Kuwait Finance House (KFH) Chairman Samir Al-Nafisi announced that the bank achieved total revenues of KD 872.1 million for the fiscal year 2011 with an increase of KD 135.8 million and 18.4% over last year, and total profit for the same year reached KD 234.8 million, including profits for investment depositors that reached KD 152.7 million. The profits will be distributed as follows: 1.920% for “Al-Khumasiya” investment deposit, 1.728% for “Al-Mustamera” continuous investment deposit, 1.344% for “Al-Sedra” deposit, and 1.152% for “Tawfeer” saving investment accounts.
Shareholders’ net profit reached KD 80.3 million, and earnings per share reached 30.2 fils.
In addition, the board of directors recommended granting shareholders 15% cash dividends and 8% bonus shares subject to the approval of the general assembly and regulatory authorities.
Total Assets increased to KD 13.5 billion with and an increase of KD 912 million and 7.3% over last year, while deposits increased to KD 8.9 billion with an increase of KD 1.2 billion and 16.1% more than last year. Total shareholders’ equity reached KD1.292 billion with an increase of KD 2 million.
Al-Nafisi mentioned that this success was achieved through prioritizing international standards in quality of assets, which cemented financial performance in light of the developments that local and global markets had gone through.
Moreover, Al-Nafisi stated that 2011 witnessed KFH’s strong operating performance, which highlights the bank’s robust status in various fields of business, despite challenging local and global developments, not to mention the intense competition that the Islamic financial services industry witnesses in various markets. Nonetheless, KFH managed to underline its leadership in markets and products that are expected to trigger a paradigm shift in the business of Islamic banks, such as focusing on Sukuk that is considered to be a pivotal tool in solving the financing dilemma. In addition, Al-Nafisi said that international rating agencies and specialized economic organizations continue to affirm KFH positive ratings and recognize KFH performance through awards, including Best Islamic Bank in the World Award by Global Finance.
Furthermore, KFH launched a new 5-year strategy and a transformation program based on three pillars to improve the bank’s performance and overcome challenges, which will allow KFH to maximize profits and reinforce its leading status in the Islamic financial field. Al-Nafisi went on to say that the new strategy is based on developing the banking performance in Kuwait and the investment portfolio of the group, in addition to increasing the coordination among KFH and its subsidiary banks. He revealed that KFH managed to increase the ratio of operating profits to total profits.
Concerning global expansion, Al-Nafisi stated that KFH Group is gaining more ground worldwide, and that KFH’s subsidiaries in Turkey, Malaysia, and Bahrain are playing a leading role in cementing trading and economic relationships among the countries they operate in, Kuwait, and the GCC.
Al-Nafisi highlighted the fact that KFH is keen to increase its local market share in all fields and to offer its clients competitive products and services. He went on to say that KFH is eager to continue enhancing its social responsibility role, and to further enhance the abilities and skills of its employees through offering them advanced training programs; thus allowing them to offer KFH’s clients innovative services and products.
Picture: Samir Al-Nafisi