NIC achieves net profit of KD 10.2m and 12.8 fils per share for Q3 2024
KUWAIT: The National Investments Company announced its financial results for the third quarter of 2024, where the company achieved a net profit of KD 10.2 million and 12.8 fils per share, compared to the corresponding period of 2023, in which the net profit reached KD 2.5 million and 3.2 fils per share, an increase of 306 percent, which confirms NIC’s position as a distinctive investment banking brand and one of the largest investment companies in Kuwait and the region.
In a statement to the press, Khaled Waleed Al-Falah, Chairman of NIC, confirmed that the company maintained financial profits for the third quarter of this year, a continuation of what had been achieved during the first and second quarters, in line with the wise strategy and flexibility to adapt to market conditions and the changing environment, and proved its strength in facing local and global economic challenges, and achieving competitive advantage and success in the diversified businesses.
This resulted in a remarkable profit in the leading financial indicators, as the total assets witnessed a growth of 13.8 percent to reach KD 272.2 million by the end of the third quarter of this year compared to KD 239.3 million in the value of total assets in the corresponding period of 2023, in addition to the increase in the total shareholders’ equity of the parent company by 9.8 percent to reach KD 189.6 million, compared to KD 172.7 million at the end of the third quarter of 2023. Other comprehensive income grew during the third quarter of this year to reach KD 18.1 million, an increase of 387 percent compared to another comprehensive loss of KD 6.3 million in the corresponding period last year.
Al-Falah pointed out that NIC continues to reap the returns of the diversified strategic approach in products and services, maintain its position, and enhance its leading role locally and regionally while sustaining profitability in Q3 2024, supported by a solid financial base, high asset quality, selected investments and prudent risk management, which helped the company achieve favorable rates in profitability indicators, which confirms the achievement and disciplined performance of the company’s strategy, which had a clear impact on achieving its desired goals.
Selective study
Fahad Al-Mukhaizim, Board Member and Chief Executive Officer at The National Investments Company, said: “We ended the third quarter of 2024 achieving sustainable growth, as NIC focused its efforts on keeping pace with and meeting the needs of the company’s customers, with an ability to provide the best services based on innovations and advanced digital technologies, and confirmed the success of the company’s well-established plans in all its sectors. This helped increase the number of those wishing to invest in distinguished opportunities and through investment portfolios managed by the company for individuals and institutions locally and globally.
Al-Mukhaizim praised the productive performance of its investment products managed by the Asset Management Sector. NIC’s investment funds achieved returns that exceeded comparative indicators during the past nine months despite many downside risks that affected the financial markets, such as geopolitical tensions on the one hand and the volatility of global economic data on the other.
During this period, the Financial Instruments Team succeeded in signing a Market Maker service agreement with two companies listed on Boursa Kuwait, bringing the number of companies that our company services as a Market Maker to 13. This includes companies we have maintained in the Premier Market, which makes our company one of the largest investment companies in providing Market Maker service in Boursa Kuwait.
Al-Mukhaizim pointed out that, during the third quarter of 2024, the Investment Banking Sector will continue to build on the momentum achieved by acquiring new contracts. Among the most notable achievements was the management signing a new contract within Kuwait’s food and beverage sector, aiming to list this company on Boursa Kuwait’s Premier Market. NIC will act as the offering’s lead coordinator, listing advisor, and financial advisor. An advisory contract to sell a majority stake in a leading industrial company was signed. Another advisory contract to sell a stake in a company listed on Kuwait’s Main Market to a holding group in Kuwait was also signed in favor of one of the company’s loyal customers.
On the other hand, the Alternative Investments Sector has completed two budget investments to develop logistics warehouses in France. The sector continues to create new relationships with specialized real estate developers with a proven track record. The sector is currently in the final stages of due diligence; a developer is focused on multifamily housing in the United States. We are also evaluating other opportunities in alternative investments in promising sectors to present to our clients.
The Wealth Management Sector also continued to record further achievements by continuing to work towards attracting new capital to the company. The value of the company’s assets under management witnessed remarkable and distinctive growth during the first nine months of 2024 despite the sensitive geopolitical conditions in the region. The sector is developing several digital transformation platforms, including the new National Investments Company customer service platform.
The Real Estate Investment Sector witnessed a remarkable improvement and increased occupancy rates in the company’s properties and properties managed during the third quarter of this year, resulting in unprecedented rates of 100 percent in some properties. Thanks to the professional approach taken by the company in real estate management, it was able during the third quarter to sign contracts to manage and operate some new real estate portfolios of various activities thanks to the excellent operational performance of the real estate sector.
In terms of the digital transformation strategy, Al-Mukhaizim stated that among the company’s strategic investments is the adoption of modern financial technologies by working on developing financial products and digital services that keep pace with the developments and needs of customers interested in digital capital markets, to align digital transformation initiatives with the company’s strategic objectives, which contributes to business growth and success in general.
Notable achievements
On the other hand, Al-Falah highlighted professionalism when playing the strategic supporter role, cooperating with Creative Confidence, designed exclusively for newly graduated Kuwaiti women to qualify them to enter the investment labor market. NIC is supporting the program for the second year, providing the necessary training courses from October 28, 2024, to November 27, 2024, to develop Kuwaiti women’s skills, competencies, and capabilities, making them candidates for job opportunities, mainly in the private sector. Emphasizing NIC’s prudent strategy and highlighting its positive role in society by adopting the concept of sustainability, the company’s first sustainability report for 2023 was launched to enhance the opportunities for consolidating a sustainable approach by adopting a proactive responsibility in several areas.
Al-Falah also pointed out that the company puts remarkable efforts when applying the standards of The National Investments Company’s vision, providing constructive ideas and outputs based on innovation and creativity in the future labor market to reach the desired results in increasing production and profit rates for the company, as summer training programs were provided to students by the human resources sector, to develop their future skills. These training opportunities were provided to many graduates during the current quarter of 2024, in addition to continuing to support and employ national cadres and empower women. 60 percent of this support will prove the company’s commitment to providing all means to develop its role sustainably and positively in the labor market.
