Waha Capital more than triples Q3 profit despite global macroeconomic headwinds

Abu Dhabi-listed company is 'well equipped' to navigate continuing economic volatility, chairman says

The company said its total income rose 67 per cent year-on-year in the third quarter. Photo: Waha Capital

Waha Capital, which counts Mubadala Investment Company among its shareholders, more than tripled its third-quarter profit as both its public markets and private investment businesses grew.

Net profit attributable to shareholders jumped to Dh99.5 million in the July to September period, compared with Dh32.1m in the same quarter of 2021, the company said on Friday in a statement to the Abu Dhabi Securities Exchange, where its shares are traded.

The company recorded growth amid a “challenging” operating environment as high inflation and geopolitical uncertainty continued to affect global capital markets and other asset classes, Waleed Al Muhairi, chairman of Waha Capital, said.

“Despite macroeconomic headwinds, Waha Capital demonstrated its resilience and reported strong financial performance for the third quarter,” he said.

“With a diversified portfolio and healthy balance sheet, Waha Capital is well-equipped to navigate continuing economic volatility.”

In the third quarter, the company's total income rose 67 per cent year-on-year to Dh243.2m.

Its public markets business, which manages emerging market credit and equity funds, reported net profit of Dh194m, up from Dh150m in the same quarter of last year.

“The flagship funds in the public markets business have continued to outperform their respective benchmarks year-to-date and cumulatively since inception,” the chairman said.

The company's private investment business swung to a net profit of Dh5m, from a net loss of Dh47m in the third quarter of last year.

“The private investments business has grown its Global Opportunities and Core Portfolio while also generating value by monetising mature assets,” Mr Al Muhairi said.

The Waha Mena Equity Fund yielded a total return of 12.1 per cent for the first nine months of 2022, compared to zero per cent for the reference S&P Pan Arab Composite Index.

The Waha CEEMEA Credit Fund returned minus 2 per cent for the first nine months of 2022, with the reference JP Morgan CEEMEA CEMB Index recording total returns of minus 27.6 per cent for the same period.

Similarly, the Waha Islamic Income Fund returned minus 1.76 per cent for the first nine months of 2022, compared to minus 11.75 per cent for the reference Dow Jones Sukuk Index, the company said.

Waha Land, a wholly-owned unit of Waha Capital that owns and operates a light industrial real estate development in Abu Dhabi, generated a net profit of Dh28m year-to-date, compared wih Dh29m in the same period last year. The property portfolio is currently 95 per cent leased.

Waha Capital recorded net profit of Dh259m for the first nine months of 2022, down from Dh454m in the prior-year period.

Waha Capital’s total assets under management stood at Dh6.5 billion at the end of September.