Kuwait Finance House (KFH) Chairman Mohammed Al-Khudairi announced that KFH has achieved a gross profit of KD 134.9 million (USD 473 mln) for the First Half of 2013, and shareholders’ share was KD 49.8 million (USD 175 mln) with 18 % increase over the same period last year.
Earnings per share for H1 of this year reached 14.9 fils (52 cents) with a 17% increase over the same period last year.
Total revenues reached KD 461.1 million (USD 1.6 bln) with 17% increase over the same period last year.
Assets volume reached KD 15.9 billion (USD 55.8 bln) with an increase of KD1.9 billion (USD 6.7 bln) 14% increase over the same period last year.
Total deposits increased to reach KD 10.3 billion (USD 36.1 bln) with an increase of KD1.4 billion (USD 4.9 bln), and 16% increase over the same period last year.
Shareholders’ equity reached KD 1.7 bln (USD 5.9 bln) with an increase of KD 386 mln (USD 1.4 bln) 30% over the same period last year.
Al-Khudairi stressed that KFH has succeeded in achieving continuous growth in profits over the past 3 consecutive halves. It reported net profits in the first half and the second half of 2012 KD 42.1 million (USD 150 mln) and KD 45.5 million (USD 162 mln) respectively, a growth of 8% between the two halves, and 10% in the first half of 2013 compared to the second half of 2012, which affirms the success of the transformation and restructuring plan which is now nearly completed.
He stated that the bank’s performance in all KFH’s business sectors has become more dynamic and is more able to respond to the requirements and conditions of the current business environment .This led to the increase and improvement of performance indicators in general and in a balanced manner .This highlights KFH’s solid financial status and consolidates its leadership position.
Moreover, Al-Khudairi explained that because of the successful implementation of the transformation and restructuring program, KFH managed to improve asset quality and risk management. In addition, it succeeded in reaching a capital adequacy ratio to 16.36 %. He added that despite KFH’s continuous configuring of precautionary provisions, which reached KD 103 mln (USD 361 mln), indicators in general are positive; especially those related to profit growth and operating revenues.
He also noted that the results underscore relentless efforts exerted to highlight the achievements through adhering to the most stringent professional standards whether locally or internationally. He added that KFH’s H1 profit results did not include the real estate deal concluded recently in which the bank sold an investment property resulting in a KD 26.3 mln (USD 92 mln) profit.
Furthermore, Al-Khudairi explained that KFH will keep pursuing advanced, competitive and integrated services that add value to the market and enhance the bank’s status. These services are subject to concepts of accuracy, security, speed and up to date technology.
He went on to say that KFH is keen to implement the most advanced information technology used in offering products and services that meet the requirements of clients. He revealed that the new services include allowing clients to open investment deposits using ATM machines, not to mention the upgrades on the KFH website, which allowed the bank to be recognized by the Sheikh Salem Al-Ali award for information as best technical commercial project. This is in addition to services added to KFHOnline, diabetes application, and ‘Baitok Tadawol’ application for securities trading.
Al-Khudairi said that KFH takes full advantage of its abilities to achieve global standards in quality of assets, and conducts a focal study on risks, which reinforces the bank’s robustness in light of current global financial conditions, not to mention the fierce competition witnessed in the field of financial services worldwide.
Furthermore, Al-Khudairi said that KFH will continue its expansion plans; especially after the increase in capital which was over-subscribed by 156%. This reflects the trust of shareholders in the bank, and underlines the bank’s ability to achieve superior results. He went on to say that the increase in capital will be channeled to projects that cement the bank’s market share, such as reinforcing KFH’s presence through new branches in various areas. He highlighted KFH’s ability to maintain its leading status, based on its extensive experience and huge client base.
Al-Khudairi said that channeling liquidity coming from the increase in capital will be based on a new vision that takes into account the development occurring in some areas that will witness investments in the Islamic banking field.
The Chairman underscored KFH’s pivotal role that it plays through its investment companies in global Sukuk market, and its ability to arrange and finance all kinds of Sukuk deals for companies or governments. He noted that KFH won numerous awards and received global ratings, such as The Banker and Emeafinance magazines for Liquidity Management House (LMH) which has recently been renamed as KFH Investment Company and considered to be KFH’s direct investment arm. It is worth noting that LMH arranged a sovereign Sukuk deal for the Turkish government worth USD 1.5 billion.
Al-Khudairi stated that KFH has always been keen to offer banking services and products that have not been offered by other local banks, such as internal and external money transfer through ATM machines. This service was highly welcomed in the local market, since it offers facilities for individuals in the banking field. In addition, KFH offered the market a new product, which is the Gold Account giving clients other investment options. This highlights KFH’s policy in taking advantage of advanced technology to innovate services that further strengthen KFH’s status worldwide.