Wednesday 17, May 2017 by William Mullally

Global Investment House reports Q1 results

Hareb Al-Darmaki, Chairman of the Board of Directors, said, “The Company had an excellent start to the year, reporting a many fold increase to the net profit. Each business unit reported excellent net profit and strong underlying performance, driven by effective implementation of its fee-business driven strategy and positive sentiment in the regional equity markets.”

Global Investment House, 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 first quarter ended 31 March 2017 reporting a net profit of KWD 2.1 million ($6.8 million) compared to net profit of KWD 0.2 million in Q1 2016, total revenues of KWD 5.0 million ($16.5 million), and fee and commission income of KWD 3.3 million ($10.9 million) representing 66 per cent of total revenues.

During Q1 2017, Asset Management generated KWD 2.8 million ($9.1 million) revenues and the Asset Under Management (AUM) grew by KWD 23.0 million ($75.3 million) to KWD 1.0 billion ($3.3 billion) stemming from both new money raising and performance driven AUM growth. During the quarter, the real estate asset management team closed an acquisition and placement of an office complex in Sheffield. Several funds managed by the Company outperformed their respective benchmarks and peers.

During Q1 2017, the Investment Banking team generated KWD 0.4 million $revenues from three mandates, ranging from advisory to M&A mandates. The team is currently working on several mandates and has an interesting pipeline of M&A and advisory mandates.

On the brokerage front, Global made focused efforts to grow the institutional brokerage business and take the advantage of over two-fold increase in market turnover. During Q1 2017, Brokerage fee revenues increased by over 100 per cent to KWD 0.4 million ($1.2 million).

The Company’s co-investments in its own funds and other principal investments generated KWD 1.26 million ($4.1 million) of realised gains, dividend income and fair valuation gains. 

On the other hand, the Board of Directors approved a new organisation structure and named Sulaiman Al-Rubaie as Deputy Chief Executive Officer and Nawal Mulla-Hussain as Chief Operating Officer.

Hareb Al-Darmaki, Chairman of the Board of Directors, said, “The Company had an excellent start to the year, reporting a many fold increase to the net profit. Each business unit reported excellent net profit and strong underlying performance, driven by effective implementation of its fee-business driven strategy and positive sentiment in the regional equity markets.”

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