Net financing income increases by 38.2% to KD 138.4 million for first quarter
KUWAIT CITY, April 29: Chairman of Kuwait Finance House (KFH) Hamad Abdulmohsen Al-Marzouq said that KFH has, by the grace of Allah, reported net profits of KD 43.97 million for the first quarter of 2018 for KFH shareholders compared to KD 38.59 million for the same period last year ie an increase of 13.9%. Net finance income for Q1 this year reached KD 138.38 million ie a growth of 38.2% compared to the same period last year.
Total operating income for the first quarter of the year reached KD 189.11 million, ie a growth increase by 12.2% and net operating income reached KD 110.30 million, ie a growth of 11.7% compared to the same period last year.
Earnings per share for the first quarter of 2018 reached 7.03 fils, compared to 6.17 fils for the same period last year ie an increase of 13.9%. Finance portfolio reached KD 9.497 billion ie an increase of KD 280.9 million or 3% compared to end of last year. Total deposits reached KD 11.764 billion ie an increase of KD 167.3 million or 1.4% compared to end of last year. Al-Marzouq said that KFH has achieved positive results despite the economic challenges.
The realized profits confirm the success of KFH’s strategy of the development of current customer base, innovation based on the new digital financial technology (fintech) and achievement of operational excellence, while achieving harmony among KFH group banks to ensure sustainable growth, enhance service and risk policies and adhere to regulations for achieving rewarding returns for shareholders and investors. Al-Marzouq added in a press release, that KFH focuses efforts on core banking business, improving asset quality while delivering superior innovation and customer service excellence in an effort to achieve its vision of leading the international development of Islamic financial services, and becoming the most trusted and sustainably most profitable shariah-compliant bank in the world.
He indicated KFH was a pioneer in rolling out a large variable package of advanced banking and investment products to meet customers’ finance and investment needs as per the highest international standards of quality, efficiency and security.
KFH group banks in Turkey, Malaysia, Bahrain and Germany have continued their outstanding and successful performance in accordance with the set plans and strategies to benefit from the elements of strength in each market in which they operate and achieve more coordination and expansion in joint projects.
Al-Marzouq reiterated KFH keenness to participate in financing major and infrastructure projects which are considered as strategic and significant in KFH business, yet as part of KFH’s contribution to the development efforts and assisting companies to develop their work. KFH financed different mega projects in Kuwait and the countries where it operates of which inking credit facility agreement of KD 124.6 million for financing terminal II building for Kuwait International Airport, and 200 million euros credit facility for the construction of Çanakkale Bridge in Turkey.
In addition, KFH and Kuwait Projects Company Holding (KIPCO), signed a Memorandum of Cooperation ‘MOC’ stating that KFH offers Sharia-compliant financing solutions for individual purchasers of residential or commercial property in Hessah Al Mubarak District real estate development project. He indicated KFH leadership position in the Sukuk market noting the Bank has succeeded in arranging the issuance of US$ 1 Billion Sukuk for Dubai Islamic Bank.
The vast experience of KFH Group in the Sukuk issuance has positioned it as a trustworthy and highly recognized organization by major corporates and governments globally. The various structures used by KFH Group in arranging sukuk have made sukuk to be highly competitive and efficient. Al-Marzouq emphasized that the positive ratings of KFH by international rating agencies and the prestigious international awards granted by global institutions are considered as a positive indicator on the soundness and success of set plans.
KFH is in the premier market in Boursa Kuwait. KFH considers customers dedication, trust and loyalty as the best prize ever awarded and the true rating of its efforts at the group level. KFH’s social responsibility and contribution was diversified and comprehensive for development of society, thus reinforcing the concept of “sustainable growth”. KFH has adopted certain fundamental aspects to perform its social role including education, health, youth, and people with special needs to confirm the leadership in social responsibility. Al-Marzouq conveyed his sincere thanks to all shareholders and customers for their continuous and valuable support and trust in KFH activities and business. He extended his appreciation to all regulatory authorities for their support. He appreciated the efforts of KFH staff and the executive management who reaped the fruits of their distinguished performance.