(MENAFN- Kuwait News Agency (KUNA)) Global Investment House on Sunday announced its financial results for the year that ended on December 13, 2014, reporting a net profit of KD 6.5 million (USD 22.2 million), a many folds increase over 2013 which stood at KD 1.9 million (USD 6.3 million).
Revenues grew by 72% to reach KD 22.5 million (USD 76.7 million). Fee-based businesses (asset management, investment banking and brokerage) generated revenues of KD 15.2 million (USD 51.8 million), a 29.8% increase compared to 2013 fee-based businesses revenues of KD 11.7 million (USD 39.9 million). Revenues from Fee-based businesses represent 67% of the company's revenues generated during 2014.
During 2014, the Asset Management business remained resilient with KD 1.2 billion (USD4.1 billion) of assets under management.
Global manages 24 funds primarily focused on the region covering multiple asset classes, like traditional equity, private equity and real estate.
The Asset Management team also offers open architecture portfolio management services customized to meet the client's investment objectives and risk appetite, and cash management services. Several funds managed by Global outperformed their respective benchmarks and peers and received industry accolades. Despite significant adverse equity markets movements in the GCC and MENA region during the last quarter of 2014, some of the Company's flagship funds crossed the high watermark thresh-holds for incentive fee (carry) generating KD 0.8 million (USD 2.6 million) of incentive fee.
On the brokerage front, Global brokerage made focused efforts to grow the institutional brokerage business and consequently the research unit was integrated with the brokerage. These efforts contributed to market share gains particularly in Kuwait market. Also during 2014, the Investment Banking team successfully concluded an M&A transaction for a Kuwaiti company in the financial sector and advised an industrial company in Kuwait on its KD 130 million (USD 443.2 million) debt restructuring. The team also signed several mandates with regional companies to provide them with financial advisory services. The company generated a KD 2.6 million (USD 8.8 million) other income. This included a KD 1.0 million (USD 3.4 million) income on exit of shares received in lieu of a settlement and KD 0.7 million (USD 2.4 million) gain on settlement of a liability and KD 0.4 million (USD 1.5 million) of rental and dividend income.
To facilitate the expanded business activities, the operating cost base increased by 13.4% to KWD14.8 million (USD50.3 million). The Company succeeded in restricting cost increases to cost items directly linked to business generation and revenue growth.
The company has a healthy capital structure with no external debt and a capital base of KD 87.3 million (USD 297.7 million). The Company's capital is conservatively deployed primarily in liquid and operating assets.
The board of directors proposed a 5% cash dividend (5 Kuwaiti fils per share), subject to the approval of the company's shareholders and regulators.
Commenting on the results, Ibrahim Saad, Chairman of the Board said, "Global has made significant growth in net profit and revenues, thanks to the management's efforts in implementing the company's strategy focusing on growing the core businesses while minimizing risk. Good operating performance and an excellent capital structure have facilitated the Board's decision of recommending the distribution of cash dividend to shareholders".
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