Kuwait Finance House (KFH) CEO Mohammed Al-Omar asserted that the profits achieved by KFH at the end of Q3 are operative profits, and that its growth reflects solid business structure and optimum operative performance. He added that this will foster growth during the coming period in light of an increase in revenues, decrease in provisions and expenses, and the activation of sustainable profit policy, with the possibility of an improvement in the operational environment in Kuwait and other markets.
He further explained during an interview with CNBC Arabia that 42% of revenues were generated from KFH’s overseas banks, and that there are efforts exerted to increase this rate. He went on to say that it is possible to make this accomplishment, since KFH is highly trusted, not to mention its experience and leadership in Islamic financing.
Al-Omar mentioned that KFH has achieved total revenues of KD 611.9 million up to the Third Quarter of 2012 with an increase of KD 34.7 million (increase rate 6%). Gross profits for the same period reached KD 194.5 million that include KD 116.5 million as estimated profit for investment depositors and total provisions were KD 149.3 million with a decrease of 3.8% compared to the same period last year. Provisions set aside were 17% less during this quarter compared to the same period last year.
Shareholders’ net profit reached KD 75.9 million up to the 3rd Quarter in 2012 with an increase of KD 5.1 million or a 7.2% increase compared to last year, while Third Quarter profits only increased by 33% compared to last year. Earnings per share reached 26.64 fils with an increase of 2 fils until the 3rd Quarter at a growth rate of 8.1% over the same period last year.
Total assets increased to KD 14.2 billion with a KD 839 million or 6.3% increase compared to the same period last year. The volume of deposits increased to KD 8.9 billion with a KD 195 million or a 2% increase compared to the same period last year.
Shareholders’ equity reached KD 1.3 billion with KD 34.9 million or a 2.7% increase compared to the same period last year.
Moreover, Al-Omar stressed that Kuwait will overcome the current political status because of the wise leadership that is supported by the people. He added that the welfare of Kuwait and its people will prevail eventually.
When asked whether KFH’s assets are for sale, he explained that some assets are due, and that KFH will sell them if the price is suitable. He noted that this policy applies to KFH’s and others’ assets, since this is an investment principle. He said that Al-Salam Hospital was for sale, but the buyers did not offer a price that suits KFH; hence there are no developments regarding this issue.
Furthermore, he stressed that KFH follows an expansion policy in various markets worldwide, since KFH is highly welcomed in many countries; especially that KFH has experience in the fields of power, transportation, communications, and infrastructure. He explained that all those are major development projects that are demanded in numerous markets that KFH operates in directly. In addition, KFH managed to develop suitable financing instruments for government and companies, such as Sukuk. He expected that Sukuk will be highll demanded in the region, since it meets the requirements and terms of financing; especially after the market has become saturated with bonds.