Kuwait Finance House Group-CEO Mazin Saad Al-Nahedh stated that the non-performing financings ratio NPFs at KFH dropped to 1.67% as of end 2016 from 1.98% end 2015. The NPFs dropped from 3.03% to 2.58% on group level.

He added in an interview with Sky News Arabia TV conducted at KFH headquarters, that KFH focuses on sustainable profitability rather than nonrecurring investments, indicating the net operating revenues for the year 2016 reached KD 364.7 million, i.e. a growth of 8.2% over the same period last year, after excluding the revenues of nonrecurring investments.

Al-Nahedh said that the volume of KFH provisions to the profit and loss account is KD 157 million including investments and financings.

He explained that KFH’s strategy focuses on divesting non-core businesses, especially the assets that don’t add value to KFH in terms of sustainable profitability.

He illustrated that 61% of KFH Group net profit came from its entities and subsidiaries in Kuwait while 39% came from subsidiaries and entities outside Kuwait.

He added that the asset volume of KFH-Turkey grew by 16%, however the impact of Lira volatility occurs on the Group balance sheet when consolidating KFH-Turkey balance sheet i.e. translating KFH-Turkey’s asset to KD.

Al-Nahedh affirmed the bank’s readiness to participate in bridging the government budget deficit, in addition to the development and housing projects, especially after the “New Kuwait” vision. He stressed the importance of risk management and implementing structural reforms to achieve income diversification, indicting Kuwait is one of the best countries in the GCC in terms of oil price break even.

KFH has realized a net profit of KD 165.2 million for the year 2016 for KFH shareholders as compared to KD 145.8 million for the same period last year i.e. an increase of 13.3%.

Earnings per share as of end 2016 reached 32.01 fils compared to 28.27 fils over the same period last year i.e. an increase of 13.2%.

The Board of Directors has recommended 17% as cash distributions to shareholders and 10% as bonus shares subject to general assembly and concerned authorities approval.