(MENAFN- Arab Times) Kuwait Finance House KFH Chairman Muhammad Ali Al-Khudairy said that the subscription process in the capital increase of 20 percent approved by the Extraordinary General Assembly on April 24th 2013 by a value of 500 fils per share (100 fils par value and 400 fils premium) totaling KD 319 million, has gone smoothly where it exceeded the subscribed amount of the proposed quantity of shares. Al-Khudairy added that capital increase allocation process has been completed where subscription reached 156 percent and shareholders priority subscription reached 95 percent, and the 5 percent, which is not subscribed within the right of priority has been distributed to shareholders who have subscribed to the capital increase according to the principle of pro rata in which shareholders' total subscription amount reached KD 497 mln noting that the allocation amount of what has been subscribed posted about 9.240 percent which confirms shareholders' confidence in KFH which has proven its leadership locally and globally.
He elucidated that Kuwait Clearing Company-Stock Department in Ahmed tower- is returning the surplus funds through checks to shareholders in addition to handing private share certificates. Al-Khudairy valued shareholders' confidence in KFH through the large turnout witnessed in subscription process, pointing out that such confidence confirms the bank's pioneering in Islamic financial services industry locally and overseas as it enjoys 35-year experience in various economic sectors, especially those which have directly related to the productive economy based on earth reconstruction approach.
Moreover, he said "the increase in capital will be used to meet the high demand for products and services in the Islamic financial industry locally and overseas, especially that the state is going to proceed implementation of the development plan, in which the private sector will have a vital role in funding in addition to expansion plans in various markets. Furthermore, he elucidated that KFH is on the verge of further plans for expansion and development in various activities according to the vision based on restructuring, which focuses on creating new competitive environment in order to ensure further strengthening of the means and programs to develop mechanisms and action that retain its position locally and internationally.
Plan
He explained that that KFH has followed a systematic approach for capital management plan to cover the current and future needs based on the results of the capital adequacy internal assessment, stress tests as well as regulatory requirements. He went on to say that capital increase will enable the bank to increase its focus on the domestic market in order to achieve growth in market share by intensifying its spread through new branches in different areas in addition to deploying competitive products and services. He also mentioned that liquidity resulting from capital increase will be employed according to the new vision, taking into account the development in the countries that witness investments. Al-Khudairy said that KFH is achieving strong performance, growth of revenues, in addition to asset quality improvement after restructuring, stressing the continued efforts of the bank to strengthen the financial position and maintain the growth rate and balanced performance of all activities and work.
He noted that the most important steps taken in the last period, establishing KFH Real Estate Company, which is one of the investment strategic execution outcomes. He added that the company will be the investment arm of KFH in the field of real estate investment at the local, regional and international levels. He expressed his confidence that company will take part in holding important work of KFH in all areas of real estate investing, maximizing the value of these investments and developing its integrated perspective and specialized expertise. KFH was established in Kuwait in 1977 and is enlisted in the Kuwait Stock Exchange. KFH Group is a global pioneer in the field of Islamic banking services, where it offers a wide array of Islamic products and services, not to mention a high standard of innovation and client service.
KFH manages its operations in the GCC, Asia, and Europe through over 310 branches, including KFH-Turkey, in order to offer services for the bank's clients in Turkey, Malaysia, Saudi Arabia, Bahrain, Australia, Jordan, Dubai, and Manheim in Germany. KFH's mission is to achieve highest levels of excellence and innovation in the field of client service, while developing common interest for all those concerned with the financial institution. KFH's vision is to spearhead the global development in Islamic financial services, and to upgrade the bank into the level of becoming the most sustainable profitable Islamic bank in the world. KFH's values include cementing leadership through all its businesses, including leadership in the Islamic banking services worldwide, through innovation and in client service and the development of its employees. In addition, KFH is committed to all its procedures, and to setting up long-life partnerships with the concerned authorities.
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