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Kuwait - KFH Posts KD 115.9 Mln Net Profit In 2013  Join our daily free Newsletter

MENAFN - Arab Times - 04/02/2014
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(MENAFN - Arab Times) Kuwait Finance House (KFH) Chairman Mohammad Al-Khudairi stated that KFH, by the Grace of Allah and His Blessing, has achieved a growth in all its financial indicators for the fiscal year 2013. He considered the achieved results a significant milestone that places KFH on the right track to achieve sustainable profitability, a stronger capital base, and improve KFH's market share. In addition, the results confirm the bank's leadership locally and globally in the Islamic banking industry

Al-Khudairi added in a press statement, that the bank has achieved total revenues of KD 996 mln for the fiscal year 2013 with an increase of KD 67.3 mln, a 7.3 % over last year. Gross profit of KD 292 mln, of which KD 172 mln will be distributed as profits for investors' deposits as follows: 2.180% for "Al-Khumasiya" investment deposit, 1.962% for "Al-Mustamera" continuous investment deposit, 1.526% for "Al-Sedra" investment deposit, and 1.308 % for "Tawfeer" saving investment accounts

Shareholders' net profit increased by KD 28.2 mln, to reach KD 115.9 mln, an increase of 32 % over last year. Earnings per share increased by 6.22 fils to reach 32.69 fils, an increase of 23 % over last year.

The Board of Directors has proposed a 13% dividend distribution and 13% bonus shares subject to approval of general assembly and regulatory authorities

Total Assets increased by KD 1.4 bln to reach KD 16.1 bln, an increase of 10 % over last year, while customer deposits increased by KD 711 mln to reach KD 10.1 bln, an increase of 8% over last year. Shareholders' equity increased by KD 401 mln, to reach KD 1.7 bln, an increase of 30 % over the same period last year

The bank's Capital Adequacy Ratio (CAR) increased to reach approximately 17.44 % as a result of implementing Capital Improvement Plan initiatives. Al-Khudairi said that KFH's shareholders, clients, the Board, of Directors, and employees constitute the main pillar of the success achieved in the year 2013 and previous years. He asserted that the achieved profits confirm KFH's solid financial position, healthy performance and professional execution of plans in accordance with professional standards and compliance with supervisory regulations

Al-Khudairi highlighted the positive results achieved by KFH last year, the second year of Transformation Program, which resulted in improving asset quality. The bank continued its efforts to improve the quality of the bank's financing portfolio after allocating KD 187 mln as provisions, which contributed to improving credit and asset quality. The Non-Performing Financing ratio NPFs was reduced to 4.4% from 5.7%. In addition, KFH maintained standards of capital in accordance with regulatory requirements where the Capital Adequacy Ratio (CAR) currently stands at 17.44 %

He explained that the Transformation Program contributed to an overall better quality in retail and wholesale banking services, which led to resilience and growth in revenues. Al-Khudairi stressed KFH's commitment to sharia principles and affirmed granting Sharia Supervisory more powers and duties across various businesses. This will ensure that they are involved in all projects carried out by KFH within an effective risk management framework and to strengthen employees' awareness by educating them on sharia basics

Moreover, he underscored KFH's active role in wholesale finance in accordance with professional and credit regulations and standards. He highlighted KFH's perseverance to support Kuwaiti corporations in the pursuit of more inclusive and sustainable economic growth. Al-Khudairi said that KFH will continue expanding in global markets, in light of the set and approved five-year plan, to reinforce its international position and presence in the global market and to search for lucrative long-term investment opportunities.

It will also initiate relationships between those markets and Kuwait and the GCC. It's worth noting that this policy has recently paved the way to mutual cooperation and investment in various fields that will cement relationships and open horizons for constructive commerce between people and governments. He explained that KFH-Group growing more popular and prevalent worldwide with 352 bank branches that have contributed in the achieved financial results as they have rewarding income resources which affirm the diversifications of KFH's businesses

He said that KFH-Turkey continues to expand in the Turkish market and the adjacent countries, indicating that the bank has succeeded in offering an attractive array of services and products in the Turkish market, such as sukuk, which enable governments and corporations to meet their financing needs for future projects, and a Gold Account that was applauded by our customers who consider it as a safe haven investment. In addition, last summer, KFH-Turkey served the bank's clients for the second consecutive year by offering real estate financing services to Kuwaitis wishing to purchase a property in Turkey

Al-Khudairi went on to say that KFH-Malaysia has embarked on establishing an important financial hub while the bank effectively funds its asset growth. Moreover, KFH-Malaysia has also succeeded in implementing its own Transformation Program that aims to promote harmony with other Group Banks on the one hand and in line with KFH's Transformation Program on the other hand. This led the bank to post favorable financial results, which will enable the bank to sustain healthy and steady growth in the upcoming period; especially after it rapidly expanded across Malaysia

In Bahrain, KFH-Bahrain is about to finalize marketing and selling plots of its flagship real estate project "Diyar Al-Muharrq" that is considered to be the largest housing project executed by private sector in Bahrain. Al-Khudairi added that the bank is enhancing its role in the banking field by offering a wide range products and services, not to mention expanding its branch network and strengthening its role in revitalizing the economic growth and development in Bahrain

Al-Khudairi stressed KFH's keenness on harnessing its capabilities to provide innovative services and products for the benefit of its clients. He added that the bank is also keen on reinforcing its market share and maximizing its capabilities to improve service quality. He went on to say that KFH will proceed in assuming social responsibility and will focus more on technology utilization to improve output and productivity that lead the bank to maintain the top spot in Kuwait

Al-Khudairi underlined KFH's role in leading the market by deploying new services and products in 2013 in all work fields such as Medical Finance, Education Finance, Call Account and Gold Account. In addition, it also launched the co-branded Oasis Club Card in collaboration with Kuwait Airways. All of these products met clients' aspirations and catered to their needs, which contributed to further customer satisfaction; thus further customer attractiveness. Moreover, he said that KFH has succeeded in achieving one of the most significant benefits of transformation process, which is consolidating KFH's major businesses through three companies; KFH-Capital, KFH-Investment and KFH-Real estate

Furthermore, Al-Khudairi underlined the importance of human resources and noted the advocacy and support they are granted in all levels. He added that the national workforce at KFH has reached 62% where the bank exerted its efforts and strived towards better training employees indicating that the bank managed to train 22,000 employees during the year 2013, in addition to rehabilitating several employees in collaboration with State Manpower Restructuring Program. He went on to say that the bank was granted two Excellence Awards in Training and Kuwaitization. This confirms its strength as a key part of supporting national workforce; especially the youth segment

He continued: "KFH has opened a branch at Kuwait International Airport that provides twenty-four seven services". He highlighted KFH's position; especially in light of achieving several worthwhile industry awards. These awards include Best Islamic Bank in Kuwait from both Euromoney and Asiamoney, Best Financial Institution in Kuwait from Global Finance, and four awards for Best Islamic Bank in Kuwait and Middle East, in addition to Best Sukuk Regulator from Emeafinance


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