KUWAIT: In a meeting of its Board of Directors on Sunday, February 12, 2023, Boursa Kuwait announced that it has recorded net profit of KD 18 million for the financial year ended December 31, 2022, a 13.3% increase from its 2021 total of KD 15.9 million. The company also recorded operating revenue of KD 35.2 million over the same period, an increase of 12.8% over its KD 31.2 million total in 2021. Meanwhile, operating profit for the 2022 financial year came in at KD 22.6 million, or an increase of 22% over the total of KD 18.5 million recorded in 2021, while the company’s earnings per share increased 13.3% from 79.15 fils in 2021 to 89.67 fils for the financial year ended December 31, 2022.
Additionally, the Group’s total assets came in at approximately KD 119.6 million as of December 31, 2022, which is an 8.3% increase versus the 2021 total of KD 110.4 million, while shareholders’ equity attributable to equity holders of the parent company increased from KD 60.6 million as of December 31, 2021, to KD 65.5 million as of December 31, 2022, an increase of approximately 8.1%.
As a result, Boursa Kuwait’s Board of Directors proposed the distribution of cash dividend of 85 fils per share for the financial year ended December 31, 2022, which is approximately 94.8% of the company’s profit. The proposed cash dividend distribution is subject to approval by the Annual General Assembly as well as approval from the relevant regulatory authorities.
Commenting on the results, Boursa Kuwait Chairman Mr. Hamad Mishari Al-Humaidhi said: "I am pleased to announce that Boursa Kuwait was successful once again in delivering remarkable results, as we recorded an increase of 13.3% in our net profit from KD 15.9 million in 2021 to KD 18 million this financial year, a reflection of our company’s solid operational model, strong financial health, and resilience. Thanks to the efforts of our highly trained and skilled workforce, we were able to reach tremendous performance levels, overcoming the challenges presented throughout the year and prevailing through the state of turmoil caused by the geopolitical tensions gripping the financial scene around the world.”
Al-Humaidhi added, "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. 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. I would like to thank my fellow Board members, the Executive Team and the esteemed Boursa Kuwait employees for their efforts to develop and enhance the company and the Kuwaiti capital market.”
The Kuwaiti capital market capped off 2022 with an exceptional performance, as total market capitalization increased 12.9% from KD 41.4 billion in 2021 to reach KD 46.7 billion. Meanwhile, total foreign turnover activity increased by 29% in 2022, as the total value of trades made by foreign and GCC investors came in at KD 5.5 billion, while active investing by international investors came in at around KD 760 million. In addition, total foreign turnover activity made up 18% of the total trades in the Kuwaiti capital market, compared to the previous year’s 14% of turnover activity, while institutional investor activity increased from 54% of total turnover activity in 2021 to 61% in 2022, an increase of around 13%.
The "Premier" Market posted total capitalization of KD 37.4 billion, with almost 22.6 billion shares traded at a value of KD 10.8 billion on over 1.6 million trades, while the "Main" Market posted a total capitalization of KD 9.3 billion, with over 33 billion shares traded at a value of over KD 3.9 billion on 1.3 million trades during 2022.
Boursa Kuwait’s Chief Executive Officer, Mr. Mohammad Saud Al-Osaimi, also commented on the company’s results for the year, saying: "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, as the total market capitalization increased 12.9% compared to 2021 to reach KD 46.7 billion. We were also successful in attracting institutional international investors, as total foreign turnover activity was up 29%, with a total traded value of KD 5.5 billion, a testament to their increasing confidence in Kuwait’s capital market.”
Al-Osaimi added, "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. Boursa Kuwait continued to promote the Kuwaiti capital market and its listed companies, highlighting the unique investment opportunities present within them to both benefit market participants and increase its liquidity. 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. In addition, the number of market makers, which help increase market liquidity and efficiency as well as facilitating trades, increased from five to seven, making the market for a total of 61 securities in the Kuwaiti capital market.”
Since its inception, Boursa Kuwait has worked diligently to create a thriving capital market that attracts local and foreign investors through a broad spectrum of new products and services, infrastructure upgrades, and market reform initiatives, as part of its multi-phase market development plans. The company was fully privatized in 2019, the first government entity in the country to successfully undergo the process, bringing about greater levels of efficiency. Boursa Kuwait also self-listed in September 2020 and has made great strides in sustaining its operations and business continuity in the face of uncertainties and challenges.
Over the past six years, the company has rolled out numerous market reforms and new initiatives as part of its comprehensive multi-phase market development (MD) plans. The company also showcases some of the standout listed companies and the investment opportunities that reside in the Kuwaiti capital market through its series of Roadshows and Corporate Days, putting these companies in touch with some of the world’s leading investment firms and financial institutions and highlighting their financial health and business strategies and outlooks, in an effort to help investors gain an in-depth understanding of the benefits and opportunities of investing in Kuwaiti companies.