Thursday , November 23 2017

KFH posts KD 137.9mn net profit until end of Q3 – Earnings per share rise 11.8% to 24.26 fils; total operating income up 9.1%

KUWAIT CITY, Oct 16: Chairman of Kuwait Finance House (KFH) Hamad Abdulmohsen Al-Marzouq said that “KFH has, by the grace of Allah, realized a KD 137.9 million net profit to shareholders until end of Q3 2017 compared to KD 123.1 million for the same period last year i.e. an increase of 12 percent.

Financing income reached KD 542.1 million i.e. a growth of 1.5 percent compared to the same period last year. Total operating income until the end of Q3 2017 reached KD 525.1 million, i.e. a growth of 9.1 percent and net operating income reached KD 311.7 million, i.e. a growth of 19.8 percent compared to the same period last year.

The operating expenses decreased for the period by KD 7.75 million, i.e. a decrease of 3.5 percent over the same period last year.

Earnings per share until the end of Q3 2017 reached 24.26 fils, compared to 21.69 fils for the same period last year i.e. an increase of 11.8 percent.

Total Assets reached KD 17.40 billion i.e. an increase of KD 902 million or 5.5 percent compared to end of year 2016.

Financing portfolio reached KD 9.27 billion i.e. an increase of KD 1.1 billion or 13.4 percent compared to end of year 2016. Depositors’ accounts reached KD 11.59 billion i.e. an increase of KD 926 million or 8.7 percent compared to end of year 2016. Shareholders’ equity reached KD 1.85 billion i.e. an increase of KD 35.5 million or 2 percent compared to end of year 2016.

Al-Marzouq explained that the realized profits are attributed to the efficient execution of the bank’s strategy by focusing on the core banking business while achieving stable and sustainable growth across the Group banks in various countries. KFH proved resilience in its business model through optimal integration of its units and activities. KFH continues pursuing cost optimization policy.

Al-Marzouq added that KFH achieved good profitability and stability in all indicators, including the total operating revenues and the investment revenues. KFH managed to reduce the operating expenses in comparison to the revenues. KFH Group has over 481 branches over the world among of which is 61 branches in Kuwait in addition to 46 branches dedicated to serve the ladies. KFH works tirelessly to increase coordination among the Group units in Turkey, Malaysia, Bahrain, Saudi and Germany, indicating that KFH constantly endeavors to improve its asset quality while continuing its prudent policy in risk management as per best practices.

Al-Marzouq said that KFH has a pioneering position in the retail market. The bank rolled out advanced banking products and services. Despite the challenging operating environment in the domestic and international markets, KFH proved resilience in its business model through optimal integration of its units and activities in the markets of Turkey, Bahrain, Saudi, and Malaysia while taking advantage of the nature of each market.

KFH-Turkey is leading the participation banks in Turkey. It offers a wide range of financial services while expanding and penetrating new markets. KT Bank Ag in Germany has also achieved good growth. KFH-Malaysia managed to map out a new customer-centric strategy based on offering retail and corporate financial services in the Malaysian market. KFH-Bahrain inked several financing agreements for several real estate development projects. It increased its market share in the retail market.

Al-Marzouq said that the high levels of liquidity and the expertise in the Islamic financial services industry is witnessing huge turnout locally and globally. KFH offers a wide range of banking business models and financing options that suit the financing needs of the individuals, corporates and governments. KFH arranged several financing deals. KFH-Capital succeeded in arranging syndicated facility of $300mln to ALAFCO Aviation Lease and Finance Company. It arranged many Sukuk deals to companies and governments in the region and the world. The volume of Letter of Credits and Letter of Guarantees offered to customers is increasing which reflects the bank efficiency in attracting new customers from different investment sectors.

He stressed the significant role of the human resources, indicating the bank spares no efforts in hiring, training, and qualifying its human resources whilst preparing the distinguished national employees for leadership position.

The bank reinforced its technological channels and implemented different customer-centric initiatives that revolved around customer satisfaction as per accuracy, security and quality standards.

As part of its innovation efforts and the keenness to adopt the latest banking technology, KFH launched several innovative services such as the XTM; the novel approach that allows customers to perform their transactions in a very modern and secure manner. KFH offers ATMs for the blind and the disabled. KFH is the first bank in the Middle East and Africa (MEA) region to launch in collaboration with Mastercard KFH Wallet service based on the MDES platform. Moreover, the bank launched 4 innovative e-services in the fields of bank accounts and call center. KFH remains dedicated to utilizing technology in a way that optimally meets customers’ evolving needs as per highest standards of accuracy, simplicity and security.

Al-Marzouq stressed the ceaseless efforts of KFH in strengthening its role in boosting the national economy, primarily through corporate finance as per the credit and legislative regulations. KFH continues its unremitting efforts to offer credit facilities for SMEs.

He reiterated KFH-Group’s significant role in strengthening Sukuk product as a prime financing instrument for governments and corporates across the global markets, especially in light of the increasing acceptability of this sharia-complaint product, that offers financing for corporates, development and infrastructure projects, and for urban development to achieve further growth and expansion. KFH is a pioneer in arranging and syndicating the Sukuk issuances across the world.

The economic development on the local level is moving forward. The government initiatives offer more legislations that comprise a catalyst for attracting foreign investments. Upgrading the Kuwaiti Bourse to emerging-markets classification by index FTSE Russell is very important step for further prosperity. He called for concerted efforts and for further collaboration between the private sector and the government in order to improve the domestic business environment. This boosts the economy, increases the country’s return and contributes in creating more jobs, which achieves the aspiration of the future generations and offers growth and development in all fields.

Check Also

KFH trains Kuwait employees to manage Group units – Project launched to build national leaderships and endorse horizontal promotional system

KUWAIT CITY, Sept 19: KFH Group CEO Mazen Al-Nahedh emphasized the significance of investment in …

Translate »