The National Investor (TNI), one of the UAE’s leading investment and merchant banking firms, today announced mid-year consolidated net earnings of AED 83.3 million for the six months period ending September 30 2005. This represents a 331% surge over the corresponding period of last year, with net earnings per common share amounting to AED 1.67, compared to 0.96 earned over the same period last year.
Commenting on the results, Chairman of TNI, Mr. Abdullah Mazroui, stated: “We are delighted to announce a superior all-round performance. TNI has grown substantially to report sizable profits and shareholder returns and these have been achieved due to exceptional growth from our core business units. The most significant improvements are derived from asset management and the strong performance of our investment banking unit and strengthens our position as one of the most dynamic, progressive and profitable banking firms in the Gulf.”
Throughout the year, the company has demonstrated the strength of its investment banking franchise, ranking first in IPOs with the public offerings of AABAR (acting as Lead Manager and Book Runner) and Sorouh (acting as Financial Advisor and Joint-Lead Manager). As a result the company’s revenues from Investment Banking and Advisory activities climbed to AED 21.8 million compared to AED 5 million - a 336% increase over the same period in the previous year. In addition, TNI’s portfolio of listed equities appreciated 78.5% versus a 43.03% increase for the NBAD Index, thereby outperforming the market by 35.47%.
Revenues from direct investments in private equity and investment funds climbed to AED 15.1 million, representing a 1,158% increase over last year’s AED 1.2 million. In addition, revenues from asset management activities stood at AED 9.5 million compared to AED 0.3 million for the corresponding period last year.
TNI also raised its capital by AED 300 million in the second quarter of 2005, resulting in an overwhelmingly oversubscribed rights issue. Shareholders’ equity stood at AED 410.9 million on March 31, 2005 and recorded an increase of AED 473.3 million for the six months period ended September 30 2005 to a total shareholders’ equity of AED 884.2 million.
The Momentum Continues
The National Investor continued its momentum in 2005 with establishment of its Real Estate Division in February this year. As the only investment bank in the UAE with a fully dedicated real estate investment banking team, the Real Estate Division provides comprehensive real estate solutions to potential investors that include investment banking, asset management, real estate private equity, development & project management, leasing and property management.
“Our Real Estate Division is well positioned to capitalize on the growth in this booming sector and will continue to contribute significantly the firm's profits by year end. We have already secured a number of prestigious real estate investment banking deals inclusive of Al Surouh AED2.5 billion IPO, the largest in the history of the country, and the ALDAR Properties AED1.5 billion IPO. In its eight months of operation, our Real Estate Division has contributed to both the revenues and bottom line figures of TNI,” continued Mr. Mazroui.
“As we continue to move from strength to strength, our strong business growth is testimony to the trust that our customers and shareholders have in the company and its future performance in safeguarding their long-term interests,” concluded Mr. Abdullah Mazroui.
About the National Investor:
The National Investor (TNI) is a leading UAE investment and merchant bank with a distinguished track record in investment banking, private equity, real estate and asset management. The Company is backed by over 80 UAE shareholders who come from the highest echelons of the business and political community. TNI is currently ranked as the leading private equity house in the Middle East and the leading arranger of public share offerings, having lead managed the largest number of public offerings in the UAE to date.
