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Kuala Lumpur, 14 October 2008 ¿ Kuwait Finance House K.S.C. (KFH) has remained resilient as reflected by its latest set of financial results released for the third quarter of this year. Total profits of US$1.74 billion (RM 6.05 billion) reported for the third quarter of 2008 has risen by 18% over the same period last year and net profit to shareholders increased by 25% to US$828.66 million (RM2.88 billion).
Earnings per share (EPS) for the third quarter 2008 worked out to US$0.40 (RM1.40), an increase of 20% from US$0.33 (RM1.16) in the previous corresponding period. Year-on-year, assets expanded by 28% or US$8.60 billion (RM29.91 billion) to reach US$39.59 billion (RM137.67 billion) at the end of the third quarter of 2008.
The latest results indicate an annualised return on assets (ROA) of 3.0% and return on shareholders' equity of 24%. Total deposits for the third quarter of 2008 reached US$23.78 billion (RM82.69 billion), up by 26% or US$4.92 billion (RM17.11 billion) over the same period last year.
KFH Chairman and Managing Director, Mr Bader Abdul Muhsen Al-Mukhaizeem emphasised that the high level of liquidity has enabled KFH to support the financing needs of individuals and institutions in executing their projects. KFH continues to be active in providing retail and corporate financing facilities amidst the current credit crisis in the global environment. He added that more than 90% of the third quarter earnings have resulted from group operations, in which KFH has achieved the targets set in its budget. The solid results confirm KFH's integrity and strength as factors contributing to the successful implementation of its plans.
The Shariah-based methodology adopted by KFH coupled with high quality assets which KFH invests in have contributed to the financial performance of KFH. Additionally, strong Islamic principles which are continuously reinforced and adhered to in all aspects of KFH business strategy has shielded KFH from being involved in potentially high-risked investments that contradict the Islamic investment concept. In this respect, customers' funds are considered as a trust and should be invested with utmost care.
Mr Al-Mukhaizeem contemplates that the current financial crisis will cast a shadow on markets in the region until all problems are solved and global markets achieve stability. Nonetheless, he noted that there are opportunities in the present crisis which should be tackled with efficiency and competency, with the alliance of public and private sector efforts. Corporations and banks should be transparent in presenting their true financial status to mitigate any panic situation in the market.
The Kuwaiti stock market has recently suffered significant losses which are unjustified and not representative of the tenacity and vigour of the Kuwaiti economy, and will require close attention and accurate crisis management methodology. The ability of KFH to overcome this crisis is dependent on the credibility and efficiency of crisis management by corporations, the banking sector and the stock exchange with the coordinated efforts of the Central Bank of Kuwait to maintain the strength and control of the banking system.
Mr. Al-Mukhaizeem concluded that executive and legislative authorities should join forces in cooperation with the economic sector to fabricate a clear and effective rescue plan to assist the Kuwaiti economy eliminating the negative impacts of the global money markets crises. This will require the application of a more comprehensive and deep-rooted plan in concert with global economies, which have had an extensive effect on the lives of individuals and societies during the recent global crises.
Earnings per share (EPS) for the third quarter 2008 worked out to US$0.40 (RM1.40), an increase of 20% from US$0.33 (RM1.16) in the previous corresponding period. Year-on-year, assets expanded by 28% or US$8.60 billion (RM29.91 billion) to reach US$39.59 billion (RM137.67 billion) at the end of the third quarter of 2008.
The latest results indicate an annualised return on assets (ROA) of 3.0% and return on shareholders' equity of 24%. Total deposits for the third quarter of 2008 reached US$23.78 billion (RM82.69 billion), up by 26% or US$4.92 billion (RM17.11 billion) over the same period last year.
KFH Chairman and Managing Director, Mr Bader Abdul Muhsen Al-Mukhaizeem emphasised that the high level of liquidity has enabled KFH to support the financing needs of individuals and institutions in executing their projects. KFH continues to be active in providing retail and corporate financing facilities amidst the current credit crisis in the global environment. He added that more than 90% of the third quarter earnings have resulted from group operations, in which KFH has achieved the targets set in its budget. The solid results confirm KFH's integrity and strength as factors contributing to the successful implementation of its plans.
The Shariah-based methodology adopted by KFH coupled with high quality assets which KFH invests in have contributed to the financial performance of KFH. Additionally, strong Islamic principles which are continuously reinforced and adhered to in all aspects of KFH business strategy has shielded KFH from being involved in potentially high-risked investments that contradict the Islamic investment concept. In this respect, customers' funds are considered as a trust and should be invested with utmost care.
Mr Al-Mukhaizeem contemplates that the current financial crisis will cast a shadow on markets in the region until all problems are solved and global markets achieve stability. Nonetheless, he noted that there are opportunities in the present crisis which should be tackled with efficiency and competency, with the alliance of public and private sector efforts. Corporations and banks should be transparent in presenting their true financial status to mitigate any panic situation in the market.
The Kuwaiti stock market has recently suffered significant losses which are unjustified and not representative of the tenacity and vigour of the Kuwaiti economy, and will require close attention and accurate crisis management methodology. The ability of KFH to overcome this crisis is dependent on the credibility and efficiency of crisis management by corporations, the banking sector and the stock exchange with the coordinated efforts of the Central Bank of Kuwait to maintain the strength and control of the banking system.
Mr. Al-Mukhaizeem concluded that executive and legislative authorities should join forces in cooperation with the economic sector to fabricate a clear and effective rescue plan to assist the Kuwaiti economy eliminating the negative impacts of the global money markets crises. This will require the application of a more comprehensive and deep-rooted plan in concert with global economies, which have had an extensive effect on the lives of individuals and societies during the recent global crises.
