Kuwait Finance House posts $1 billion profit

Kuwait Finance House posts $1 billion profit

Kuwait Finance House (KFH) group achieved a record net profit of $1 billion last year, it was announced yesterday. The results takes account of overseas operations including KFH – Bahrain. KFH’s chairman and chief executive Bader Abdul Mohsen Al Mukhaizeem announced that KFH has achieved total profits worth $1.917bn last year, with an increase of $667.7 million, equal to 53 per cent compared to the previous year.

This includes the profits for investment depositors that reached $881.92m, distributed to shareholders of stock listed in Kuwait Stock Market as follows: 8.632pc for investment deposits, 6.714pc for Al Sedra deposit and 5.755pc for investment saving accounts.

The net profits for shareholders reached $1bn, with an increase of $411.861m, equal to an increase of 70pc compared to 2006.

Profit per share increased to 166 fils compared to 102 fils in 2006 – a 63pc rise.

Assuming the capital increase since the beginning of the year, profit per share was 161 fils compared to 102 fils in 2006 with an increase of 58pc.

The board of directors recommended granting the shareholders cash distributions with a rate of 65pc compared to 57pc for 2006, and bonus shares with a rate of 20pc compared to 15pc in the previous year, after the approval of the general assembly and concerned authorities.

Volume of assets increased in the balance to reach $32bn with a rise of $9.03bn compared to 2006 and an increased rate of 39pc.

The volume of deposits increased to $19.414bn with an increase of $5.93bn equal to 44pc compared to the last year.

The total shareholders’ equity reached $4.4bn with an increase of $1.847bn, equal to 72pc compared to the previous year.

Mr Al Mukhaizeem said these results were the fruits of the extended success that KFH has achieved during the previous years.

“This success is based on KFH’s awareness of the market and economical sectors where it operates, in addition to the policy that KFH follows in varying the assets, which it uses for investment,” he said.

“This policy focuses on distinguished qualitative investments that have an increasing value and high return on investment.”

KFH-Bahrain general manager Abdulhakeem Alkhayyat said KFH-Bahrain witnessed several milestones last year terms of its products, services and banking activities.

“This success is mainly due to the bank’s well planned strategies which includes not only Bahrain, but the countries we operate within,” he added.

“We are looking forward to continue this success in 2008 and beyond and to achieve our optimum goal of customer satisfaction.

“At KFH-Bahrain we look at the Kingdom’s economy with positive consideration, and we are committed to invest in the country as part of our long term vision.”

A fine example is the recently announced industrial holding company established in Bahrain, said Mr Abdulhakeem.

“We expect that our projects in the next few years will amount to $12bn,” he added.

“KFH-Bahrain is very proud that more than 95pc of its human power are young Bahraini professionals working with very high efficiency.”

Mr Al Mukhaizeem said KFH’s achievements last year were the pillars that supported KFH as a pioneer in the Islamic banking industry .

“Last year, which marked KFH’s 30th anniversary, the group won several global awards,” he revealed.

“KFH took seven awards from high profile specialised authorities. The most prestigious awards are Best Bank in Kuwait 2007 award from The Banker Magazine and The Distinguished Establishment by the 14th International Conference for Islamic Banks.

“In addition to that, KFH is soaring towards global expansion, new markets and countries, while reinforcing its status in the current markets.”

KFH established a company in Morocco and it is considering establishing an Islamic bank in Algeria. In Saudi Arabia, KFH is considering establishing a bank to reap the benefits of the booming economical development.

As result of KFH’s success in Malaysia, studies are going on to establish banks in countries in south East Asia. An exchange rate of 0.275 was used to convert every Kuwaiti dinar to the dollar.

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