Chairman of Kuwait Finance House (KFH) Hamad Abdulmohsen Al-Marzouq said that KFH has, by the grace of Allah, reported net profit attributable to the shareholders of the bank of KD 243.4 million for the year ended 2021; an increase of 64.0% compared to 2020.
Earnings per share for the year ended 2021 reached 28.59 fils compared to 17.74 fils for last year; an increase of 61.2% .
Total operating income for the year ended 2021 reached KD 811.0 million; an increase of 1.9% compared to last year.
Net operating income for the year ended 2021 reached KD 503.1 million; an increase of 0.7% compared to last year.
Financing portfolio increased to reach KD 11.4 billion, i.e., an increase of KD 608 million or 5.7% compared to 2020.
Investment in Sukuk reached KD 2.7 billion, i.e., a decline of 0.3% compared to last year.
Total assets increased to reach KD 21.8 billion, i.e., an increase of KD 286 million or 1.3% compared to last year.
Depositors’ accounts reached KD 15.9 billion, i.e., an increase of KD 550 million or 3.6% compared to 2020.
Shareholders’ equity reached KD 1.9 billion, at the same level of last year.
In addition, the capital adequacy ratio reached 18.69% which is above the minimum requirement. This percentage confirms the solid financial position of KFH.
The Board of Directors has proposed 12% cash dividends to shareholders and 10% bonus shares subject to general assembly and concerned authorities’ approval.
Positive financial indicators
Al Marzouq added that KFH achieved positive results in all key financial indicators, including ROAA and ROAE, and maintained good ratios in terms of the cost to income, NPFs, debt coverage ratio as well as other financial indicators. Also, KFH successfully maintained the Group's capital support and improvement of assets quality, which confirms the flexible business model of KFH and the disciplined implementation of plans and strategy.
"KFH maintained strong liquidity and operational performance and achieved a growth in the financing portfolio for the retail and corporate sectors. In addition to the increase in customers deposits.
Al Marzouq said that by providing a wide range of banking and financing solutions for retail and corporates as well as SMEs sector, KFH is moving forward in its developmental role and in supporting government plans.
160 million digital banking transactions
"Enjoying great experience in handling challenges and managing risks, KFH has proven its competence in managing the pandemic repercussions while it continued providing integrated financial services to its customers without interruption. This confirms KFH`s resilience, while reflects its efficient digital services and IT infrastructure as well as the capability and expertise of KFH staff. During 2021, KFH customers executed about 160 million digital banking transactions through KFHOnline, with 25% growth compared to 2020. This reflects customer confidence, ease and efficiency of the innovative digital banking services KFH provides to enhance the banking experience of its customers,” Al Marzouq added.
Al-Marzouq stressed the importance of moving forward in leading the Islamic finance industry and contributing to attracting new players and developing products and services to become an active element in implementing economic visions, providing greater support for growth and sustainability, and taking into account environmental, social and governance (ESG) standards.
He highlighted KFH`s role in sustainability through issuing Green Sukuk and the successful arrangement of USD 350 million of sustainability Sukuk issuance transaction for KFH-Turkey. The issuance is considered as the first of its kind to be issued by an Islamic financial institution and the first tier 2 sustainability Sukuk issuance transaction globally. Also, he indicated that KFH launched a comprehensive report on sustainability highlighting the leading role of the Bank.
Al-Marzouq noted that KFH's social contributions and initiatives are a milestone in the corporate social work and consolidate KFH's position in this field. The Bank has contributed to many strategic community initiatives such as: paying, in collaboration with the Ministry of Justice, over KD20 million in debts to release approximately 10,000 defaulting debtors; KFH signed an agreement with the KRCS to implement relief and medical projects in collaboration with the Jordan Red Crescent. Moreover, KFH signed two agreements with the King Hussein Cancer Foundation and the KRCS to treat cancer patients among refugees in Jordan. KFH also signed a partnership agreement, the first of its kind in the Kuwaiti banking sector, with KSH to support people with special needs, not to mention many environmental and sustainable initiatives, supporting youth and entrepreneurs as well as other initiatives that covered various social aspects.
Acting Group CEO at KFH, Abdulwahab Essa Al Rushood said that the positive financial results for the year 2021 confirmed KFH`s success in achieving its strategic goals relating to the sustainability of profits and its ability to deal with various circumstances and challenges with high professionalism. He added that KFH has taken proactive and professional steps to deal with the conditions imposed by the pandemic, whether in terms of services and products or human resources.
He pointed out that KFH maintains its efforts to maximize profitability and ROE, improve asset quality, manage costs, and develop policies for granting credit across all KFH`s subsidiaries in Turkey, Bahrain, Malaysia, Germany and Saudi Arabia. He highlighted the increasing investment in green Sukuk, diversifying the financing portfolio and continuing the strategy of focusing on the core banking business.
US $ 16 billion Sukuk Transactions
Al Rushood added that KFH has expanded investment and trading activities in the primary and secondary capital markets, indicating that the Treasury at KFH Group level executed Sukuk deals worth over US $16 billion during 2021. He added that KFH maintained its position at the top of the main dealers in the issuances of the International Islamic Liquidity Management (IILM) of the Primary Sukuk Market. The bank also topped the Secondary Market Dealers list. It is worth noting that this is the first achievement whereby a financial institution tops the two lists in the Sukuk primary and secondary markets.
100% Kuwaitization in 2021
Al Rushood indicated that the successful implementation of recruitment and development of national talents strategy has resulted in KFH having the highest number of Kuwaiti employees at the Kuwaiti banks and private sector institutions level. The Kuwaiti recruits’ ratio reached 100% in 2021 while the nationalization ratio reached about 76%.
He stressed the continuity of attracting Kuwaiti talents and competencies, especially from the youth, to achieve KFH`s vision and raise the performance level and productivity rates.
20 prestigious awards
Al-Rushood expressed his pride that KFH won 20 prestigious awards on the Group level from international business and finance providers and institutions during 2021, in recognition of Group’s excellence, contributions, financial results and digital innovation. Among these awards were: “World`s Best Islamic Financial Institution 2021” from Global Finance, and “Best Islamic Bank in Middle East” and “Best Bank in Kuwait” 2021 Awards from the prestigious magazine "The Banker", in addition to various awards from well-known international providers.
He stated that KFH's standard indicators confirm its success in achieving its strategic goals during 2021, which provide the motive towards increasing the ambition for more achievements and strengthening KFH's position locally and globally.
Al Rushood expressed his appreciation for the trust of shareholders and customers and the support of the Board of Directors and also thanked the regulatory authorities, praising the efforts of employees and all partners and stakeholders.