Kuwait, 20 April 2016: Chairman of Kuwait Finance House (KFH) Hamad Abdulmohsen Al-Marzouq said that "KFH has, by the grace of Allah, realized a KD34.1 million (USD113.04 million) net profits for the first quarter of 2016 for KFH shareholders compared to KD29.9 million (USD99.12 million) for the same period last year i.e. an increase of 14.1%".
Net finance revenues for Q1 this year reached KD96 million (USD318.25 million) i.e. a growth increase by 7% compared to the same period last year after eliminating the impacts of stopping the consolidation of ALAFCO.
Earnings per share for the first quarter of 2016 reached 6.61 fils, compared to 5.80 fils for the same period last year i.e. an increase by 14%.
Total assets reached KD16.77 billion (USD55.59 billion) i.e. an increase by KD251 million (USD832.11 million) or 1.5% compared to year ending 2015.
Finance portfolio reached KD8.36 billion (USD27.71 billion) i.e. an increase by KD234 million (USD775.75 million) or 2.8% compared to year ended 2015.
Total deposits reached KD14.02 billion (USD46.47 billion) i.e. an increase by KD264 million (USD875.21 million) or 1.9% over the same period last year.
Shareholders' equity reached KD1.73 billion (USD5.73 billion) for Q1 this year. KFH's Capital Adequacy Ratio (CAR) reached 17.04%, higher than the required limit of 13%, thus reiterating the strength of KFH financial position.
Al-Marzouq said that the realized profits are in line with the ambitious strategy to lead the International Development of Islamic Financial Services and adjust to the market developments. This reflects the balanced performance and robust financial position of the Bank. He reiterated that KFH is working on a comprehensive vision to ensure maintaining a sustainable and stable growth rate, yet to offer diversified development opportunities through the integration of its businesses at the level of the Group.
Al-Marzouq added that KFH continued to manage risk efficiently and set aside the required provisions in accordance with best practices. This reflects its strong financial position and high liquidity levels. The Bank has taken several measures to reduce the NPLs ahead of debt settlement with a number of companies, which affirms the Bank's keenness to recover debts for its shareholders and preserve their rights.
The branch network at KFH Group has expanded locally and globally. It comprises 450 branches, which reinforces the Group's position and presence in the local, regional and global markets. In addition, KFH Turkey has achieved positive results. KT Bank Ag in Germany has achieved geographical expansion, while profits have been bolstered in KFH Bahrain and KFH Saudi.
Al-Marzouq stressed the continuing efforts of development and boosting the economy through issuing more sukuk for governments and companies around the world, while contributing in funding infrastructure and development projects. This plays a significant role in creating a stable environment for investment, yet offering promising development opportunities. He affirmed KFH's efforts to continuously offer credit facilities for SMEs in an attempt to encourage the youth's initiative as well as to diversify income resources.
He continued, "KFH won several awards from international institutions and financial bodies in recognition of its excellence and outstanding results in different fields. KFH won three awards from Islamic Finance News Magazine (IFN), which are "Best Islamic Bank in Kuwait 2015", "Kuwait Deal of the Year" and "Turkey Deal of the Year". In addition, EmeaFinance named KFH as "Best Bank in Kuwait" and "Best Islamic Bank in Kuwait".
He added that the positive ratings from major international rating agencies contribute in increasing customers' confidence whilst consolidating KFH's prestigious status locally and globally, indicating that Fitch Ratings affirmed the long-term IDRs of (KFH) at "A+" with a stable outlook. Further, Standard & Poor's affirmed KFH's long term ratings at "A-" and the short term ratings at "A-2".
He said that during the first quarter of 2016, KFH has launched a wide range of Marketing initiatives, new products and services, such as Al-Rabeh account that offers clients the opportunity to win two 2016 Range Rover's and 3kg of gold every 3 months. In addition, KFH offered Gold Account online for clients. The bank offered quarterly profit on KFH's savings and investment account, in addition to a variety of advantages and improvements on the banking cards, customer service, procedures, speed and availing technology stemming from KFH's endeavors to render customers high-end products and services that meet their aspirations and strengthen the bank's pioneering status.
Al-Marzouq added that KFH continued assuming its corporate social responsibility by focusing on the fields of health, education, sport and the youth in a manner that reflects the Bank's keenness on reinforcing communication with all segments of the society, yet sponsoring events and activities, organizing purposeful visits and increasing awareness in many fields. KFH focuses on improving interaction with the United Nations International Days, mainly those of social nature, through the contribution in increasing awareness, fostering volunteerism and philanthropy at many occasions.
Al-Marzouq expressed his thanks and appreciation to all shareholders and clients for their support and confidence. He praised the efforts of KFH's executive management and employees for their outstanding performance that yielded positive results, stressing the importance of maintaining the leadership position at all levels.
* KD - Kuwaiti Dinar
* KD1 = USD3.3152 (Bloomberg as at 20/04/2016)