QINVEST, Qatar's leading private investment group and one of the region’s most prominent Islamic financial institutions, today announced its half yearly results for 2018. Revenues from all business lines amounted to QAR 148.1 million (US$ 40.7 million), resulting in operating profit of QAR 54.9 million (US$ 15.1 million) and net profit attributable to shareholders of QAR 9.1 million (US$ 2.5 million). The group’s global assets stood at QAR 4,465 million (US$ 1,227 million) as of 30 June 2018.
The group’s revenues and net profit were impacted by market uncertainty and fell during the first half of 2018. Operating costs have also reduced following efficiency initiatives undertaken by the management.
The first half of 2018 saw headwinds in the region; however, the diversified nature of the group has allowed QINVEST to capitalize on more favorable global market conditions. Remaining prudent in its management of risk, the group remains committed to its strategy of prioritizing investments that can deliver risk-adjusted returns across all markets.
QINVEST started 2018 with an active investment book and a healthy pipeline of deals. It has invested selectively across different sectors and markets in which there are opportunities for growth, particularly in international real estate, murabaha and equity investments, and funds. This allowed the group to serve the needs of its clients, while also generating value for shareholders.
QINVEST has several updates across its three key business lines - Investment Banking, Asset Management, and Principal Investments.
On the Asset Management front, the team has had a successful half year, reflecting the strength of its strategy and track record in the marketplace. The team has continued to focus on new revenue generating initiatives such as the launch and closure of the “QINVEST SQN Income Fund II”, with the groundwork being finalized for the launch of the “QINVEST SQN Income Fund III” during the third quarter of 2018. The second version of the Ijara fund series, “QINVEST SQN Income Fund II”, demonstrated strong performance, and paid its first dividend at the end of March 2018. The addition of the QINVEST Spyglass Fund onto the QMAP has also proved successful, with the fund outperforming the broader US market by 12% since its launch in the first quarter of this year. The team hopes to capitalize on it strong pipeline going into the second half of 2018. In Turkey, QINVEST asset management arm, QINVEST Portfoy, saw growth in local currency terms despite country specific conditions.
On the Investment Banking front, the Mergers & Acquisitions franchise continued to build a pipeline of prospective buy-side and sell-side local and cross border mandates. The debt markets franchise is in constant dialogue with various clients for structured finance and liquidity solutions, including GRE’s, corporates and financial institutions. This includes arranging for collateralized lending, advising on international Sukuk issuances, and supporting on other bespoke solutions. During the first half of the year, the team received significant interest from Qatari institutional and private clients as investors look to re-adjust business portfolios to take advantage of evolving market conditions.
On the Principal Investment front, the group reported growth across its Real Estate, Credit, and Equity investments:
- The Real Estate franchise continued managing its existing portfolio and reinforcing strategic relationships with partners, while monitoring existing investments with the objective of maximizing value and realizing exits where appropriate. The team has also reviewed new potential transactions in its target markets which are expected to close in the second half of 2018. Additionally, the team is actively engaged in a number of advisory transactions in close coordination with the group’s Investment Banking division.
- Being committed to delivering superior risk-adjusted returns with an emphasis on portfolio diversification, value maximizing rotation and liquidity optimization, the Credit Investments franchise has played a major role in identifying opportunities for the group’s own capital, as well as shareholders and third-party client funds. During the first half of the year, Emerging Markets have witnessed increased volatility compared to developed markets. The Credit Investments team continued to monitor the market for opportunities as well as signs of more lasting macro-economic stress to re-assess its current positioning.
- The Equity Investment franchise maintained a focus on its portfolio of proprietary and third-party managed investments across MENA, Europe and Asia. The portfolio is competitively performing well, generating value for shareholders and partial realizations as certain investments reach maturity. The team aims to selectively seek opportunistic exits based upon supportive macro tailwinds and solid underlying growth.
As a testament to QINVEST’s achievements in 2018, the group has been awarded a number of prestigious accolades including:
- The Asset Triple A Islamic Finance Awards 2018, “Islamic Asset Manager of the Year, Qatar”, “Best Islamic Investment Bank, Qatar”, “Sukuk Adviser of the Year, Qatar”, “Best Islamic Deal, Bahrain” for the role of Shariah adviser and lead manager for Al Baraka Banking Group US$400 million additional tier 1 perpetual mudaraba sukuk, and “Best Islamic Deal, Qatar” for the role of Shariah adviser, arranger and lead manager for Qatar Islamic Bank US$750 million trust certificates
- Euromoney Awards for Excellence 2018, Best Investment Bank in Qatar
- Wealth & Finance International Alternative Investment Awards 2018, “Best Private Investment Group 2018 – EMEA” and “Best Absolute Return Low Volatility Fund (Since Inception): QINVEST Sharia’a Allocator Fund”
- Global Finance World's Best Islamic Financial Institutions Awards 2018, Best Islamic Investment Bank
- Corporate LiveWire Global Fund Awards 2018, the Middle East Investment Group of the Year
- ACQ5 Global Awards 2018, Asset Management Advisor Firm of the Year in Qatar
- ACQ5 Global Awards 2018, GAMECHANGER of the Year, TAMIM HAMAD AL-KAWARI, in Qatar
- MEA Markets 2018 Qatar Business Excellence Awards, Best International Investments Group 2018
- EMEA Finance Middle East Banking Awards 2017, Best local investment bank - Qatar
- Islamic Finance News Awards 2017, “Regulatory Capital Deal of the Year” and “Bahrain Deal of the Year” for Albaraka Banking Group US$400 million Tier 1 Sukuk
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