Investcorp posts H1 net income of $48 million

I nvestcorp, a Bahrain-based asset manager, yesterday announced its semi-annual fiscal year (H1 FY20) results for the six months ended December 31st, 2019.

Despite a challenging macroeconomic backdrop and continuous trade and geopolitical tensions, the firm said it delivered a net income of $48 million for the period, down 17 per cent compared to $58 m for the six months ended December 31, 2018 (H1 FY19). The decrease was attributed largely to fair value declines of private equity investments in the US retail sector and a write down on a legacy asset.

Net income, excluding fair value change of legacy investments, of $59 m is 2pc higher than $58 m for the six months ended December 31, 2018. On a fully diluted basis, earnings per ordinary share were $0.65 for H1 FY20, down 12pc from $0.74 for H1 FY19.

Total comprehensive income for H1 FY20 was $46 m, down 18pc compared to $56 m in H1 FY19. The Firm’s assets under management (AUM) increased by $3.0 billion to $31.1 billion during the period. On September 2, 2019 Investcorp voluntarily relinquished its wholesale banking license to the Central Bank of Bahrain.

Commenting on the results, Mohammed Alardhi, Executive Chairman, said: “Our solid results reinforce our confidence in Investcorp’s organic and inorganic growth strategy. The increase in AUM during the period was largely attributable to organic initiatives, demonstrating strong global demand for our offerings with investors seeking increased exposure to alternative assets.

We remain steadfast in our vision to provide our clients with the best investment solutions and products for their needs across the world, and constantly innovating to deliver new offerings.”