Mr. Bader Abdul-Mohsin Al-Mukhaizeem - Chairman & Managing Director – Kuwait Finance House, announced that KFH total profit for the third quarter this year is approximately KD 463.42 Million ( USD $ 1740.06 Million) compared to KD 393.46 Million (USD $ 1478.06 Million) profit for the third quarter last year, which represents a growth of 18_%. Net Profit to Shareholders approximated KD 220.59 Million (USD $ 828.66 Million) with an increase of 25_% compared to the same period last year.
Earning Per Share reached 107 Fils (USD $ 0.402 ) for the 3rd quarter compared to89 Fils ( USD $ 0.334 ) the same period last year with an increase by 20_%.
Total assets stood at KD 10.54 Billion ( USD $ 39.59 Billion) , thus representing an increase of KD_2.29 Billion ( USD $ 8.60 Billion) for the same period last year i.e. an increase of 28 %
Total deposits increased for the 3rd quarter to KD 6.33 Billion (USD $ 23.78 Billion), an increase of KD 1.31 Billion ( USD $ 4.92 Billion), with 26 % over the same period last year.
Return on Assets stood at 3_% per annum while Return On Equity stood at _24_% per annum.
Mr. Al-Mukhaizeem emphasized that KFH a enjoys high level of liquidity, to fulfill and satisfy the needs of individuals and institutions to execute their projects. KFH is able to provide retail and corporate finance facilities if regular conditions are observed in these cases.
He added: the 3rd quarter financial statements depict that more than 90% of KFH earnings are operational earnings resulting from budgeted targets and plans, thus indicating the integrity and success of KFH methodology and the strength and substantiality.
Mr. Al-Mukhaizeem reiterated that KFH Sharia compliant methodology and its investments which are based on the selection of high quality assets have supported KFH strongly. KFH business strategy has protected it from high level risk markets which contradict the Islamic investment concept that stipulates that customers’ funds are considered as a trust and should be invested with utmost care. Accordingly, KFH headed to regions of balanced growth and stability i.e. South East Asia countries and China.
The current financial crisis will surely impact and throw its shadows on the area markets until all related problems are solved and global markets stability is achieved. However, the present crisis should be tackled with great efficiency and competence, especially that this critical stage requires unification of public and private sector efforts. The main focus should be made on presenting accurate facts regarding the financial strength of corporations and banks participating in the market in order to avoid the panic situation prevailing currently.
The Kuwaiti market suffered significant unjustified losses recently in away that do not cope with the national economy's tenacity and strength, the matter which requires more focus and accuracy in tackling the crisis management methodology. Our ability to overcome this crisis is dependant on the credibility and efficiency of crisis management at companies, banking sector and the stock exchange in light of the efforts of Central Bank of Kuwait which endeavors to maintain the strength and tenacity of the banking system.
Mr. Al-Mukhaizeem concluded that executive and legislative authorities should join forces in cooperation with economic sector to come up with a clear and effective rescue plan to assist the Kuwaiti economy eliminating the negative i