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Kuwaiti firms’ profits rise on investment gains – Report

Kuwaiti firms’ profits rise on investment gains – Report
The profits of the firms listed on the bourse rose 16% year-on-year

Mubasher: The National Bank of Kuwait (NBK) on Tuesday announced in a report that the financial results of Boursa Kuwait-listed firms in the first half of 2017 showed a remarkable rise in profits, despite the weak growth in revenues, indicating slow growth in business activity.

The boost in the profits of firms operating in the financial services sector was the main growth driver, while other sectors showed a slowdown in operational activity, the report added.

The profits disclosures had a positive impact on the stock market, as the main index rose 6.4% during the announcements’ period.

The profits of the firms listed on the bourse rose 16% year-on-year in H1-17, as the total profits of 150 listed companies rose to KWD 883 million.

Total losses declined 50% year-on-year to KWD 25 million in 34 companies, compared to 38 companies in H1-16.

The weighted index is still 5% higher in H1-17 although the bourse lost some of its gains, the report added, noting that this was due to the profits the financial services companies gained in their portfolios.

The banking sector was the second top influencer as its profits grew 8.4% to KWD 375 million in H1-17.

The NBK remarked that powerful investment income compensated for the continuous decline in revenues, as total revenues increased 1% year-on-year in 73 non-financial companies.