Markaz announces net loss of KD 10.05 million in H1 2020
Date
8/15/2020 5:14:01 AM
(MENAFN- Editorial) Kuwait Financial Centre ''Markaz'' (KSE: Markaz, Reuters: MARKZ.KW, Bloomberg: MARKAZ:KK) reported its financial performance for the first half of 2020, with revenue of KD (1.71) million as compared to KD 12.47 million in H1 2019. Net Loss attributable to shareholders of Markaz was KD (10.05) million for H1 2020 reflecting an EPS of (21) Fils.
The decline in revenue and profits is attributable mainly to the unprecedented events witnessed during the first half of the year due to the spread of the COVID-19 pandemic across the world. The GCC equity market growth momentum that we saw last year dissipated in February 2020, with the rise in cases of COVID-19 adding further pressure on oil prices.
Markaz reported Asset Management fees of KD 3.25 million, a decline of 11.6% y-o-y and Investment Banking fees were KD 0.26 million, a decline of 20.6%. Due to the pandemic, the revaluation loss on financial assets during H1 2020 was KD 10.20 million. Markaz recognized an impairment of investment properties of KD 3.12 million due to the impact of COVID-19. Markaz AUM at the end of the period closed at KD 1.03 billion down by 7.7% compared to H1 2019.
Despite the above, revenues were supported by a step up in Net Rental Income by 295% y-o-y, contributing KD 1.44 million. This was driven by the addition of new properties launched last year in UAE and KSA. During the period, Markaz sold property located in Poland with realized gain of KD 1.07 million, and exited a project in Lebanon distributing USD 6 million to investors.
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