Markaz reported Net Profit of KD 4.06 million in Q1-2021

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Markaz reported Net Profit of KD 4.06 million in Q1-2021 05 - May - 2021

Kuwait Financial Centre “Markaz” (KSE: Markaz, Reuters: MARKZ.KW, Bloomberg: MARKAZ:KK) reported its financial results with total revenues of KD 8.23 million, as compared to loss of (KD 9.02) million for the same period in 2020, thus showing an increase of 191%. Markaz achieved a net profit of KD 4.06 million and Earnings per Share (EPS) of 8 fils for the quarter ended March 31, 2021.

Mr. Diraar Yusuf Alghanim, Chairman stated: “I am pleased to report a significant improvement in revenue and profitability for a successive third quarter. This clearly demonstrates the resilience of Markaz’s business model and its ability to successfully respond to the market challenges of today. We are proud of the dedication of our colleagues and particularly, our executive management for their exemplary professionalism. The year has started on a positive note with an upturn in economic activity and recovery across major global equity markets. However, the ongoing impact of the pandemic and its new variants pose a concern regarding the near-term outlook. Markaz continues to closely monitor the course of the pandemic and management remains committed to taking necessary operating measures to mitigate business risks.

Mr. Ali H. Khalil, Chief Executive Officer stated: “Markaz reported Asset Management fees of KD 2.55 million in Q1 2021, an increase of 41% y-o-y and 23% on a sequential basis. Despite the difficult market conditions, Investment Banking fees increased by 10% y-o-y to KD 0.22 million.
Q1-2021 revenues were further supported by a 46% increase in net rental income to KD 0.89 million. Total revenues also include gains from investments at a fair value of KD 4.7 million as compared to a loss of KD 13.9 million in Q1 2020 due to the onset of the pandemic last year.

From a capital structure perspective, Markaz repaid debt of KD 5.05 million, reducing the firm’s debt to equity ratio to 0.56x. On a further positive note, AUM at the end of the quarter was KD 988 million as compared to KD 979 million at the end of 2020.”