By Nabilah Annuar, Islamic Finance group
Qatar-based investment bank, QInvest, has reported strong financial results for the year 2013. The company recorded an increase of US$60 million in net profits, attributed to a staggering 40% increase in revenues, coupled with a 30% reduction in costs.
In an exclusive interview with Islamic Finance news, Michael Katounas, the newly appointed head of investment banking at QInvest, revealed the company’s plans for the year. “2014 is shaping up to be a very busy year. Our financing business has 10 transactions at various stages of development and we expect to exceed last year in terms of capital deployment. We see very strong Sukuk interest and are actively working with clients to tap the market in the first and second quarter,” he said.
In October last year the investment bank streamlined its activities to focus on three core businesses: investment banking, asset management and investing in its own capital. “The results of 2013 with 40% increase in revenue, 30% reduction in costs and our profitability at the bottom line are clear evidence that the strategy is working. We see one-off opportunities outside our three main areas of activity and although tempting to explore, we will remain committed to the strategy and solidify our financial performance this year,” explained Katounas.
QInvest, is currently working together with the National Bank of Oman (NBO) for the issuance of a sovereign Sukuk. Katounas explained that the partnership with NBO is a “win-win” situation and that QInvest has also teamed up with several clients to implement their structuring and placement expertise to that particular market.
Commenting on investment avenues, Katounas pointed out that real estate, infrastructure and hospitality are the key sectors that for many years have created enormous value for regional investors. “We fully expect them to remain as such in the years to come,” he said. Oil field services on the other hand, provide an exposure to natural resources activities that are at the core of the region’s wealth, while education and healthcare are increasingly becoming important for investors.
Concluding his premise, Katounas asserted that 2014 will be another year of delivery for QInvest’s new strategy. “We are seeing increased level of activity from clients in the region and clients outside the region. We are confident we will deliver for our shareholders.”