Financial Performance

KUWAIT: 2016 KFH Group achieved net profit attributable to shareholders of the bank of KD 165.2 million in 2016 compared to KD million in 2015 i.e. an increase by 13.3 percent. Meanwhile, earnings per share reached fils 32.01 i.e. a growth by 13.2 percent compared to 2015 (Fils 28.27). Financing income increased to approximate KD 718 million i.e. an increase by 3.3 percent compared to KD 695 Million in 2015, thus reflecting KFH policy which targets the development and growth of sustainable profit by focusing on banking activities.

In continuation of KFH cost optimization policy which aims to enhance profit and improve financial performance indicators, total operating expenses for the group declined for the second consecutive year to reach KD 295 million in 2016 compared to KD 330.5 million in 2015 i.e. a decline by KD 35.5 million or 11 percent (decline by KD 31.5 million or 8 percent in 2015 compared to 2014). As a result, net operating income reached KD 365 million ie a growth ratio by 8.2 percent compared to last year, excluding investment income which are of a non-recurring nature. Provisions and impairments charged to the consolidated statement of income declined to reach KD 157.2 million during 2016 compared to KD 183.6 million in 2015 i.e. a decline by 14 percent.

Consolidated Financial Position 2016

Total consolidated assets approximated KD 16.5 Billion as at the end of 2016 while financing receivables approximated KD 8.2 billion.

The group maintained a robust liquidity position where cash and balances with banks and financial institutions, and short term murabaha reached KD 4.4 billion. KFH Kuwait non-performing financing ratio declined to 1.67 percent at the end of 2016 compared to 1.98 percent in 2015. Group non-performing financing ratio declined to 2.58 percent compared to 3.03 percent in 2015. Depositors’ accounts reached KD 10.7 Billion while total due to banks and financial institutions reached KD 2.9 Billion as at the end of 2016.

Equity attributable to the shareholders of the Bank

Shareholders’ equity increased to reach KD 1.810 Billion i.e. an increase by 1.8 percent compared to KD 1.779 Billion as at the end of 2015. Capital adequacy ratio calculated as per Basel lll regulations reached 17.88 percent as at the end of the year, thus exceeding the 15 percent ratio determined by CBK.

Proposed dividends

The board proposed the distribution of cash dividends by 17 percent as at the year ended 31st December 2016 (17 percent in 2015) and the issuance of bonus shares by 10 percent (10 percent in 2015) of paid up capital subject to ordinary general assembly approval and finalization of legal procedures.

Directors remuneration reached KD 772 Thousand (KD 610 Thousand in 2015) which is considered within the limit permissible as per local regulations and subject to ordinary general assembly approval.