Al-Rushood: KFH’s historic profits boost competitiveness of national economy
KUWAIT: In an interview with CNBC Arabia TV, Acting Group Chief Executive Officer at Kuwait Finance House (KFH), Abdulwahab Iesa Al-Rushood stressed KFH’s continuous improvement in the Group’s performance significantly during the first half of 2023, in which the net profit increased by over 141 percent reaching KD 333.4 million compared to the same period last year, the highest-ever quarterly profits recorded in its history and the biggest in Kuwait banking sector.
Abdulwahab Iesa Al-Rushood.
Al-Rushood added that the record profits enhance its local and global standing, supports its financial strength and creditworthiness while enabling the Bank to assist companies and lead mega financing deals, as well as positively contribute to raising the performance of Kuwait banking sector in general and promote competitiveness of national economy. He indicated that Earnings per share for the first half of 2023 reached over 22 fils; an increase of 73 percent compared to the same period last year, while Net financing income for H1 23 reached KD 458.5 million; an increase of 43.2 percent compared to the same period last year.
Net operating income for H1 23 reached KD 489.1 million; an increase of 58.6 percent compared to the same period last year. He explained that the capital adequacy ratio reached about 16.45 percent which is above the minimum limit required by the regulatory authorities, noting that this ratio confirms the solid financial position of KFH. He pointed out that KFH is continuing with the exits policy as part of the Bank’s strategy of focusing on core banking business and achieving sustainability in profits. Al-Rushood revealed that Group non-performing financing (NPF) ratio reached 1.52 percent (as per CBK calculation) and Provisions Coverage ratio for KFH-Kuwait is approximately 505 percent and about 312.6 percent for the Group.
He mentioned that the provisions carried on consolidated financial statements decreased during the first half of 2023 by nearly 42.8 percent compared to the same period last year, amounting to about KD 25.9 million, including financing and investment provisions in addition to additional precautionary provisions. On the acquisition front, Al-Rushood said “By the grace of Allah, the acquisition led to various positive benefits in general such as boosting profits, enhancing the financial position and key financial indicators in addition to achieving regional and international expansion. Following the AUB-Bahrain acquisition, KFH has become the largest bank in Kuwait in terms of assets and market capitalization which exceeded KD 11 billion.
This means KFH is the largest company listed on Boursa Kuwait, not to mention is reporting the highest quarterly profits in Kuwait banking sector.” Speaking about the digital transformation strategy, Al-Rushood confirmed KFH’s sustained efforts in offering innovative financial and investment solutions to customers by relying on financial technology and AI to support operations and enhance customers’ banking experience. “KFH has made great strides in its digital transformation strategy where customers carried out more than 135 million e-banking transactions through KFH online on mobile and website in H123, with a growth rate of about 40 percent compared to the same period last year.
This noticeable growth confirms KFH’s leadership in digital transformation and facilitating financial solutions for customers on the mobile and the website,” Al-Rushood said. On another front, he pointed out that KFH is at the forefront of many sustainability initiatives, indicating that KFH is the first bank in Kuwait to issue the “Carbon Footprint” report, and the first to issue banking cards made with 85 percent recycled materials. KFH is also the first bank to receive Global Sustainability Assessment System GSAS certificate – Gold level for its environment-friendly auto showroom (KFH Auto).
He went on to say that KFH has different sustainability initiatives with the UNDP and continues its environmental projects in sustainability under (Keep it Green) initiative. Al Rushood indicated that KFH’s distinguished efforts in sustainability has been commended and recognized worldwide, leading KFH to win various awards such as “Best Bank in Sustainability in Kuwait and the Middle East”, as well as the Best Islamic Bank in sustainability” worldwide from prestigious international magazines.
