• Global reports net profit of KWD3.1mn in the first quarter 2014
    Posted: Tuesday, May 20, 2014

Global today announced its financial results for the first quarter ended 31 March 2014 reporting a net profit of KWD3.1mn compared to a KWD3.9mn loss suffered during Q1 2013. Total revenues grew to KWD6.1 million, an increase of 86% over Q1 2013. The significant increase in revenues is attributed to the enhanced activities across the fee-based core businesses (asset management, investment banking and brokerage), among others.

The fee-based core businesses of asset management, investment banking and brokerage generated total revenue of KWD4.2mn, a 53% increase over the comparable period of last year. Revenue from fees & commissions grew by 30% to reach KWD3.4mn.

Year to date, assets under management grew by USD0.2bn to reach USD4.3bn at 31 March 2014. The growth is attributed to new amounts invested in our existing funds and portfolios in addition to the good performance of our managed funds especially the flagship funds which crossed the high watermark thresh-holds for incentive fees (carry). Global manages 24 funds spanning from money market funds to private equity funds. Several funds managed by Global outperformed their respective indices and peers and received industry accolades.

Global brokerage made focused efforts to grow the institutional brokerage business capitalizing on our regional presence and consequently the research unit was integrated with brokerage. Both market volume growth and focus on institutional business contributed to the enhanced performance.

The Investment Banking team successfully completed an M&A advisory mandate for a Kuwaiti company in the financial sector and won several mandates in the GCC region. The mandates the team is currently working on exceed KWD175mn.

On the other hand, the Company generated a KWD1.3mn other income including a KWD1.0mn one-off income on exit of shares received in lieu of settlement of an old receivable. Furthermore, the Company's KWD11mn co-investments in managed funds generated a KWD0.8mn mark-to-market income.

Global has a healthy capital structure with nil external debt and a capital base of KWD83.4mn. The Company's capital is conservatively deployed primarily in liquid and operating assets with 49% of the assets in form of cash or cash equivalent thus supporting our new strategy of focusing on the core business.

Commenting on the results, Maha Al-Ghunaim, Chairperson and Group CEO of Global said, "We are delighted to have returned on a path of profitability. We have witnessed improved activities across the fee-based core businesses and regional offices, thanks to the trust of our clients in the company and the excellent performance of our business sectors."

She added, "With the healthy capital structure, regional presence and experienced team, Global is now well positioned to further bolster its core business on local and regional levels and serve its clients even more effectively. We will continue strengthening our team by hiring experienced professional focusing on Kuwaiti nationals".

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