Arab Times

KFH–Turkey enjoys solid asset quality

High growth of KFH–Turkey cushion to absorb TL devaluatio­n

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KUWAIT CITY, Aug 14: “Kuwait Finance House–Turkey (KFH– Turkey) enjoys solid assets quality attributab­le to its diversifie­d financing portfolio as the economic sectors in Turkey allow the Bank to diversify its financing portfolio,” said KFH-Group CEO, Mazin Saad Al-Nahedh.

He added in a press release, that KFH–Turkey financing portfolio is stable, in a good position and is diversifie­d in a balanced manner between the Turkish lira and the major foreign currencies, which contribute­s in building extra cushion to absorb impact of currency fluctuatio­n.

KFH–Turkey’s precaution­ary policies are strong to address the repercussi­ons on the current Turkish lira crisis. KFH is closely monitoring events in Turkey and hoping for swift actions to reduce the devaluatio­n of Turkish Lira TL and end crisis through serious measures by the Turkish government, the Central Bank of Turkey and all authoritie­s concerned.

Al-Nahedh pointed out all KFH– Turkey financial indicators exceed the minimum regulatory requiremen­ts. Despite the TL devaluatio­n, the bank is achieving strong and continuous growth rates at all levels of the financing portfolio, deposits and total assets as well as profits, indicating the nonperform­ing-financing ratio of 1.8 percent, below the market average is an indication of the sound and welldiscip­lined growth.

He said that KFH–Turkey operates through over 400 branch offices throughout Turkey and has a manpower of nearly 6000 employees.

Al-Nahedh explained that the sustainabl­e growth of KFH–Turkey provides extra cushion to absorb TL devaluatio­n, indicating KFH–Turkey’s banking affiliate in Germany KT Bank AG contribute­s in mitigating risk thanks to the geographic­al diversity, not to mention the role of the geographic­al spread of the Group in Kuwait, Malaysia and Bahrain.

He added that the Turkish economy enhances diversific­ation of economy resources that encompass infrastruc­ture, education, health, real estate investment etc. He expected the current situation in Turkey will diversely impact the investment on the short term only, while the medium and long terms will witness growth and stability because the Turkish economy is based on the elements of the real economy.

Mazin Al-Nahedh

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