7.50 fils EPS – Net operating income reaches KD 118.1 million
KUWAIT: Chairman of Kuwait Finance House (KFH) Hamad Abdulmohsen Al-Marzouq said that KFH has, by the grace of Allah, reported net profit of KD 51.6 million for the first quarter of 2019 for KFH shareholders compared to KD 44 million for the same period last year i.e. an increase of 17.4 percent.
Total finance income for the first quarter of the year reached KD 228.4 million i.e. a growth of 9.5 percent compared to the same period last year. Total operating income for the first quarter of the year reached KD 196.8 million, i.e. a growth increase by 4.1 percent and net operating income reached KD 118.1 million, i.e. a growth of 7.1 percent compared to the same period last year.
Earnings per share for the first quarter of 2019 reached 7.50 fils, compared to 6.39 fils for the same period last year i.e. an increase of 17.4 percent.
The Financing Portfolio stabilized at KD 9.36 billion, total assets reached KD 18.383 billion i.e. an increase of KD 612.4 million or 3.4 percent compared to end of last year. Depositors accounts reached KD 12.299 billion i.e. an increase of KD 518.6 million or 4.4 percent compared to the same period last year.
Al- Marzouq added that the Q1 positive results show another year of stable growth based on firm fundamentals capable of achieving KFH’s goals and good profitability for its shareholders and customers, reflecting its enhanced performance, high operating returns and low expenses. This comes as part of spending rationalization policy and prioritization.
“Despite the challenges in the local and global operating environment, KFH has been able to achieve positive performance for the fifth consecutive year. Resulting from the core business, the operating profits reflect the success of KFH’s strategy set by the Board of Directors and skillfully followed up by the executive management. The profits came in line with KFH’s plans and programs, economic developments and market movements. The results confirm KFH’s feasible decisions to focus on its core business, exit nonstrategic investments, and deepen its global professional banking practices along with high commitment to regulations,” Al-Marzouq explained.
“The successful strategy of KFH, which is based on the highest and best international standards, includes competing in a constantly evolving environment, integrating innovative solutions and banking technology into operational processes, launching digital transformation initiatives and rearranging products and services to suit the needs of key operational sectors. The banking services of KFH help retail and institutional customers to develop and manage their business efficiently as well as maximize its leadership and market share, in accordance with the best quality standards”, he confirmed.
Thanks to KFH’s continuous efforts, the banking technology gained momentum in the first quarter of this year and resulted in new services and products. The bank implemented a Robotic Process Automation (RPA) program that streamlined its internal processes for customer financing transactions, thus increasing efficiency and reducing processing time. Also, KFH implemented SKIPLINO which is an electronic queuing/booking system to improve the branch visit experience. Available at KFH.com, and soon via KFHOnline, this service makes the banking experience more accessible for customers at their own convenient time in addition to finding the least busy branches at the time.
Meanwhile, KFH started operating an instant cross-border remittance service using RippleNet technology. It also upgraded its auto platform kfh.com/auto to encompass vehicles, marine equipment and motorcycles.
Al-Marzouq said that to expand the customer base, KFH opened Al- Qairawan Branch, its 62nd branch in Kuwait, while the branches dedicated for ladies increased to 45 branches. Furthermore, the benefits of the products, the banking accounts, have been increased. KFH launched an unprecedented campaign with Al-Rabeh account that offers a total of 54 KG in gold to 23 clients over one year.
KFH continued to provide value-added benefits through the “Hesabi” account and enhanced the services and rewards of bank cards by launching the largest campaigns and awards in the banking sector. These improvements have increased card usage, promoting e-payment methods, facilitating the fund transfer and raising retail sales.
“As part of its strategy to support the development efforts, KFH continuously participates in financing major plans and infrastructure projects. In this regard, the bank funds several development projects in different sectors in Kuwait and outside. Also, KFH pays attention to supporting and developing the youth SMEs, opening new job areas, diversifying investment opportunities and attracting young people to private work as they represent important part of developing the national economy”, Al-Marzouq mentioned.
He noted that KFH has a leading role in Sukuk issuances. KFH Capital, the investment arm of KFH, has recently succeeded in arranging two issuances worth $1.6 billion Sukuk for First Abu Dhabi Bank(FAB) and Dubai Islamic Bank(DIB), with a group of regional and international banks. This step confirms KFH Group’s pioneering role in the Sukuk market and establishes Sukuk as a vital source of finance for governments, companies and major development projects. The vast experience of KFH Group in the Sukuk issuance has positioned it as a trustworthy and highly recognized organization by major corporates and governments globally.
He stressed KFH’s priority of attracting the outstanding potential of national elements and providing them with opportunities for success and the means to develop their capabilities and skills. He added that KFH is presenting the best example in this area, affirming, through its pursuit of supporting and strengthening the national manpower, its major role in supporting the process of development in the country which places the development of human capabilities at the forefront of its priorities for success. He pointed out that employing and developing the Kuwaiti youths is a KFH ongoing strategy boosted by its growth opportunities and substantial market share which require having national cadres in charge and the creation of consecutive generations to shoulder the responsibility.
Al-Marzouq noted that KFH’s continuous holding of the international rating agencies positive ratings, as well as receiving many top-level awards by renowned international entities concerned with monitoring the performance of banks and financial institutions is a positive indicator of sound performance by the Group’s banks. This ensures sustainable enhancement of service quality, risk management and compliance with directives and supervisory controls. He commended the Group’s banks in Turkey, Malaysia, Bahrain and Germany for their continuous outstanding performance in keeping with plans and strategies aiming at utilizing the strengths of their markets.
Al-Marzouq extended his thanks to stakeholders and customers for their support and trust in KFH’s operations and activities and to the supervisory agencies. He commended the executive management and staff for their outstanding efforts which produced positive performance in all indicators.