Kuwait Financial Centre “Markaz” (KSE: Markaz, Reuters: MARKZ.KW, Bloomberg: MARKAZ:KK) reported its financial results for quarter ended 31 March 2022 with Total Revenues of KD 12.24 million, up by 49% y-o-y, as compared to KD 8.23 million in Q1 2021. Markaz delivered a Net Profit attributable to Shareholders of KD 7.81 million, an increase of 92% y-o-y, as compared to KD 4.06 million in Q1 2021, and Earnings Per Share of 16 Fils in Q1 2022.
Mr. Diraar Yusuf Alghanim, Chairman stated: “In the middle of the first quarter of 2022, global economy and trade were impacted by the repercussions of the Russian-Ukrainian war. The increasing sanctions on Russia and energy supply constraints have led to a sharp rise in oil prices globally, which resulted in positive performance for the GCC equity markets and MSCI GCC index delivered 18% returns across a broad base of industries. The Kuwait economy also continued to deliver strong growth supported by the rising oil prices. However, high levels of inflation, rising interest rates and the potential emergence of new Covid-19 variants may put some pressure on the global economic outlook. At Markaz, we continue to monitor the latest markets trends and implement flexible, agile strategies and business plans.
In terms of performance, Markaz Total Revenues reached KD 12.24 million, as compared to KD 8.23 million in Q1 2021. Markaz delivered a Net Profit attributable to Shareholders of KD 7.81 million, an increase of 92% y-o-y, as compared to KD 4.06 million in Q1 2021, and Earnings Per Share of 16 Fils in Q1 2022.
In addition, Asset Management fees reached KD 3.08 million in Q1 2022, an increase of 21% y-o-y and 31% on a sequential basis, due to growth in our Assets Under Management, which reached KD 1,170 million at the end of Q1 2022, as compared to KD 988 million at the end of Q1 2021, registering an increase of 18.4% y-o-y. The occupancy levels across our key real estate assets continue to improve and the portfolio registered a Net Rental Income of KD 0.92 million in Q1 2022, up by 3% y-o-y. Although Investment Banking fees were KD 0.06 million lower compared to same period last year, we expect corporate transaction volumes to pick up in the coming quarters.
Total Revenues also include Gains from Investments at a Fair Value of KD 7.7 million as compared to KD 4.7 million in Q1 2021. From a balance sheet perspective, Markaz repaid debt of KD 3.6 million during the quarter, reducing the firm’s debt to equity ratio to 0.41x.
During Q1 2022, Markaz has been awarded “Best Investment Bank in Kuwait for 2022” from Global Finance, reflecting Markaz’s capabilities in meeting the client objectives and responding to an ever-evolving competitive landscape.