EXCPR™: EXCPR ANNUAL REPORT 2019

EXCPR ANNUAL REPORT 2019

CONTENTS

English version

· Feasibility study

· Key Performance Indicators –KPIs

· THE DIVIDENDS FOR COMPANIES IN BOURSA OF KUWAIT

· TRADING PRICES FOR ALMASAYEL AREA IN THE STATE OF KUWAIT- CASE STUDY

FEASIBILITY STUDY

Feasibility study is one of the significant business and management tools that will study the idea of a business in an integrated way, before proceeding with the implementation stage, thus maintaining the various sources of production - raw materials, labor, and machinery. Therefore, the feasibility study is important as it is the key sign to move forward with the implementation phase of the project and to continue it or not, it is thus considered the limit to continue the implementation of the project before it is actually launched.

COMPONENTS

The feasibility study consists of key sectors, namely the study of the idea of the project, market analysis, administrative aspect, operational aspect, competitive analysis, marketing analysis, in addition to the financial aspect of the project.

PROJECT IDEA

Successful projects are based on meeting the customer needs in the target market. Since it is known that customers are looking for competitive prices, high product quality, more options, high speed, etc., the idea of the project must be studied and production lines developed towards meeting those desires. Studying this aspect of the project is also important, as it bets on customers buying the new product, which requires more time to solve such problems.

MARKET ANALYSIS

The market analysis aspect of the feasibility study is based on measuring the number of customers who have shown willingness to buy the new product, which contributes to calculating the market size. The larger the market, the more it will contribute to its entry and competition. The rapid growth of the target market would also give real strength to actual investment with such promising projects. The market analysis aspect also helps entrepreneurs and business owners to choose a specific segment of the total market, this is towards meeting their common needs on an ongoing basis. This aspect also makes the financial value that customers will pay for the acquisition of the new product, thereby calculating operational capacity, and measuring the total expected sales volume. This part of the feasibility study selects the product pricing strategy by choosing the size of the value added, the increase in the value of total costs, or the prices of competitors in the market. This aspect can also include the times when customers order the product, who is primarily responsible for making the purchase decision, the mechanism of developing production lines, reassure and development, etc.

ADMINISTRATIVE ASPECT

This part of the study charts the general strategies of the company, from strategic and annual objectives, towards achieving the mission for which the company was founded. This section also examines the types of commercial and legal licenses necessary to operate the project before state institutions and other official entities. This part of the study also deals with the size of the employment to be employed, the necessary skills required, organizational structure, roles and tasks, the recruitment mechanism, as well as development and training.

COMPETITIVE ANALYSIS

This aspect is based on increased expected sales and continued competition in the markets towards staying there for longer. The study is based on an analysis of the competitive advantage of the new company in managing its business, as well as SWOT analysis of Strengths/Weaknesses, future Opportunities and anticipated attacks- Threats on the project. The competitive analysis aspect also includes the study of competitors in terms of their advantages and weaknesses, as well as their market share. This aspect of the feasibility study is the basis for understanding the next aspect - the operational aspect.

OPERATIONAL ASPECT

The operational part of the study is based on employing and managing all types of different production sources towards creating a product that will meet the requirements of customers in the target market. This aspect will therefore include identifying the materials and tools to be used in operational processes, labor, location, and the capacity of the production process. This aspect of the economic seriousness study also searches for suppliers who will be relied upon to import materials important to the project.

MARKETING ANALYSIS

It is one of the aspects that distinguishes companies from others in competition and staying in the market for longer. The importance of this aspect lies in maintaining the expenses invested to take out the commercial product to customers, and to maintain the market value of the company. This aspect includes the selection of the best strategies for promotional operations such as advertising, product aggregation strategy, customer value-added, and others. Marketing analysis also examines the best ways to communicate with customers such as direct selling, retail, or wholesale. This aspect is concerned with identifying the mechanism for dealing with customers and after-sales service, which will keep this business under construction.

FINANCIAL ANALYSIS

The last section in the feasibility study is dealing with the figure and data in details. Therefore, after complete all previous sections in the feasibility study, and then it is necessary to convert those results and aggregated data into financial indicators that are easy to understand and deal with, in addition to the calculating fixed and variable costs. The importance of this aspect of the study is that it includes the capital of the project required, and the mechanism of disbursement of those financial resources, which financial institutions and banks in particular are looking for. The presence of more financial indicators in this aspect, such as zero checks to cover break-even point expenses, capital recovery period, and others, will achieve a thorough understanding of the success of this business process among different stakeholders.

KEY PERFORMANCE INDICATORS- KPIs

Key Performance Indicators -KPIs can be defined as a system for collecting information and choosing the best, to summarize the actual performance of an organization. By providing the long time, it takes executives to understand the complex operational performance of the company's employees on a morning of work. The importance of this system also lies in the fact that it reflects the real performance of the business and the growth of the organization towards its pre-defined strategic objectives. In addition, these performance indicators are now an integral part of the modern corporate process, which has become a true picture of the company's activity - if it is better painted. Thus, the performance indicators are a true measure of strong engagement and communication with the stakeholders on which the organization relies in its work, thus measuring actual performance with minimal data and aggregated facts.

The importance of a good KPIs system will contribute to raising the company's shares in the various capital markets, considering achieving the principle of transparency and clarity in providing the most prominent data to investors and the relationship with them. In addition, the existence of these selected quality indicators will seek to effectively meet the elements and principles of corporate governance, which have long appealed to Investor Management.

As for the need for such modern standard systems, it is well known that today's companies suffer from the existence of many and many databases, especially after the rapid development of the technology and information sector in the current century, and their flow in the form of many periodic reports. This necessitated the need to acquire the most suitable ones in translating these steps and the work that the institution is doing in achieving its general vision. In the past, traditional companies relied on sales volume as a key indicator in understanding the actual performance of the organization. The higher those sales are, the more the company is moving in the right direction. However, significant competition and rapid development in different markets over the past period showed that, despite the importance of the sales component achieved by the organization, there are many other key signs that will contribute to the sustainability of the organization's operational process and growth quick and desired.

The important question is which of the many information circulating in the organization can be considered a good KPI's performance indicator? To answer this question, it is necessary to first understand the information needed by the board members and the staff of the organization, to guide the work and follow up on its performance well. After understanding those needs of this important and stakeholder segment, we should work in the middle and micro departments of the business unit to feed the business flows with the information necessary for appropriate guidance and decision-making processes. It should also be stressed that an institutional system should be established to measure such data and to channel it with complete credibility in each period of those concerned.

Carefully selected indicators should be one of the necessary milestones to achieve the strategic vision that the company aspires to achieve one day. By identifying these important indicators, it is possible to deduce how long the company's current operational process will take to achieve the desired objectives. Measuring this period will also enable the Board of Directors and senior management to direct all production sources further towards the speed of achieving those strategic objectives - especially critical ones. The following is an aspect of KPIs performance indicators circulating in some business sectors:

RESPONSIBLE	FOLLOW UP	MEASUREMENT	KPIs	SECTOR
Public Relation Manager	Quarterly	Customer satisfaction index- CSI -Report	Customer attractive	Banks and financial
Managing Director	Yearly	Yearly Report	Assets type
Financial Manager	Monthly	Presentation	Loans
Marketing Manager	Quarterly	Market Report	Market share
Marketing Manager	Monthly	Presentation	Sales per area	Retailers
Marketing Manager	Monthly	Market Report	Sales per Avg. market
Public Relation Manager	Monthly	Customer satisfaction index- CSI -Report	Customer Satisfaction Index
Marketing Manager	Quarterly	Market Report	Sales
Operation Manager	Weekly	Operation Report	Production rate	Industries
Financial Manager	Semi annually	Financial Report	Cost
Quality Manager	Weekly	Meetings	Work efficiency
Financial Manager	Quarterly	Financial Report	Production cost

It should also be stressed the importance of providing adequate explanation of each of the KPIs success indicators, and the reason for being selected as one of those important indicators in measuring performance. We also emphasize the importance of comparing current performance with another similar standard situation, such as the company's situation in previous periods or compared to other competitors in the market, which will develop the operational process and continuous follow-up effectively.

Performance indicators may vary in substance among themselves, as indicators that are suitable for work and follow-up in one company may not achieve the value added expected of them in other competing companies. Therefore, performance indicators should be selected in particular segment and that fit the needs of the organization precisely, in order to achieve the maximum amount of additions necessary for the institutional process.

Finally, despite the importance of informatics and its circulation in the corporate community, the strength of performance and responsibility must be selected by the most important KPIs performance indicators, relied upon to continuously understand the institutional process, and to make critical management decisions in guiding the course of action. The lack of understanding of the details of the data and information accumulated can also lose the factor of sound planning and good management, thereby losing more market shares, losing business opportunities, and thus exiting markets without return.

THE DIVIDENDS FOR COMPANIES IN BOURSA OF KUWAIT

The stock market is one of the most critical economic indicators that reflects the actual operational performance of private sector, as well as the ability of the executive management to achieve the highest financial returns for investors. Investment in the stock market is also a major concern for members of the Kuwaiti society. Despite the decline in the percentage of trades on Boursa Kuwait during the last decade from USD 330 million to USD 83 million per day, however, it still keeps the direction and attention of investors and the small one in generating wealth. EXCPR Co. results shows that there are almost 170 companies in different sectors of work, the number of companies that have been in the recent withdrawals is competing with each other in attracting more capital and investors in general, to serve as a platform for evaluating operational performance. As for the link between the importance of Boursa Kuwait and strategic vision of the country "Kuwait 2035", Boursa Kuwait is considered the focus of the foreign investor, who seeks the vision of the strategic state to attract him towards importing more money into local listed companies. To shed light on the operational performance of companies listed on Boursa Kuwait, EXCPR Co. consultancy and business management has been working on this national initiative, which is an important indicator for investors and business people, towards obtaining a substantial financial return and capital deliberation.

CASH DIVIDEND

Investors and business people often seek to capture the most important investment opportunities and reduce risk, by carefully studying the different financial markets and companies, and by looking for the best performers. EXCPR Co. has been following the various dividend of companies listed on Boursa Kuwait since 2010 to determine the most accurate results. The company's research indicates that the best company has distributed cash dividends over the past 10 years in the Kuwaiti market, is Ooredoo - mobile network Co. - valued at USD 0.3 per share. Also Kuwait Portland Cement Co. is competing with Ooredoo, with an annual cash dividend rate of approximately USD 0.3 per share. While the third place, was that of human soft holding, with a profit distribution rate of about USD 0.24 per share. The following table shows the top 20 prominent companies listed on Boursa Kuwait in terms of cash distributions during the period between 2010-2018:

AVG. CASH DIVIDEND DURING LAST 10 YEARS – IN USD PER SHARE	COMPANY
0.27	National Mobile Telecom. Co. - Ooredoo	1
0.26	Kuwait Portland Cement Co.	2
0.24	Humansoft Holding Co.	3
0.23	United Project Co. -UPAC	4
0.20	Mobile Telecom. Co.- Zain	5
0.16	Kuwait National Cinema	6
01.6	National Petroleum Services Co.	7
0.13	Alkout Industrial Projects Co.	8
0.13	Combined Group Contracting Co.	9
0.12	Boubyan Petrochemical Co.	10
0.11	National Bank of Kuwait- NBK	11
0.10	Gulf Cable and Electrical Industries Co.	12
0.10	Gulf Insurance Co	13
0.10	Alahleia Insurance Co.	14
0.09	Agility Public Warehousing Co.	15
0.08	Independent Petroleum Group	16
0.07	Automated System Co.	17
0.07	Kuwait Insurance Co.	18
0.07	Jazeera Airways Co.	19
0.06	Kuwait Projects Holding Co.	20

The results of the company also indicate that there are some companies listed in the market, which regularly distribute annual profits, thanks to its executive management and its strategy. Although its cash distributions have declined in some years, it has maintained continuity and consistency in the realization of shareholders ' rights. Below is a list of those companies that have not interrupted the distribution of cash dividends over the past 10 years:

· National Bank of Kuwait- NBK

· Alahli Bank of Kuwait

· Ahli United Bank

· Kuwait Finance House- KFH

· Commercial Facilities Co.

· Kuwait Projects Holding Co.

· Tamdeen Investment Co.

· Kuwait Insurance Co.

· Gulf Insurance Group

· Al Ahlia Insurance Co.

· Salehiya Real Estate Co.

· Al Tamdeen Real Estate Co.

· Kuwait Cement Company

· Kuwait Portland Cement Co.

· ACICO Industries Co.

· Alkout Industrial Projects Co.

· Kuwait National Cinema

· Agility Public Warehousing Co.

· Mobile Telecom. Co. –Zain

· National Mobile Telecom. Co. –Ooredoo

· National Petroleum Services Co.

· The Kuwait Co. for process plant construction and contracting

· Combined Group-Contracting Co.

· Palms Agro. Production Co.

· Alafco aviation lease and finance

STOCKS DIVIDEND

Other types of investors are usually looking for long-term investment, by focusing on the selected quality of companies with effective executive management. Therefore, the distribution of grants provided by companies listed on Boursa Kuwait has been tracked over the past 10 years. The results of EXCPR Co. research indicate that the automated systems company is one of the leading companies in the local market, for the distribution of grants-equities-by 12% per share per annum. KFH came second in terms of the grant distribution rate of 10% per annually. The Humansoft holding co. also occupied third place for the largest distribution of profit grants, estimated at about 8%. The following table shows the most prominent companies that have distributed grants to their shareholders over the years from 2010 to 2018:

AVG. STOCKS DIVIDEND DURING LAST 10 YEARS - %	COMPANY
12	Automated System Co.	1
9.9	Kuwait Finance House- KFH	2
8.6	Humansoft Holding Co.	3
8.2	National Petroleum Services Co.	4
7.9	Mabanee Co.	5
7.2	Shuaiba Industrial Co.	6
7.2	Kuwait and Gulf link transport Co.- KGL	7
6.4	Kuwait Reinsurance Co.	8
6.1	National Bank of Kuwait- NBK	9
6.1	Agility Public Warehousing Co.	10
6.1	Combined Group Contracting Co.	11
5.3	Ahli United Bank	12
5.2	Commercial Bank of Kuwait	13
5.0	Kuwait Remal Real Estate Co.	14
4.7	Burgan Bank	15
4.5	The National Real Estate Co.	16
4.5	ACICO Industries Co.	17
4.1	Boubyan Bank	18
3.5	Oula fuel marketing Co.	19
3.5	Soor fuel marketing Co.	20

The long-term investment strategy is based on the management of companies that continue to distribute grant dividends to their shareholders continuously. Although there are some fluctuations in different markets, the following companies listed in the market have adopted a policy of continuous distribution of profits to win the confidence of shareholders:

· National Bank of Kuwait- NBK

· Ahli United Bank

· Burgan Bank

· Kuwait Finance House- KFH

· Boubyan Bank

· Mabanee Co.

· ACICO Industries Co.

· Kuwait and Gulf link transport Co.- KGL

NOT ACTIVE!

As explained in the previous part of this project, about 20% of the companies listed on Boursa Kuwait are distributing dividends – cash and shares and – well during last years. In contrast, the results of EXCPR Co. project indicate that about 29, 4% of listed on Boursa Kuwait are not active in terms of dividend distribution over the past 10 years. As the term ineffectiveness means, there are about 50 companies listed on Boursa Kuwait, which have not distributed any types of profits – both cash and stocks – to their shareholders since 2010 for different reasons and policies!!

CASH DIVIDEND PER YEAR

The rate of cash distributions to companies listed on Boursa Kuwait during the previous 10 years was USD 3.2 Billion annually, which constitutes about 2.6% of the national income of the State of Kuwait and its GDP. As shown in the following figure, the peak period for the cash distributions of listed companies was in 2010, which was a total value of USD 5.4 Billion. The lowest of these distributions was in 2012, when they were only USD 3.1 Billion.

In the previous figure, the gradual growth of cash dividends from listed companies has continued, since 2014, in the presence of the real estate crisis.

STOCKS DIVIDEND PER YEAR

The results of the research carried out by EXCPR Co. indicate that the rate of stocks dividends for companies listed on Boursa Kuwait over the past 10 years was 1.2% per annum. As shown in the figure below, the years 2016/2017 are the years with high cash distributions, while their performance was what companies achieved last year-2018.

Finally, if investors and business people want to reduce the chance of risk and seize more investment opportunities, they should closely follow the behavior of such companies and equities. Such reports and financial statements, which are based on transparency and clarity, will support the foreign investor, who is looking for accurate financial data and technical indicators, to guide capital in the GCC markets.

TRADING PRICES FOR ALMASAYEL AREA IN THE STATE OF KUWAIT- CASE STUDY

All agrees that the prices of real estate trading in the state of Kuwait have become the highest in the world, for various reasons including the scarcity of supply and increased demand, in addition to the purchasing power of citizens. The trend towards investment in residential property has also inflated the value of the transactions for these lands in different regions of Kuwait. In this regard, EXCPR Consulting and Business Management Co. , highlighted this axis and dropped it on one of the regions of Kuwait - Almasayel - as a case study, which is expected to be applied to the rest of Kuwait in the coming period. The aim of this study is to link the economic aspect in the lands trading in Kuwait, educate citizens about these results achieved, in addition to monitoring these indicators, and presenting them to decision makers and officials in the state, in order to take care of this issue. This study includes changes in the prices of lands in the Almasayel region, annual trading volumes in the region, as well as trading prices against the quantities offered in the market - economic status.

As is well known, the Almasayel area is located in the center of Kuwait in the Arabian Gulf, which belongs to The Great Mubarak Province - one of the six provinces in the country, where the building permit was submitted in 2012, after it was converted into a private residential sector, and provided with the necessary infrastructure. The study indicates that the total number of housing units in the area reached 374 housing units with areas ranging from 375 to 500 square meters per unit, divided into five different pieces. The results also show that the number of apartments in the area of Almasayel has become about 180 apartment with an average price of USD 1,810 per month.

CHANGE IN PRICES’

As shown in the following figure, the rate of increase in the prices of residential areas increase during past 7 years has been 50.6%, a growth rate of 7.2% year-on-year. The price per square meter in the region in 2019 reached USD 2,100, up from USD 1,730 at the beginning of 2012. As an example, the 400-meter land in 2012 was priced at USD 700,000, which is now trading at prices starting from USD 970,000, an increase of USD 270,000. The Almasayel region, like other regions of Kuwait, was also affected by the economic recession that hit the real estate sector in 2014, with the price per square meter falling from USD 3,300 to USD 2,200- by 35% in 2014. As shown in the same figure, the index of the bullish trading in the Almasayel region was on an upward trend and grew by 1.3% per annum.

CURRENT UNITS

The volume of trading on residential lands in the Almasayel area has changed significantly during the previous period. Trading at the beginning of 2011 was settled only 27 times during the year due to the lack of all services and infrastructure in the area, making those seeking private housing regardless of it and looking for other residential areas. However, demand for the region quickly increased, with trading up to August 2019 rising to 112 during the year, an increase of 314%. As the results of the report prepared by EXCPR Consulting indicate, the total trading on real estate in the Almasayel area over the past 7 years has reached 697 times, with a trading rate of 100 times per year, equivalent to 8 times during the month. The largest trading on the property was based on Area no 5 and Area no 1, valued 367 times and 359 times- respectively. It is worth mentioning here that the early years of trading in the Area of Almasayel were based on specific residential pieces, namely Area 3, 4, and 5, while at the beginning of 2017 residential lands began to be in significant trading, which was soon followed by Area 1 - at the beginning of the 2018. As shown in the following figure, 2018 was the peak for real estate trading in the region, which reached 218, it compensated for the stagnation in trading in the years leading up to that period - the period of the real estate recession in 2014. In general, we see the growth in trading over the past seven years in the Almasayel region.

ECONOMIC RELATIONSHIP

Over the past 7 years, approximately 224 villas have been built and constructed in the Almasayel area, accounting for 60% of the total lands in the region, bringing the remaining volume of lands to approximately 150 lands of different sizes. As is known in the economic base, the lower the supply in the market, the more likely it is that prices will increase significantly, if we exclude other external factors. The results also indicate that the turnover rate per earth in the Almasayel area was three times, meaning that the number of owners per land was three in the past 7 years -speculative rate. As shown in the following illustration, when there is a scarcity of residential land on the market, property prices rise to an average of USD 2,340 per square meter. While the supply of residential land in the Almasayel area increases, prices usually drop to USD 2,000 per square meter, a decrease of up to 16.4%.

Finally, supply and demand are the basis for economic theory, and that the less supply, the higher the price of residential property, and therefore lower the purchasing power of citizens, and eventually to reach the stabilization stage. As concluded by this report, more than 60% of residential lands were exit the total market, the chance of continued price increases during the next phase would be highly probable, which may exceed the standard prices in 2014 - the price of a 400-meter residential land is 1 Million USD. The role of the government sector is also important in this period, to revive the economic movement, by providing more residential land for citizens, thereby redesigning the relationship between trading prices and purchase quantities, and achieving a balance between supply and demand, especially if we know that the population growth in the country Kuwait is at a rate of 5% per annum.

The role of the government of the state of Kuwait is also important in this case, in order to maintain the prices of the residential real estate sector from overlapping investment, and thus to maintain prices in light of the purchasing power of citizens. The role of the financial entities - private banks and Credit Bank of Kuwait - also plays a role in meeting the needs of citizens in the financial capacity to revive the real estate sector and meet the basic needs of individuals.

Remark

An earlier report was published on Sep. 2018, we find this relationship ingrained and clear during this period for the precious gold metal metal metal, which jumped significantly on the world market in just 3 months from USD 1,312, to reach today trades of USD 1,562 per ounce - with a growth rate of 19.1%, and that these prices, the standard is in line with the historical prices of gold metal in April 2011. As this report of EXCPR Consulting, there is a direct correlation between the growth of gold metal prices and the trading of the residential real estate sector in Kuwait, which demonstrates the activity of the residential real estate market in Kuwait since mid-2018 until now, which is expected to continue in the short period coming at least. The following figure shows the shape of this relationship between the two indicators - the shift shape for one month. Therefore, we advise investors and business people interested in the real estate market to rely on the gold price index as dashboard to find out the most appropriate times to buy and invest in the local property, or to sell and exit from it.

KUWAIT’s BANKs KPIs - PERFORMANCE INDICATORS TOWARDS MAKING THE STRATEGIC DECISIONS

Leading businesses rely on different financial data and indicators to continuously follow up on their corporate performance, as well as to make the best strategic decisions to move the competition forward and increase their market share. In this regard, EXCPR Consulting and Business Management, based in state of Kuwait, launched its quarterly report on the performance of local banks, which includes more benefits that decision makers in these institutions are looking for while presiding over regular meetings. By offering such additions to the local market, EXCPR Consulting always seeks to be a neutral party between evaluating the performance of financial institutions in Kuwait, and between achieving the needs of investors and stakeholder’s requirement on the other hand, by providing data compared to other competing companies in the local market. In addition, access to such data by stakeholders and interested stakeholders would be shortened to more time and to be present to decision makers at the meeting table on an ongoing basis. The following table shows the general comparison:

MARKET SHARE

Market share is one of the most important indicators on which the board members of the banks in addition to the senior management in those institutions, by not only measuring the performance of the company, but also to compare the company's current activity compared to the performance of competing banks in the market. In this regard, the results of the research of EXCPR Consulting and Business Management indicate that NBK continues to master the local banking sector with a market share of 32%. Kuwait Finance House (KFH) came in second place with a percentage of about 26% of the total market. The following figure shows the market share of other competing companies in the domestic market:

NET PROFIT

As for the net profit model, NBK is also one of the best local banks in terms of net profit, with an estimated value of KD 371 Million. KFH ranked second in the domestic market with net profit of KD 227 Million. The average industry net profit of local banks in Kuwait is about KD 108 million per year, as described in the following figure:

ASSETS PER EMPLOYEES

Another management indicator that contributes to the awareness of the activity of institutions and banks in Kuwait, like other leading international companies, is the so-called total asset value relative to the numbers of employees at the Bank. In this regard, the results of EXCPR Consulting indicate that the greatest percentage of this indicator was that each employee working at NBK is equivalent to an asset value of about KD 12.3 Million. Burgan Bank ranked second in terms of measuring the bank's assets against employees, with a value of about 10 million KD per employee. KFH came in third place with a remain of KD 7 Million per working employee, as shown in the following illustration:

ANNUAL DISTRIBUTIONS

Annual distributions distributed by banks in Kuwait are among the signs that investors in general and small investors in particular are constantly looking for, in order to achieve more wealth and financial advantages. As for the cash dividends distributed by local banks, NBK has issued the index with annual distributions of 33 fils per share. KFH ranked second with a cash distribution of 16 fils per share. As for the grant profits distributed by local banks over the past years, KFH topped the list with a distribution rate of 9.9%, compared to 6.1% for NBK. The financial banking sector in Kuwait has averaged about 12 fils per share and 4.4% for grant distributions, as described in the following figure:

CHANGE IN NET PROFIT

The change in net profit from the different brands is also indicative of the activity of banks compared to their performance in the past work, compared to the rest of the market. In this context, Burgan Bank topped this list with an annual growth rate of about 27.7%. KFH was second with 23.4% of the bank's performance last year. Gulf Bank was ranked third, with an estimated annual net profit growth of 18.8%, as shown in the illustration below:

RETURN ON EQUITY- ROE

The ROE index is important for most international companies in comparing the performance of companies and the effectiveness of their executive management in carrying out their tasks. In this respect, this indicator was inferred and projected to the banking sector in Kuwait. The results of the research indicate that the best local banks in the rate of return on shareholders' equity were the share of KFH by 12.1%. Boubyan Bank, the Islamic arm of NBK, came in second with 10.9%, followed by third place with 10.8% (NBK). The following figure shows the ratio of this important indicator on the performance of local banks in the country:

MARKET VALUE

The market value of local banks and banks is one of the most important indicators that shows the confidence of investors in their types of institutions and groups in addition to individuals, in achieving satisfaction with the performance of the board of directors represented by their executive management. The higher the market value of that enterprise, the greater the amount of mutual trust that has been obtained. In this regard, the results of the research of EXCPR Consulting indicate that about 39% of the total market value of local banks in Kuwait was held by NBK. KFH came in second with 28%. Despite the short duration of the establishment of Boubyan Bank, it was able to keep pace with the leading local banks, which managed to achieve 9% of the total market value of the banking sector in Kuwait. The following figure shows the market value ratio of the rest of the local banks:

Finally, performance measurement indicators and the choice of the best are the basis for continued competition in the markets and the inflated margin of profitability expected. Tracking such data and equations also has a significant role to play in raising the organization's operational efficiency rate, thereby achieving the highest level of value added expected to stakeholders.