Chairman of Kuwait Finance House (KFH) Hamad
Abdulmohsen Al-Marzouq said that “KFH has, by the grace of Allah, realized a KD
81.6 million net profit for
the first half of 2017 for KFH shareholders compared to KD 70.9 million for the same period last year i.e. an
increase of 15.2%.
Net finance income for H1 this year reached KD 210.8 Million i.e. a growth of 2.7% compared to the same period last year. Total
operating income for the first half of this year reached KD 343.2 million, i.e.
a growth of 9.1% and
net operating income reached KD 200.3 million, i.e. a growth of 22.1% compared to the same period last year.
Total operating expenses for the period decreased by
KD 7.5 million, i.e. a decrease
of 5% over the same period
last year.
Earnings per share for the first half of 2017 reached 14.37 fils, compared to 12.49 fils for the same period last year i.e. an increase of
15.1%.
Total Assets reached KD 17.165 billion i.e. an increase of KD 666.1 million or 4% compared to end of year 2016.
Finance portfolio reached KD 8.914 billion i.e. an increase of KD 738.5 million or 9% compared to end of year 2016. Depositors’ accounts reached
KD 11.377 billion i.e. an increase
of KD 714.9 million
or 6.7% compared to end of year
2016. Shareholders’ equity reached KD 1.795 billion at
the end of the first half of 2017.
In addition, KFH’s capital adequacy ratio (CAR)
reached 17.55%, higher
than the required limit of 15%, thus reiterating the strength of KFH financial
position.
Al-Marzouq
explained that the realized profits are attributed to the efficient execution
of the bank’s strategy by focusing on the core banking business while achieving
stable and sustainable growth across the Group banks in various countries
including Turkey, Bahrain, Malaysia, Germany, and others. The profits affirm
that KFH is on the right track achieving sustainable profitability,
strengthening its capital base, while maintaining its pioneering position as a
global leading Islamic financial institution. The international operations are
characterized by the geographic diversity that contributes to improving the
asset quality and profitability.
Despite
the challenging operating environment in the domestic and international
markets, KFH proved resilience in its business model through optimal
integration of its units and activities, efficient risk management, and the
ability to soundly deal with the economic challenges and comply with the
regulatory requirements. KFH constantly endeavors to improve its asset quality
while continuing its prudent policy in setting aside provisions in light of the
economic uncertainty. This leads to improving the Capital Adequacy Ratio while
strengthening the bank’s financial position.
Al-Marzouq
said that Moody's Investors Service (Moody's) has affirmed KFH’s
A1 long-term deposit ratings, and changed the outlook on these ratings to
stable from negative. He added, as per Moody’s report, KFH is one of the
largest banks in Kuwait with a market share exceeding 20% of the assets of the Kuwait
banking sector, indicating KFH's ratings reflect the result of improvements in
its financial performance, high levels of liquidity, and the strong
capitalization that is improving in comparison to its peers locally and
globally.
Al-Marzouq
highlighted the importance of financing the country’s mega projects,
considering this as an economic, development and social goal. He emphasized
KFH’s commitment towards corporate finance as per the credit and legislative
regulations, indicating the bank’s unremitting efforts to offer credit
facilities for SMEs where it has the largest share of SMEs segment.
He
reiterated KFH-Group’s significant role in strengthening Sukuk product as a
prime financing instrument for governments and corporates across the global
markets, especially in light of the increasing acceptability of this
sharia-complaint product, that offers financing for corporates, development and
infrastructure projects, and for urban development to achieve further growth
and expansion. KFH is a pioneer in issuing sovereign Sukuk across the world.
Recently, KFH Capital, a fully owned subsidiary of (KFH-Group) successfully participated
in Hong Kong USD1bn Sovereign Sukuk as a co-manager and acting as a joint lead
manager and a book runner for the USD 1 billion benchmark Sukuk issue for Dubai
Islamic Bank (DIB).
Al-Marzouq
continued: KFH won several awards in recognition of its excellence and leadership
role on different levels. KFH won “Islamic Bank of the Year 2017- Kuwait”, “Islamic
Bank of the Year 2017- Middle East” and “Islamic Bank of the Year 2017- Global”
awards from “The Banker” magazine. The bank won “Top Listed Institution in
Kuwait 2017” award from “Forbes Middle East” magazine in recognition of instrumental
role in boosting economic growth. Also, KFH won two prestigious awards from the
Kuwait Public Relations Association. The awards are: Institutional Excellence
in Public Relations award, and Excellence in Social Awareness award.
KFH
plays a key role in significant economic events. The bank sponsored the Kuwait
Financial Forum held under the patronage of H.H. the Amir Sheikh Sabah Al-Ahmad
Al-Jaber Al-Sabah. KFH organized the 9th forum for Listed Companies
and Financial Analysts aiming at discussing the latest developments in the
domestic markets along with the economic situation, its repercussions on the
performance of companies in the future.
Also,
KFH inked with the Ministry of State for Youth Affairs two agreements;
collaboration and partnership agreement, and an agreement to support the
activities of celebrating Kuwait as "Capital of Arab Youth". This
solidifies the bank’s role in supporting the youth and reflects the keenness to
take part in the strategic initiatives that represent Kuwait and shed light on
its culture.
Al-Marzouq
stressed the importance of moving forward in focusing on the core banking
business through improving the operational revenues while rolling out advanced
banking products and services, indicating that the performance and results of
KFH products and services exceeded projections. The bank reinforced its
technological channels and implemented different customer-centric initiatives
that revolved around customer satisfaction as per accuracy, security and
quality standards.
As
part of its innovation efforts and the keenness to adopt the latest banking
technology, KFH launched several e-services such as the XTM; the novel approach
that allows customers to perform their transactions in a very modern and secure
manner. KFH, in association with Visa, is the first bank in Kuwait to launch
Visa Checkout (VCO), a service, which enables quick, safe and secure online
payment. Moreover, the bank launched 4 innovative e-services in the fields of
bank accounts and call center. The services are “Call Back Assist”, “ANI”
Service, “Favorite Menu” service and “Link Accounts” service. The bank introduced
a multi-currency ATM machine at the airport branch with four foreign
currencies; USD, Euro, SAR, and AED.
Al-Marzouq
said that as part of the bank’s policy to expand its branches network, KFH
inaugurated its 66th branch in Al-Nuzha. KFH is keen on delivering
superior services to its customers.
He
explained that KFH Group is successfully achieving its goals based on the
markets in which it operates. Every Group bank in Turkey, Malaysia, Saudi
Arabia, Bahrain and Germany is working in a way consistent with the nature of
those markets, in line with the strategy of KFH. This adds more resilience to
the modus operandi of the Group banks, yet qualifies them to tap opportunities
and utilize any positive development. KFH has a global integrated operations
leading the Islamic finance industry globally, and offering a suite of
financial Islamic services and products. KFH’s group banking network spans
across seven regions worldwide, with over 480 branches, over 990 ATMs and approximately
15,400 employees.
Further,
he noted that KFH solidified its role in the corporate social responsibility through
participating in a plethora of social, humanitarian and awareness initiatives.
KFH implemented different social initiatives that accentuate its pioneering
role and commitment towards society.
He expressed his thanks and appreciation to all
shareholders and customers for their support and confidence. He extended his
thanks to the regulatory authorities. He hailed the efforts of KFH’s executive
management and employees for their outstanding performance that yielded
positive results that reflect the prestigious status of KFH; the world leading
Islamic financial institution.
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