KFH 9M net profit rises 16.5% to KD 123.1 mln – EPS clocks 23.86 fils

03/11/2016 05:38 AST

Chairman of Kuwait Finance House (KFH) Hamad Abdulmohsen Al-Marzouq said that KFH has, by the grace of Allah, realized a net profit of KD 123.1 million for the period ending September 2016 for KFH shareholders as compared to KD 105.7 million for the same period last year i.e. an increase of 16.5 percent.

Total operating revenues for the 9 months ending September 2016 reached KD 491.5 million i.e. a growth of 4.0 percent compared to the same period last year.

Net operating revenues reached KD 264.1 million, i.e. a growth of 14.7 percent over the same period last year.

Net finance revenues reached KD 325.7 million, i.e. a growth of 2.3 percent over the same period last year.

Earnings per share as of end Q3 2016 reached 23.86 fils compared to 20.49 fils over the same period last year i.e. an increase by 16.4 percent.

Earnings per share from the continuing operations (after excluding the impact of AIG) as of end Q3 2016 reached 27.42 fils compared to 19.40 fils over the same period last year i.e. an increase by 41.3 percent.

Total assets reached KD 16.64 billion i.e. an increase by KD 147.6 million or 1.0 percent compared to year ended 2015. Finance portfolio reached KD 8.42 billion i.e. an increase by KD 331 million or 4.1 percent compared to year ended 2015.

Depositors’ accounts reached KD 10.90 billion i.e. an increase by KD 62.3 million or 0.6 percent compared to year ended 2015.

Shareholders’ equity reached KD 1.81 billion as of end Q3 this year an increase by KD 30.9 million or 1.7 percent compared to year ended 2015.

During Q2 this year, the Board of Directors of the Bank approved to sell Group’s interest in its subsidiary Aref Investment Group (AIG). As a result, the assets and liabilities of AIG presented as assets classified as held for sale and liabilities directly associated with the assets classified as held for sale amounted to KD 344 million and KD 171 million, respectively. According to this presentation, the total operating revenues decreased from KD 498 million to KD 492 million, while the net operating revenues increased from KD 253 million to KD 264 million.

Adequacy

KFH’s capital adequacy ratio (CAR) reached 17.24 percent, higher than the required limit of 13 percent, thus reiterating the strength of KFH financial position.

Al-Marzouq said that the realized profits are in line with the ambitious strategy to ensure the achievement of a sustainable growth rate, yet to achieve integration of its businesses at the Group level. The profits reiterated the bank’s resilience to adapt with the markets’ volatility, which reflects the balanced performance and robust financial position of the bank. KFH continued to efficiently manage risk and set aside the required provisions in accordance with the best practices. This reflects its strong financial position and high liquidity levels.

“Despite the tough-operating environment and the unfavorable conditions in different markets regionally and globally, KFH achieved good profitability and growth in all indicators, mainly the surge in the total operating revenues and the investment revenues. KFH managed to reduce the operating expenses in comparison to the revenues. The high profitability indicators calculated on a yearly basis reiterates the strong pillars of KFH to achieve sustained profitability” added Al-Marzouq.

He called upon the public and the private sectors to bolster coordination and collaboration in order to face what could affect the economy in the coming period, stressing the importance of creating a vision to encounter the negative impacts of the latest developments. He stressed the importance of having a comprehensive economic outlook in an attempt to avert any negative effects on the economy and businesses, not to mention the importance of the government’s role in boosting the economy through raising the cap

Arab News