The year 2023 marked a transformative journey for Bahrain Bourse, driven by a newly devised strategy focused on expanded investor access through the development of its legislative and technical infrastructure to attract listings and investment opportunities for investors, and enhancing connectivity and synergy. Our commitment to sustainable growth became the driving force behind every action, aligning with our steadfast vision to increase Bahrain Bourse's contribution to local GDP and be a beacon of sustainability and innovation. Our initiatives resonate with the vision outlined in the Financial Services Sector Development Strategy, focusing on fostering robust GCC linkages and propelling local and regional financial growth. Capitalizing on the strategic collaboration with ADX in launching “Tabadul", the region's first digital exchange hub, the platform now expanded to include the Muscat Stock Exchange (MSX) to “Tabadul". As a result, MSX's listed securities, along with those of ADX and BHB, are now available for digital trading, further enhancing liquidity in markets onboarded on “Tabadul" and facilitating trading mechanisms for investors.
In line with Bahrain Bourse's commitment to facilitate investors' access, Bahrain Bourse welcomed Al Salam Bank with the launch of Al Salam Invest within the Bahrain Trade Network. The platform facilitates direct securities trading on Bahrain Bourse for retail investors.
In 2023, Bahrain Bourse's efforts in enhancing legislations laid the groundwork for further growth. The introduction of the enhanced Bahrain Investment Market (BIM) regulations in April are aimed at supporting the growth, development of the market, enhance market attractiveness, and simplify and increase the efficiency of the admission process which resulted in listing Montreal Motors BSC during the year. This aligns strategically with the revised BIM framework, providing an ideal platform for growth companies.
Demonstrating commitment to responsible practices, the Central Bank of Bahrain launched ESG Reporting Guidelines in line with the Kingdom's Economic Vision 2030 and the UN's Sustainable Development Goals. These guidelines, effective from late 2024, establish a standardized framework for transparent ESG disclosures. Bahrain Bourse also participated in the UN Climate Change conference (COP28) in Dubai which cements our ongoing efforts to embed sustainability into the financial landscape.
Regarding Bahrain Clear, our fully-owned subsidiary continued enhancing offerings for investors and issuers with streamlined processes and cutting-edge tools.
In April 2023, Bahrain Clear achieved a significant milestone by securing full membership status in the Arab Federation of Capital Markets (AFCM). This prestigious recognition underlines Bahrain Clear's dedication to enhancing the region's capital market landscape and its commitment to upholding the highest international standards in clearing, settlement and central depository services.
During the year, a total of BD 566 million were distributed as cash dividends pertaining to the financial year ending 31 December 2023 (of which BD 560 million were distributed under the 'Annual Cash Dividends Fund' (for companies listed on Bahrain Bourse as well as cross listed companies) and BD 6.08 million disbursed under the 'Accumulated Cash Dividends Fund').
Bahrain Clear is actively engaged in refining the procedures it employs for the distribution of unclaimed dividends. This ongoing initiative aims to optimize the efficiency of the process and ensure that the maximum number of eligible shareholders receive their rightful dividends. Bahrain Clear strives to maintain accurate shareholder information through proactive outreach and the implementation of KYC procedures. This dedicated effort ultimately leads to reaching the highest possible number of shareholders entitled to dividends.
The year 2023 stands as a testament to Bahrain Bourse's strategic strides in crafting a resilient, inclusive, and sustainable market ecosystem. As we forge ahead, we position ourselves for a prosperous future, firmly anchored in alignment with both global best practices and the aspirations of our regional stakeholders.
Financials
Looking into Bahrain Bourse's financial performance in 2023, BHB achieved a net profit of BD 890,713 compared to BD 224,081 to record an increase of 297% in comparison to the year 2022. The total operating revenues amounted to BD 5.88 million in 2023 compared to BD 4.79 million in 2022, recording an increase of approximately 23%. The total operating expenses were BD 4.84 million in comparison to BD 4.49 million in 2022, reporting an increase of approximately 8%.
Bahrain Bourse's total assets increased to BD 56.52 million in 2023 against BD 49.93 million in 2022, while the total liabilities reached BD 51.85 million compared to BD 46.12 million in 2022. Shareholders' equity increased from BD 3.81 million in 2022 to BD 4.43 million in 2023.
Acknowledgements
On behalf of myself and Bahrain Bourse's Board of Directors and Management of Bahrain Bourse and Bahrain Clear, I would like to express my gratitude and genuine appreciation to His Majesty King Hamad bin Isa bin Salman Al Khalifa, King of the Kingdom of Bahrain and His Royal Highness Prince Salman bin Hamad Al Khalifa, Crown Prince, Deputy Supreme Commander of the Armed Forces, and Prime Minister for their invaluable guidance and unwavering support to Bahrain Bourse, and dedicated efforts to drive national prosperity.
I would like to extend my gratitude to H.E. the Minister of Industry and Commerce for his continuous support extended to Bahrain Bourse and Bahrain Clear. I would also like to thank the Chairman and Board Members of the Central Bank of Bahrain (CBB), and the previous Governor of the Central Bank of Bahrain H.E. Rasheed Almaraj for his continuous, instrumental support throughout the years. His leadership has been a cornerstone of our progress and success.
I would also like to thank the Board of Directors of Bahrain Bourse and Bahrain Clear for their strategic vision that has steered us through a year of dynamic progress. I would also like to recognize the unwavering support of our issuers, investors, members, custodians, and stakeholders. Your trust and confidence in Bahrain Bourse and Bahrain Clear are the cornerstones of our growth. As we embark on another year of ambitious goals, your continued trust will allow us to reach even greater heights.
Abdulkarim Ahmed Bucheery
Chairman