21/09/2024
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21/09/2024
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KUWAIT CITY, Sept 21: Kuwait Finance House (KFH) Chairman, Hamad Abdulmohsen Al Marzouq, said that KFH has successfully completed the merger steps between Kuwait Finance House and the formerly Ahli United Bank - Kuwait. With the successful integration of both banks' operations into a single, unified system, a new chapter of success, achievement, and industry leadership unfolds for the combined entity.
He pointed out that the integration of operations was completed in a record time with high efficiency. This affirms KFH’s position as the benchmark for banks in Kuwait and the region. Following its landmark cross-border acquisition of Ahli United Bank - Bahrain, one of the largest deals in the region, KFH has concluded the largest-ever merger in Kuwait’s banking sector. This historic merger paved the way for the creation of a giant financial entity within the Islamic finance industry, with a reach spanning local, regional, and global markets.
Al Marzouq explained that the success of this strategic step hinges on the sincere efforts of everyone involved in this project. He expressed his pride that the merger and integration of the two institutions has been a resounding success and facilitated a smooth transition for its valued customers, employees, and shareholders.
Following the integration, Al Marzouq said that customers will benefit from a wider range of Sharia-compliant financial products and services. Employees will also have access to expanded opportunities for growth and development within a larger, more diversified financial institution. Moreover, the strategic expansion into key regional and global markets would enhance profitability, leading to stronger financial performance for shareholders.
He went on to say that the merger solidifies KFH's standing as a leader in the Islamic banking industry, positioning it for inclusion on the list of the world's 100 largest banks within the next decade. He also noted that by combining KFH’s experiences and resources, it is well-positioned to drive the future of Islamic finance, not just in Kuwait, but on a global scale.
Al Marzouq affirmed that KFH remains firmly committed to delivering excellence in Islamic banking services and moving forward towards creating exceptional value for all its stakeholders. This allows the Bank to contribute meaningfully to the growth and prosperity of the Kuwaiti banking sector.
Conversion to Islamic banking
Al Marzouq noted that KFH Group's expertise and high professionalism in Islamic finance led to the successful conversion of Ahli United Bank's conventional operations in Bahrain, the UK, and Egypt into Shariah-compliant entities in record time. This achievement aligns with KFH's strategy of expanding the Islamic finance industry locally, regionally, and globally.
He added that this step is a significant milestone for the Islamic banking industry in Europe and globally, presenting promising growth opportunities.
Acting Group Chief Executive Officer, Abdulwahab Iesa Al Rushood
Meanwhile, KFH Acting Group Chief Executive Officer, Abdulwahab Iesa Al Rushood expressed pride in the successful completion of the largest merger project in the Kuwaiti banking sector. He attributed the achievement to the dedication and commitment of KFH's employees, who ensured a smooth transition on Operational Day One.
He noted that a massive, cross-functional team has successfully completed over 250 phases, comprising more than 2,000 tasks. During this period, the accounts and products of over 280,000 formerly AUBK customers were migrated. The team also successfully integrated more than 80 systems across all bank departments in addition to unifying all services and products.
Al Rushood added: “Despite facing difficulties and challenges, we were able to overcome them and achieve this accomplishment. Our success would not have been possible without the guidance of Allah and the dedicated efforts of employees. KFH will solidify its position as a global leader in Shariah-compliant finance, becoming the most reliable, sustainable, and technologically advanced bank of its kind worldwide."
He highlighted that KFH has strengthened its position as a leading global banking group and a prominent brand that enjoys credibility, high solvency, sustainable profits and competitive performance in addition to a global reach with around 640 branches across 12 countries, notably Kuwait, Bahrain, Türkiye, Egypt, UK and Germany. KFH also tops all banks and companies listed on Boursa Kuwait in terms of market capitalization which exceeds KD 12 bn and reports the highest profit rates in the banking sector. In 2023, KFH reported a record net profit of KD 584.5 million attributable to the shareholders of the bank, an increase of 63.4 %. The historic profits are the highest-ever recorded in the Kuwaiti banking sector.
