Kuwait Finance House (KFH) has held its Ordinary General Assembly meeting for the election of independent and non-independent board members for the 16th Session (2023 - 2025). The General Assembly meeting resulted in the election of the undermentioned nominees.

The meeting was held at KFH Headquarters with an attendance percentage of 81%.

KFH Chairman, Hamad Abdulmohsen Al Marzouq, who has chaired the General Assembly meeting, commenced his speech by extending his thanks and gratitude to the shareholders for the trust they have bestowed upon the Board of Directors throughout the years since 2014. The Board members won 31.1% of KFH`s shares and achieved the unanimous recommendation of all private sector shareholders.

Al Marzouq emphasized that the positive environment which prevailed, at both the Board and Executive Management levels during the past years, had a positive impact on supporting the bank journey during the three preceding Board sessions. KFH has showed a distinguished performance in the banking sector on both local and regional levels where the bank achieved very positive results in all aspects.

Reviewing the bank`s achievements during the past years, Al Marzouq said that KFH increased profits from KD 126.5 million in 2014 to KD 357.7 million by the end of 2022, marking an increase by 183%.

He pointed out that the solid financial statements of KFH confirm sound performance, solvency, efficiency, successful and sustainable profit strategy, revenues maximization, optimization, asset quality improvement through the best responsible banking practices and risk management. These solidify the outstanding position of KFH Group. In this respect, KFH reported net profit of KD 357.7 million attributable to the shareholders of the bank for the year ended 2022; an increase of 47.0% compared to 2021. The fourth quarter of 2022 witnessed a record growth of 101.7% in profits attributable to the shareholders of KFH compared to the same period of 2021. This came as a result of the acquisition of AUB-Bahrain. Also, the earnings per share for Q4 of 2022 increased from 7.74 fils to 10.70 fils, an increase of 38.2%. The earnings per share for the year ended 2022 reached 33.58 fils compared to 25.99 fils for last year: an increase of 29.2%.

Net Financing income for the year ended 2022 reached KD 800.5 million; an increase of 36.7% compared to last year. Total operating income for the year ended 2022 reached KD 1,072 million, an increase of 32.2% compared to 2021. Net operating income for the year ended 2022 reached KD 723.3 million, an increase of 43.8% compared to 2021.Total assets increased to reach KD 37.0 billion, an increase of KD 15.2 billion or 69.7% compared to last year. Financing receivables increased to reach KD 18.8 billion, an increase of KD 7.5 billion or 65.9% compared to 2021. The Board of Directors has proposed 15% cash dividends to shareholders and 10% bonus shares.

Al Marzouq pointed out that in the midst of economic challenges, KFH is continuing its initiative and leadership efforts which have characterized KFH business performance in light of a clear integrated strategy. The strategy focused on boosting the core banking activities to achieve sustainable profitability and growth. The strategy covered all other related requirements in the fields of digitalization, human resources, finance and investment products, social activities and humanitarian contributions.

He added “While our products have demonstrated real economic value, KFH has succeeded in achieving a balance between promoting innovation and digitization while taking into account social, environmental and corporate governance (ESG) standards. Accordingly, KFH reflects a true picture of the best future for Islamic banks.”

Al Marzouq extended his sincere thanks to His Highness the Amir of Kuwait Sheikh Nawaf Al-Ahmed Al-Jaber Al-Sabah, may Allah safeguard him, His Highness the Crown Prince Sheikh Mishal Al-Ahmed Al-Jaber Al-Sabah, may Allah safeguard him, and His Highness, the Prime Minister. He also extended his thanks to the Minister of Finance and the Governor of the Central Bank of Kuwait for their efforts in promoting the stability of banking sector.

The General Assembly meeting was followed by a meeting held by the new Board of Directors where Mr. Hamad Al Marzouq was elected as the Chairman of the board by recommendation, and Mr. Abdulaziz Alnafisi as the Vice Chairman by recommendation. All bank business committees were formed as per the bank articles of association and CBK governance rules and regulations.

It is worth noting that the government (through Kuwait Investment Authority, Public Institution for Social Security, Public Authority for Minors Affairs and Kuwait Awqaf Public Foundation) owns around 38.4% of shares in KFH.

Board Composition

Name, title, BoD type, and representation