Dubai: Investcorp Bank BSC, the Bahrain-based alternative investment firm with $17.6 billion (Dh64.5 billion) of assets under management, posted a full-year loss as fee income declined and it wrote down the value of investments.
The net loss was $780.6 million, or $1.12 a share, in the year ended June 30, after a profit of $151.1 million, or $0.212, a year earlier, Investcorp said yesterday in a statement. The company's second-half loss narrowed to $269.5 million from $511.1 million in the previous six months.
"Investcorp took a conservative view" by marking down the value of its private equity and real estate investments amid "the worst period of sustained stress to the world economy and financial markets in living memory," the company said. The "systemic shock" also reduced fee income, it added.
Investcorp raised more than $500 million through the sale of preference shares this month to shore up capital. The company raised a total of $1.6 billion in the fiscal year from offerings in the Arabian Gulf and other countries.
The firm's Tier 1 capital adequacy ratio, a measure of financial strength, rose to 20 per cent from 18 per cent last year, the company said.
Investcorp reported a $218 million loss from its assets, primarily on declines in hedge fund investments. It posted a profit of $222 million the previous year.
Writedowns totalled $348 million, compared with $23 million. Fee income fell to $129 million from $383 million.
The company cut operating expenses by 22 per cent to $206 million in the year, it added.