Investment Funds Increase Softbank Group Profits
Demonstrate the feasibility and effectiveness of Saudi investments abroad
Tuesday, 27 Safar 1440 H – November 6, 2018 AD Number Problem [
Softbank Group Japan yesterday reported a jump in second-quarter profit of more than 78 percent (Reuters)
Riyadh: Shuja al-Buqami
Softbank Group's financial results show the effectiveness of Saudi investments abroad, Softbank Vision Fund has increased the Group's financial results to a strong level during the final months of the year.
Since the launch of the Vision Softbank Fund between the Saudi Public Investment Fund and the Japanese Softbank Group, the Group's profits have increased, confirming the effectiveness of Saudi investment and its ability to choose foreign investment.
Softbank Group Japan yesterday announced a surge in quarterly profit thanks to a higher assessment of high-tech investment. Group profits rose to 705.7 billion yen (around 6.2 billion dollars) from July to September, compared with 395.6 billion yen in the same period last year, a growth rate of more than 78 percent.
Softbank and Vision Fund, which have become the largest direct investment funds in the world after collecting more than $ 93 billion last year, witnessed growth in their technology assessments such as the Uber type taxi application and General Motors' own driving unit.
The bank's net profit jumped eightfold between April and September thanks to strong results from its investment funds. Net income rose to 840 billion yen ($ 7.4 billion) from 103 billion yen for the same period last year. While the increase was driven by the profits of «Vision Softbank» which amounted to 649 billion yen, compared with 194 billion yen for the previous period.
Softbank has invested heavily in the automotive driving sector and last month announced a partnership with Japanese carmaker Toyota to offer new services.
GM announced this year that the Japanese group had invested $ 2.25 billion in its auto-driving program in return for shares in the project.
These financial results show the feasibility and effectiveness of Saudi investments abroad, which confirms the achievement of economic expectations, which proves the correct strategic view of the investment.
This result confirms that despite everything said and reported about the Saudi economy, in terms of numbers, it competes to achieve extraordinary success in line with the Kingdom's vision of 2030.
Saudi investment made in light of Vision 2030 is "smart and strategic" in identifying investment fields or partners, which are reflected in positive financial results.
The increase in profitability of Saudi Arabia's investment partners is seen as a guide to the attractiveness and vitality of Saudi investment, which focuses on investing in technology and applications.
The new Saudi investment aims to maximize the value of PIF assets, launch new sectors, localize advanced technology and knowledge, and build strategic economic partnerships in the Dana program.
Saudi Arabia's income grew by 57 percent compared to the same period last year, while total revenue for the third quarter of this year reached SR 663.1 billion ($ 176.8 billion)), registering 47 percent growth over the same period last year (nine months first 2017).
The Saudi Ministry of Finance announces quarterly state budget reports in the third quarter of fiscal 2018 on its website. This quarterly indicator shows a decline in the deficit rate compared to the same period of the previous year, supported by significant positive growth in oil and non-oil revenues, which confirms the effectiveness of economic reforms and fiscal measures aimed at maintaining public finances and their management effectiveness .