Acting Group Chief Executive Officer at Kuwait Finance House (KFH), Abdulwahab Essa Al-Roshood, said that financial indicators in H1 – 2021 were positive, adding that net shareholders’ profit increased by 79.5% to reach KD 102.2 Million. Earnings per share for the first half of 2021 reached over 12 fils; an increase of 79.3% compared to the same period last year, while financing receivables reached KD 11.1 Billion, i.e., an increase of 3.2%. In addition, total assets reached KD 21.5 Billion, and depositors’ accounts reached KD 15.8 Billion i.e., increase of 3.0%.
In interviews with Reuters and CNBC, he added that provisions charged on the group's consolidated income statement reached approximately KD 90 million, including provisions of financing, investment and other precautionary provisions.
Al- Roshood revealed that due to the pandemic and its negative repercussions on local and global economy, KFH`s exiting deals reached approximately KD 21.8 million as of the end of H1 2021.
He added that exiting from non-strategic investments is part of KFH strategy that focuses on core banking business and sustainable profitability.
Al-Roshood said that the Group’s non-performing financings reached 2.22% as of the end of H1 2021, as per the CBK’s accounting principles, noting that it is a good ratio, especially in light of the repercussions of the pandemic.
He revealed that KFH achieved an excellent total debt coverage ratio exceeding 237% and 245% for KFH-solo and the Group respectively as of the end of the first half of 2021.
As for the KFH subsidiaries, Al-Roshood said they achieved good performance in the H1 total operating income as their contributions reached 50% of the total operating income.
Meanwhile, Al-Roshood said that KFH successfully issued $ 750 million AT1 Mudaraba Sukuk, adding that the historic issuance in terms of volume and cost-wise received subscription orders exceeding $ 2 billion, close to 3 times the targeted issue size, with an annual yield of 3.6%.
He explained that Mudaraba Sukuk aims to diversify KFH’s financing resources, increase its financial and investment capabilities, strengthen its capital base, and support the infrastructure projects and the local economic sectors as well as help customers with their expansion plans.
Pioneer in digitization
Al-Roshood pointed out that KFH stays ahead of the digitization curve and is pioneering in rolling out high-end digital banking services that meet the need of all customer` segments, especially the youth.
He added that KFH has made a unique launch of a wide range of e-services such as the e-signature for financing transactions, indicating that KFH is planning to increase the number of PACI kiosks that offer e-signature services at KFH GO self-banking stations.
Moreover, KFH is the first bank in the world to offer instant card issuance using hybrid solution where customers can print their cards within 3 minutes.
KFH introduces integrated digital services through different channels; KFHonline app, KFH Go and the website, among other alternative channels.
Al-Roshood said that despite the Covid-19 pandemic, KFH continued hiring staff, continued promotions, annual increments, bonuses, medical insurance, travel tickets, training programs and all other benefits entitled to the employees.
He explained that the recruitment ratio of Kuwaitis was 99% in 2020, indicating that during the last few years the national recruitment ratio at KFH ranged between 97%- 99%.
Al-Roshood expressed his satisfaction at the current expansions of the bank, explaining that considering any expansion plans in new markets must add value to the Group and the shareholders.
He pointed out that KFH has disclosed all the developments related to AUB acquisition and will disclose any developments related to the matter as arise.
Al-Roshood went on to say that KFH is ready, through its presence in Saudi Arabia, to contribute to financing the government development projects in the infrastructure, energy and other Sharia compliant sectors, indicating Saudi is a promising market, praising HRH Crown Prince Muhammad Bin Salman`s Vision”.
He added that, through its presence in Turkey which is characterized by its diversified, productive and promising economy, KFH is reporting high ratio of income from Turkey subsidiary that contributes to the total income of the Group, confirming that KFH is continuing its financing and investment contributions to the Turkish market.
Small and Medium Enterprises
Al-Roshood noted that SMEs sector has been impacted by the pandemic due to the partial or full suspension of their businesses. In response KFH offered flexible solutions of rescheduling instalments for longer periods in an effort to preserve the rights of KFH on the one hand, and to support those companies to overcome the pandemic on the other.
KFH handled the SMEs issue in accordance with the new government regulations to support the defaulted companies. He hailed the role of CBK in emphasizing the importance of supporting the SMEs in Kuwait.
He concluded: “with the recovery of the economic sectors and the end of lockdown, most companies resumed their businesses and are on track to overcome the crisis”.