Markaz Ended 2021 On A Strong Note With Net Profit Attributable To Shareholders Of Kd14.99 Million

Kuwait Financial Centre “Markaz” (KSE: Markaz, Reuters: MARKZ.KW, Bloomberg: MARKAZ:KK) reported its financial results for 2021 with total revenues of KD 30.64 million, as compared to KD 13.16 million in 2020. Markaz delivered a Net Profit attributable to shareholders of KD 14.99 million, as compared to a loss of KD 1.72 million in 2020, and Earnings Per Share of 31 Fils as of 31 December 2021.

Mr. Diraar Yusuf Alghanim, Chairman stated: “In 2021, we saw a quicker than expected recovery around the world and it was much needed after the pandemic induced a financial crisis in 2020. The broad based recovery was visible across GCC countries, most industries and various asset classes. However, in last quarter of 2021, growth decelerated with the risk arising from the new Covid-19 variant Omicron. During the year, Markaz has not only successfully navigated through the pandemic effects, but has emerged stronger than before. Overall, I am proud of all my colleagues at Markaz, who have shown great determination in delivering high quality asset management and investment banking services to clients and remaining the partner of choice in wealth creation. In recognition of these efforts, Markaz team has been awarded five prestigious industry awards during the year 2021 and it gives me honor to note this external recognition of how Markaz is meeting the client objectives and responding to an ever-evolving competitive landscape.”

Mr. Ali H. Khalil, Chief Executive Officer, stated: “Our performance was underpinned by a worldwide economic recovery and buoyant global equity markets, which delivered strong returns to investors. In these market conditions, Markaz remained focused on offering innovative investment solutions and diligently monitoring risk positions, to deliver consistent returns to its clients.

During 2021, Markaz Asset Management fees reached to KD 8.79 million, growth of 17% year-on-year, due to the growth in our Assets Under Management, which reached KD1,041 million in 2021, compared to KD 979 million in 2020, and by the successful exit gains from US and Europe Real Estate projects. Investment Banking fees increased to KD 1.02 million, up by 67% as compared to last year with the execution of high-profile Capital Markets and Advisory Mandates.  Total Revenues also include gains from investments of KD 15.50 million as compared to a loss of KD 2.08 million in 2020.

Our MENA Equity team actively managed our Markaz equity funds to maximize the risk-adjusted returns, and to benefit from the special market conditions marked by high liquidity and the participation of foreign investors. As a result, Markaz flagship funds recorded solid returns in 2021. Markaz also launched its Market Making services covering five clients. In addition, occupancy, rental rates, and rent collection continue to improve driving performance across our real estate properties in the MENA region.

Looking ahead, we have started the year on a mixed note due to rising inflation and interest rates, placing pressure on the economic outlook.  We remain well positioned to benefit from emerging trends; our liquidity is high, and our balance sheet is well capitalized and flexible. Internally, our business departments’ mindset revolves around three pillars: Growth, Efficiency, and ongoing Transformation. As always, maintaining and enhancing internal controls remains a priority along with fiscal discipline to drive sustainable growth and create in the long-term wealth for our shareholders.”