KFH shareholders net profit KD 70.9 mln in H1

27/07/2016 05:36 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 70.9 million for the first half of 2016 for KFH shareholders as compared to KD 62.3 million for the same period last year i.e. an increase of 13.6 percent. Total operating revenues for H1 this year reached KD 322 million i.e. a growth of 4.4 percent compared to the same period last year.

Net operating revenues reached KD 166 million, i.e. a growth of 14.4 percent over the same period last year. Net finance revenues grew 13 percent over the same period last year after excluding ALAFCO deconsolidation impact. On June 30, 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 356 million and KD 174 million, respectively. According to this presentation, the total operating revenues decreased from KD 325 million to KD 322 million, while the net operating revenues increased from KD 159 million to KD 166 million. Earnings per share for the first half of 2016 reached 13.74 fils compared to 12.09 fils over the same period last year i.e. an increase by 13.6 percent. Earnings per share from continuing operation (after excluding the impact of AIG) reached 17.24 fils compared to 11.02 fils over the same period last year i.e. an increase by 56.4 percent.

Total assets reached KD 17.03 billion i.e. an increase by KD 534.9 Million or 3.2 percent compared to year ended 2015. Finance portfolio reached KD 8.45 billion i.e. an increase by KD 354.6 million or 4.4 percent compared to year ended 2015. Total deposits reached KD 14.12 billion i.e. an increase by KD 359.8 million or 2.6 percent compared to year ended 2015. Shareholders’ equity reached KD 1.77 billion for H1 this year.

KFH’s capital adequacy ratio (CAR) reached 17.21 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 manage risk efficiently and set aside the required provisions in accordance with the best practices.

This reflects its strong financial position and high liquidity levels. Al-Marzouq added that the global economy has lately witnessed a historic remarkable event after the UK voted for Brexit to leave the European Union.

This might result in economic and political repercussions and instability as the UK is still the second largest economy in the EU and normally a role model for all unions to follow suit. Al-Marzouq expressed his confidence in the potentials of the Kuwaiti economy to confront any repercussions resulting from the Brexit especially at the level of the banking system.

The Kuwaiti banks are armed with high levels of liquidity and quality assets, yet they operate in a stringent regulatory environment. Despite the said repercussions, the UK will remain a potential mouth-watering investment destination, and the crisis might offer several genuine investment opportunities in many fields. He added that KFH-Group successfully assumed its development and financial role in the markets in which it operates. KFH signed agreement with Kuwait National Petroleum Company (KNPC), to finance the Clean Fuel Project of KD 1.2 bln as the leader of Islamic lenders.

This reaffirms KFH’s ability to serve the development plans and support the development process while positively par

Arab Times