Kuwait Finance House (KFH) Chairman and Managing Director Bader Al-Mukhaizeem announced that KFH achieved total profit for Quarter 1 of 2010 of KD 82.2 million, and earnings per share reached 12.6 fils. The net profit was KD 30.9 million for the first three months of the current year.
Total assets reached KD 11.652 billion with an increase of KD 1.1 billion or 11% compared to the same period last year. Deposits reached KD 7.195 billion, with an increase of KD 472 million, which is 7% over the same period last year.
Shareholders equity reached KD 1.206 billion with an increase of KD 29 million or 2% over the same period last year.
Al-Mukhaizeem stressed that earnings are mainly composed of operating income, which reflects the outstanding performance and strategic direction that is followed by the departments and employees, including the marketing policy that aims to achieve a growing increase in market share, in addition to reinforcing KFH’s status as a major market maker. He went on to say in a press statement that KFH continued to follow a conservative policy that aims to cement its financial status and sustain sufficient provisions to face any consequences of the crisis, not to mention maintaining the stable growth rate and balanced performance in all businesses. He noted that KFH is keen on making sufficient provisions to diminish any risks in the meantime and the future.
Moreover, Al-Mukhaizeem stated that KFH’s asset valuation policy is based on book value that is much less than the market value, which guarantees that the value of assets will be determined without any exaggerations or uncalculated fluctuations. He stressed that KFH’s strategy that is based on the selection of assets with quality value and returns, does not calculate it according to its current market value, despite the high return it can yield, because the assets are prone to market fluctuations that give inaccurate indications.
Al-Mukhaizeem highlighted the importance of GCC markets, since they serve as the strategic depth of Kuwait socially and economically. KFH-Saudi began to operate as an investment bank with a capital of SR 500 million, and it is expected to achieve great growth and success, since the Saudi market is promising and enjoys a high demand for Islamic financial products and services.
He highlighted the importance of the local market and the eagerness to increase its market share in all fields and businesses, in addition to the uniqueness in offering competitive services and products, expand client base, reinforce expansion by opening new service outlets and branches, while continuing to play its leading social role.
Furthermore, Al-Mukhaizeem mentioned that KFH continues to focus on its employees through the most advanced training courses, which cements KFH’s efforts to maintain its leading status as the best Islamic bank, not to mention the numerous awards and positive ratings that KFH has received from international rating agencies in various business fields.
He concluded by noting the success in reaching important client segments, such as the youths, in addition to upgrading the services for ladies. KFH has also focused on means of direct and remote sales, and on offering products that were not available before in the field of deposits and banking cards, while highlighting the importance of service quality, which allows KFH’s clients to enjoy a world-class standard of services that are on par with its international counterparts.