KFH-Turkey enjoys solid asset quality, diversified financing portfolio
KUWAIT: “Kuwait Finance House- Turkey (KFHTurkey) 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 KFHGroup CEO, Mazin Saad Al-Nahedh.
He added in a press release, that KFHTurkey 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 well-disciplined 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.