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Investcorp reports 56 per cent increase in net income for Fiscal Year 2013.

Net income grew by 56 per cent year-on-year to reach $104.9 million, compared to $67.4 million in 2012.

Gross operating income increased by 35 per cent in FY13 to $361.8 million (FY12: $267.1 million). Second half net income was $65.7 million (H2 FY12: $62.2 million), according to a media statement.

Fee income grew of 40 per cent year-on-year to $329.5 million in FY13 (FY12: $236.0 million), primarily driven by a very strong increase in deal activity fees, which more than doubled to $193.4 million and represented 58.7 per cent of total fee income. During the year, Investcorp concluded eight new corporate investments and there were four significant realisations.

Asset-based income was up slightly year-on-year, with the strong turnaround in hedge fund returns offset by flat returns on Corporate and Real Estate investments. The mix of performance across the three asset classes during the year highlighted the benefit of diversification within the balance sheet co-investment portfolio and the lower risk to asset-based earnings from lower return correlation.

Nemir A. Kirdar, Executive Chairman and CEO, said, "We are pleased by the progress we have made against a backdrop of slow recovery in the world economy, which is a testament to our model of offering investors the opportunity for international portfolio diversification. As we enter our fourth decade, our plans to invest in our office network across the Gulf are well underway, with our Riyadh office expanded and new offices in Abu Dhabi and Doha pending regulatory approval. By being closer to our clients we believe we will strengthen our unique ability to raise money across the Gulf, the US and Europe and continue to drive returns for our shareholders and investors."

The Board of Directors has proposed a dividend of $15 per ordinary share (FY12: $7.50 per ordinary share), along with the full dividend of 12 per cent on the preference shares.

2013 CPI Financial. All rights reserved.

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Publication:CPI Financial
Article Type:Financial report
Date:Jul 30, 2013
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