Positive performance reflects excellence of KFH’s strategy
KUWAIT: Several economic developments have occurred on the local and international levels. However, the financial results have exhibited a positive financial and administrative performance, thus reflecting the excellence of KFH strategy and policy. KFH achieved outstanding performance, maintained a strong financial position, established higher value for shareholders, enhanced its position and continued to achieve growing returns on the long run.
Competition forms a daily challenge for KFH. However, KFH employees’ efficiency and ability to adapt with all market trends, adopt sound decisions and provide all required services and solutions to customers have given KFH the ability to develop business systems and avail all opportunities resulting from challenges encountered. KFH continued to improve its services, products and investment in the field of innovation and sustainability as evidenced in the developed customer service and enhancement of future growth.
KFH achieved major accomplishments in 2019, thus continuing its strategy and progress to be the first choice always. KFH strategy considers four pivots to achieve this goal. The first pivot comprises customer-centric service, thus adopting customer’s service as a priority to make his experience with KFH valuable and enjoyable. The second pivot comprises innovation, development of digital services and products, implementation of high-tech solutions to fulfil customers’ aspirations and needs, and improve the efficiency and capacity of customer service through digital channels. The third pivot covers focus on productivity to enhance performance levels, magnify available resources and use new resources. The fourth pivot covers the establishment of a highly efficient management culture based on the best professional practices.
Growth continued, during the last 5 years, according to the monetary and regulatory policies implemented by the Central Bank of Kuwait to achieve stability and growth in the government sector. This growth has coped with the economic transformation trajectory and the growth vision for the year 2035. The vision comprised an ambitious economic road map focusing on highly significant sectors, namely the financial sector. KFH strength emanates basically from the solid customer base and customers trust and confidence. KFH proceeded with steady steps to reserve this fortune, enhance standards and practices and achieve the highest standards of banking services.
The financial results for the year 2019 reflected the bank’s continued success and progress towards growth and development. We have achieved a growth in net profit, attributable to the shareholders, by 10.4 percent with net profit approximating KD 251 million for the year 2019. Effective management of resources, cost optimization and growth increase in various business sectors have contributed to these results. Financing portfolio increased by 1.6 percent totaling KD 9.3 billion. Assets reached KD 19.4 Billion while customers’ deposits increased by 15 percent, reaching KD 13.6 billion. Growth resulted into an increase in financing income by 8.1 percent reaching a total of KD 931.6 million in addition to an increase in Net operating profit by 12.5 percent, a total of KD 510.1 million.
Integrated banking services
KFH provides integrated retail and corporate banking services to finance all activities; commercial, industrial, real estate and infrastructure projects, locally and globally. KFH branch network covers 62 branches in Kuwait, 430 branches in Turkey, 9 branches in Bahrain, 14 branches in Malaysia and 5 branches in Germany. Through KFH Capital, KFH provides diversified package of services including investment banking assets, brokerage in money markets and a vast set of investment fund services. The bank conducts its activities through an integrated management system and operational units performing their core services efficiently and effectively.
Digital retail banking services
Retail banking sector made several distinguished initiatives and accomplishments to achieve KFH goals, alleviate productivity and ensure customers satisfaction. KFH owns an extensive network of ATM systems comprising more than 1250 machines spread all over Kuwait. KFH focused on increasing the efficiency and effectiveness of this network and increasing the mechanism and dynamic functions of the systems. Services include card-less cash deposit, thus introducing more modern and attractive systems. The systems comprise newly designed screens and modern functions, enabling the customer to open an account via ATM, cheque printing and opening gold buy/sell accounts. KFH achieved a leading position concerning POS growth portfolio in the market, marking an increase by 1182 machines i.e. 24 percent of market growth.
Seeking to improve customer experience, loyalty, confidence and competitive advantages to include a larger segment of products and services, we have developed and launched a new customer experience program to determine customer satisfaction levels on daily basis. Customers’ feedbacks are collected on daily basis through a set of questionnaires. All results are dispatched to all main banking channels for further development through branches, call center, phone applications, e-banking services and ATMs. More than 40 indicators impacting customers’ experience are being monitored (e.g. waiting time - speed ...etc.), bearing in mind that new standards are being adopted monthly. Development and improvement procedures are carried out in cooperation with all concerned departments. Customer’s feedback is construed as an extremely rich source of information which we receive with utmost clarity. On the other hand, “I Care” program has been revamped, to focus on cultural transformation program (Barrett Values Center), thus implementing an integrated retail banking program covering employees’ awareness, workshops and case study.
In line with its expansion strategy, branch wise, KFH inaugurated the opening of the automobile showroom in Shuwaikh in May 2019. The showroom is considered as the largest modern automobile showroom in the Middle East, covering a total area of 38 thousand square meters, while the exhibition hall covers an area of 17 thousand square meters accommodating more than 200 carsfor more than 20 agents and 30 trademarks including cars, motorcycles and boats.
Digital options and payments future
KFH proved its capability, adaptation, flexibility and leadership in banking services through its excellence and innovation in information technology. The ambitious strategy and diversified plans were the cornerstones in these achievements during the last two decades. Developments in communication and marketing tools were achieved as a result of technological development and innovation. IT has become the backbone of KFH business.
KFH digital strategy has become a cornerstone in the transformation plan which KFH started 5 years ago. The strategy comprised 3 stages: the first stage consumed 2-3 years, focusing on building the base for a digital future through several elements. The first element aimed to change prevailing internal culture by prioritizing customer satisfaction in all service channels, customer service centers and direct sale. The second is to simplify internal procedures and make them more flexible and effective. The third element is to consider modern technology in all fields and cope with the prevailing marketing trend. The second stage focused on launching digital services to suit the requirements of the millennium generation. The third stage comprised the development of an integrated electronic platform with multiple means. KFH Group succeeded in fulfilling customers’ needs through digital and electronic banking services. Digital transactions increased to reach more than 372 million transactions in 2019 i.e. an increase by 24 percent compared to 2018. This increase comes on the back of the remarkable performance and customers’ significant interest in KFH website. The number of transactions in 2019 reached 27 million i.e. 3x the number 9 million in 2018.