Kuwait Financial Centre Kpsc · KSE:MARKAZ
Kuwait Financial Centre Kpsc — Q3 2022 Earnings Presentation
20 slides from Kuwait Financial Centre Kpsc's earnings presentation, Nov 27, 2022
Slide 1: Earnings Presentation Q3 2022
Earnings Presentation Q3 2022
Slide 2: Discussion Agenda
Discussion Agenda Q3 2022 Performance Highlights .…………................................. 3-4 Markaz Overview ................................................................... 5-7 Business Highlights .…………...................................................... 8-9 Financials Trend .…………..............
Slide 3: Q3 2022 YTD Performance Highlights
Q3 2022 YTD Performance Highlights Markaz Assets Under Management of KD 1,142 million, an increased of 8.45% y-o-y Profit and Loss Highlights KD 11.24 mn Total Revenue KD 9.3 mn KD 3.01 mn Management Fees & Commission Return on Principal Investments Net Rental Income KD 2.8 mn Management Fees & Comm
Slide 4: Q3 2022 Performance Highlights
Q3 2022 Performance Highlights Markaz delivers a Net Profit attributable to Shareholders of KD 0.533 mn for Q3-2022 Kuwait Financial Centre “Markaz” (KSE: Markaz, Reuters: MARKZ.KW, Bloomberg: MARKAZ:KK) reported its financial results for the nine months ended 30 September 2022 with Total Revenues o
Slide 5: Markaz Overview
Markaz Overview One of the leading financial institutions in the region delivering consistent shareholders resturns Leading market position Sustainable long-term Building a sustainable economy Our Team - cornerstone of our As one of the region’s leading shareholder returns in Kuwait success asset ma
Slide 6: 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 Equity Fixed Income MENA Real Estate Investments International Real Estate Investment Banking Advisory Offices 6
Slide 7: Markaz Overview (cont’d)
Markaz Overview (cont’d) One of the most recognized and well awarded brands across the MENA region Best Investment Bank Best Asset Manager Best Investment Bank in Kuwait in Kuwait By: Global Finance By: EMEA Finance By: EMEA Finance MENA Real Estate Asset Sustainability Manager of the Year By: Globa
Slide 8: Business Highlights
Business Highlights Total AUM of KD 1,142 million, an increased of 8.45% y-o-y Asset Management Real Estate Investments GCC Equity Funds, Fixed Income Fund, Others: Middle East and North Africa, International: Total AUM of KD 830 million Total AUM of KD 312 million Asset management continues to im
Slide 9: 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: Publishes MENA focused research reports
Slide 10: Financials Trend
Financials Trend Q3 2022 Revenues growth on y-o-y basis Q3 2022 Net Profit (KD 000’s) Total Revenue decrease primarily driven by negative The net profit decrease due to decrease in revenues and performance across equity markets negative fair value adjustment of financial assets Management Fees
Slide 11: Financials Trend (Cont’d)
Financials Trend (Cont’d) Return on Equity1 Dividend Per Share and Payout Return on Equity of 1.7 % in 2022 was primarily due to increase The AGM approved a cash dividend of 10 Fils per share and the management and commission fees earned during the third 5% bonus shares. Total dividend of 15 Fil
Slide 12: Profit & Loss Key Metrics
Profit & Loss Key Metrics Period Ended Y-o-Y (KWD 000's) Growth Q3 2022 Q3 2021 (%) Management Fees and Commission 9,304 7,013 33% Q3-2022 YTD Revenue Analysis Interest income 305 386 (21%) Dividend income 779 900 (13%) Gain / Loss from investments at fair value through P/L (948) 14,373 (107%) Gain
Slide 13: Balance Sheet Key Metrics
Balance Sheet Key Metrics Sep Dec Sep (KWD 000's) 2022 2021 2021 ASSETS Cash and bank balances 9,845 10,497 7,024 Asset Under Management Time deposits 2,131 106 5,044 Investments at fair value through profit or loss 118,753 111,618 107,069 Investments carried at amortized cost 1,804 2,167 774 Assets
Slide 14: Asset Management & Investment Banking
Asset Management & Investment Banking Management Fees & Commission (KD 000’s) 63% Y-o-Y 3,143 3,304 2,799 2,857 2,026 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Asset Management Fees1 (KD 000’s) Investment Banking Fees (KD 000’s) 56% 194% Y-o-Y Y-o-Y 458 3,077 2,989 315 2,665 2,341 1,919 192 107 66 Q3
Slide 15: Asset Management Fees Returns
Asset Management Fees Returns Asset Management Fees1 (KD 000’s) AUM (KD million) 1,170 1,161 1,142 3,077 2,989 2,665 2,341 1,919 1,053 1,041 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Annualized Management Fees (%) 1.05% 1.05% 0.90% 0.92% 0.73% Q3 2021 Q4 2021 Q1
Slide 16: Return on Principal Investments
Return on Principal Investments Income Returns (KD 000’s) Investment Assets1 (KD million) 9,150 195 194 4,168 2,645 188 188 188 (1,392) (4,750) Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Annualized Income Returns (%) 18.8% 8.9% 5.6% -2.8% -9.8% Q3 2021 Q4 2021 Q1
Slide 17: Capital Structure and Returns
Capital Structure and Returns Markaz Net Debt to Total Equity stable at 0.45x Sep Dec Sep Return on Assets1 (%) (KD 000's) 2022 2021 2021 Bank borrowings 36,801 25,280 13,337 8.8% 8.6% Due to Banks - 457 1,303 7.1% Bonds Issued 35,000 35,000 44,350 Total Debt 71,801 60,737 58,990 3.3% Cash and Bank
Slide 18: Shareholders Information
Shareholders Information Focused on sustainable value creation for shareholders Major Shareholders Corporate Information Major Shareholders Type % Holding Main Market – Boursa Kuwait Market Segment Listing (Sec Code: 213) Kuwait Pillars for Financial Investment Direct 29.695% Cash Dividend – 10 Fils
Slide 19: 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 20: Thank you.
Thank you. +965 2224 8000 | info@markaz.com markaz.com
Kuwait Financial Centre K.P.S.C. (Markaz) — Q3 2022 Earnings Presentation on 6ix