Markaz announces the reduction of net loss to KD 6.02 for the first 9M of 2020, after achieving net

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Markaz announces the reduction of net loss to KD 6.02 for the first 9M of 2020, after achieving net profit of KD 4 million for Q3 ending September 30, 2020, 12 - Nov - 2020

Kuwait Financial Centre “Markaz” (KSE: Markaz, Reuters: MARKZ.KW, Bloomberg: MARKAZ:KK) reported its financial performance for the nine months of 2020, with a net profit of KD 4 million for the third quarter ending September 30, 2020, reducing the net loss attributable to shareholders of Markaz to KD (6.02) million for 9M 2020. The decline is primarily attributable to a non-cash loss from fair value of financial assets through profit & loss of KD (5.22) million as compared to gain of KD 3.99 million in 9M 2019. 

Economic activity started to recover in the third quarter after facing a major setback in the first half of the year due to the ongoing pandemic. However, this initial stage of recovery is slow paced as the GCC economy continues to experience other pressures in the form of subdued oil prices and overall business sentiment. Amidst these challenges, Markaz’s business has been uninterrupted, ensuring its clients’ objectives are being achieved, while focusing on protecting the health and safety of its employees.
Markaz reported Asset Management fees of KD 5.45 million in 9M 2020, a marginal decline of 1.6% y-o-y, however in Q3 2020 Asset Management fees were KD 2.2 million, a sharp growth of 68% compared to our previous quarter. Investment Banking fees for the nine months were KD 0.32 million, a decline of 31% y-o-y.
Revenues were supported by a step up in Net Rental Income by 124% y-o-y, contributing KD 1.80 million. This was driven by the completion of rental properties launched last year in the UAE and KSA. Loss from financial assets at a fair value reached KD (6.03) million out of which KD (0.81) were actual realized. Markaz recognized an impairment of  properties of KD (3.12) million due to the current weak regional real estate market. Markaz AUM at the end of the period closed at KD 1.03 billion down by 5.7% compared to 9M 2019.




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