(MENAFN- Arab Times) Kuwait Finance House (KFH) general assembly that was held on Sunday at KFH main office, approved the recommendations of the board to distribute cash dividends by 10 percent and stock split by 10 percent over registered shareholders. The assembly listened to and approved the reports of the board, accounting controller, and Fatwa and Legislative Control. The report concerning KFH's financial and non-financial penalties handed down by the Central Bank of Kuwait (CBK) was read, then the general budget and profits and losses for fiscal year that ended on December 31st 2012 were approved. The conversion of 10 percent of profits to legal reserves was approved, and the board was authorized to sell or acquire 10 percent of the bank's shares. Board members were relieved of any issues related to their legal practices for fiscal year 31/12/2012.
The general assembly approved the proposal made by the Kuwait Investment Authority to keep bonuses of board members and sub-committees as they were last year at KD 260,000 for the board and the same amount for committees for fiscal year 2012, in order to overcome the challenges facing the banking sector; especially after the drop in dividends and the proposed capital increase.
The authority does not object to looking into any proposals in the future, if those proposals are based on academic and professional studies.
The authority's representative applauded the efforts exerted by the board members; especially those related to applying governance and the restructuring plan. He also thanked them for their cooperation, and hoped they continue to work relentlessly to boost KFH's performance.
Meanwhile, shareholders in Kuwait Finance House (KFH), the Gulf state's largest Islamic lender, have agreed to a 20 percent capital hike, the company said on Monday. KFH had said last year that the bank plans to increase its capital to boost capital ratios and fund expansion both at home and abroad, as part of the bank's five-year strategic plan. New shares will be issued at 100 fils ($0.35) per share plus a premium of 400 fils, the bank said in a bourse filing. The Annual General Meeting was held late on Sunday.
KFH shares are now trading at 780 fils, down 1.27 percent on the Kuwait bourse. A capital increase could boost KFH's paid-up capital to 348.5 million dinars ($1.24 billion) from 290.4 million dinars, Al Watan newspaper reported in November. Kuwaiti banks have suffered since the global financial crisis because of exposures to the local real estate and stock markets whose values have dropped significantly, as well as to investment firms which borrowed heavily in the boom years to finance activity in the two areas.Â
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