The end of 2015 witnessed significant adversity across all the GCC capital markets for the second consecutive year, with the region undergoing unprecedented economic conditions and oil prices touching historical lows unseen since the global economic crisis, leading to a steep decline in investor sentiment.
In addition to the dramatic drop in oil prices, the financial markets worldwide saw steep market volatility due to major economic events such as the devaluation of the Chinese Yuan and the interest rate hike by the US Federal Reserve Board for the first time in eight years. The repercussions of the latter affected all asset classes globally and pushed the GCC governments to develop new spending policies in order to cope with budget deficits.
On a regional level, these events gave rise to a number of positive developments, and served as a catalyst for major economic adjustments. Accordingly, the governments in the region are accelerating their efforts to diversify the economy and shift focus to non-oil sectors in effort to achieve sustainable economic growth and create more job opportunities.
Despite the backdrop of unfavourable economic conditions and geopolitical tensions which unveiled many challenges during 2015, KAMCO managed to record a revenue of KD 7.3 million, maintained operational growth and witnessed a significant upsurge in investment activity, asserting KAMCO’s leadership in the market.
An Account of gains and Losses for the Year Ended December 31, 2015
KAMCO’s client-centric business model is rooted in diversifying investment activities. We focus on progressively developing our asset management strategy via introducing new and innovative products that meet every client’s specific need, whilst offering promising returns on their investment. This is complimented by KAMCO’s pre-emptive vision, the expertise of our Investment Banking team along with their capability to execute successful return-yielding transactions for the company and its shareholders, as well as our ever-growing network of valued relationships that our Wealth Management team diligently fosters, serves and strengthens across generations.
In spite of the current market instability, 2015 was evidence of KAMCO’s vigour and resilience in securing positive growth via its sustainable strategy. We confidently approached challenges with renewed faith and acclimatised to change as consistently demonstrated since the outbreak of the global financial crisis in 2008 up until now, recording a net profit of KD 523,688 for the year ended 2015. Once and again asserting that KAMCO’s name is and will remain a trademark for trust and security for its investors and shareholders.
We owe these results to the successful implementation of our clear long-standing strategy that had consistently ushered KAMCO towards enhancing operational performance and focusing on conservative yet maximum return-yielding investments.
Summary of Consolidated Financial Statements for the Year Ended December 31, 2015
In view of that, KAMCO’s total assets for the year ended December 31, 2015 reached KD 70,195,936 in comparison to KD 67,746,513 for the year ended December 31, 2014, registering an increase of KD 2,449,423. Whilst the total equity for the year ended December 31, 2015 amounted to KD 38,920,234 in comparison to KD 39,766,041 for the year ended December 31, 2014, recording a decrease of KD 845,807. KAMCO’s retained earnings reached KD 1,690,783 for the fiscal year ended December 31, 2015, opposed to KD 2,448,738 for the year ended December 31, 2014. The distributed cash dividends for the year ended December 31, 2014 amounted to KD 1,191,754 with a distribution rate of 5% (5 Fils per share). The Board of Directors recommended a cash dividend from the retained earnings of KD 1,188,992 (one million, one hundred eighty-eight thousand, nine hundred ninety-two Kuwaiti dinars), which is 5% of the nominal value per share (5 fils per share) for the year ended 31 December 2015 to registered shareholders in the company records on the date of the annual general assembly meeting, after the deduction of treasury shares.
Now, we embark on a new year with a transformational vision and a sustainable plan towards setting higher benchmarks for our company, our clients and our shareholders, backed up by 17 years worth of expertise in investment banking and asset management, a proven track record achieved by an ambitious team who are constantly seeking to reach new heights of success, and further consolidated by our robust reputation for solidity, transparency, prudence and product innovation. With this in mind, we are looking forward to expand our geographical presence, in the near term, by penetrating new markets in order to maximize our investment knowledge and capitalize on our ever-expanding network base.
Ultimately, I would like to extend my deepest gratitude and appreciation to our respected shareholders for their resolute support and confidence during both challenging and prosperous times and I affirm our commitment to striving for greater mutual successes in the future.
I further extend my sincere appreciation to KAMCO’s Board of Directors, executive committee, executive management and all KAMCO employees for their hard work, persistence and professionalism, which contributed to steering KAMCO towards achieving the best possible results amid market challenges and overall turmoil in the region, and further asserted our leadership position in the region.
I applaud all the decision makers in Kuwait and the region for their vital role in strengthening the local and regional investment framework via developing rules and regulations that supported and continues to improve the investment situation and the investment community as a whole.
Lastly, I must also convey my gratitude to our valuable clients who are our catalyst for growth and success.
Abdullah Nasser Al - Sabah