Kuwait Finance House's Head of Board and Chief Executive Officer Bader Abdul Mohsen Al-Mukhaizeem announced that Kuwait Finance House (KFH) has achieved total profits worth KD 527.272 million for the year 2007, with an increase of KD 183.618 million equal to 53%. This includes the profits for investment depositors that reached KD 242.528 million, distributed as follows: 8.632% for investment deposits, 6.714% for Al-Sedra deposit and 5.755% for investment saving accounts.
The net profits for shareholders reached KD 275.266 million with an increase of KD 113.262 million equal to an increase of 70% compared to the last year.
A share profit is increased to 166 fils compared to 102 fils in the last year with an increase of 63%, and assuming the capital increase since the beginning of the year, a share profit was 161 fils compared to 102 fils in the last year with an increase of 58%.
The Board of Directors recommended granting the shareholders cash distributions with a rate of 65% compared to 57% for last year, and bonus shares with a rate of 20% compared to 15% in the last year, after the approval of the General Assembly and concerned authorities.
Volume of assets increased in the balance to reach KD 8.798 billion with an increase of KD 2.484 billion compared to the last year and an increased rate of 39%. The volume of deposits increased to KD 5.361 billion with an increase of KD 1.631 billion equal to 44% compared to the last year. The total shareholders equity reached KD 1.210 billion with an increase of KD 508 million equal to 72% compared to the last year.
Reasons and Factors
Al-Mukhaizeem stated that these results were the fruits of the extended success that KFH has achieved during the previous years. This success is based on KFH's well awareness of the market and economical sectors where it works; in addition to the policy, that KFH follows in varying the assets, which it uses for investment. This policy focuses on distinguished qualitative investments that have an increasing value and high return on investment. This goes hand in hand with focusing on studies that reveal the risks and the method of minimizing them. The announced numbers prove the success of the policy followed by the administration, and the collective efforts of all the employees.
Al-Mukhaizeem added that KFH made great achievements in 2007. These achievements were the pillars that supported KFH as a pioneer in the Islamic banking industry and assisted in reinforcing its existence in the global markets. KFH has the ability to fulfill its clients' requirements, despite having many categories of clients. These requirements may be products and banking and investment services. These services offer the best benefits and the best quality available. We can safely say that this year, which marks 30 years since KFH was founded, is the year of harvesting global awards. KFH took 7 awards from high profile specialized authorities. In addition to that, KFH is soaring towards global expansion, new markets and countries, while reinforcing its status in the current markets. Moreover, KFH is unique in offering competitive services and products in various fields of business, while keeping the high market share. KFH is the best bank in Kuwait in the market share and the clients' deposits.
Al-Mukhaizeem mentioned that KFH was awarded this year from several regional and international authorities related to Islamic banking, or oth