In a recent meeting with its Board of Directors held on 15th February 2022, Boursa Kuwait announced net profits (Attributable to Equity Holders of Boursa Kuwait) of almost KD 15.9 million for the financial year ended 31 December 2021, an increase of approximately 26.3% from 2020 net profits of KD 12.6 million, adjusted for the one-time Gain on Business Combination of KD 13.2 million.
As per the announcement by the firm, this outcome came as a result of the remeasurement of its previous shareholdings in Kuwait Clearing Company (KCC) during the third quarter of 2020 upon the conversion of the investment in KCC from an associate to a subsidiary.
As per the firm’s reports, it also announced that its total operating revenue came in at KD 31 million for 2021, an increase of approximately 39.7% compared to the same period in 2020, when the total operating revenue was approximately KD 22.2 million. Net operating profit also increased by 56.5%, from KD 11.8 million to KD 18.5 million.
Meanwhile, Boursa Kuwait’s total assets stood at approximately KD 110.4 million as of 31 December 2021, which is a 6% increase versus the 2020 total of KD 104.2 million. Boursa Kuwait’s shareholder equity increased 14.8% from KD 52.8 million on 31 December 2020 to KD 60.6 million as of 31 December 2021.
In line with the successful performance and commitment to deliver superior returns to shareholders, Boursa Kuwait’s Board of Directors has recommended the distribution of cash dividends of 65 fils per share for the financial year ended 31 December 2021 (subject to the approval of the General Assembly and other regulatory entities).
Boursa Kuwait Chairman Mr. Hamad Meshari Al-Humaidhi commented: “We are pleased to have recorded profits of approximately KD 15.9 million for 2021, with a marked improvement in key performance indicators, exhibiting Boursa Kuwait’s financial strength, its flexible operational model, as well as its innovative and adaptable strategy. The company continues to support the national economy and remains committed to contributing to the New Kuwait 2035 vision and solidifying its position as a leading stock exchange in the region, and Kuwait as a world-renowned investment destination.”
Al-Humaidhi added: “Boursa Kuwait also remains committed to the implementation of environmental, social and governance policies and principles as part of its Corporate Sustainability strategy, which is in line with the United Nations’ Sustainable Development Goals (SDGs). I would like to thank my fellow Board members, the Executive Management team, and all Boursa Kuwait employees for their invaluable efforts to enhance the company and the capital market.”
As per the firm’s reports, The Kuwaiti capital market’s market capitalization in 2021 was around KD 41.4 billion, an increase of around 28.5% from 2020. Trading volume increased by more than 57.9% from 53.6 billion to around 84.6 billion transactions, while traded value saw an increase of around 26.6%, from around 10.8 billion Kuwaiti dinars to about KD 13.6 billion.
The Premier Market’s capitalization came in at KD 31.1 billion, with almost 21.7 billion shares traded at a value of KD 8 billion as a result of over 1.1 million transactions, while the Main Market’s capitalization came in at KD 10.3 billion, with over 62.9 billion shares traded at a value of over KD 5.6 billion as a result of over 1.9 million transactions.
Mr. Mohammed Saud Al-Osaimi, Boursa Kuwait’s Chief Executive Officer also commented on the company’s financials for 2021, saying, “Boursa Kuwait has seen a marked increase in trading value and volume, due to increased activity in the “Main Market” which was complemented by the listing of three new companies in it, which is undoubtedly a reflection of the increasing confidence of investors from all over the world. The company also increased its product line in 2021 with the introduction of Tradable Rights Issues and collaborated with the Capital Markets Authority to introduce Margin Lending and Trading, in an effort to diversify its financing tools and offer more opportunities for investors to turn a profit.
”Al-Osaimi added, “Boursa Kuwait continues to promote the Kuwaiti capital market, highlighting its unique value proposition and the investment opportunities it has to offer. In 2021, we held several virtual corporate days, which attracted over 20 listed Kuwaiti companies, to provide insights and access to the institutional investor community through facilitated sessions and one-on-one meetings. We continue to develop and upgrade our infrastructure and business environment and remain steadfast in the development of a strong financial market with high liquidity and credibility, enhancing the position of the exchange regionally and globally, and playing a vital role in the transformation of Kuwait into an international investment destination.”
The firm also endures in implementing many steps in accordance with international practices and standards 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.
Recently, the outcome of Boursa Kuwait’s annual market segmentation review went into effect, with the promotion of one company into the “Premier” Market and the placement of nine companies on its “Premier Market” Watchlist after the companies willingly complied with the stringent eligibility criteria and requirements to join the flagship market.
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