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Kuwait City, August 7, 2022: Kamco Invest, a regional non-bank financial powerhouse with one of the largest AUMs in the region, announced its financial results for the six-month period ended June 30, 2022. The company said a net profit of KWD4 0.6 mn (EPS: 13.57 fils) compared to 6.3 mn KWD during the same period in 2021 (EPS: 18.41 fils). During the second quarter, the company recorded a net profit of KWD 1.0 million (EPS: 3.04 fils) compared to KWD 4.8 million during Q2 2021 (EPS: 13.89 fils)
Total revenue reached KWD 14.0 million (H1 2021: KWD 15.9 million), positively impacted by increased fee and commission income as well as investment portfolio performance of the Company which increased at a slower pace compared to the first half of 2021. Fee and commission income increased by 23.1% compared to the first half of 2021 to reach 10.6 million KWD, representing 75 .6% of total turnover.
Assets under management reached $13.8 billion as of June 30, 2022 in portfolios and funds managed on behalf of clients. Equity funds and managed portfolios continued to outperform their respective benchmarks, while the Kamco Investment Fund was the best performing Kuwaiti equity fund returning 12.76% year-to-date. ‘year. The Al Durra Islamic Fund has returned 7.35% year-to-date, positioning it as the best performing Islamic equity fund over the six-month period. Excluding equity funds, real estate assets under management reached $1.7 billion with a total area of 3.75 million square feet and an average annual distribution of 7.8% to investors.
The Private Equity team continued its plans to exit legacy assets held by private equity funds. The team builds a deal pipeline for private equity deals, assesses a healthy pipeline of deal flow, and works on new initiatives and products.
The Investment Banking team continued to advise clients with several pending transactions expected to close during the year in equity capital markets, debt capital markets and mergers and acquisitions (M&A) . In the first half of the year, the team successfully advised clients on four successful M&A transactions, acted as co-manager and co-bookrunner on a Sukuk issue, and co -led the private placement process for a family business in Kuwait. First Securities Brokerage Company, the brokerage arm of Kamco Invest, continued to strengthen its competitive position and attracted new clients through its online trading platforms.
Total assets at the end of June reached KWD 126.9 million (December 31, 2021: KWD 129.7 million), while shareholders’ equity increased by 2.66% in the first six months to 62, KWD 0 million as of June 30, 2022. The company also enjoys a strong financial position and a long-term credit rating of “BBB” and a short-term rating of “A3” with a stable outlook by Capital Intelligence in its last review in May 2022 .
Commenting on the results, Faisal Mansour Sarkhou, Managing Director, said: “We are pleased with the results achieved as they reflect the quality of our revenue, especially as the largest portion of total revenue comes from fees and commissions. Despite the fluctuations observed in the capital markets during the period, our robust business model, our diversified solutions and the competitiveness of our product offerings managed to grow our commission income, thereby strengthening our financial position.
