Kuwait's Markaz reports net profit of $13.44mln in Q1-2021

Earnings per share of 8 fils for the quarter

  
A Kuwaiti trader is seen at the Kuwait Boursa stock market trading hall in Kuwait city, Kuwait September 16, 2019.

A Kuwaiti trader is seen at the Kuwait Boursa stock market trading hall in Kuwait city, Kuwait September 16, 2019.

REUTERS/Stephanie McGehee

Kuwait Financial Centre (Markaz) has posted revenues of KD8.23 million ($27.2 million) for the first quarter (Q1) of the year, as compared to loss of KD9.02 million for the same period in 2020, thus showing an increase of 191%.

Markaz achieved a net profit of KD4.06 million ($13.44 million) and Earnings per Share (EPS) of 8 fils for the quarter.

Diraar Yusuf Alghanim, Chairman stated: “I am pleased to report a significant improvement in revenue and profitability for a successive third quarter. This clearly demonstrates the resilience of Markaz’s business model and its ability to successfully respond to the market challenges of today. We are proud of the dedication of our colleagues and particularly, our executive management for their exemplary professionalism.

The year has started on a positive note with an upturn in economic activity and recovery across major global equity markets. However, the ongoing impact of the pandemic and its new variants pose a concern regarding the near-term outlook. Markaz continues to closely monitor the course of the pandemic and management remains committed to taking necessary operating measures to mitigate business risks.

Ali H. Khalil, Chief Executive Officer stated: “Markaz reported Asset Management fees ofKD2.55million in Q1 2021, an increase of41% y-o-y and 23% on a sequential basis. Despite the difficult market conditions, Investment Banking fees increased by 10% y-o-y to KD0.22 million.”

“Q1-2021 revenues were further supported by a 46% increase in net rental income to KD0.89 million. Total revenues also include gains from investments at a fair value of KD4.7 million as compared to a loss of KD13.9 million in Q1 2020 due to the onset of the pandemic last year.

“From a capital structure perspective, Markaz repaid debt of KD5.05 million, reducing the firm’s debt to equity ratio to 0.56x.Ona further positive note, AUM at the end of the quarter was KD988 million as compared to KD979million at the end of 2020,” he added. – TradeArabia News Service

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