Monday , September 24 2018

KFH reports KD 95.22m net profit in H1, 2018

Hamad Abdulmohsen Al-Marzouq

KUWAIT CITY, July 23: Chairman of Kuwait Finance House (KFH) Hamad Abdulmohsen Al-Marzouq said that KFH has, by the grace of Allah, reported net profits to shareholders of KD 95.22 million for the first half of 2018 for KFH shareholders compared to KD 81.64 million for the same period last year i.e. an increase of 16.6%. Total financing income for H1 this year reached KD 424.14 million i.e. a growth of 22.2% compared to the same period last year. Net financing income for H1 this year reached KD 277.84 million i.e. a growth of 31.8% compared to the same period last year. Total operating income for the first half of the year reached KD 389.87 million, i.e. an increase by 13.6% and net operating income reached KD 235.80 million, i.e. a growth of 17.7% compared to the same period last year. The cost to income ratio decreased to 39.5% for the first half of 2018, compared to 41.6% for the same period last year. Earnings per share for the first half of 2018 reached 15.23 fils, compared to 13.06 fils for the same period last year i.e. an increase of 16.6%. Total assets for H1 this year reached KD 17.624 billion i.e. a growth of 1.5% compared to last year end. Finance portfolio reached KD 9.561 billion i.e. an increase of KD 345 million or 3.7% compared to last year end. Total deposits reached KD 11.947 billion i.e. an increase of KD 350 million or 3.0% compared to last year end.

Sustainable growth
Al-Marzouq indicated that the positive financial results and the stable and sustainable growth 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, enhanced risk policies and adherence to regulations. He added in a press release that KFH is moving forward towards achieving rewarding returns for shareholders and investors and continuing the upward trend in profits despite the competitive environment and the economic challenges. Al-Marzouq referred to the great success of KFH efforts in focusing on core banking business and divesting nonstrategic investments to improve asset quality while delivering superior innovation and customer service excellence in an attempt to achieve its vision of leading the international development of Islamic financial services, and becoming the most trusted and sustainably most profitable Sharia-compliant bank in the world.

Fintech priority
He stressed the importance of making strides in the strategy of adopting the modern technology and enhancing the advanced digital services, indicating future technology is the element of evolution. Islamic finance can take advantage of technology to provide more efficient and accurate services to customers, helping to meet their banking needs that go beyond their expectations. Fintech is at the forefront of the interests of KFH that has made great strides in providing high end electronic and digital services. 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 and efficiency.

Performance integration of group banks
Al-Marzouq said that the performance integration among Group Banks hasachived great success. 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. Group subsidiaries continued collaboration and coordination for further efficiency in performance, thus better return on customers and shareholders and further boost to the economic development.

Financing development projects
Al-Marzouq emphasized KFH leadership in financing major and infrastructure projects in line with KFH strategy in supporting the national economy and achieving the comprehensive development. In addition, this comes as part of KFH’s contribution to the development efforts and assisting companies to develop their business. KFH signed a contract of credit facility with Kuwait Integrated Petroleum Industries Company (KIPIC) to participate in financing the company’s $2.3 billion Liquefied Natural Gas (LNG) import.

KFH was selected to lead the deal of the Islamic banks for their share in the $500 million. 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 AlMubarak District real estate development project.

KFH inked credit facility of KD 120 million with Mena Homes Real estate Company, affiliated to Kuwait Projects Company Holding (KIPCO). He noted that KFH succeeded in supporting the small and medium enterprises SMEs, indicating KFH serves over 1,000 customers of this segment. He said that KFH enjoys a leadership position in the Sukuk market and the Islamic financial services in general. 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.

Positive ratings
Al-Marzouq reiterated that the positive ratings of KFH by international rating agencies, the prestigious international awards granted by global institutions and enlisting it in the premier market in Boursa Kuwait are considered as a positive indicator on the soundness and success of set plans.

Social responsibility
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. He explains that the total social contributions of KFH during the last two decades account for over $500 million, among of which KD 48 million paid to Zakat House in the last 7 years. Al-Marzouq concluded by conveying 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 for their distinguished performance.

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