Boursa Kuwait reports 13.3% rise in 2022 net profit

Boursa Kuwait recorded a net profit of KD18m ($58.8m) for the financial year ended December 31, 2022, marking a 13.3 per cent increase from its 2021 total of KD15.9m ($51.9m).

Its operating profit for the 2022 financial year came in at KD22.6m ($73.8m), increasing 22 per cent over KD18.5m ($60.4m) recorded in 2021. Meanwhile, the company reported a operating revenue of KD35.2m ($115m) over the same period, increasing 12.8 per cent over its KD31.2m ($101.9m) in 2021.

#BoursaKuwait increases its net profit by 13.3% to reach KD 18 million for 2022 while total operating revenue increased by 12.8% to reach KD 35.2 million and operating profit came in at KD 22.6, an increase of 22%

— Boursa Kuwait | بورصة الكويت (@boursakw) February 12, 2023

Earnings per share increased 13.3 per cent from 79.15 fils in 2021 to 89.67 fils for the financial year ended December 31, 2022. Total assets came in at approximately KD119.6m ($390m) as of December 31, 2022, rising 8.3 per cent over the 2021 total of KD110.4m ($360.6m).

The bourse’s board of directors proposed the distribution of 85 fils per share in cash dividend for the financial year ended December 31, 2022 – constituting approximately 94.8 per cent of the company’s profit, subject to approval by the Annual General Assembly and regulatory authorities.

“The exchange continues to implement its effective strategy to develop a more liquid capital market, solidifying its role as a key cog in the development of the national economy and working to attract investments from all over the world,” said Hamad Meshari Al-Humaidhi, chairman.

“The company continued to raise the profile of the Kuwaiti capital market around the world to attract local and international investors from different investment orientations. This strategy, in line with the “New Kuwait 2035” vision, aims to contribute to the transformation of our country into a financial and investment center in the region, advancing the national economy seeking to place the Kuwaiti capital market on the investment map as one of the Middle East’s finest.”

The Kuwaiti capital market capped off 2022 with its market capitalization increasing 12.9 per cent to reach KD46.7bn ($152.5bn). Total foreign turnover activity rose 29 per cent last year, as the total value of trades made by foreign and GCC investors came in at KD5.5bn ($17.9bn).

Total foreign turnover activity, however, made up 18 per cent of the total trades in the Kuwaiti capital market, compared to the previous year’s 14 per cent. Institutional investor activity climbed from 54 per cent of the total in 2021 to 61 per cent in 2022.

The premier market and main market posted total capitalisation of KD37.4bn ($122.1bn) and KD9.3bn ($30.3bn), respectively.

“Despite the fluctuations in capital markets around the world as well as economies seeing unprecedented inflation levels, with many states drafting economic policies to curb them, Boursa Kuwait was able to develop its operations,” added Mohammed Saud Al-Osaimi, CEO, Boursa Kuwait.

Read: Top 100 most powerful Arabs 2022

“The Kuwaiti capital market witnessed a resurgence of activity in the first half of 2022, as well as a relatively stable second half compared to capital markets around the world.

“Additionally, the exchange continues to offer products and services that meet the needs of all stakeholders, streamlining their processes and improving their overall experience in the market. We recently updated our rulebook to incorporate rules for mandatory executions, as well as updating the order mechanism for market makers. The exchange also canceled the buy-in session premium, as part of its efforts to offer greater flexibility to investment banks, asset management firms and financial brokerage companies.”

Boursa Kuwait was fully privatised in 2019, becoming the first government entity in the country to successfully undergo the process. Boursa Kuwait also self-listed in September 2020.

Read: Exclusive: Boursa Kuwait CEO on its privatisation agenda

Over the past six years, the company has rolled out market reforms and new initiatives as part of its multi-phase market development (MD) plans.