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Mon 27 Oct 2008 10:36 PM

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Kuwait's Global Q3 profit up 36% on higher fees

Investment bank reports $77mn income, investment losses covered by gains.

Kuwait's Global Investment House posted a 36.1 percent rise in third-quarter net profit on higher investment banking fees, shrugging off a dive on regional Gulf bourses.

Kuwait's biggest investment bank by market value, which offers advisory services and buys into firms, raised $1.15 billion this year by selling global depositary receipts (GDRs) in London to finance expansion.

Net income in the three months to Sept. 30 rose to 20.7 million dinars ($77.04 million), up from 15.21 million dinars in the same period a year ago, Reuters calculated based on nine-month profits released by Global.

Investment banking fees reached a record 23.5 million dinars in the first nine months, up from 11.5 million dinars in the first half of this year, Global said without providing quarterly data.

Revenues in the nine months increased 52 percent to 157.7 million dinars, Global said.

Global, which buys into companies through investment funds, said it was affected by a fall in investments in sliding regional markets as it lost 34.3 million dinars, but almost covered it by gains from selling stakes in other firms.

Assets under management rose to $10.2 billion at the end of the nine months from $9.4 billion in the first half.

Global has launched a string of share placements, raising with partners $600 million, by selling stock in a Saudi real estate firm.

In July, it also raised $500 million in an initial public offering for a private equity fund listed in London.

Global, which is present in Bahrain, Saudi Arabia and Qatar, also has said it wants to boost its brokerage business after buying 70 percent of a local brokerage firm in May.

Global's stock fell 8.93 percent on Monday, closing at 510 fils, while the main index lost 2.22 percent.

Earnings were released after the close of the market. (Reuters)

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