Boursa Kuwait’s net profit increases by 36.8% for the first half of 2022

Press release
Published August 2nd, 2022 - 04:42 GMT
Boursa Kuwait’s net profit increases by 36.8% for the first half of 2022
Mohammed Saud Al-Osaimi, Boursa Kuwait’s Chief Executive Officer.
Highlights
Equity Attributable to Equity Holders of Parent Company increases by 10.8%
Total Operating Revenue sees increase of 21.8%

In a meeting of its Board members on 1 August 2022, Boursa Kuwait announced net profits (attributable to equity holders of the Parent Company) of KD 10.7 million for the six month period ended 30 June 2022, an increase of  36.8% compared to the same period in 2021, when the company recorded net profits of around KD 7.8 million. 

The company generated 53.37 fils Earnings per Share, an increase of 36.8% compared to its total of 39.03 fils over the same period in 2021, while the Group’s total assets came in at approximately KD 110.8 million, which is an almost 4% increase versus its 2021 total assets for the same period of KD 106.5 million. Equity (attributable to equity holders of the Parent Company) increased from KD 52.6 million at 30 June 2021 to KD 58.3 million at 30 June 2022, an increase of 10.8%, while total operating revenue came in at KD 18.4 million, an increase of 21.8% over the same period in 2021, which stood at approximately KD 15.1 million.

Boursa Kuwait Chairman Mr. Hamad Meshari Al-Humaidhi commented: “We are pleased to have recorded a net profit of around KD  10.7 million for the first half of 2022, which is an almost 36.8% increase over its total in the corresponding period in 2021. The company has continued to improve on its results year by year, which shows not only the strength of our operational model, strategy, and underlying financial health, but were also indicators of the company’s resilience as well as that of the Kuwaiti capital market.”

He continued: “Despite the volatility in capital markets across the world, we are hopeful that the results made in the first six months are indications of things to come for Boursa Kuwait, which has made considerable gains in achieving the goals of its strategy since its privatization in 2019. The company’s efficient, sustainable and responsible business practices have made it a model issuer and a standout listed company that has drawn the attention of investors worldwide. I would like to thank my fellow Board members, the Executive Team and the esteemed Boursa Kuwait employees for their monumental efforts to develop and enhance the company, the Kuwaiti capital market and the national economy during the year.”

The increase in profits is partly due to a rise in the total traded value by 30.1%, including a  47.5% increase in “Premier Market” traded value compared to the first half of 2021. The recorded traded value for the first half of 2022 came in at approximately KD  8.4 billion, while the traded shares during that period were approximately 31.2 billion, further contributing to Boursa Kuwait’s bottom line.

On June 7, 2022, Boursa Kuwait announced the listing of Ali Alghanim Sons Automotive Company in its “Premier Market” under the ticker symbol ‘ALG’. The company is included in the “Consumer Discretionary” sector, and its inclusion on the exchange brings the total number of listed companies to 159, while the “Premier Market” now includes 27 listed companies. 

Mr. Mohammed Saud Al-Osaimi, Boursa Kuwait’s Chief Executive Officer commented on the company’s financials for the first half of 2022, saying: “Boursa Kuwait saw a  21.8% increase in total operating revenue in the first six months of 2022, and the Group’s assets saw an almost  4% increase from about KD 106.5 million to KD 110.8 million. These results indicate that the company enjoys a great deal of investor confidence as well as demonstrating the ongoing value and efficiency of the company.”

Boursa Kuwait has also worked diligently towards the sustainability of itself, the market and its participants. The company published its first Sustainability Report in April 2022, which detailed the company’s strategy, partnerships, and initiatives in the fields of Environment, Social, and Governance (ESG) reporting and implementation during 2021. The report came on the heels of the ESG Reporting Guide published by Boursa Kuwait for listed companies, which encourages listed companies to include sustainability metrics in their decision-making and reporting to better pace with the growing interests of local and international investors. 

Furthermore, the company partnered with the UNDP to organize a workshop detailing the best standards and practices for reporting and implementing ESG metrics, making sure they not only align with companies’ overall business strategies and operations but are also compatible with the United Nations’ Sustainable Development Goals (SDGs). 

As part of its effort to further its commitment to contributing to the development and education of all market participants through sharing the latest updates of financial instruments and products implemented across the world, Boursa Kuwait has partnered with the International Capital Markets Association (ICMA) to provide training courses for both brokers and asset management firms. The courses, delivered over the span of one and two weeks respectively, aimed to equip these market participants with an in-depth understanding of the functioning of capital markets and with various tools and techniques required to make informed investment decisions and effectively meet investors’ needs. This forms part of Boursa Kuwait’s efforts to create a lasting impact on the community where it operates as part of its Corporate Sustainability strategy and the company’s ongoing efforts under its ‘Education’ pillar.

Al-Osaimi added: “As we continue making improvements to our suite of products and services, as well as making sure market participants are equipped with the knowledge and tools to make informed investment decisions, we remain steadfast in enhancing the Kuwaiti capital market, enticing more companies to list, and making it more attractive to investors.”

He continued, “We remain committed to improving market efficiency and facilitating access to it, as well as enhancing transparency and governance, increasing liquidity and instilling investor confidence as part of our overarching efforts to raise our market’s profile locally, regionally and internationally.”

Since its inception, Boursa Kuwait, a self-listed company and one of the government entities to successfully undergo privatization, has implemented many steps in accordance with international practices and standards to enhance the position of the exchange regionally and globally, as well as transform Kuwait into a regional and global investment destination, by focusing on creating an attractive issuer base and broadening its investor base, increasing the depth and breadth of its products, as well as upgrading its infrastructure and business environment to international standards. 

Background Information

Boursa Kuwait

Boursa Kuwait was founded on April 21st, 2014 by the Capital Markets Authority Commissioners’ Council Resolution No. 37/2013 dated 20th November, 2013 and the Capital Markets Authority Law No. 7/2010. In addition to being primarily responsible for regulating all aspects of the Kuwaiti capital market, the Capital Markets Authority also has full ownership of Boursa Kuwait, which manages the exchange operations. Boursa Kuwait is responsible for introducing new trading rules, risk management practices, price discovery mechanisms and new technology to ensure that Boursa Kuwait is as robust and secure as possible. The establishment of Boursa Kuwait marked the first step in privatizing the Kuwaiti Stock Exchange, which was founded in 1983. 

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