• Al-Rubaie: We look forward to successfully conclude the merger and focus our efforts on growing the business and further enhancing our offerings to clients

Kuwait: Global Investment House ("Global" or the "Company"), a regional asset management and investment banking firm headquartered in Kuwait, with offices in major capital markets in the MENA region, today announced its financial results for the three months period ended 31st of March 2019 reporting a net profit of KWD1.7 million (USD5.6 million) compared to KWD1.6 million (USD5.2 million) in Q1 2018, total revenues of KWD4.6 million (USD15.1 million), 17.7% increase compared to last year. Fee and commission income stood at KWD3.5 million (USD11.6 million) representing 76.6% of total revenues.

On the corporate level, the team continued working closely with KAMCO Investment Company to strive for successfully concluding the merger to create one of the largest, strongest, and a more efficient player in the regional investment services sector namely asset management, investment banking and brokerage. The board of directors, in its meeting held on Thursday 21st of February 2019, discussed and approved the advice of the independent investment advisor, including the asset valuation report, and recommended to the approval of the Extraordinary General Assembly to merge with KAMCO according to the swap ratio recommended by the investment advisor after obtaining regulatory approvals.

On the operational level, fee-based businesses (asset management, investment banking and brokerage) generated revenues of KWD3.7 million (USD12.2 million), 18.3% increase compared to same period of 2018. Asset Management business contributed to KWD3.3 million (USD10.9 million) in revenues and total assets under management stood at KWD867 million (USD2.9 billion).

Asset Management continued to report competitive performance for its managed funds and portfolios resulting in recognitions from industry leaders. Several funds managed by the Company outperformed their respective benchmarks and peers. Furthermore, to take advantage of developments in Boursa Kuwait, the investment strategy of the flagship fund, Global 10 Large Cap Index Fund, has been amended to track the performance of the Premier Market Index to cover more companies with high levels of liquidity, market capitalization and transparency. Accordingly, the Fund's name has been changed to “Global Premier Market Index Fund".

Investment Banking team continued to work on several mandates and has an interesting pipeline of M&A and advisory mandates. On the other hand, brokerage generated revenues of KWD0.4 million (USD1.3 million), 46% increase compared to the same period last year. This growth is the result of gaining market share thanks to the effective execution of the institutional brokerage business strategy and the new business generated from KAMCO.

Faisal M. Sarkhou, Chairman of the Board of Directors, said: “We are delighted by the efforts put by the team to continue offering quality services to clients and reporting positive results while at the same time effectively engaging in the merger transaction with KAMCO. The results reported, and the synergy witnessed between teams from Global and KAMCO only reflect the potential we foresee to create value to all our stakeholders.”

Sulaiman Mohammed Al-Rubaie, Acting Chief Executive Officer, commented: “Global has remained on a consistent path of profitability driven by effective implementation of its fee business driven strategy even during a challenging macroeconomic environment and while undergoing significant internal tasks as part of the merger process. We look forward to successfully conclude the merger and focus our efforts on growing the business and further enhancing our offerings to clients.”

– End –

Note: Kuwaiti Dinar (KWD) is the reporting currency of the Company and all KWD figures have been converted into United States Dollars (USD) at the rate of 1USD=KWD0.3042 which was the 31 March 2019 mid-rate of KWD/USD currency pair.

For further information:
Moustafa Zantout
Senior Vice President
Marketing & Investor Relations
Global Investment House
Tel: +965 2295 1615
Fax: +965 2295 1638
E-mail: mzantout@global.com.kw 

© Press Release 2019

Disclaimer: The contents of this press release was provided from an external third party provider. This website is not responsible for, and does not control, such external content. This content is provided on an “as is” and “as available” basis and has not been edited in any way. Neither this website nor our affiliates guarantee the accuracy of or endorse the views or opinions expressed in this press release.

The press release is provided for informational purposes only. The content does not provide tax, legal or investment advice or opinion regarding the suitability, value or profitability of any particular security, portfolio or investment strategy. Neither this website nor our affiliates shall be liable for any errors or inaccuracies in the content, or for any actions taken by you in reliance thereon. You expressly agree that your use of the information within this article is at your sole risk.

To the fullest extent permitted by applicable law, this website, its parent company, its subsidiaries, its affiliates and the respective shareholders, directors, officers, employees, agents, advertisers, content providers and licensors will not be liable (jointly or severally) to you for any direct, indirect, consequential, special, incidental, punitive or exemplary damages, including without limitation, lost profits, lost savings and lost revenues, whether in negligence, tort, contract or any other theory of liability, even if the parties have been advised of the possibility or could have foreseen any such damages.