NIC holds analysts conference for 2021
NIC’s net profit reaches KD 24.4 million for 2021
KUWAIT: National Investment Company (NIC) held its analysts conference for the year ended 31 December 2021. The conference was attended by Chief Financial Officer Girish S Nair, Senior Vice President for Investment Banking Sector Bashar Khan and Executive Vice President for Wealth Management Sector Almuthana Al-Maktoum. Al-Maktoum began the conference with a brief about the company and general overview about the positive results for 2021, which proved that NIC went through a year of distinguished performance and strong operational achievements, which strengthened its financial status.
This had a positive effect on maintaining strong financial status and assets of good quality, and the NIC’s ability to achieve sustainable growth due to the success of the company’s strategy and the team’s experience.
Nair gave an overview of the financial highlights of NIC’s performance during 2021.
For the 12 months ending 31 December 2021, NIC reported a net profit of KD 24.4 million and earnings per share of 31 fils through the income statement and a gain of KD 25.6 million as other comprehensive income through shareholders’ equity.
The total comprehensive income for the period was KD 50 million. The total comprehensive gain was KD 1.1 million. Return on average equity and return on average assets were 12.5 percent and 10.7 percent respectively during 2021. The leverage ratio as at 31st December 2021 was only 0.23:1 and quick ratio was a healthy 68.7 percent. Total assets and shareholders’ equity attributable to the parent company increased to KD 290.6 million and KD 216.8 million respectively as compared to KD 221.4 million and KD 175 million as on the previous year-end, Nair said.
Earnings per share during the current year reached 31 fils, and in agreement with NIC’s special commitment to achieve fixed and distinguished returns for its shareholders, the board of directors recommended distribution of 45 fils dividend per share for the fiscal year ending December 31, 2021.
The dividends for 2021 will be higher for NIC during the last 15 years, as NIC has a strong and steady history of dividend distributions during the past years - NIC paid dividends that varied between 5 fils per share in 2016 to a proposed 45 fils for 2021.
BoD recommends distribution of 45 fils dividend per share
Performance of main sectors:
Nair spoke about major events during 2021 for some main sectors of NIC:
1. MENA securities sector: Benefited from some investment opportunities through directing customers’ finances and portfolios tactically towards qualified sectors and companies.
2. Investment Banking Sector: The consultation services management succeeded in completing listing of Safat Investment Company on Boursa Kuwait, finding finances for a leading company in the field of physical fitness, is currently completing transactions for a leading logistics company, and completing a purchase transaction for a major company in Kuwait.
3. Alternative Investment Management: The company is in the final stages of investing in a leading regional platform of capitals, that is specialized in delivery of consumer orders.
4. Real Estate Investments Sector: Work continues on increasing collection and revenues for the real estate portfolio and restructuring the sector, and put forth policies and procedures to achieve customer satisfaction.
Meanwhile, Khan spoke about many cases as clear examples on the company’s ability to seize opportunities and execute them in the market, such as Boursa Kuwait, to invest in obtaining a strategically important asset with a strong, repeated and sustainable cash inflow. A controlling share was obtained in Boursa Kuwait in February 2019, and the company’s direct share reached 14.4 percent since the takeover. The investment made a 9.24-fold return based on current market values.