Text size:

  • Small
  • Normal
  • Large

Plunging asset income cuts Investcorp Bank's full-year take in half

Investcorp Bank's full-year profits dropped by more than half as the European debt crisis and a slowing global economy took their toll on the company's earnings.

Investcorp Bank's full-year profits dropped by more than half as the European debt crisis and a slowing global economy took their toll on the company's earnings.

Net profits for the period that ended in June fell to US$67.4 million (Dh247.5m) from $140.3m a year earlier, the alternative asset manager based in Bahrain said yesterday. Asset-based income slipped to $31m from $216.2m in the previous period.

"Asset-based income was significantly down year on year due largely to the European crisis, accentuated by a slowing global economic environment," the firm said.

"Asset-based income was also affected by Investcorp's cautious view towards valuation of its corporate investments in light of high levels of market uncertainty, particularly in Europe." Investcorp's hedge-fund business showed a modest recovery in the second half of the financial year, to record a 1.2 per cent gain, it said.

Investcorp became known during the 1980s and 1990s for making eye-catching investments in the luxury retailers Tiffany and Gucci.

It invests mainly in buyouts, property and hedge funds in developed markets on behalf of Middle East clients.

Total assets at the end of June shrank to $2.7bn from $2.9bn in the previous fiscal year, it said. Liabilities in the full year declined from $1.8bn to $1.7bn, while the company's capital adequacy ratio rose to 26.9 per cent.

Investcorp had been striving to recover after a sharp fall in asset prices hurt its balance sheet during the financial crisis of 2008.

In June, the firm signed a $529m loan with Arabian Gulf and international banks to refinance debt due next year. The company proposed a dividend of $7.50 per ordinary share as well as a 12 per cent dividend on preference shares.

Last month, it bought a 30 per cent stake in the Turkish menswear retailer Orka Group and acquired paysafecard.com Wertkarten, an Austrian online-payments company, for 140m (Dh632.2m).

tarnold@thenational.ae

Back to the top

More articles


Editor's Picks

 The Greens, villas: Q1 no change. 3BR - Dh210-250,000. 4BR - Dh210-260,000. 5BR - Dh220-300,000. Q1 2013-Q1 2014 5% rise. Pawan Singh / The National

In pictures: Where Dubai rents have risen and fallen, Q1 2014

Find out how rental prices in the prime locations in Dubai have altered during the first three months of the year and the current rates you will pay according to data provided by Asteco.

 Above, the private pool of Ocean Heights' five-bedroom penthouse flat. Courtesy Christie’s International Real Estate

In pictures: Penthouse flat is height of Dubai luxury living

A five-bedroom penthouse in Ocean Heights in Dubai Marina is on sale for Dh25 million and comes with a private pool and an unparalleled view of Dubai.

 The cooling towers of the Temelin nuclear power plant near the Tyn nad Vltavou in Czech Republic. The country wants to continue expanding nuclear energy capacity despite cancelling a tender to build two new units. David W Cerny / Reuters

In pictures: Best business images for the week to April 17, 2014

Here are some of the best business images for the week to April 17, 2014.

 Three generations of the Hakimi family tend to their stall Crawford Market in Mumbai. Subhash Sharma for The National

In pictures: Shopper’s delight at Crawford Market in Mumbai

Crawford Market is an old British-style covered market dealing in just about every kind of fresh food and domestic animal imaginable. Later on renamed Mahatma Jotirao Phule, the market remains popular among locals and visitors by its old name, taken from Arthur Crawford who was the first municipal commissioner of the city.

 The Wind, Energy, Technology and Environment Exhibition takes place from April 14 to April 16. Above, the Dewa showroom during last year’s Wetex. Jaime Puebla / The National

April corporate and economic calendar for the UAE and overseas

From Cityscape to Wetex to stock-market holidays to nations reporting first-quarter GDP figures, here is our helpful calendar of April's business events in the UAE and internationally.

 Get the latest information on credit cards, bank accounts and loan products in the UAE. Mark Lennihan / AP Photo

Rates report: Latest on UAE loans, accounts and credit cards

Souqamal.com brings you the latest interest rates on banking products in the UAE.

Events

To add your event to The National listings, click here

Get the most from The National