Waha Capital profits at record Dh306.4m as investments pay off

The Abu Dhabi-based Waha Capital said profits topped Dh306 million last year.

The Abu Dhabi-based investment firm Waha Capital said profit last year increased to a record, boosted by returns from its stakes in the New York-listed aircraft leasing company AerCap Holdings and the UAE consumer finance company Dunia Finance.

Net income rose to Dh306.4 million, or 16 fils per share from Dh214.4m, or 11 fils per share in 2012, the company said. The value of Waha Capital’s assets rose 18 per cent at the end of last year to Dh5.24 billion from Dh4.44bn, it said.

“Thanks to our strong balance sheet, we are well positioned to make further investment in attractive sectors across the region and to continue delivering solid returns for our shareholders and investment partner,” said Salem Rashid Al Noaimi, the chief executive and managing director. “Our strategy is to acquire majority stakes in companies where value can be added through our principal investments while increasing exposure to debt and equity markets through our equity capital markets unit in order to enhance liquidity in our diversified portfolio.”

AerCap, in which Waha has a 26.3 per cent stake, said in December that it had agreed to buy the insurer American International Group’s aircraft leasing business in a deal valued at more than US$5bn. Under the terms of the transaction, which will increase the size of AerCap’s fleet to more than 1,300 aircraft, AIG will receive $3bn in cash in addition to 97.5 million AerCap shares for its wholly-owned subsidiary International Lease Finance Corporation.

Waha said it expected to get “immediate shareholder value through the dramatic increase in scale and earnings at AerCap”. The acquisition is expected to be sealed in the second quarter of this year, Mr Al Noaimi said.

Elsewhere in Waha’s portfolio, Dunia Finance added 24,000 customers last year and had a loan growth of 35.4 per cent amid a rebound in the UAE’s economy that has led to increased consumer confidence and rising property prices.

Waha’s capital markets division also continued to perform well last year amid a rally in regional equities during which some stock measures, including Dubai’s, more than doubled. Waha’s other investments include the Dubai-based Stanford Marine Group as well as its participation as a sponsor and limited partner in the $300m Mena Infrastructure Fund. The fund acquired a 20 per cent stake in Sohar Power, a Muscat-listed company in 2013.

Waha shares rallied 300 per cent last year, while shares of AerCap advanced 180 per cent.