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"Kuwait Investment Co." profits 13.8 million Kuwaiti Dinars in the first half of 2021



Despite the effects of the pandemic and its severe repercussions on the business sector and  economy

"Kuwait Investment Co." profits 13.8 million Kuwaiti Dinars in the first half of 2021

Al-Ali:  The diversity of our business model and the correctness of our adjusted operating strategy contributed to promising growth.

Al-Subaiee:  COVID-19 crisis is over because of our strong financial position and effective risk management.

Kuwait Investment Company  reported achieving growth profit of 13.8 million Kuwaiti Dinars in the first half of 2021, compared to a loss of 17.2 million Kuwaiti Dinars in the same period last year, despite the effects of the "COVID-19" Pandemic and its continued repercussions on business and the economy.

In a statement, the company reported that its total operating revenue increased to 22.5 million Kuwaiti Dinars, compared with a loss of 6.9 million Kuwaiti Dinars in the same period in 2020.     

The company's financial indicators showed strong growth rates reflected in operating profit and net profit compared to the same period in 2020, with operating profit of about 15.9 million Kuwaiti Dinars for the first half of the year, and earnings per share of 25.14 fills for the same period. The equity of the shareholders of holding company increased to 120 million Kuwaiti Dinars, a growth of 25.6% compared to the first half of 2020.

Promising Growth

Commenting on the financial results, Kuwait Investment Company Chairman Dr. Yousef Al-Ali said: "The company has achieved promising levels of growth in all its indicators despite the circumstances of the COVID-19 pandemic, taking advantage of the diversity of our business model and the positive impact of our adjusted operating strategy, which continues to reap after proving right even in the face of crises, and the qualitative investments that we have pumped over the past few years have put us in an advanced position to face the challenges, which was confirmed by the positive figures we have achieved on the ground and also contributed to the dedication of our employees during the difficult conditions that have passed us and all sectors in Kuwait and the world as a whole a year later (2020) with all its economic and health tragedies."

Swift Transition

Al-Ali expressed his gratitude to the executive management team and all employees for their dedication and perseverance during the past period and their rational handling of the crisis in the rapid transition to work from home with the development of the technical controls that have been put in place, allowing the company to provide its services to customers effectively during the pandemic and reach good levels of growth despite the restrictions imposed on the global economies because of Coronavirus.

Record Levels

For his part, the company's CEO Bader Al-Subaiee said: "The company achieved outstanding results during the first half of the year and saw growth in all revenue items, including the revenue of customer money management fees which grew by 16.5%, while rental revenue doubled compared to the same period, and the parent company's share in the results of subsidiaries and associates grew by 249 %. The company's domestic and global investment also increased by 294% over the same period, and its distribution revenue increased by 29%."

Al-Subaiee explained that, as a result of settlements with some customers, the company refunded the pre-set reserve of 944,000 Kuwaiti Dinars, which reduced the company's financial burden by 45% compared with the previous period.

Seizing Opportunities

The company has exploited the best opportunities and employed capital in secure investment instruments that have been able to achieve rewarding returns and calculated risks.

AlSubaiee confirmed that the domestic investment funds and portfolios managed by KIC continued to achieve positive returns in the first half of 2021, having Al-Raed Investment Fund (the largest fund in Kuwait in terms of net asset value) achieved a positive return during the first half of the year as the fund's net unit value increased by 17.5% to record the end of June KD 1.233, beating the overall market index which increased by 15.16% during the first half of 2021. Since its establishment, the Fund has achieved a total return of 343%, equivalent to an annual return of 17.4%. The return rate of Kuwait Investment Fund in the first half of 2021 is also very high, 19.71% higher than the general market index. The domestic portfolio managed by KIC also achieved positive results in the first half of 2021, with a return of 15.16%.

He pointed out that in the first half of 2021, the portfolio of Roboindex continued to make good gains despite its slow performance compared to 2020 and 2019, where it achieved a return of 9.89% compared to the 7.09% increase in the measurement index of the portfolio of ROBOINDEX, raising the portfolio's return since its establishment at the beginning of 2018, the portfolio has returned to 97.77% at an annualized rate of return of 20.96% and recorded returns in 2020 and 2019 of 44.69% and 35.27%.

Al-Subaiee added that the company has dealt with the corona crisis so brilliantly and considered it a catalyst to further accelerate the digital transformation project in all sectors of the company, especially the "KIC trading platform" and its great role in enhancing the trading movement locally, regionally and globally. We succeeded in facing the challenges of the crisis, thanks to Allah and then the strength and strength of the financial position of Kuwait Investment Company and the effectiveness of prudent risk management throughout the past period until the crisis is behind us, which contributed to the increase in the value of the company's assets to 266 million Kuwaiti Dinars, and the assets managed reached 2.153 billion Kuwaiti Dinars by June 30, 2021.

Al-Subaiee concluded his statement by thanking the Central Bank of Kuwait and the Capital Market Authority on their continued support for all sectors concerned in the domestic market during the crisis and special thanks to the Kuwait Investment Authority.  

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