Acting Group Chief Executive Officer of Kuwait Finance House (KFH), Abdulwahab Essa Al-Rushood said that KFH ranked first among Kuwaiti banks and all listed companies on Boursa Kuwait in terms of market capitalization exceeding KD 9 billion. He explained that KFH`s capital adequacy ratio (CAR) reached around 17.77% which is above the minimum limit required by regulators. This ratio confirms the solid financial position of KFH.

During an interview with CNBC Arabia TV, Al Rushood added that the Q1 profits that grew by 39% to KD 69.5 million are evidence of the continuous solid performance and new confirmation of the successful strategy of sustainable profits. He explained that the first-quarter profits are continuation of the FY 2021 strong profits which reached pre-pandemic levels and amounted to around KD 243 million.

Al Rushood said that KFH maintained remarkable ratios in terms of ROA, maximizing profitability, improving asset quality ratios as well as the coverage ratio of provisions for non-performing debt along with various key financial indicators.

He emphasized that KFH enjoys high liquidity ratios, creditworthiness and diversified financing portfolio that support its business growth and raise the investment and financial capabilities of the Bank in Kuwait and the countries where Group subsidiaries operate.

Al Rushood noted that KFH Group performance improved significantly in the first quarter of 2022, adding that net financing income reached KD 159.0 million; an increase of 3.5% compared to the same period last year. Also, financing receivables reached KD 11.9 billion, an increase of 4.4% compared to end of year 2021, while total assets reached KD 22.2 billion, an increase of 1.7% compared to end of year 2021.

Regarding divestment, Al-Rushood said that at the end of Q1 2022, KFH exited non-strategic assets of around KD 28 million, adding that the Bank keeps exiting policy in line with its strategy that focuses on core banking business and achieving sustainable profits.

Al-Rushood said that the Group’s non-performing financings reached 1.4% in Q1 2022(as per the CBK’s accounting principles) compared to 1.6% as of the end of 2021.

He revealed that KFH achieved a debt coverage ratio of approximately 326% and over 348% for KFH-solo and the Group respectively in the first quarter of 2022.

Al Rushood added that provisions charged on the Group's consolidated income statement declined by about 28% compared to the same period of 2021 when it reached approximately KD 40 million, including provisions of financing, investment and other precautionary provisions.

He expected the business volume to grow as a result of the economic recovery, explaining that rising discount rate by CBK will reflect positively on the banks. Consequently, KFH will continue its solid performance and improve the portability ratio in 2022.