Kuwait Finance House (KFH) Chairman Mohammed Al-Khodairi announced that KFH has achieved a gross profit of KD66.35million for the first Quarter of this year, of which shareholders' share was KD23 million.
Earnings per share for Q1 of this year increased by 16% to 8.1 fils over the same period last year. Total revenues reached KD 224.5 million, a 23% increase over the same period last year. Total assets increased by KD 751 million to KD 14.932 billion, an increase of 5% over the same period last year. Deposits increased by KD530 million to KD9.713 billion, an increase of 6% over the same period last year.
Shareholders' equity reached KD1.351 billion, an increase of KD78.3million (6%) over the same period last year.
Al-Khodairi asserted in a press release that KFH will continue to work relentlessly to cement its financial status, and maintain a stable growth rate and balanced performance across all its businesses. He added that the bank will continue to adopt a reserved policy that seeks to underline precautionary provisions and noted that tireless efforts are being exerted to achieve universal accomplishments in all sectors. He explained that this will solidify the bank's concept that is based on offering advanced and accurate integrated services.
He also mentioned that the extraordinary general assembly meeting that will be held on April 24th is expected to approve the increase of the bank's capital by 20% to reach KD 383 million after it was KD 290 million through shareholders' subscriptions in 638.9 million shares, with a nominal value of 100 fils and premium of 400 fils per share.
Moreover, Al-Khodairi stated that one of the most important steps taken during the past period was to setup KFH Real Estate Company, a company fully owned by KFH, one of the results of applying the new investment strategy that is part of the Transformation and restructuring plan for investments. He further explained that the new strategy stipulates placing all similar paradigm businesses of independent companies under the umbrella of KFH Group. He noted that the new company will be KFH's main investment arm in real estate locally and globally. He reflected his confidence that this company will manage to magnify the value of KFH's investments in the real estate field.
Al-Khodairi highlighted KFH's deep interest in the local market, and its keenness to develop its market share through intensifying its existence by opening new branches in various locations, in addition to offering competitive products and services to various client segments, such as ladies, children, and youths. He added that five marketing and promotion campaigns were launched in various fields while focusing on the role of technology in offering better services. He mentioned that KFH clients can now open deposits through its ATM machines, making it easier for them to do so in one of three safe ways including online and through the Call Center. Smart phone applications have also been upgraded and include applications for trading in GCC markets and an application for diabetes. KFH-Bahrain managed to uplift its internet site, while kfh.com won the His Highness Sheikh Salem Al-Ali Award for Information as the best commercial project in the private sector in the Arab world.
Furthermore, Al-Khodairi noted that KFH has won numerous awards from prestigious global authorities and agencies during the past period, including Best Islamic Bank in Kuwait from Euromoney and Islamic Finance. This underscores KFH's prominent role in Kuwait and worldwide. In addition, KFH won one of the most prestigious awards in the training and development field of Kuwaiti employees, in recognition of its efforts and initiatives to support the government and train Kuwaiti youths.
Al-Khodairi underlined KFH role in supporting the national economy through financing numerous companies after following proper credit rules and regulations. He explained that this strategic and pivotal role will continue to be shouldered by KFH, since the bank firmly believes in supporting the Kuwaiti economy and local companies. He went on to say that KFH organizes many promotion campaigns in collaboration with suppliers, which boosts the national economy and sales.
In reference to activities overseas, Al-Khodairi stated that overseas expansion is a permanent objective, and that KFH managed to take great strides in premium markets. He explained that expansion plans will allow KFH to reach its objective, which is for KFH overseas banks' contributions to reach 50% of revenues. Those banks witnessed many positive developments. KFH-Turkey obtained a license to operate an Islamic bank in Germany, and its annual profit increased by 28%. The bank is also planning to increase its capital to TL 1 billion. In addition, KFH-Malaysia continues to open new branches and offer competitive products and services; especially that Malaysia is considered to be a promising market that serves as a platform to leap into the Far East and Chinese market. KFH-Bahrain is considered to be one of the GCC and Middle East economies, where it succeeded in merging three major Islamic banks in Bahrain, not to mention its real estate investments that achieve high performance rates.
Al-Khodairi concluded by asserting the importance of the GCC markets that serve as a strategic depth for Kuwait both socially and economically. He added that KFH is looking into several investment opportunities in some GCC countries, in light of the positive economic developments in those countries. He went on to say that the fact that KFH is now operating in Saudi Arabia through Saudi Kuwait Finance House, highlights the bank's expansion in the GCC through setting foot in one of the most important GCC markets.