- Management Fees and Commission of KD 6.0 million; up by 20.3% and Rental Income of KD 1.8 million; up by 7.3%
- Total Revenue excluding Gain from Investments at fair value was KD 8.05 million, up by 5.8%
- Strengthening product offerings in line with the markets’ recovery witnessed in July
Kuwait: - Kuwait Financial Centre “Markaz” (KSE: Markaz, Reuters: MARKZ.KW, Bloomberg: MARKAZ:KK) reported its financial results for the first half of 2022 ended 30 June 2022 with Total Revenues of KD 9.88 million, as compared to KD 19.06 million in H1 2021, a decrease of 48%, primarily due to the negative trend of gulf and global equity markets during Q2-2022. Markaz delivered a Net Profit attributable to Shareholders of KD 2.43 million, as compared to KD 10.41 million in H1 2021, and Earnings Per Share of 5 Fils in H1 2022.
Mr. Diraar Yusuf Alghanim, Chairman stated: “In H1-2022, Markaz’s financial results were negatively impacted by the economic challenges due to the ongoing Russian-Ukranian war, the rising inflation caused by the disruption in the international supply chain, and the rise in oil and gas prices, which contributed to a decline in investors’ confidence and a drop in global equities indices upon central banks raising interest rates. S&P 500 index fell by 22% and Barclays US Aggregate Bond Index by 10.35% in H1-2022. The Kuwaiti and GCC stock markets were affected by these factors; the S&P GCC index declined by 12.96% in Q2-2022. The decline was across sectors and indices.
In this evolving landscape and the markets’ recovery witnessed in July, Markaz remain committed to maintain its disciplined approach in asset and risk management. We continue to strengthen our product offerings, deepening customer segmentation to provide relevant products and services, enhancing customer experience, and improving overall asset management services.”
In terms of the Company’s results in H1-2022, Markaz registered Total Revenues excluding Gain from Investments at fair value of KD 8.05 million, up by 5.8% y-o-y. The growth was led by strong increase in Management Fees and Commission, which increased by 20.3% to KD 6.0 million compared to KD 4.99 million in H1-2021. Our Net Rental Income was KD 1.85 million, compared to KD 1.72 million in H1 2021, an increase of 7.3% y-o-y driven by gradual improvement in occupancy levels at our key real estate assets portfolios.
Markaz continues to maintain a strong liquidity position with quick ratio of 14.08% and Net Debt to Equity ratio of 0.40x. Our Asset Under Management stood at KD 1,161 million at the end of June 2022, an increase of 12.0% y-o-y.
Markaz was awarded “Best Investment Bank in Kuwait for 2022” from Global Finance, reflecting Markaz’s capabilities in fulfilling the clients’ needs and responding to an ever-evolving competitive landscape.
About Kuwait Financial Centre “Markaz”
Established in 1974, Kuwait Financial Centre K.P.S.C “Markaz” is one of the leading asset management and investment banking institutions in the MENA region with total assets under management of over KD 1.161 billion as of 30 June 2022 (USD 3.78 billion). Markaz was listed on the Boursa Kuwait in 1997. Over the years, Markaz has pioneered innovation through developing new concepts resulting in creation of new investment channels. These channels enjoy unique characteristics, and helped Markaz widen investors’ horizons. Examples include Mumtaz (the first domestic mutual fund), MREF (the first real estate investment fund) and Forsa Financial Fund (the first and only options market maker in the GCC since 2005), all conceptualized, established and managed by Markaz. Markaz was listed on the Boursa Kuwait in 1997.