Boursa Kuwait achieves a net profit of KD 15.80m for 2023

KUWAIT: Boursa Kuwait Securities Company (K.P.S.C.) (BOURSA) recorded a net profit of KD 15.80 million for the financial year ended Dec 31, 2023. Total operating revenues of KD 30.68 million were also recorded over the same year.

Boursa Kuwait Chairman Hamad Mishari Al-Humaidhi

Boursa Kuwait Chairman Hamad Mishari Al-Humaidhi.

Meanwhile, operating profit for the 2023 financial year came in at KD 18.27 million, while the company’s earnings per share came in at 78.68 fils for the financial year ended Dec 31, 2023. Additionally, consolidated assets came in at approximately KD 118.89 million as of Dec 31, 2023, while shareholder equity (attributable to equity holders of the parent company) came in at KD 64.23 million as of Dec 31, 2023.

Given these results, Boursa Kuwait’s Board of Directors proposed the distribution of cash dividends of 74 fils per share for the financial year ended December 31, 2023, which is approximately 94 percent of the company’s net profit. The proposed distribution of cash dividends is subject to approval by the Annual General Assembly as well as approval from the relevant regulatory authorities.

Commenting on the results, Chairman Hamad Mishari Al-Humaidhi said: “Boursa Kuwait’s results for 2023 are a testament to the company’s strong operational model, as we displayed efficiency and agility in navigating the year, which was characterized by economic challenges and geopolitical tensions that affected capital markets across the region and around the world, including the Kuwaiti capital market. The company recorded a net profit of KD 15.80 million for the year ended on Dec 31, 2023, and continued working with its partners to achieve its strategic objectives to develop a strong and efficient financial market with liquidity and transparency, adopting best-in-class standards and practices and solidifying our role as a leading contributor to the diversification of the Kuwaiti economy and a key cog in the state’s plans to transform into a cultural, financial and investment pioneer in the region.”

Al-Humaidhi added, “The company continued to implement its societal and environmental initiatives, aligned with its Corporate Sustainability (CS) pillars and the United Nations’ Sustainable Development Goals (SDGs). Throughout the past year, Boursa Kuwait leveraged its extensive networks and resources to support its various stakeholders and maintained its illustrious record of honors and accolades in the field of sustainability. The company’s iconic building received the Leadership in Energy and Environmental Design (LEED) Gold certification from the United States Green Buildings Council (USGBC). Global Finance also recognized the company for its Outstanding Financial Leadership in Sustaining Communities - Middle East 2023 and Outstanding Leadership in Sustainability Transparency - Middle East 2023 as well as winning the award for Best Sustainable Corporate Governance 2023 – Kuwait from The European.”

“On behalf of myself and my fellow Board members, I would like to express our profound gratitude and appreciation to His Highness the Amir Sheikh Mishal Al-Ahmad Al-Jaber Al-Sabah, for his unwavering support in ensuring the stability and prosperity of the Kuwaiti economy. I would also like to extend my deepest gratitude to our Board of Directors, the Executive Management team, and Boursa Kuwait’s dedicated employees, whose hard work and commitment enabled the company to navigate the turbulent financial landscape of 2023 and accomplish our goals. Appreciation is also extended to the Capital Markets Authority, Kuwait Clearing Company, and all market participants for their roles in elevating the Kuwaiti capital market. I would also like to express my thanks to our esteemed shareholders for their unwavering trust and support in the company and its strategic goals to establish Boursa Kuwait as a prominent stock exchange in the region,” he concluded.

Boursa Kuwait was able to chart a successful course for the Kuwaiti capital market and its participants, as the company was able to overcome the turbulent conditions that adversely affected the capital market through the diversification of its operating revenues and the marked improvement to its non-operating income, which increased from KD 2.44 million in 2022 to KD 4.43 million in 2023 due to the company’s efficient and closely integrated operations.

Chief Executive Officer Mohammad Saud Al-Osaimi also commented on the results, “The company showcased remarkable agility in dealing with the volatility of the financial scene in 2023 thanks to its robust operational model which allowed Boursa Kuwait to gain prominence as one of the best stock exchanges in the region and the Kuwaiti capital market to cement itself as an attractive investment destination for the world. The Kuwaiti stock exchange once again proved that it could adapt to all obstacles and conditions by adopting best-in-class standards and practices for its services and products and supporting the capital market’s infrastructure to gain the confidence of its issuers, investors and all stakeholders.”

Al-Osaimi added that Boursa Kuwait continues to expand its products and services, increase market efficiency and facilitate access to it, as well as improve its transparency, liquidity and the governance of all its participants. “I would like to thank the esteemed members of our Board of Directors for their unwavering support of our strategy and operations and extend my deepest gratitude to my fellow Executive Management team colleagues and all employees. I would also like to thank the Capital Markets Authority, Kuwait Clearing Company and all our partners in the Kuwaiti capital market for their cooperation and support, which played pivotal parts in the development of our market and its success,” he concluded. Throughout the past year, Boursa Kuwait continued to develop the market’s infrastructure with its subsidiary, Kuwait Clearing Company (KCC), as the two entities conducted a series of stress tests for the central clearing counterparty (CCP) system to ensure that financial brokerage firms can fulfill its settlement requirements with the Central Bank of Kuwait and local banks. The CCP will then pave the way for the launch of several products.

Additionally, as part of its efforts to support the Kuwaiti capital market and improve its status in the international investment community, Boursa Kuwait and KCC collaborated with Jefferies Financial Group, a world-renowned global investment banking and capital markets institution, to organize a non-deal roadshow in London. The roadshow presented Boursa Kuwait and KCC with a unique opportunity to engage in one-on-one discussions with prominent investment management firms and advisories.

The aim was to shed light on the Kuwaiti capital market’s latest updates, its investment opportunities and the latest products and services it has to offer to institutional investors. The roadshow also allowed the companies to exchange ideas and viewpoints and share feedback about their perception of the Kuwaiti capital market and how to ease their access to it.

Based on these roadshows and visits, the capital market apparatus introduced a series of enhancements and features that met the requirements of institutional investors and facilitated investor access to the market, including same-day NIN account opening for foreign clients, an updated design for custodian migration and movement, and a partial rejection facility to give investors more control over their obligations. An updated eAGM system that provides international access was also launched, while KCC submitted a Securities Lending and Borrowing (SLB) study to the Capital Markets Authority (CMA) based on comments from the international community. These features are unique in the region and have helped increase the efficiency and transparency of the Kuwaiti capital market.

Throughout the year, Boursa Kuwait organized a series of Corporate Days with prominent financial organizations, which saw the participation of over 20 listed companies including the exchange. A total of over 200 meetings between the listed companies and over 80 representatives from world-renowned financial asset management firms, investment companies, sovereign wealth funds and advisories resulted in these institutional investors gaining an in-depth understanding of the companies’ financial health and business outlook as well as the benefits and opportunities of investing in the Kuwaiti capital market.

Boursa Kuwait also launched an initiative in 2023 that empowers licensed Kuwaiti investment companies to build relationships and exchange knowledge and expertise with world-renowned financial institutions, as the company believes that these companies play a pivotal role in the advancement of the market. This initiative also allows companies to utilize new products and services to develop their business strategies and operations.

The first installment of this initiative was organized in collaboration with HSBC, the British-based multinational investment bank and one of the largest banks in Europe, and held in the bank’s regional headquarters in Dubai, the United Arab Emirates. Boursa Kuwait’s “Financial Asset Managers’ Day” brought together representatives from eight licensed Kuwaiti investment companies with the Markets and Securities Services Desk at HSBC (HSBC MSS), allowing the exploration of areas of interest, business opportunities, and potential collaborations that benefit investors from both parties.

Total market capitalization for the Kuwaiti capital market came in at KD 40.26 billion in 2023, while total international value turnover made up 12 percent of the total value traded in the Kuwaiti capital market. Meanwhile, institutional investor activity increased from 61 percent of total value turnover in 2022 to 65 percent in 2023, an increase of around 6.5 percent.

The “Premier” Market posted a total capitalization of KD 31.82 billion, with almost 22.57 billion shares traded at a value of KD 8.21 billion on over 1.55 million trades, while the “Main” Market posted a total capitalization of KD 8.44 billion, with over 16.86 billion shares traded at a value of over KD 2.16 billion on approximately 830,000 trades during 2023.

Boursa Kuwait has been a key driver in the development of the Kuwaiti capital market and the diversification of the national economy. Since its establishment, the company has been dedicated to building a reputable exchange founded on efficiency and transparency, fostering a liquid capital market and developing an advanced exchange platform through a comprehensive set of reforms and enhancements that has allowed it to compete at an international level. The company has rolled out numerous market reforms and new initiatives as part of its comprehensive multi-phase Market Development (MD) plans over the past few years.

Boursa Kuwait also serves as a catalyst and trailblazer for Kuwait’s privatization drive. The company was among the first Kuwaiti government entities to successfully undergo privatization and was one of the first stock exchanges in the Middle East to list, self-listing on the “Premier” Market in 2020.

Total operating revenues came in at KD 30.68 million while operating profit came in at KD 18.27 million.