Kuwaiti exchange companies see a 56% profit dip in Q1

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Kuwait’s Central Bank data shows a sharp profit decline for local exchange firms in Q1.

KUWAIT CITY, May 6: Official data released by the Central Bank of Kuwait has revealed a significant drop in profits for local exchange companies during the first quarter of the current year. The profits decreased by approximately 56%, totaling 5.88 million dinars. This marks a decline from about 10.5 million dinars recorded during the first quarter of 2023.

The decline in profits can be attributed primarily to an increase in expenses, notably administrative expenses, bank interest, and allocations. Additionally, there was a slight decrease in the volume of other revenues.

During the first quarter of the current year, the total revenues of 32 exchange companies under the supervision of the Central Bank of Kuwait decreased by 1.4%, amounting to about 26.59 million dinars. This is compared to 26.97 million dinars for the same period in 2023.

While revenues from currency sales increased by 1.01% to reach 19.98 million dinars, revenues from bank interest witnessed a notable increase from 255.2 thousand dinars to 339.2 thousand dinars. However, other revenues decreased by 9.6%, amounting to 6.26 million dinars.

Conversely, total expenses increased by 33.44%, reaching 21.9 million dinars in the first three months of 2024. This includes a significant rise in administrative and banking expenses, as well as increases in bank interest and allocations. Other expenses decreased by 67.65% during the same period.

The observed fluctuations in profits and expenses highlight the ongoing challenges faced by exchange companies in Kuwait and underscore the need for effective financial management strategies in the sector.

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