Kuwait Finance House (KFH) CEO Mohammed Al-Omar announced that KFH achieved for the First Half of 2009 total profit of KD 188 million, where the net profit for shareholders reached KD 72 million. The earnings per share reached 32 fils.
Assets reached KD 10.801 billion, with a KD 535 million increase over the same period last year with a rate of increase of 5%. The volume of deposits for the First Half reached KD 6.864 billion, with a KD 550 million increase, and a 9% increase over the same period last year.
These results are in line with the expectations of many analysts, especially that the consequences of the financial global crisis have affected the performance of most national economy sectors.
Al-Omar 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 that as a precautionary measure and according to the general guidelines of the Central Bank of Kuwait, KFH increased its accumulated provisions until the end of the First Half.
He praised the economic stimulus program and added that it needs further action from the government by increasing public expenditure in compliance with an integral economic plan that includes major projects that take advantage of Kuwait’s resources. Such projects will encourage growth in the domestic economy, and goes hand in hand with His Highness the Amir’s instructions to make Kuwait regain its status as an important financial center in the area and the Gulf, in addition to eliminating any obstacles and legislations that might hinder the role of the private sector and limit the investment opportunities, which results in lack of investments.
Moreover, Al-Omar announced that KFH is willing to offer necessary funds for Kuwaiti companies, according to the professional criteria followed. The total funds offered during the past months exceeded KD 400 million, where KD 110 million were granted according to economic stimulus package. KFH managed to provide its new clients with financing channels, and continues to provide its clients with the necessary financing, since it is aware of the consequences of the crisis and the importance of relieving its effects on the national economy. It is worth noting that the financing process has never stopped, neither before the crisis nor after it.
Furthermore, Al-Omar 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. In addition to that, KFH has managed to increase its branches and participated in significant real estate and industrial projects, not to mention expanding in Singapore and Australia. KFH is also working on participating in important projects in China, especially real estate development projects. In Bahrain, KFH continues to execute major projects, such as Durrat Al-Bahrain, where the first phase of the project was completed. This project is considered to be the largest real estate development project with USD 4 billion in investments, in addition to Diyar