommended the distribution of cash dividends at the rate of 28 percent of the nominal value of the share, at 28 fils per share, for the fiscal year ended 2022, with a return per share 12.5 percent according to the current market price, another proof of the company’s solid financial position. This recommendation is subject to the approval of the company’s General Assembly, which include shareholders registered in the company’s records on the date of the general assembly meeting.
A year full of achievements
As recognition for its accomplishments in 2022, NIC has received several awards from renowned international entities, and this includes The Most Innovative Real Estate Development company in Kuwait from International Finance. Also, Wataniya Investment Fund has received the Best Investment Product Award from Global Banking & Finance, as well as the Best Investment Banking Company in Kuwait 2022 by World Finance.
Al-Kharafi highlighted the prudence of the National Investments Company and its serious actions in reducing risks, maintaining intense levels of capitalization and liquidity, and taking proactive steps in creating new paths to enhance NIC’s leading position by making a sustainable impact and expanding the services offered within the various sectors and markets, through innovation and operational efficiency and effectiveness in facing multiple economic crises and challenges. He also confirmed that excellence is one of NIC’s priorities in serving customers and shareholders while achieving lasting positive change, appreciating their trust and continuous support.
To conclude, Al-Kharafi confirmed that the primary operational elements have contributed to the company’s performance and the quality of its business and are a solid foundation for the growth plans of the current year. He also mentioned the total support the Board of Directors provided for the company’s sectors and praised the efforts of the executive management to achieve good results.
Successful deals and positive results
Fahad Abdul Rahman Al-Mukhaizim, Board Member and CEO of the National Investments Company, confirmed that the positive results achieved by the company during the financial year that ended December 31, 2022, demonstrate its commitment to enhancing shareholder value. This is reflected in the approach aimed at improving the efficiency and solidity of NIC’s financial position and implementing a successful strategy towards achieving significant profitability and, therefore, the financial indicators and attracting investors to capitalize on various funds and investment portfolios.
NIC has achieved a 37 percent growth in the number of new portfolio clients from individuals and local and international companies during the year, and other diversified investment opportunities, reaching nearly $50 million in 2022.
Al-Mukhaizim shed light on the remarkable achievement of the National Investments Company in increasing its market share through acquisitions and IPOs. This includes playing the lead coordinator role, listing advisor, and a joint placement manager and subscription agent in several listings, such as the listing of Ali Alghanim and Sons Automotive Company, covering more than 10.8 times the offering value, to be the fastest listing process in Boursa Kuwait’s Premier market. Also, the subscription to increase the capital of National Consumer Holding Company and Alrai Media Group, and the merger of Boubyan Petrochemical Company, Educational Holding Group, Safat Investment Company, and Capcorp Investment Company.
Al-Mukhaizim also went through the performance of NIC’s Alternative Investments Department, which managed to generate several investments, including a new real estate fund in partnership with “Soor Capital,” which focuses on the acquisition of real estate assets within the retail sector in the United States of America, of high quality under category (A).
The portfolio size is estimated at $155 million, with an annual return of 8 percent. In addition to ‘Money Flows,’ under the venture capital sector, a fully digitally operated collaborative money management and lending platform that offers users competitive financial solutions in Egypt, where the company is reshaping an informal financing product by providing accessible and appropriate digital solutions that go with the new generation culture, investing in warehouses in Germany and leasing them to Amazon for 15 years and an expected return of 10.5 percent per annum.
In addition to the seventh Silver Lake Fund and the HPS Investment Partners Trust Fund, through which the management continued to diversify investment portfolios and access a range of outstanding credit opportunities in global markets.
Al-Mukhaizim added that digital transformation remains a crucial element of NIC’s strategy. The company is always keen to implement new solutions to enhance the customer experience throughout the investment journey. To this end, the company has updated the digital IPO management service and focused on developing and updating the service with the Civil Information Authority, banks, and authorized clearing agencies. The electronic trading program NICTRADE has been updated to include new options for clients to follow the portfolio’s components, evaluate its assets, charts of financial markets, and several other features for smooth and flexible client usage.
The company has also introduced the electronic real estate system to enable tenants to follow up on all matters related to their units, such as maintenance requests and electronic payment, allowing real estate owners to follow up on their assets and financial flows. The size of real estate portfolios has been increased by some additional properties managed by the sector, accompanied by an increase in revenues by 4.5 percent.
Investment funds performance
On the other hand, Al-Mukhaizim announced the success of NIC’s funds in achieving outstanding performance during 2022, with Wataniya Fund earning 3.05 percent returns; the fund managed to maintain a good ranking among the large funds’ category with approximately KD 153 million, assets under management. Al-Darij Investment Fund, established in 2003, has achieved a return of 1.42 percent, and Zajil Fund for Services and Telecommunications recorded a decline of 1.27 percent. Mawarid Fund for Industry and Oil Services, which invests in shares of local and Arab companies that complies with Islamic Sharia, closed the year with a decline of 2.42 percent.
“Our excessive experience and knowledge helped us face many of the financial sectors’ challenges and achieve further successes in the future. Our significant strength is our ability to face these challenges due to the prudent financial policies for risk management, the flexibility of our innovative investment products, and the team’s professionalism,” added Al-Mukhaizim.
Finally, Al-Mukhaizim has stressed that NIC will continue achieving further successes in 2023, focusing on sustainable growth, expanding digital capabilities, effectively contributing to enhancing economic development, and providing the best services to satisfy customers and shareholders.