Group Chief Executive Officer at Kuwait Finance House (KFH), Mazin Saad Al-Nahedh said that KFH has achieve positive financial results in H1 2019 thanks to the focus on core banking business, indicating profits were mainly driven by revenue from the core business. Financing income reached KD 460.5 million in H1 2019, an increase of 8.6% compared to the same period last year

AlNahedh added during TV interviews to comment on the financial results for H1 2019 that the total operating expenses decreased by 1.6% to KD151.7 million compared to H1 2018.  Net operating income increased by 2.1 % to KD 240.7 million compared to the same period last year.

AlNahedh pointed out that the contribution of KFH subsidiaries in the net operating income reached to about 43.2%.

“KFH`s total exiting deals reached KD 42.4 million in H1 2019, achieving KD 11.3 million profits, compared to KD 2.8 million in H1 2018. Avoiding the capital consumption and to be in line with the sustainable profits, KFH`s strategy focuses on exiting from non-strategic investments.” AlNahedh revealed.

He added that the Group’s non-performing financings decreased to 1.90%, as per the CBK’s accounting principles, compared to 1.99% in the end of 2018. Total debt coverage ratio stood at 400.11% and 263.63% for KFH solo and the Group respectively in H1 2019.

AlNahedh pointed out that the total the Group total provisions and impairment charge reached KD 100 million, including Financing, investment and other provisions. Total provisions reached KD636.9 million for the Group as of the H1 2019.

Regarding the potential Acquisition of AUB, Al-Nahedh explained that any updated development will be timely disclosed as per regulations and procedures.

AlNahedh added that in view of the market outlook, KFH-Turkey recorded precautionary provision of KD 40 million, stressing that KFH-Turkey enjoys high quality assets.

In addition, he revealed that KFH signed an initial contract to sell its shares in Aref Investment Group. Once completed, KFH will disclose the financial impact as per the applicable procedures.

KFH has posted net profits of KD 107.7 million for the first half of 2019 for KFH shareholders compared to KD 95.2 million for the same period last year, an increase of 13.1%. Earnings per share for H1 of 2019 reached 15.64 fils, compared to 13.84 fils for the same period last year i.e. an increase of 13%.

Total assets increased by 5.5% compared to the end of last year to reach KD 18.747 billion, an increase of KD 976.8 million at the end of H1 this year. Depositors' accounts reached KD 12.837 billion, an increase of KD 1.057 billion or 9% compared to the end of last year.