Kuwait Finance House Chairman Mohammed Al-Khudairi announced that KFH has achieved total revenues of KD 611.9 million up to the Third Quarter of 2012 with an increase of KD 34.7 million (increase rate 6%). Gross profits for the same period reached KD 194.5 million that include KD 116.5 million as estimated profit for investment depositors and total provisions were KD 149.3 million with a decrease of 3.8% compared to the same period last year.
Shareholders’ net profit reached KD 75.9 up to the 3rd Quarter in 2012 million with an increase of KD 5.1 million or a 7.2% increase compared to last year. Earnings per share reached 26.64 fils with an increase of 2 fils until the 3rd Quarter at a growth rate of 8.1% over the same period last year.
Total assets increased to KD 14.2 billion with a KD 839 million or 6.3% increase compared to the same period last year. The volume of deposits increased to KD 8.9 billion with a KD 195 million or a 2% increase compared to the same period last year.
Shareholders’ equity reached KD 1.3 billion with KD 34.9 million or a 2.7% increase compared to the same period last year.
Al-Khudairi asserted that the profits reflect the success of KFH’s conservative approach seeking to optimize its resources and capabilities and maintain its stable growth rate while stressing that the bank is capable of implementing its plans and strategies in challenging times through excellent human resources that will allow it to improve its financial indicators significantly in the future. He also said that KFH excels in operational competencies, which show its ability to control expenses and costs.
In addition, Al-Khudairi stated that up to the 3rd Quarter of the current year, KFH worked relentlessly to improve its technological competencies across products and services such as in banking services through KFH website and cell phones, and requesting cheque books through ATM machines and cell phones.
Al-Khudairi also said that in support of the national workforce, KFH trained over 1,000 Kuwaiti youths, not to mention organizing hundreds of training courses in various fields, in addition to hosting training seminars held by international professionals in the fields of change management and development, all of which are essential for KFH in the coming periods of its transformation program.
Moreover, Al-Khudairi stated that the credit ratings KFH receives from global rating agencies reflect trust in its performance and the ability to further develop, given that the global economy and the operative environment in Kuwait improve. He also stressed that Kuwait needs government spending that is based on a clear plan with defined objectives that should result in economic prosperity, real development, and accomplishments that trigger a paradigm shift will move Kuwait and its people forward on a regional and international level; especially that the political leadership and financial abilities support such goals.
Al-Khudairi pointed out that during 3rd Quarter, KFH managed to increase its letters of guarantee by 15% compared to the same period last year, which reflects the bank’s ability to attract new clients from various investment sectors, and cement the trust of investors in the quality and type of services offered by the bank. In addition, communications efforts were strengthened with merchants and suppliers, and several promotional campaigns were launched to that helped increase its sales and helped move the economy. Such efforts go hand in hand with the successful plans of increasing the market share in certain fields, such as banking cards, financial services, and other services.
Furthermore, Al-Khudairi said that KFH won numerous awards during the past three months, such as best Islamic bank in financing companies and projects by EMEA Finance Magazine, best Islamic bank in Kuwait by Asia Money Magazine, and best internet banking services by Global Finance.
In addition, Al-Khudairi underlined continuous efforts that seek to enhance operations at KFH Group, whether in its existing markets in Bahrain, Malaysia and Turkey, or through linking those markets to Kuwait and other GCC countries. He went on to say that KFH-Turkey spearheads this strategy, since it now offers Kuwaitis funding services to acquire real estate in Turkey, in addition to other important services in the Turkish market. He noted that KFH takes significant initiatives in the field of Sukuk, since it is highly demanded in regional and global markets as a convenient source of funding for projects; especially that Sukuk are the Islamic equivalent of bonds. He explained that the success of Sukuk has prompted several countries to issue new legislations to increase Sukuk issuance in their markets. He also highlighted KFH’s willingness to assist in issuing such legislations required to organize the issuance of Sukuk in Kuwait and other countries.
Al-Khudairi noted that the issuance of sovereign Sukuk worth USD 1.5 billion for the Ministry of Treasury in the United States in collaboration with KFH and Liquidity Management Company, has cemented its role in this promising market, as KFH has taken part in organizing Sukuk issuances worth USD 6 billion in the past period for other governments globally and in the GCC.