Global Investment House made an overall net loss of KWD98.6m, or KWD0.080 per share, in the first six months of 2009, but a profit of KWD8.1m from its asset management and brokerage lin
Global Investment House made an overall net loss of KWD98.6m, or KWD0.080 per share, in the first six months of 2009, but a profit of KWD8.1m from its asset management and brokerage lines of business.
Its Q2 2009 overall net loss reduced by 58 per cent to KWD29.0m compared to the Q1 2009 net loss.
The loss is mainly attributable to realised and unrealised losses and impairment from principal investments and real estate of KWD44.0m, and losses from share of results of associates of KWD29.4m. Losses from share of results of associates for Q2 2009 were reduced to KWD1.5m compared to Q1 2009 losses of KWD27.9m.
Fee, interest and dividend income contributed K’D18.2m to the operating income during first half of 2009.
Despite the reported net loss in H1 2009 Global’s total assets amounted to KWD1,011.3m and net assets KWD213.0m.
Total AUM as at 30 June 2009 amounted to KWD2,074.7m. Global’s asset management business remained resilient with several of the funds outperforming their respective performance benchmarks. Global Mena Ijarah Real Estate Fund decided to reward its unit holders with a 6.5 per cent cash dividend for the second quarter of 2009. This was the Fund’s third distribution since its final closing in September 2008. Global Buyout Fund distributed a three per cent cash dividend whereas Global Opportunistic Fund II distributed USD15.3m to the unit holders after realizing gains from an investment.
Global continues to work towards reducing its operating cost base. H1 2009 personnel expenses of KWD4.6m were 53 per cent lower than the first half of 2008. Other operating costs of KWD9.6m were however higher than H1 2008 on account of one-off costs associated with the restructuring process and increases in costs arising from acquisitions made in H2 2008. Staff costs declined by 14.6 per cent during the second quarter and other operating costs declined by 11.2 per cent as compared to Q1 2009 as a result of continued cost rationalization efforts.
Maha Al-Ghunaim, chairperson and managing director of Global, says: ‘Our first half results continued to be impacted by market turbulence and decline. Reassuringly the pace of decline slowed during the second quarter, which gives us confidence going forwards. Strengthening fee generating lines of business, namely asset management, investment banking and brokerage is integral to our future profitability.
‘Although we have not yet concluded the restructuring of our debt obligations, I am convinced that we are up to the challenge and will emerge from this period of market dislocation as a stronger company, able to serve our clients even more effectively and deliver value for our shareholders.’
