Waha Capital, a leading investment company based in Abu Dhabi, UAE has reported a preliminary net profit of Dh407.2million ($110.8 million) for 2016.

The company’s Capital Markets division recorded a strong rise in income, with its credit and equities funds continuing to outperform. Some assets managed by Waha Capital’s Principal Investments division made lower contributions to the company’s income partly due to prudent one-off provisions.

Waha Capital’s full-year net profit was 30.7 per cent lower than in 2015. However the company delivered a strong return on average equity of 10.5 per cent for the 2016 financial year. Fourth-quarter net profit totalled Dh19.5 million.

The preliminary results were announced following a board meeting in Abu Dhabi chaired by Hussain Jasim Al Nowais, chairman of Waha Capital. The board recommended a dividend of Dh0.20per share, subject to approval by shareholders at Waha Capital’s annual general meeting.

Al Nowais said: “These results demonstrate the success of Waha Capital’s strategy of asset and income diversification, with the company continuing to deliver a strong return on equity despite the challenging global macro-economic environment.

“The company’s prudent financial management means that Waha Capital benefits from a strong balance sheet, and is in an excellent position to implement the next phase of its growth strategy. The board and management remain focused on creating shareholder value, and are working hard to ensure that the company continues to expand and derives optimal performance from all its assets .The board’s recommended cash dividend is testament to the continued success and confidence in the long-term vision that we have set out for the company.”    

Salem Rashid Al Noaimi, CEO and managing director of Waha Capital said: “Waha Capital has reported another set of robust financial results, with our diversified sources of income helping to cushion the impact of the prudent one-off provisions on some of our assets.

“We are firm believers in our portfolio companies and we expect income contributions from them to increase in the future. Our Capital Markets division saw significant income growth after its emerging market credit and equity funds delivered exceptional returns, adding to their excellent multi-year track-record. Meanwhile, our highly experienced investment teams continued to focus on creating maximum value across our investment portfolio. Waha Capital is in a strong position to take advantage of attractive investment opportunities when we see potential and value.”

Total income generated by the Capital Markets division increased 76 per cent to Dh345.8 million in 2016. – TradeArabia News Service