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Kuala Lumpur, Malaysia, 24 January 2007. Bader Abdul Mohsen Al-Mukhaizeem, Chairman and Managing Director of Kuwait Finance House announced that KFH has achieved a profit of US$1.19 billion (RM4.16 billion) for 2006, an increase of US$340.31 million (RM1.19 billion) or by 40%. Out of the total profit of US$1.19 billion includes profit for investor depositors of US$610.06 million (RM2.14 billion) which were distributed as follows: 8.46% for unconditional investment deposits, 6.58% Al-Sidra deposit, and 5.64% for investment savings accounts.
KFH has obtained the approval of the relevant authorities as well as the Central Bank of Kuwait (CBK) to increase its capital by 25%, at US$0.34 (RM1.20) per share resulting in a premium of US$3.09 (RM10.83) upon issuance.
Net profit due to the shareholders amounted to US$560.26 million (RM1.96 billion). This has translated into a Return On Capital (ROC) of 132% or US$0.50 (RM1.59) per share as compared to US$0.33 (RM1.17) per share for last year, assuming that the increase in capital is effected since the beginning of the year.
Upon approval of the general assembly and the regulatory authorities, the Board of Directors has recommended cash dividends of 57%, compared to 55% for last year, and bonus shares of 15%, compared to 12% for last year, to be paid to the shareholders.
The total Assets on the balance sheet rose to US$21.84 billion (RM76.48 billion) an increase of US$5.65 billion (RM19.78 billion) or by 35% over the last year. Likewise, total Deposits also rose to US$12.90 billion (RM45.18 billion) an increase of US$1.87 billion (RM6.55 billion) or by 17% when compared to the last year.
Meanwhile, shareholders' equity totalled US$2.43 billion (RM8.51 billion), an increase of US$0.35 billion (RM1.24 billion), or 17% over the last year.
Factors
"These results reflect the continued success of KFH over the past years, which are based on the comprehensive knowledge of the markets and industries in which it operates in. In addition to this, KFH follows its policy in diversifying its assets whenever it makes its investments, as well as focussing on quality investments of increasing value and high returns," said Al-Mukhaizeem.
"This also coincides with the emphasis being placed on studying the risk and mitigation techniques. The achievement of KFH reflects the success of the plans as set out by the management and which were successfully implemented by all employees," he added.
Boosting the Leading Position
Al Mukhaizeem added that KFH would continue to enhance its leading position in Islamic banking, and its presence in global markets, together with the ability to meet the customers' requirements in the various segments.
He elaborated, "In appreciation of its adequate financial position, growth and continued advancement in the innovation of its products and high-quality IT infrastructure, the different international rating agencies have upgraded the ratings for KFH in the various aspects of their assessment."
In addition, the Banker magazine voted KFH as the World's Best Islamic Bank and Euro Money magazine, for the third successive year awarded the Bank as the best in the region.
Rounding off an exceptional year, Kuwait Finance House was voted the second Worlds' Best Islamic Bank in the Islamic Finance news 2006 Best Islamic Banks Poll. The Bank also won country honours in Malaysia and Kuwait as Best Islamic Bank in these respective countries. Kuwait Finance House- Malaysia was simultaneously voted Best New Islamic Bank and the second Most Innovative Islamic Bank in the world.
Deals in Other Markets
In 2006, KFH has expanded the Ijarah "lease" operations worldwide. The first Islamic US$230 million Ijarah transaction was successfully structured in cooperation with Kuwait Finance House ¿ Malaysia, to finance the purchase of six aircrafts for AirAsia Berhad. Apart from this, the stake of KFH in the Al-Robban Ship Finance Fund was sold resulting in an internal rate of return (IRR) of about 42% for the shareholders and depositors of KFH.
Local Market
Al-Mukhaizeem emphasised that with regards to the local market, being a top priority in KFH's strategies and action plans, the number of branches has increased to 42 after the opening of seven new branches in various locations. Three branches were also relocated. New services introduced via KFH's website, included the corporate salary payment. KFH concluded an agreement with Kuwait Airways Corporation (KAC) to launch the electronic payment system, a first in the history of the corporation.
Several programs were implemented for a number of customer segments, such as Al-Sundus for ladies, al-Robban for men, and Al-Tamauyz, for both men and ladies. The Priority Program was further enhanced for high net worth customers.
"KFH has achieved a clear growth in sales in the automobile operating rent market, therefore proving its continued leadership of this market," continued Al-Mukhaizeem. "The service was supported by enhanced features for customers, such as periodic maintenance, and comprehensive insurance. Apart from the above, the Ahmadi showroom was opened and Shuwaikh showrooms were renovated," he added.
Market Maker
Al-Mukhaizeem stressed that, in providing over 140 financial, investment and real estate online products and services, coupled with its role in promoting local trade by financing retail and consumer business, KFH is a major market maker, performing its role in serving the national economy. It was able to achieve such success thanks to its constant effort to encourage the use of national products, coordination with several economic entities to serve the market and boost the economic stability, as well as its adherence to the rules of the Islamic Shari'a.
KFH has obtained the approval of the relevant authorities as well as the Central Bank of Kuwait (CBK) to increase its capital by 25%, at US$0.34 (RM1.20) per share resulting in a premium of US$3.09 (RM10.83) upon issuance.
Net profit due to the shareholders amounted to US$560.26 million (RM1.96 billion). This has translated into a Return On Capital (ROC) of 132% or US$0.50 (RM1.59) per share as compared to US$0.33 (RM1.17) per share for last year, assuming that the increase in capital is effected since the beginning of the year.
Upon approval of the general assembly and the regulatory authorities, the Board of Directors has recommended cash dividends of 57%, compared to 55% for last year, and bonus shares of 15%, compared to 12% for last year, to be paid to the shareholders.
The total Assets on the balance sheet rose to US$21.84 billion (RM76.48 billion) an increase of US$5.65 billion (RM19.78 billion) or by 35% over the last year. Likewise, total Deposits also rose to US$12.90 billion (RM45.18 billion) an increase of US$1.87 billion (RM6.55 billion) or by 17% when compared to the last year.
Meanwhile, shareholders' equity totalled US$2.43 billion (RM8.51 billion), an increase of US$0.35 billion (RM1.24 billion), or 17% over the last year.
Factors
"These results reflect the continued success of KFH over the past years, which are based on the comprehensive knowledge of the markets and industries in which it operates in. In addition to this, KFH follows its policy in diversifying its assets whenever it makes its investments, as well as focussing on quality investments of increasing value and high returns," said Al-Mukhaizeem.
"This also coincides with the emphasis being placed on studying the risk and mitigation techniques. The achievement of KFH reflects the success of the plans as set out by the management and which were successfully implemented by all employees," he added.
Boosting the Leading Position
Al Mukhaizeem added that KFH would continue to enhance its leading position in Islamic banking, and its presence in global markets, together with the ability to meet the customers' requirements in the various segments.
He elaborated, "In appreciation of its adequate financial position, growth and continued advancement in the innovation of its products and high-quality IT infrastructure, the different international rating agencies have upgraded the ratings for KFH in the various aspects of their assessment."
In addition, the Banker magazine voted KFH as the World's Best Islamic Bank and Euro Money magazine, for the third successive year awarded the Bank as the best in the region.
Rounding off an exceptional year, Kuwait Finance House was voted the second Worlds' Best Islamic Bank in the Islamic Finance news 2006 Best Islamic Banks Poll. The Bank also won country honours in Malaysia and Kuwait as Best Islamic Bank in these respective countries. Kuwait Finance House- Malaysia was simultaneously voted Best New Islamic Bank and the second Most Innovative Islamic Bank in the world.
Deals in Other Markets
In 2006, KFH has expanded the Ijarah "lease" operations worldwide. The first Islamic US$230 million Ijarah transaction was successfully structured in cooperation with Kuwait Finance House ¿ Malaysia, to finance the purchase of six aircrafts for AirAsia Berhad. Apart from this, the stake of KFH in the Al-Robban Ship Finance Fund was sold resulting in an internal rate of return (IRR) of about 42% for the shareholders and depositors of KFH.
Local Market
Al-Mukhaizeem emphasised that with regards to the local market, being a top priority in KFH's strategies and action plans, the number of branches has increased to 42 after the opening of seven new branches in various locations. Three branches were also relocated. New services introduced via KFH's website, included the corporate salary payment. KFH concluded an agreement with Kuwait Airways Corporation (KAC) to launch the electronic payment system, a first in the history of the corporation.
Several programs were implemented for a number of customer segments, such as Al-Sundus for ladies, al-Robban for men, and Al-Tamauyz, for both men and ladies. The Priority Program was further enhanced for high net worth customers.
"KFH has achieved a clear growth in sales in the automobile operating rent market, therefore proving its continued leadership of this market," continued Al-Mukhaizeem. "The service was supported by enhanced features for customers, such as periodic maintenance, and comprehensive insurance. Apart from the above, the Ahmadi showroom was opened and Shuwaikh showrooms were renovated," he added.
Market Maker
Al-Mukhaizeem stressed that, in providing over 140 financial, investment and real estate online products and services, coupled with its role in promoting local trade by financing retail and consumer business, KFH is a major market maker, performing its role in serving the national economy. It was able to achieve such success thanks to its constant effort to encourage the use of national products, coordination with several economic entities to serve the market and boost the economic stability, as well as its adherence to the rules of the Islamic Shari'a.
