KFH re­ports net profit of KD 123.1 mil­lion

Earn­ings per share 23.86 fils an in­crease of 16.4%

Kuwait Times - - BUSINESS -

Chair­man of Kuwait Fi­nance House (KFH) Ha­mad Ab­dul­mohsen AlMar­zouq said that KFH has, by the grace of Al­lah, re­al­ized a net profit of KD 123.1 mil­lion for the pe­riod end­ing Septem­ber 2016 for KFH share­hold­ers as com­pared to KD 105.7 mil­lion for the same pe­riod last year ie an in­crease of 16.5 per­cent.

To­tal op­er­at­ing rev­enues for the 9 months end­ing Septem­ber 2016 reached KD 491.5 mil­lion i.e. a growth of 4.0 per­cent com­pared to the same pe­riod last year. Net op­er­at­ing rev­enues reached KD 264.1 mil­lion, i.e. a growth of 14.7 per­cent over the same pe­riod last year. Net fi­nance rev­enues reached KD 325.7 mil­lion, i.e. a growth of 2.3 per­cent over the same pe­riod last year.

Earn­ings per share as of end Q3 2016 reached 23.86 fils com­pared to 20.49 fils over the same pe­riod last year i.e. an in­crease by 16.4 per­cent. Earn­ings per share from the con­tin­u­ing op­er­a­tions (af­ter ex­clud­ing the im­pact of AIG) as of end Q3 2016 reached 27.42 fils com­pared to 19.40 fils over the same pe­riod last year i.e. an in­crease by 41.3 per­cent.

To­tal as­sets reached KD 16.64 bil­lion i.e. an in­crease by KD 147.6 mil­lion or 1.0 per­cent com­pared to year ended 2015. Fi­nance port­fo­lio reached KD 8.42 bil­lion i.e. an in­crease by KD 331 mil­lion or 4.1 per­cent com­pared to year ended 2015.

De­pos­i­tors’ ac­counts reached KD 10.90 bil­lion i.e. an in­crease by KD 62.3 mil­lion or 0.6 per­cent com­pared to year ended 2015. Share­hold­ers’ eq­uity reached KD 1.81 bil­lion as of end Q3 this year an in­crease by KD 30.9 mil­lion or 1.7 per­cent com­pared to year ended 2015.

Dur­ing Q2 this year, the Board of Di­rec­tors of the Bank ap­proved to sell Group’s in­ter­est in its sub­sidiary Aref In­vest­ment Group (AIG). As a re­sult, the as­sets and li­a­bil­i­ties of AIG pre­sented as as­sets clas­si­fied as held for sale and li­a­bil­i­ties di­rectly as­so­ci­ated with the as­sets clas­si­fied as held for sale amounted to KD 344 mil­lion and KD 171 mil­lion, re­spec­tively. Ac­cord­ing to this pre­sen­ta­tion, the to­tal op­er­at­ing rev­enues de­creased from KD 498 mil­lion to KD 492 mil­lion, while the net op­er­at­ing rev­enues in­creased from KD 253 mil­lion to KD 264 mil­lion.

KFH’s cap­i­tal ad­e­quacy ra­tio (CAR) reached 17.24 per­cent, higher than the re­quired limit of 13 per­cent, thus re­it­er­at­ing the strength of KFH fi­nan­cial po­si­tion. AlMar­zouq said that the re­al­ized prof­its are in line with the am­bi­tious strat­egy to en­sure the achieve­ment of a sus­tain­able growth rate, yet to achieve in­te­gra­tion of its busi­nesses at the Group level. The prof­its re­it­er­ated the bank’s re­silience to adapt with the mar­kets’ volatil­ity, which re­flects the bal­anced per­for­mance and ro­bust fi­nan­cial po­si­tion of the bank. KFH con­tin­ued to ef­fi­ciently man­age risk and set aside the re­quired pro­vi­sions in ac­cor­dance with the best prac­tices. This re­flects its strong fi­nan­cial po­si­tion and high liq­uid­ity lev­els.

“De­spite the tough-op­er­at­ing en­vi­ron­ment and the un­fa­vor­able con­di­tions in dif­fer­ent mar­kets re­gion­ally and glob­ally, KFH achieved good prof­itabil­ity and growth in all in­di­ca­tors, mainly the surge in the to­tal op­er­at­ing rev­enues and the in­vest­ment rev­enues. KFH man­aged to re­duce the op­er­at­ing ex­penses in com­par­i­son to the rev­enues. The high prof­itabil­ity in­di­ca­tors cal­cu­lated on a yearly ba­sis re­it­er­ates the strong pil­lars of KFH to achieve sus­tained prof­itabil­ity,” added Al-Mar­zouq.

He called upon the pub­lic and the pri­vate sec­tors to bol­ster co­or­di­na­tion and col­lab­o­ra­tion in or­der to face what could af­fect the econ­omy in the com­ing pe­riod, stress­ing the im­por­tance of cre­at­ing a vi­sion to en­counter the neg­a­tive im­pacts of the lat­est devel­op­ments. He stressed the im­por­tance of hav­ing a com­pre­hen­sive eco­nomic out­look in an at­tempt to avert any neg­a­tive ef­fects on the econ­omy and busi­nesses, not to men­tion the im­por­tance of the govern­ment’s role in boost­ing the econ­omy through rais­ing the cap­i­tal ex­pen­di­ture, of­fer­ing more in­vest­ment op­por­tu­ni­ties and projects to the pri­vate sec­tor, while pro­vid­ing at­trac­tive en­vi­ron­ment for for­eign in­vest­ments to take ad­van­tage of the move­ment of funds be­tween mar­kets. Kuwait en­joys open and sta­ble eco­nomic and po­lit­i­cal cli­mate which qual­i­fies it to be a hub for fur­ther for­eign in­vest­ments and a fo­cal point for global mar­kets.

He ex­pressed his con­fi­dence that the econ­omy is in a good po­si­tion and the Kuwaiti banks are armed with high lev­els of liq­uid­ity and qual­ity as­sets, yet they op­er­ate in a strin­gent reg­u­la­tory en­vi­ron­ment. Hence, the lo­cal banks play an im­por­tant role in sup­port­ing the govern­ment’s di­rec­tives in the ar­eas of re­struc­tur­ing, pri­va­ti­za­tion, bridg­ing bud­get deficit, fi­nanc­ing mega projects and other ar­eas that add value to the na­tional econ­omy.

The bank works tire­lessly to set­tle com­pa­nies’ debts while pre­serve and en­force share­hold­ers’ rights. KFH has set­tled many debts and ne­go­ti­a­tions for set­tling other debts are cur­rently tak­ing place. AlMar­zouq stressed the cease­less ef­forts of KFH in strength­en­ing its role in boost­ing the na­tional econ­omy, pri­mar­ily through cor­po­rate fi­nance as per the credit and leg­isla­tive reg­u­la­tions. KFH con­tin­ues its un­remit­ting ef­forts to of­fer credit fa­cil­i­ties for SMEs in an at­tempt to en­cour­age the youth’s ini­tia­tive as well as to di­ver­sify in­come re­sources. KFH has the largest share of SMEs seg­ment that has a pos­i­tive so­cial and eco­nomic im­pact, not to men­tion comes in line with KFH’s method­ol­ogy of sup­port­ing the de­vel­op­ment ac­tiv­i­ties in the coun­try.

He added that KFH-Group suc­cess­fully as­sumed its de­vel­op­ment and fi­nan­cial role in the mar­kets in which it op­er­ates. This reaf­firms KFH’s abil­ity to serve the de­vel­op­ment plans and sup­port the de­vel­op­ment process. KFH-Bahrain inked sev­eral fi­nanc­ing agree­ments for sev­eral real es­tate de­vel­op­ment projects. It of­fers sharia-com­pli­ant fi­nan­cial ser­vices that meet dif­fer­ent seg­ments of clients. KFH-Turkey is lead­ing the par­tic­i­pa­tion banks in Turkey. It of­fers a wide range of fi­nan­cial ser­vices while ex­pands and pen­e­trates new mar­kets. The bank tar­gets to be among the best 10 banks in Turkey in the up­com­ing pe­riod. KFH-Malaysia man­aged to map out a new cus­tomer-cen­tric strat­egy based on of­fer­ing re­tail and cor­po­rate fi­nan­cial ser­vices for the in­dus­trial and com­mer­cial cen­ters. KT Bank Ag in Ger­many has also achieved many good re­sults.

He re­it­er­ated KFH’s en­deav­ors to ren­der cus­tomers high-end prod­ucts and ser­vices that meet their as­pi­ra­tions and cope with the mar­kets’ devel­op­ments to af­firm KFH’s lead­ing po­si­tion and boost its mar­ket share. KFH in­sures ap­ply­ing all tech­no­log­i­cal ap­pli­ca­tions and plat­forms as per the high­est stan­dards of se­cu­rity and ac­cu­racy, stress­ing the sig­nif­i­cant role of the hu­man re­sources. The bank spares no ef­forts in hir­ing, train­ing, and qual­i­fy­ing its hu­man re­sources whilst pre­par­ing the dis­tin­guished na­tional em­ploy­ees for lead­er­ship po­si­tion. Al-Mar­zouq ex­pressed his thanks and ap­pre­ci­a­tion to all share­hold­ers and clients for their sup­port and con­fi­dence. He hailed the ef­forts of KFH’s ex­ec­u­tive man­age­ment and em­ploy­ees for their out­stand­ing per­for­mance that yielded pos­i­tive re­sults, em­pha­siz­ing the im­por­tance of main­tain­ing the lead­er­ship po­si­tion at all lev­els.

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