Kuwait Finance House (KFH) Chairman and Managing Director Bader Abdulmuhsen Al-Mukhaizeem announced that KFH achieved total profit for the 1st Quarter of 2009 of KD 103 million, where the net profit to shareholders reached KD 39.3 million. The earnings per share reached 17 fils for the 1st Quarter.
Assets reached KD 10.533 billion, with a KD 1.124 billion increase over the same period last year with a rate of increase of 12%. The volume of deposits for the 1st Quarter reached KD 6.723 billion, with a KD 805 million increase over the same period last year with 14% increase over the same period last year.
These results exceed what many analysts expected, especially that the consequences of the financial global crisis has affected the performance of most national economy sectors.
Al-Mukhaizeem stated in a press release that these results were achieved amidst difficult times facing the markets in the area as a result of the negative impact of the global economic crisis that is affecting the developments in the local and regional markets. He added, many hope that the Kuwaiti economic stimulus law will accomplish financial stability in reinforcing the market’s potential, in addition to boosting economy in all fields.
Al-Mukhaizeem praised the economic stimulus law and added that it needs further action from the government by increasing public expenditure and injecting more liquidity into the market. He hoped the government would start taking the necessary measures to start the procedures to execute a clear plan for expenditure by offering major projects that use Kuwait’s available resources, which are the steps followed by other governments to protect their economies.
He went on to ask the Ministry of Finance, the Municipality, the Industrial Authority, and other governmental authorities to provide assistance in overcoming the obstacles that hinder the development of the private sector, especially that the private sector in Kuwait has great financial and technical abilities.
Moreover, Al-Mukhaizeem asserted that KFH is working relentlessly to ease the negative effects of the global crisis by establishing new financing lines with the new clients, which goes hand in hand with continuing to provide its clients with the necessary financing. KFH is willing to finance more corporations after studying their financial status.
Furthermore, Al-Mukhaizeem stressed that KFH managed to obtain a license from the Saudi Arabian government to establish the Saudi Kuwait Finance House (KFH-Saudi) , with a SR 500 million, which is rendered a significant addition to Baitak Investment Company that has a capital of SR 2.5 billion that were used in many real estate projects, which proves KFH’s success in penetrating the rich Saudi Arabian market, in its attempts to expand in the GCC countries that enjoy huge surpluses.
Finally, Al-Mukhaizeem stressed the great importance the KFH gives to expand and develop in the local markets, in addition to increasing its market share and expand its client base.