Waha Capital PJSC, a leading investment company based in Abu Dhabi, has reported a net profit of Dh 349 million for the first half of 2015.
Results were driven by the performance of key portfolio assets AerCap Holdings and Dunia Group, along with the company's Capital Markets division.
Waha Capital's first half net profit of Dh 349 million was 224 percent higher than an adjusted net profit of Dh 107.8 million achieved in the first half of 2014 after taking out net non-recurring adjustments, primarily due to the one-off gain that the company recorded that year after unlocking part of the value from its stake in AerCap Holdings. The first half net profit also represents a 182 percent increase compared to the net profit of Dh 123.7 million that was recorded in the first half of 2013. Waha Capital recorded a profit of Dh 166.9 million in the second quarter of 2015.
Commenting on the results announced following an Audit Committee meeting in Abu Dhabi, Hussain Jasim Al Nowais, Chairman of Waha Capital, said: "Our strategy to invest in some of the fastest growing sectors of the economy is reaping its benefits. Waha Capital continues to strengthen its position as a leading investment company with a well-diversified, strong-performing portfolio of regional and global investments. We are focused on creating value for our shareholders and are confident about the company's outlook going forward."
Salem Rashid Al Noaimi, CEO and Managing Director of Waha Capital, added: "Our financial results for the first half of the year clearly show our successful growth trajectory on a normalised basis. We have focused on growing and diversifying our assets across different sectors with high growth potential and are in the process of finalising our capital market product offering to third-party investors later this year; this will help us further expand our revenue mix. At the same time, we are studying new investment opportunities in energy, infrastructure, healthcare and education both locally and regionally, which will add to the quality of our portfolio."
During the first six months of 2015, Waha Capital, which manages direct Principal Investments as well as global securities portfolios, continued to benefit from an increase in earnings per share at AerCap Holdings. AerCap reported a first-half net profit of US$621 million, a 249 percent increase from a year earlier, with earnings per share rising from US$1.28 to US$2.95 per share – an increase of 130 percent, following the company's acquisition of International Lease Finance Corporation in May 2014. AerCap executed sale and part-out transactions for 38 aircraft (20 in the first quarter and 18 in the second quarter) and recorded a gain on disposal of US$88.3 million, compared to US$8.9 million in the corresponding period in 2014.
Waha Capital's stake in the company increased to 13.6 percent, from 12.6 percent at the end of 2014. This followed a decision by AerCap Holdings to buy back US$750 million worth of shares from AIG in June, which had an accretive effect for other shareholders like Waha Capital.
On its part, Dunia Finance recorded net income of Dh 119.6 million for the first six months of 2015, a 44.7 per cent year-on-year rise, as low interest rates continue to bolster consumer demand. The company also expanded its loan book with a customer base of 187 thousand and achieved 49.3% growth in its loan portfolio versus 30 June 2014. Furthermore, customer deposits witnessed strong growth as that figure increased by 65.7% from Dh 620.9 million as at 30 June 2014 to Dh 1 billion as at 30 June 2015.
The Capital Markets Division of Waha Capital generated income of Dh 138.6 million in the first half, and launched equities and fixed income funds that will be offered to third-party investors later this year. Both funds delivered strong performance in the first half of the year with The Waha MENA Equity Fund generating a return of 12.1 percent and The Waha CEEMEA Fixed Income Fund generating a return of 8.5 percent.