Thursday, 12 November , 2020     |     494      |      +      |     

Boursa Kuwait 9-month profits surge 231% to $73m

Boursa Kuwait 9-month profits surge 231% to $73m : Google
  • Banking

Boursa Kuwait has announced profits of KD22.6 million ($73.6 million) for the nine-month period ended  September 30, 2020, an increase of 231% compared to profit of KD6.8 million during the same period in 2019.

The company generated 108.6 fils earnings per share, which is attributable to the equity holders of the parent company and an increase of 214% compared to its total of 34.6 fils over the same period in 2019, while the company’s total assets came in at approximately KD99.3 million, which is a 178.4% increase versus its2019 total for the same period of KD35.7 million.

Shareholder equity increased from KD29 million in September 2019 to KD48.9 million for the period ended 30 September 2020, attributable to the equity holders of the parent company and an increase of 66.5%.

Total operating revenue came in at KD13.2 million, an increase of 25.9% over the same period in 2019, when the total operating revenue for the nine month period was approximately KD10.5 million, while total operating expenses were KD6.1 million, an increase of 11.4% over the same period’s 2019 total of KD5.47 million.

Boursa Kuwait Chairman Hamad Meshari Al-Humaidhi commented: “The results we see today mirror the strength of the operational model and the solid strategy in place, as well as the company’s underlying strong financial health, which have allowed us to deliver an exceptional performance. Building on these results, we look forward to the further diversification of our operations and investments.”

Boursa Kuwait aims to develop a strong financial market with high liquidity and credibility through the implementation of a range of structural and technical developments and initiatives that will enhance the position of the exchange, regionally and globally.

Al-Humaidhi added: “The listing of Boursa Kuwait on the Kuwaiti capital market is a landmark achievement for the company and is in line with its overarching strategy to develop itself into a prominent regional exchange and a model of success for other companies, whether they are currently listed or looking to list in the future.”

The increase in net profit is due to the increase in the net operating profit of Boursa Kuwait as a result of its operational performance. Furthermore, and consequent to the acquisition of Kuwait Clearing Company (KCC) and the change of its ownership from an associate to a subsidiary, there was a consolidation of KCC’s financials in Q3 2020, and a remeasurement of the previously held investment in KCC of 33.33% at fair value and to recognize either profit / loss resulting there from as per the IFRS. It is worth noting that the nature of the gain in relation to the remeasurement is non-recurring.

Mohammed Saud Al-Osaimi, Boursa Kuwait’s Chief Executive Officer said: “This quarter’s results show that the company enjoys a great deal of investor confidence as well as demonstrating the ongoing value and efficiency of the company, and that Boursa Kuwait leads a progressive operation in line with world-class standards and best practices with ample room for growth and expansion.

“We have also begun exploring other areas of growth, specifically in the acquisition of even more shares in the Kuwait Clearing Company, which will undoubtedly help streamline the investment processes for all market participants, especially with the upcoming inclusion in the MSCI Emerging Markets index.”

Boursa Kuwait and the Kuwait Clearing Company recently introduced a series of temporary and permanent measures in preparation for the MSCI Emerging Markets inclusion date. These measures included an extension of the Closing Auction and Trade At Last sessions on the day of inclusion, as well as the introduction of allocation accounts (ACM). It is expected that a further change, the removal of the fresh money rule (Netting) on an investor level, will also be introduced at a later date by the Kuwait Clearing Company.

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Category: #Banking | 2020/11/12 latest update at 8:00 PM
Source : GDN Online | Photocredit : Google
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