(MENAFN - Arab Times) Kuwait Finance House (KFH) general assembly for the fiscal year ending Dec 31, 2013 that was held on Sunday at KFH Head Quarter, approved the recommendations of the Board of Directors to distribute cash dividends by 13% of the par value of the share (equivalent to 13 fils per share) and bonus shares by 13% (equivalent to 13 fils per 100 shares). This applies to shareholders registered on the day of holding the extraordinary general assembly. Moreover, the general assembly approved all the points on the agenda. Mohammad Ali Al-Khudairi, KFH Chairman, stated during the assembly that the bank managed to achieve positive results despite the continuous unfavorable economic conditions worsened by the weak growth in many countries and the ongoing political unrest in the region. He highlighted the success KFH achieved in increasing the capital of the Bank, managing risk, and complying with the Capital Adequacy Standards, not to mention the strong readiness to respond to the Basel III Accord which is in line with KFH's strategy for achieving sustainable success amidst the rapid and ongoing developments in the banking sector. This reflects KFH's strong financial position and efficient performance
Al-Khudairi added: "we have outlined strategic direction since 2012 that would enable us to overcome the potential challenges that could affect the regulatory, economic and operational environment and to adequately respond to the regulatory requirements, while ensuring customer centricity by catering to all their needs". He continued: "We strive to continue upholding leadership and excellence in everything we provide". He stressed that KFH's Shari'a compliant business model, solid financial position, efficient control systems, prudent risk management practices, on-going efforts of our Bank's Executive Management and sound investment decisions are very essential to ensure KFH continuous success and promotion to the most trusted and sustainably most profitable Shari'a compliant bank in the world.
Al-Khudairi explained that KFH's strategy focused on leading global development in Shari'a compliant financial services, benefiting from the Transformation and Restructuring Program efforts, which was successfully completed towards the end of 2013, expanding services to KFH's wide client base and determining the optimal asset allocation for investment activities through pursuing prudent divestiture from specific investments and consolidating KFH's portfolio in specialized companies through establishing three companies for investment functions. The companies are KFH- Real Estate, KFH-Investment, and KFH-Capital aiming at getting rid of some duplications in activities, expanding the circle of strategic supervision, and seizing investment opportunities
He said that KFH will continue to allocate adequate precautionary provisions in a quest to protect KFH from potential or unpredicted future risks, and to ensure safety to KFH-Group, in addition to reduce costs on the Group level that have been decreased in 2013 over 2012 with maintaining the efficiency level.
Al-Khudairi indicated that the new structure of KFH is characterized by stability and it takes into account comprehending prudent corporate governance standards. KFH strives to implementing mechanisms of set plans that aim at achieving growth and ensuring convergence among the Group units and activities, in addition to streamlining procedures which reflected positive results on all Group level revenues resources. This is evident in in the financial results of the fiscal year 2013 where KFH achieved, by the Grace of Allah and His Blessings, net profit KD 116 mln, earnings per share 32.69 fils, total Assets reached KD 16.1 bln, an increase of 10 % over last year, while customer deposits reached KD 10.1 bln, compared to KD 9.4 bln last year, an increase of 8%. These numbers reflect robust financial position
Al-Khudairi stated that 2013 witnessed huge exerted efforts in the field of comprehending corporate governance requirements which were crowned with the issuance of KFH's Corporate Governance Manual incompliance with the instructions of regulatory authorities. In addition to the documented policies on corporate governance approved by the Board of Directors, KFH's strategies on corporate governance were drawn up to respond to all local and regional legal and regulatory requirements.
Furthermore, the necessary measures were taken to promote the culture of corporate governance within KFH Group and to apply best practices so as to carry out their functions responsibly. This will bolster not only the rights of share-holders but it will also protect the long term interests of the Group.
He added that KFH takes a leading position in providing quality services and products in addition to launching initiatives for economic development and the welfare of society. As an emphasis of this role, we managed to launch the Third Sustainability Report for KFH, in accordance with GRI (Global Reporting Initiative) Sustainability Guidelines. The report summarizes the contributions made by KFH in making positive change in the areas where we operate and represents a part of the efforts put forth by KFH during the year in order to achieve sustainable growth.
He went on to say that as part of KFH's social responsibility, several ambitious initiatives and programs have been implemented to support Kuwait Zakat House and other educational, rehabilitation, cultural and humanitarian organizations. During the year, KFH donated nearly KD 3.5 million in support of Zakat House charitable projects and activities. Furthermore, KFH played an active role in supporting and fostering the environment as well as supporting academic events and seminars.
Moreover, KFH Credit Ratings & Global Awards KFH, for the second consecutive year, maintained its prestigious international credit ratings issued by the leading international rating agencies as illustrated in the table. KFH's credit ratings in 2013 Emeafinance also accorded KFH many awards during the year including the 2013 Middle East Islamic Bank of the Year, the 2013 Kuwait's Bank of the Year and, the 2013 Kuwait's Islamic Bank of the Year. It also accorded KFH the Sovereign Sukuk of the Year Award.
Al-Khudairi emphasized that the success and positive results that have been achieved in 2013 were by the grace of Allah the Almighty and to Him goes our thanks first and foremost, besides KFH's shareholders support and confidence, KFH's clients and suppliers for selecting KFH and its products and services promising them to continue the course of development and attain best achievements and positive results. Al-Khudairi expressed sincere thanks to Executive Management team and all employees of KFH, who are the most valuable asset, for their distinguished efforts and positive approach to challenges they faced and the results they have achieved