Boursa Kuwait Securities K P S C : Financial Results 30 September 2023

Boursa Kuwait Securities Company K.P.S.C.

and its Subsidiaries

INTERIM CONDENSED CONSOLIDATED FINANCIAL

INFORMATION (UNAUDITED)

30 SEPTEMBER 2023

Ernst & Young	Tel: [phone]
Al Aiban, Al Osaimi & Partners	Fax: [phone]
P.O. Box 74	[e-mail]
18-20th Floor, Baitak Tower	ey.com/mena
Ahmed Al Jaber Street
Safat Square 13001, Kuwait

REPORT ON REVIEW OF INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION TO THE BOARD OF DIRECTORS OF BOURSA KUWAIT SECURITIES COMPANY K.P.S.C.

Report on the Interim Condensed Consolidated Financial Information

Introduction

We have reviewed the accompanying interim condensed consolidated statement of financial position of Boursa Kuwait Securities Company K.P.S.C. (the "Parent Company") and its subsidiaries (collectively, the "Group") as at 30 September 2023, and the related interim condensed consolidated statement of profit or loss and interim condensed consolidated statement of comprehensive income for the three-month and nine-month periods then ended, and the related interim condensed consolidated statement of changes in equity and interim condensed consolidated statement of cash flows for the nine-month period then ended. Management of the Parent Company is responsible for the preparation and presentation of this interim condensed consolidated financial information in accordance with International Accounting Standard 34: Interim Financial Reporting ("IAS 34"). Our responsibility is to express a conclusion on this interim condensed consolidated financial information based on our review.

Scope of Review

We conducted our review in accordance with International Standard on Review Engagements 2410, 'Review of Interim Financial Information Performed by the Independent Auditor of the Entity'. A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the accompanying interim condensed consolidated financial information is not prepared, in all material respects, in accordance with IAS 34.

Report on Other Legal and Regulatory Requirements

Furthermore, based on our review, the interim condensed consolidated financial information is in agreement with the books of account of the Parent Company. We further report that, to the best of our knowledge and belief, we have not become aware of any violations of the Companies Law No. 1 of 2016, as amended, and its executive regulations, as amended, or of the Parent Company's Memorandum of Incorporation and Articles of Association, as amended, during the nine-month period ended 30 September 2023 that might have had a material effect on the business of the Parent Company or on its financial position.

REPORT ON REVIEW OF INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION TO THE BOARD OF DIRECTORS OF BOURSA KUWAIT SECURITIES COMPANY K.P.S.C. (continued)

Report on Other Legal and Regulatory Requirements (continued)

We further report that during the course of our review, to the best of our knowledge and belief, we have not become aware of any material violations of the provisions of Law No. 7 of 2010 concerning the Capital Markets Authority and its related regulations during the nine-month period ended 30 September 2023 that might have had a material effect on the business of the Parent Company or on its financial position.

BADER A. AL ABDULJADER

LICENSE NO. 207 A

EY

AL AIBAN, AL OSAIMI & PARTNERS

31 October 2023

Kuwait

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Boursa Kuwait Securities Company K.P.S.C. and its Subsidiaries

INTERIM CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS (UNAUDITED)

For the period ended 30 September 2023

		Three months ended		Nine months ended
		30 September		30 September
		2023	2022		2023	2022
REVENUE	Notes	KD	KD		KD	KD
	1,751,457		5,336,951
Subscription fees		1,956,919	5,822,537
Share in trading commission		1,520,568	1,977,292	4,552,274	7,837,248
Clearing operations		1,105,975	1,240,955	3,131,332	3,651,627
Central depository services		1,057,589	1,054,449	3,204,594	3,053,781
Shareholders register services		842,657	714,389	2,670,738	2,398,672
Settlement operations		580,875	601,248	1,546,492	2,059,206
Miscellaneous fees		500,696	458,025	2,007,868	1,612,286
Reversal of provision for expected credit		-		53,741
losses	4, 5	-	-
		────────── ──────────		────────── ──────────
		7,359,817	8,003,277	22,503,990	26,435,357
EXPENSES		────────── ──────────		────────── ──────────
	(1,488,696)		(4,494,596)
Staff costs		(1,370,502)	(4,285,553)
General and administrative expense		(798,128)	(878,382)	(2,624,772)	(2,395,601)
Depreciation and amortization		(180,473)	(191,774)	(543,455)	(618,268)
Allowance for expected credit losses	4	-	-	(55,650)	(131,743)
		────────── ──────────		────────── ──────────
		(2,467,297)	(2,440,658)	(7,718,473)	(7,431,165)
		────────── ──────────		────────── ──────────
OPERATING PROFIT		4,892,520	5,562,619	14,785,517	19,004,192
		────────── ──────────		────────── ──────────
Net investment income		16,889	26,133	60,802	75,662
Interest income		741,247	423,560	2,052,842	999,017
Rental income		208,247	120,854	624,107	381,066
Other income		187,885	20,302	430,843	53,391
Interest expense on lease liabilities		(7,345)	(9,183)	(24,209)	(29,514)
		────────── ──────────		────────── ──────────
PROFIT BEFORE TAX		6,039,443	6,144,285	17,929,902	20,483,814
Taxation		(169,121)	(183,580)	(510,611)	(663,053)
		────────── ──────────		────────── ──────────
PROFIT FOR THE PERIOD		5,870,322	5,960,705	17,419,291	19,820,761
Attributable to:		══════════ ══════════		══════════ ══════════
	4,178,183		12,598,536
Equity holders of the Parent Company		4,373,920	15,089,624
Non-controlling interests		1,692,139	1,586,785	4,820,755	4,731,137
		────────── ──────────		────────── ──────────
		5,870,322	5,960,705	17,419,291	19,820,761
BASIC AND DILUTED EARNINGS PER		══════════ ══════════		══════════ ══════════
SHARE ATTRIBUTABLE TO EQUITY	3	20.81 Fils	21.79 Fils		62.75 Fils	75.16 Fils
HOLDERS OF THE PARENT COMPANY
		══════════ ══════════		══════════	══════════

The attached notes 1 to 12 form part of this interim condensed consolidated financial information.

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Boursa Kuwait Securities Company K.P.S.C. and its Subsidiaries

INTERIM CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (UNAUDITED)

For the period ended 30 September 2023

		Three months ended		Nine months ended
		30 September		30 September
		2023	2022		2023	2022
	Note	KD	KD		KD	KD
PROFIT FOR THE PERIOD		5,870,322	5,960,705	17,419,291	19,820,761
Other comprehensive income		────────── ──────────		────────── ──────────
Other comprehensive income that will not be
reclassified to profit or loss in subsequent
periods:
Net gain upon remeasurement of equity
instruments designated at fair value through		-		122
other comprehensive income	12	-	-
		────────── ──────────		────────── ──────────
Other comprehensive income for the period		-	-	122	-
TOTAL COMPREHENSIVE INCOME FOR		────────── ──────────		────────── ──────────
THE PERIOD		5,870,322	5,960,705	17,419,413	19,820,761
Attributable to:		────────── ──────────		────────── ──────────
	4,178,183		12,598,597
Equity holders of the Parent Company		4,373,920	15,089,624
Non-controlling interests		1,692,139	1,586,785	4,820,816	4,731,137
		────────── ──────────		────────── ──────────
		5,870,322	5,960,705	17,419,413	19,820,761
		══════════ ══════════		══════════ ══════════

The attached notes 1 to 12 form part of this interim condensed consolidated financial information.

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