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Wed 30 Mar 2016 01:46 PM

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Kuwait's Global says costs slashed by 10% in 2015

Investment firm says posts marginal increase in net profit despite adverse market conditions

Kuwait's Global says costs slashed by 10% in 2015

Kuwait-based Global Investment House on Wednesday reported a net profit of KD6.6 million ($21.7 million) for 2015, a marginal increase over the previous year despite adverse market conditions

Global, which was hard hit by the global financial crisis, undergoing two debt restructurings, also posted 2015 revenues of KD16.4 million, 75 percent generated from fee-based businesses.

Global's board proposed a 5 percent cash dividend, subject to shareholders’ and regulatory approvals.

The company said in a statement that its continuous efforts to control its cost base resulted in reducing its operating cost base by KD1.5 million.

Commenting on the results, Ibrahim Saad, chairman, said: "Global has achieved significant growth in net profit for the third consecutive year, thanks to its management’s efforts in implementing the company’s strategy of growing its core businesses while minimising risk.

"We are delighted by these excellent financial results, which were generated during difficult times for the capital markets and the investment services industry."

Maha Al-Ghunaim, vice chairman and group CEO, added: “Despite the extremely volatile and challenging times, we successfully widened our client base, enhanced our product offering, signed new mandates, raised new money and maintained our profitability momentum. Furthermore, we reduced our operating costs by 10 percent in spite of expanded business activities."

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