Kuwait Financial Centre Kpsc · KSE:MARKAZ
Kuwait Financial Centre Kpsc — Kuwait Financial Centre K.P.S.C. "Markaz" — H1 2019 Earnings Presentation
21 slides from Kuwait Financial Centre Kpsc's earnings presentation, 2019
Slide 1: Earnings Presentation H1 2019
Kuwait Financial Centre K.P.S.C. "Markaz" (Boursa Kuwait: MARKAZ) Earnings Presentation H1 2019 Asset Management | Investment Banking
Slide 2: Discussion Agenda
Discussion Agenda H1 2019 Performance Highlights ……………..…….… 3 Markaz Overview ……….……...………...................… 6 Business and Financial Highlights……..……..….….… 9 Shareholders Information …………………………..… 19 2
Slide 3: H1 2019 Performance Highlights
H1 2019 Performance Highlights Markaz Assets Under Management of KD 1.11 billion Profit and Loss Highlights Balance Sheet Highlights KD 12.47 mn Total AUM Growth: 42.0% KD 1.11 billion - Growth: 9% y-o-y Total Revenue KD 8.47 mn KD 4.00 mn Growth: 87.8% Growth: (6.0)% Net Debt/ Total Equity of 0.50x
Slide 4: H1 2019 Performance Highlights
H1 2019 Performance Highlights Commenting on the performance, Mr. Manaf A. Alhajeri, CEO of Markaz said: “I am pleased to announce that Markaz has delivered 42% growth in Total On YTD basis, Markaz Fixed Income return outperformed the benchmark Revenue along with a 9% increase in Asset Under Managem
Slide 5: H1 2019 Performance Highlights (cont’d)
H1 2019 Performance Highlights (cont’d) From an investment banking perspective, the Kuwait market started Q2 2019 with the announcement of several transactions across various industry sectors. Our advisory team has developed a strong pipeline of corporate transactions reflecting the quality of our a
Slide 6: Markaz Overview
Markaz Overview A leading financial institution in the region delivering consistent shareholder returns Leading market position Sustainable long-term Building a sustainable Our Team, the cornerstone of shareholder returns economy in Kuwait our success As one of the region’s leading Generates sustain
Slide 7: Markaz Overview (cont’d)
Markaz Overview (cont’d) Delivering International Investment Reach to our Clients Germany US Poland Turkey Kuwait Qatar Bahrain Oman KSA India UAE Egypt Lebanon Jordan Equity Fixed Income MENA Real Estate Investments International Real Estate Investment Banking Advisory Offices 7
Slide 8: Markaz Overview (cont’d)
Markaz Overview (cont’d) One of the most recognized and well awarded brands across the MENA region Best Asset Manager Best Investment Bank in Research Provider of the Most Innovative Financial in Kuwait Kuwait Year Institution in the By: Global Finance Middle East By: EMEA Finance By: Euromoney Awar
Slide 9: Business Highlights
Business Highlights Total AUM of KD 1.11 billion, an increase of 9% from June 2018 Asset Management Real Estate Investments GCC Equity Funds, Fixed Income Fund, Others Middle East and North Africa, International Total AUM of KD 733.7 million Total AUM of KD 378.4 million MENA Real Estate – AUM of KD
Slide 10: Business Highlights (cont’d)
Business Highlights (cont’d) Adding significant value to clients through high quality advisory services and research Investment Banking Research M&A, Advisory, Equity & Debt Capital Markets, IPOs and Mena focused Research, Consulting Services restructuring Markaz” launched a special publication ti
Slide 11: Financials Trend
Financials Trend H1 2019 Revenues growth on y-o-y basis H1 2019 EBIT (KD 000’s) Driven by a growth of 121% from Gain on Investments at Fair There was a significant growth of 69.6% in EBIT on Value through P&L y-o-y basis Management Fees & Commissions contributed 32.1 % of Total Revenue Incom
Slide 12: Financials Trend (cont’d)
Financials Trend (cont’d) LTM Return on Equity1 Dividend per Share and Payout Return on Equity of 4.8% on LTM basis increased by 7% Consistent dividend payouts with an incremental 22.2% increase comparing with Q2 2018 in 2018 payout ratio over last year 4.8% 4.5% 4.4% 100.0% 75.0% 83.3% 75.0% 77
Slide 13: Profit & Loss Key Metrics
Profit & Loss Key Metrics Q2 Y-o-Y H1 Y-o-Y (KWD 000's) 2019 2018 Growth (%) 2019 2018 Growth (%) Management Fees and Commission 2,089 2,163 (3%) 4000 4,264 (6%) H1 2019 Income Analysis Interest Income 155 134 16% 306 282 9% Dividend Income 475 312 52% 883 688 28% Return on Principal Investments Gai
Slide 14: Balance Sheet Key Metrics
Balance Sheet Key Metrics Jun Mar Dec Sep (KWD 000's) 2019 2019 2018 2018 ASSETS Cash and Bank balances 7,319 7,466 4,691 6,036 Time Deposits 1,387 1,662 2,565 1,768 Investments at fair value through profit or loss 108,304 97,541 92,674 96,051 Asset Under Management Debt instruments at fair value th
Slide 15: Asset Management & Investment Banking
Asset Management & Investment Banking Management Fees & Commission (KD 000’s) (3.4)% 2,680 2,163 1,986 2,089 1,911 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Asset Management Fees1 (KD 000’s) Investment Banking Fees (KD 000’s) 7.7% (54)% 2,055 1,909 964 1,772 1,766 1,716 391 145 180 (69) Q2 2018 Q3 201
Slide 16: Asset Management Fees Returns
Asset Management Fees Returns Asset Management Fees1 (KD 000’s) AUM (KD million) 2,055 1,157 1,909 1,112 1,093 1,772 1,766 1,064 1,716 1,020 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Annualized Management Fees (%) 0.75% 0.69% 0.69% 0.65% 0.61% Q2 2018 Q3 2018 Q4
Slide 17: Return on Principal Investments
Return on Principal Investments Income Returns (KD 000’s) Investment Assets1 (KD million) 5,357 181 159 161 169 3,680 3,114 151 1,545 (1,738) Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Annualized Income Returns (%) 13.0% 9.5% 7.1% 4.1% -4.3% Q2 2018 Q3 2018 Q4 20
Slide 18: Capital Structure and Returns
Capital Structure and Returns Markaz Net Debt to Total Equity of 0.5x Jun (KD 000's) Mar 2019 Dec 2018 Sep 2018 2019 LTM Return on Assets1 (%) Due to financial institutions 996 0 0 0 2.5% 2.3% 2.3% Term Loan 41,246 25,708 22,565 20,483 1.6% 1.3% Bonds Issued 25,000 25,000 25,000 25,000 Total Debt 67
Slide 19: Shareholders Information
Shareholders Information Focused on sustainable value creation for shareholders Major Shareholders Corporate Information Main Market – Boursa Kuwait Major Shareholders Type % Holding Market Segment Listing (Sec Code: 213) Kuwait Pillars for Financial Investment Direct 28.72% 2018 Dividends Cash Divi
Slide 20: Disclaimer
Disclaimer This document has been prepared by Churchgate Partners for Kuwait Financial Centre K.P.S.C. (“Markaz”) investors, solely for informational purposes. This presentation may contain statements that are not historical facts, referred to as “forward looking statements” .The information contain
Slide 21: Kuwait Financial Centre K.P.S.C. "Markaz" contact details
Kuwait Financial Centre K.P.S.C. "Markaz" P.O. Box 23444, Safat 13095 State of Kuwait Tel: +965 2224 8000 Fax: +965 2242 5828 Email: info@markaz.com www.markaz.com
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