Global Investment House (Global) has announced its financial results for the year ended Dec. 31, 2014, reporting a net profit of KWD6.5 million ($22.2 million), a many folds increase over 2013, which stood at KWD 1.9 million ($6.3 million). Revenues grew by 72 percent to reach KWD22.5 million ($76.7 million).

Fee-based businesses (asset management, investment banking and brokerage) generated revenues of KWD15.2 million ($51.8 million), a 29.8 percent increase compared to 2013 fee-based businesses revenues of KWD11.7 million ($39.9 million). Revenues from fee-based businesses represent 67 percent of the company’s revenues generated during 2014.

During 2014, the asset management business remained resilient with KWD1.2 billion ($4.1 billion) of assets under management.

Global manages 24 funds primarily focused on the region covering multiple asset classes like traditional equity, private equity and real estate.

Despite significant adverse equity markets’ movements in the GCC and MENA region during the last quarter of 2014, some of the company's flagship funds crossed the high watermark thresh-holds for incentive fee (carry) generating KWD0.8 million ($2.6 million) of incentive fee.

On the brokerage front, Global brokerage made focused efforts to grow the institutional brokerage business.

During 2014 the investment banking team successfully concluded an M&A transaction for a Kuwaiti company in the financial sector and advised an industrial company in Kuwait on its KWD130 million ($443.2 million) debt restructuring.

During the year, the Company generated a KWD2.6 million ($8.8 million) other income.

To facilitate the expanded business activities, the operating cost base increased by 13.4 percent to KWD14.8 million ($50.3 million). The company succeeded in restricting cost increases to cost items directly linked to business generation and revenue growth.

The board of directors proposed a 5 percent cash dividend (5 Kuwaiti fils per share), subject to the approval of the company’s shareholders and regulators.

Ibrahim Saad, chairman of the board, said: "Global has made significant growth in net profit and revenues, thanks to the management’s efforts in implementing the company’s strategy focusing on growing the core businesses while minimizing risk. Good operating performance and an excellent capital structure have facilitated the board's decision of recommending the distribution of cash dividend to shareholders."

Maha Al-Ghunaim, vice chairman and group CEO, said: "What distinguishes Global's earnings during the year 2014 is the quality of its revenues generated by the fee-based core businesses."