Kuwait Finance House (KFH) Chairman, Hamad Abdulmohsen Al-Marzouq said that KFH, by the Grace of Allah and His Blessing, has achieved net profit of KD 105.7 mln as of the end of the third quarter 2015, compared with KD 90.1 mln over the same period last year, an increase of 17.3%.

Earnings per Share are 22.54 fils compared to 19.22 fils for the same period last year, marking an increase of 17.3%.

Total operating income increased by 6.3% to reach KD 505.2mln, compared with KD 475.4 mln over the same period last year.

Net finance income increased to KD 289.1mln as of the end of the third quarter 2015, compared to KD 261.7 mln for the same period last year, an increase of 10.5%.

Volume of depositors’ accounts increased to reach KD 10.901 bln, thus marking an increase of KD 39 mln or 0.36%.

Shareholders’ equity reached KD 1.735 bln, which marks an increase of 1% over same period last year.

Total assets amounted to KD 16.801 bln, decreased by 1.7% compared to the same period last year. However, after excluding the impact of currency decline on the Group’s foreign investments, total assets grew by 4% and the financing portfolio along with depositors’ accounts grew by 6%. 

 “The realized profits are in line with our plans and market developments. They reflect the balanced growth across all performance indicators and confirm KFH’s continued prudent policies.  These policies aims to enhance the bank’s financial position by managing developments according to market conditions, work environment, local and global variables and achieve a strong growth rate.  “KFH is working on a comprehensive vision to ensure it maintains the leading position in Islamic banking worldwide” said Al-Marzouq.

He affirmed in a press release the capacity of local banks to help bridge Kuwait’s budget deficit in light of falling crude oil prices. He stressed the importance for the government to continue spending on large projects to energize the market and achieve comprehensive development. He noted that a high level of liquidity in the banking sector will allow it to bridge any potential government budget deficits should the need arise.

With regards to KFH’s participation in financing development projects, Al-Marzouq indicated that negotiations are taking place on financing projects in wide range of economic sectors. KFH is currently financing a number of projects. Infrastructure projects are of a keen interest to KFH and it intends on enhancing its role in financing more projects in the near future, be it individually or in consortium. This emanates from KFH’s national role as one of the contributions to achieve national development plan and strengthen government’s economic growth objectives. 

Al-Marzouq explained that KFH geographic expansion in several markets is progressing well by having a wide range of wholesale and retail banking products and services in addition to its strong ties with clients. The bank coordinates its activities among its group banks and studies new markets after conducting detailed feasibility studies. This enhances the diversification of revenue streams increasing profitability and the returns on the overall financing portfolio.

Moreover, Al-Marzouq said that KFH-Turkey’s growth surpassed 20% so far this year. The bank continues its efforts in offering innovative products and services, not to mention opening new branches. KT Bank AG in Germany is a clear-cut example of KFH-Turkey’s expansions. KT Bank AG is a milestone achievement in Europe's largest economy and is a significant starting point to expand in other European countries.

He noted that KFH will now restructure operations of KFH Malaysia, upon the opinion of the advisor hired by the bank to consider strategic options for the unit. He voiced hope for successful operations of the bank as to be the gateway of KFH for Southeast Asia and China markets.

KFH-Bahrain and KFH-Saudi play a significant role in implementing KFH’s strategy in the GCC market where KFH attaches great interest in investment opportunities in the region’s markets.

Al-Marzouq shed light on KFH’s achievements over the past period where it strengthened its presence in the local market by consistently aiming to offer highest levels of service quality and high end E-services, yet emphasized the importance of paying attention to individual clients and their specific individual needs. Also, KFH uniquely offers a distinguished array of diversified investment deposits that are characterized by their competitive investment returns. Such products contributed in attracting new clients and increasing KFH’s market share.

KFH continues to offer credit facilities to entrepreneurs in an attempt to encourage initiatives of entrepreneurial Kuwaiti youth to run and grow their own businesses. KFH seeks to spur the growth of small and medium enterprises SMEs sector in Kuwait which serves in diversifying income resources and energizing the national economy.

Al-Marzouq reiterated the bank’s unremitting efforts to bolster its role in the local and regional markets by offering competitive products and services yet focusing on improving its IT role and benefiting from the high caliber human capital to render best services while adhering to Sharia provisions.