Kuwait Finance House (KFH) held its annual KFH employees gathering, where the distinguished employees in 2012 were honored. KFH CEO Mohammed Al-Omar said that the restructuring and development process that is being applied has allowed the bank to take great strides in business and financial indicators. He added that restructuring has also served as a platform for the bank to boom in local and global markets through increasing revenues and return on assets, and setting up specialized work groups in various field, such as treasury, international banks, and wealth management. He explained that adopting a new work strategy is normal during the current phase that witnesses developments and challenges, and since KFH seeks excellence in its field, it became aware of the importance of change while maintaining its basic identity.
Al-Omar revealed that KFH’s revenues during the past fiscal year increased beyond KD 932 million, which is higher than what was achieved before the financial crisis in 2008. He explained that irregular debts dropped from 13% to 5% , while KFH maintained its share in deposits at 18%. Deposits increased by 6% to reach KD 9.4 billion, and assets increased by 9% to reach KD 14.7 billion. He went on to say that KFH achieved high returns by exiting non-essential investments, and achieved profit through restructuring other investments. He stated that several banks are willing to fund clients in subscribing in capital increase, which highlights the strength of KFH shares.
Moreover, Al-Omar noted that the bank’s management chose to apply restructuring to face future challenges and to maintain KFH’s status, not to mention its local and global achievements. He added that change is difficult but not impossible, especially if it is a necessity. He underlined the important role of employees, and stressed that the current success is the fruit of the relentless work of KFH’s employees, because the restructuring program would have never succeeded without the collective efforts of the employees. He asked the employees to exert more effort to allow KFH to accomplish its goals, especially that the restructuring program carried benefits for KFH employees, such as having a flexible grading system, and higher salaries.
Furthermore, Al-Omar stated that KFH follows proper professional procedures in dealing with companies indebted to KFH, and explained that if negotiations reach a dead end, then the bank files a case at court. He asserted that KFH will always protect the rights of its shareholders and depositors, even if some indebted companies resort to slander. He said that KFH will continue to operate in business fields that allowed it to succeed, such as real estate, retail finance, financing of cars, and other items. He revealed that KFH has a 20% market share in the field of cars, and denied rumors that KFH liquefies its real estate assets. He highlighted the fact that KFH has restructured its real estate portfolio and what has been liquefied does not exceed 10% of the value of the portfolio. He went on to say that KFH has great experience in the real estate field, and has developed its real estate portfolio.
Regarding KFH’s residential cities that it has built in Bahrain, Al-Omar explained that KFH is willing to shoulder this responsibility in Kuwait to help in solving the residential problem, if it is granted the same privileges and support it received in Bahrain. He also underlined the bank’s ability to play a prominent role in the development plan, whether through executing some projects through its subsidiaries, or through financing some projects, especially that KFH is experienced in real estate development and infrastructure projects.