ShareKUWAIT: The National Investments Company (NIC) has announced positive financial results, recording a net profit of KD 2.5 million for the first nine months ending on 30/9/2023.
Commenting on the results, Bader Nasser Al-Kharafi, Chairman of the board, said: “National Investments Company sustained its profits despite the adverse financial results achieved in Q3 2023. Up until the end of Q3 2023, the company noted positive performance which led to significant successes and maintained its leadership position as one of the substantial investment companies in Kuwait and the region in terms of the volume of revenues and profitability supported by positive results, and its ability to maintain the interests and needs of its customers with high efficiency.”
Solid financial position
Al-Kharafi also highlighted that National Investments Company has maintained profitability up to the end of the third quarter of this year despite the global economic challenges, concerns, and sufferings faced by financial markets due to the negative effect of the economic conditions; however, the sensible strategy followed by National Investments Company, which focuses on taking advantage of the operational environmental opportunities available in Kuwait, and the diversification of investments maintained the company’s leading position, achieving favorable rates in profitability indicators and sustainable future growth.
“This confirms the advantages of the company’s flexible business model, including the investment deals, acquisitions, efficiency of operational performance distinguished by continuous momentum, as well as the contribution of sectors in operational processes and disciplined implementation of the company’s strategy, which helped to achieve balance through its ability to manage financials and risks, in addition to the solid and stable base that characterizes National Investments Company, which impacted on achieving the desired strategic goals,” clarified Al-Kharafi.
He also added that the company’s strategy and the exceptional performance achieved are based on several foundations, namely expanding sources of income and reducing risks, in addition to diversity and innovation based on a transparent methodology and supporting the solid foundations enjoyed by National Investments Company, in addition to the company’s excellence in managing capital levels with prudence to prepare appropriately for any scenarios that may occur in the global economy. Thanks to the efforts made by our executives, which translate the aspirations of the Board of Directors, which focus on achieving shareholders and customers objectives.
Leadership in digital transformation
On the other hand, Al-Kharafi pointed out that the National Investments Company’s strategy is to obtain the highest levels of customer satisfaction through constant communication with them via studies and surveys. “Our strategy is based on developing the digital business to improve our integrated services package and lead a significant digital transformation proposal while expanding the application and development of intelligent solutions to ensure a flexible and scalable infrastructure is in place. The goal is to make a qualitative leap in innovative and distinctive investment services and products that meet all the needs and aspirations of the company’s customers, in addition to enhancing cybersecurity to ensure confidentiality, as the company pays wide attention to providing security to protect customer and employee information from any breaches that may occur to their data network,” added Al-Kharafi.
National human resources development
Al-Kharafi also explained that the National Investments Company continues to support its human resources through its endeavors to develop national competencies and provide ways to help optimal investment in its people by creating a work environment capable of growing businesses, enhancing knowledge, and attracting young talents and competencies. Therefore, the Human Resources and Administration Sector has decided, during the third quarter of this year, to support the (Shift) program, which is designed to develop and qualify Kuwaiti women to join the investment market. The sector, in cooperation with Creative Confidence, organized a comprehensive training program to contribute to advancing human development based on crucial pillars in motivating Kuwaiti youth to learn innovation and creativity skills.
Al-Kharafi also highlighted that National Investments Company maintained profitability up to the end of the third quarter of this year, which came in line with the strategy set by the company as a distinctive banking investment brand. Despite the change in interest rates in the region and the world, which led to a negative reflection in the movement of GCC market indices, these indices declined and reached in Kuwait -2.0 percent, in the UAE market (Dubai) 9.8 percent, (Abu Dhabi) 2.4 percent, in the Saudi market -3.5 percent and 1.8 percent in the Qatar market during the third quarter of 2023. However, for nine months period ending 30 September 2023, National Investments Company achieved a net financial profit of KD 2.5 million at 3.15 fils.
He also revealed that the total assets under management at the end of the third quarter of 2023 amounted to KD 1.06 billion, and the total shareholders’ equity of the parent company reached KD 172.7 million, adding that the total assets reached KD 239.3 million by the end of the third quarter of 2023.
“We are taking specific and proactive steps in creating new growth paths to strengthen our leadership position by creating a sustainable impact, adding value, and a noteworthy that extends across the region. We are also expanding our services within the various sectors and markets; in addition to the company’s prudence in reducing risks, capitalization levels, and strong liquidity while enhancing the ability to deal with them by reaching the highest levels of operational efficiency, this can only be achieved by effective financial management despite the various economic crises and challenges.
The excellence in serving our customers and shareholders has always been one of the company’s priorities, and we are committed to achieving lasting positive change for them, appreciating their trust and support for national investments,” added Al-Kharafi. He concluded by expressing appreciation to shareholders for their trust in National Investments Company and to all customers for their loyalty and interaction with all the services we offer that go with their needs and expectations. Thanks to the regulatory authorities and NIC’s professional and experienced executive management for the ideal approach to the company’s vision and strategy related to customer service, in addition to the efforts of the company’s employees in achieving growth and strategic objectives that made us one of the most prominent investment companies in the region.
Selective management and study
Fahad Abdulrahman Al-Mukhaizim, Board Member and CEO of National Investments Company, praised the remarkable performance and efforts, stressing that National Investments Company has recently witnessed an advanced approach to broad plans based on the criteria of enhancing and creating financial inclusion in preparation for the launch of rapid growth and development, which we will witness in the coming years. He explained that National Investment Company has focused on keeping pace with and meeting the changing needs of customers and the ability to provide the best deals and investment services that rely on advanced digital technologies. He confirmed the success of the company’s well-established plans in all its sectors, which had a positive impact on increasing those wishing to invest in distinguished opportunities, as well as through investment portfolios managed by the company for individuals and institutions locally and globally.
Successful selective opportunities
Al-Mukhaizim also hailed the exceptional efforts of the Financial Advisory Services Department, thanks to its distinguished strategy in attracting and seizing many investment opportunities and managing private and qualitative listings in Boursa Kuwait.
On a related note, the National Investments Company acted as the exclusive financial advisor to a major company in the education sector by facilitating one of the largest and most successful deals during the past few years. The company was also appointed as an exclusive listing advisor for a prominent company in the automotive sector, and the company has acted as the exclusive financial advisor to a company in the food sector; National Investments Company has also been appointed as an issue manager for the offering of preferred shares of a company operating in the energy sector, and also as an exclusive listing advisor for shares of a prominent company in the real estate sector.
The team arranged and coordinated a finance deal for one of our clients. As an independent financial advisor, the company successfully merged Al-Mazaya Holding Company K.P.S.C. and First Dubai Real Estate Development Company K.P.S.C., in addition to the team’s successful implementation of many advisory services for listed and unlisted companies.
In the dynamic market environment, the Alternative Investment Management team succeeded in achieving impressive results in passing and completing the real estate investments of the student housing project on schedule, with an occupancy rate of 99.37 percent, despite the general economic conditions and affairs and rents are expected to grow by an impressive rate of 6 percent. The sale and purchase transactions of two critical projects will likely be completed by the end of 2023.
This confirms the company’s commitment to expanding its real estate portfolio to consolidate its stability and positive outlook. In terms of technological development, the National Investments Company shares an exceptional record of performance in the market with a fund manager with broad growth, with expected participation, as this performance is considered evidence of NIC’s commitment to promoting growth and modernity, and its constant endeavor to provide promising investment services to achieve rewarding returns, which helps to align and create advanced and new opportunities in the business.
On the performance of the MENA’s Priced Investments Sector, Al-Mukhaizeem pointed out that the outstanding performance of our investment funds during the past nine months has continued to reflect the excellence and success of the management in adopting strategies aimed at achieving rewarding financial returns for the company’s clients.
Looking at the performance of equity funds during this period, Al-Mukhaizim stated that despite the global conditions, which were represented by geopolitical and economic conflicts, high inflation rates, weak expectations about global economic growth, and the Federal Reserve’s attempt to control inflation rates and tighten monetary policy by raising interest rates, some of our investment funds had achieved advanced positions compared to the rest of the local funds established in the State of Kuwait, especially specialized ones, as a result of several critical main factors, namely rational investment decisions and prudent management of funds by investing in shares of preferred companies with rewarding returns, solid management and a clear future vision.
Mawarid Fund for Industrial and Petroleum Services Fund achieved a positive performance of 7.5 percent, while Zajil Services and Telecommunications Fund achieved 5.6 percent within the same period. Al-Mukhaizim also highlighted that during the third quarter of 2023, National Investments Company was able to expand its portfolio as a Market Maker by renewing many contracts and by maintaining a total of 11 shares of companies listed on Boursa Kuwait while effectively achieving the turnover and liquidity rates required on those shares.
The Wealth Management Sector continued to achieve essential accomplishments during the third quarter of 2023, working on expanding the company’s customer base and attracting investors and new capital of approximately KD 20 million since the beginning of the year. Despite the challenges faced in the region, on both political and economic levels, the number of new investment portfolios has witnessed growth by 17 percent during the first nine months of this year while applying many practices that helped develop and improve investor service and keep pace with the latest technologies followed.
Al-Mukhaizim added that the Real Estate Investment Sector witnessed the positive continuation of maintaining high occupancy rates in the company’s properties and properties managed by it, as the sector succeeded in increasing the volume of managed properties, in addition to increasing the number of real estate portfolios during the third quarter, by receiving two real estate portfolios, to be executed in the fourth quarter of this year. The technology of the electronic real estate system has also been enhanced to enable tenants to follow up immediately on all matters related to their real estate units and to proceed with plans to develop some properties, preserve the value of assets, and develop their facilities.
To conclude, Al-Mukhaizim esteemed the outstanding performance of the company and the sustainable growth maintained for several years, a result of the successful executive management working and building effective strategies based on experience and leadership, while achieving the problematic equation of this accomplishment, as well as the robust presence in the market, gaining customer confidence while taking clear steps in excellence, innovation, and competition.
