Kuwait - 03/02/2006 - Global Investment House "Global" announced today it's annual profits for the year ending 31 December 2006 which stood at Kuwait Dinars 71.4 million (USD 246.6 .million) compared to KD 61.4 million (USD 212 million) in 2005 translating to an EPS of 108 fils for 2006.
The company's board has met and recommends the approval of the General Assembly to distribute 50% cash dividend and 20% share dividends. The total amount of the cash dividend to be distributed is KD 34.4 million (USD 118.8 million) compared to KD 19.2 million (USD 66.1 million) in 2005, which translates to an increase of 79%.
The operating revenue recorded an increase of 38% compared to last year reaching KD 110.4 million (USD 381.1 million). The fees, interest and dividend based revenues for the period stood at KD 43.6 million (USD 150.7 million) which accounts for 40% of the total revenues. These fees were mainly derived from advisory, placement of private equity, asset management and other operations which are the core products and services the company offers.
Mr. Anwar A. Al-Nouri, Chairman of Global, said that despite the negative sentiments that the GCC markets have observed and all the challenges 2006 faced, Global continued to achieve positive results and maintain sustainable growth.
He added that in times when the total market profitability for all the Kuwaiti listed companies have witnessed a decrease compared to last year's performance with the investment industry's profitability showing a decrease of 45% (9 months results), Global has recorded an increase of 16% in profits for the year 2006 compared to 2005.
The company was very successful in managing the expansion of its total assets which have grown by 130% in 2006 to reach KD 691.9 million (USD 2.4 billion) as at December 31st, <?xml:namespace prefix = st1 ns = "urn:schemas-microsoft-com:office:smarttags" />2006. In addition, return on equity and return on assets have outperformed the international industry ratios standing at 39% and 14% respectively.
On the other hand, assets under management have witnessed an increase of 14% reaching KD 2.085 billion (USD 7.2 billion) by the end of 2006. This was due to the positive performance achieved by the existing funds and portfolios in addition to the new amounts raised through existing and new investment funds such as the Global Opportunistic II, the Global Asia Real Estate Fund and others.
“In 2006, we worked on improving our funding structure through the capital increase that took place in the second quarter of the year (50% rights issue) in addition to 100% share dividends and medium term syndicated facilities which were successfully arranged with major regional and international banks”, Al-Nouri pointed.
In regards to the company's expansion strategy, Mr. Al-Nouri said that Global has continued to expand its geographic presence in two major ways. The first was by opening offices in countries such Sudan, Jordan and Yemen. The second was through establishing strategic partnership with financial institutions from Singapore to Pakistan, the Middle East and Africa.
It is worth mentioning that 2006 has been another year of significant achievements and recognition. The Management has lead Global to various international outstanding awards. Euromoney and The Islamic Conference Group have awarded Global for the second time in a row “Best Equity House in Kuwait” and "Best Real Estate investment House" respectively. The Banker magazine has also awarded Global “The deal of the year” award.
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About Global Investment House “Global”
Global Investment House “Global” is a full-fledged investment company incorporated in 1998, and falls under the regulation of the Central Bank of Kuwait. Its underlying foundation is to meet the high expectations of local and international clients, and to enhance the investment service industry in Kuwait and the region. Today, Global stock lists on the Kuwait, Bahrain, and Dubai Stock Exchanges, with branches and affiliates in Bahrain, Dubai and Abu Dhabi (UAE), Jordan, Qatar, and Sudan. Global plays an important role in promoting investment opportunities in the Arabian GulfPeninsula to investors through expert financial engineering, in-depth research and reports to advance the capital market in the region. Thus, Global’s achievements have been recognized on local, regional, and international levels. The company’s current assets under management reached KD1.9 billion (USD6.7 billion) on June 30, 2006.
For more information about Global, please contact Dalal A. Al-Radi, Media Relations Executive. E-mail: dalradi@global.com.kw, Tel: (965) 240-0551 Ext. 402; Fax: (965) 242-0498; P.O. Box: 28807 Safat, 13149 Kuwait; Web; www.globalinv.net
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