Kamco Invest, a regional non-banking financial powerhouse with one of the largest AUMs in the region, recently announced its financial results for the first quarter ended 31 March 2022.
The firm added that it had reported a net profit of KWD3.6mn (EPS: 10.53 fils) compared to KWD1.5mn during the same period in 2021 (EPS: 4.52 fils), a surge of 132.7%.
Additionally, Kamco Invest claimed to have garnered net revenue for the Q1 Period surged by 77.5% reaching KWD9.2mn (Q1 2021: KWD5.2mn), impacted by the surge in fee and commission income as well as the performance of the firm’s investment portfolio. Fee & commission income surged by 43.4% to reach KWD4.8mn, displaying 52.5% of total revenue.
The firm also added that during the first quarter of Q1, assets under management surged by 10.1% to touch a base of USD16bn as of 31 March 2022, impacted by the performance of portfolios and funds managed on behalf of clients, as well as the latest finances raised during the period.
Commenting on the outcome, Faisal Mansour Sarkhou, Chief Executive Officer, stated, “We are pleased with the results achieved as they positively reflect the robustness of our business model and the competitive performance of our products and services, leveraging on the positive sentiments witnessed by regional markets. We managed to grow our assets under management and attract new clients during the quarter, in addition to growing our total revenue, fee income, net profits, and further strengthening our financial position.”
Equity funds and managed portfolios continued to outperform their respective benchmarks. The real estate assets under management grew to USD1.5bn with a total area of 3.35mn sq. ft and an average annual distribution of 7.7% to investors.
Kamco Invest also claimed that the Private Equity team endured undergoing plans to exit legacy assets held by the private equity funds. The team is building a transactions pipeline for Private Equity deals, evaluating a healthy pipeline of deal flows as well as working on new initiatives and products. Efforts to raise capital for “The JEDI Fund” continue through marketing initiatives directed to qualified investors in Kuwait following the approval granted by the Capital Market Authority.
The Investment Banking team endured advising their clients with several transactions in the pipeline expected to close during 2022 across Equity Capital Markets, Debt Capital Markets, and Mergers & Acquisitions (M&A). The team managed to complete two M&A transactions on behalf of clients during the second quarter of 2022.
The firm also stated that the First Securities Brokerage firm, Kamco Invest’s brokerage arm, continued to boost its competitive position and lured in the new clients via its online trading platforms. The firm witnessed a surge of 75% in the trading value on Boursa Kuwait during the quarter in comparison to Q1-2021, with an increase of 78% in commission income generated for the same period.
Kamco Invest also added that the Net assets during the first quarter surged by 4.3% to reach KD135.5mn, whereas shareholders’ equity surged by 6.8% amounting to KWD64.5mn as of 31 March 2022. The firm also enjoys a robust financial position and a “BBB” long-term credit rating and “A3” short-term rating with a stable outlook by Capital Intelligence in their latest review in June 2021.