KFH achieved KD 101.2m net profit until end of Q3 2020: Al-Marzouq
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 101.2 million until end of Q3 of 2020 for KFH shareholders; a decrease of 46.9 percent compared to the same period last year.
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Hamad Abdulmohsen Al-Marzouq
Net financing income until end of Q3 of 2020 reached KD 450.5 million; an increase of 13.9 percent compared to the same period last year. Net operating income until end of Q3 of 2020 reached KD 401.8 million ie, a growth increase of 2.2 percent compared to the same period last year. Cost to income ratio dropped to reach 35.5 percent until end of Q3 of 2020, compared to 36.1 percent for the same period last year.
Investment in Sukuk until end of Q3 of 2020 reached KD 3.2 billion; an increase of KD 928 million i.e., a growth of 40.5 percent compared to end of last year 2019. Depositors’ accounts reached KD 14.9 billion i.e., an increase of KD 1.4 billion or 10.0 percent compared to the end of last year. In addition, the capital adequacy ratio reached 16.25 percent which is above the minimum required limit. This percentage confirms the solid financial position of KFH.
Precautionary provisions and quality of financings
Al-Marzouq added in a press release that in spite of the negative economic consequences of Coronavirus, the recent financial results confirm the successful strategy of KFH, its solid financial position and high professionalism in handling the exceptional conditions. This has been achieved because of the conservative policy and the efficiency of KFH’s prudent approach to risk management. He said that profit rates fell in the first nine months of 2020 because of the additional precautionary provisions taken by KFH to maintain good levels of asset quality and build solid buffers against crises.
He pointed out that “KFH” enjoys high creditworthiness and a robust capital base, stressing the continuous focus on core banking activity, improving asset quality and developing the human element to achieve sustainable growth of all the bank’s financial indicators and offering banking services of high quality and excellence. Al-Marzouq praised the success of offering quality banking services without interruption during the full shut down in the country because of the pandemic.
Financing mega-projects and supporting the development plan
Al-Marzouq emphasized the leading role of “KFH” in supporting the national economy, financing mega-projects and contributing to the development plans and projects in Kuwait and the region. He praised the efforts of financing vital companies and sectors including energy, water, power, infrastructure and construction, as well as supporting SMEs.
Al-Marzouq lauded KFH recent success in leading the arrangement and marketing of the KD 400 million Islamic tranche, as well as an agent of the Islamic banks in a mega KD 1 billion syndicated credit facility for KPC to fund its capital expenditure in cooperation with Kuwaiti banks where KFH contributed KD 304 million in financing.
Prominent role in Sukuk market
Al-Marzouq stressed the active role of “KFH” in Sukuk issuance for many local and international banks as well as governments, noting that KFH Group led KD 150 million Sukuk to Warba bank, the first Kuwaiti Dinar- denominated Sukuk issuance. In addition, KFH was involved in arranging deals including $750 million Sukuk for Boubyan, $500 million Sukuk for Bahrain Mumtalakat Holding Company (“Mumtalakat”), $500 million Sukuk for First Abu Dhabi Bank, $1 billion Sukuk for Dubai Islamic Bank, $500 million Sukuk for Sharjah Islamic Bank and $50 million Sukuk for (KFH-Turkey). He added that KFH occupied first place in the IILM Sukuk program which supplied liquidity of an excess of $9 billion, across 29 Sukuk issuances.
Noticeable progress in digital transformation
Al-Marzouq added that “KFH” has made a marked progress in the digital transformation strategy, adopting the state-of-the-art technological financial services “FinTech” and applying AI and robotic technology in banking transactions.
Harmonious group performance
Al-Marzouq stressed that the most important elements in KFH strength lie in the success of the strategy of harmonious performance between the Group banks in Turkey, Germany, Bahrain, Malaysia and Saudi Arabia. He pointed out their distinction in offering digital solutions, banking and financing products to meet customers’ expectations.
Gratitude and appreciation
Al-Marzouq thanked shareholders and customers on their trust and support and also thanked the regulatory authorities, praising the efforts of the executive management and employees for their outstanding performance despite the circumstances. He confirmed that KFH would continue its strategy to lead the international development of Islamic financial services, and become the most trusted and sustainably most profitable sharia-compliant bank in the world, and to deliver superior innovation and customer service excellence while protecting and enhancing the interests of all its stakeholders.
Congratulations to His Highness the Amir and to his faithful Crown Prince
In his name and on behalf of board members and all employees of KFH Group, Al-Marzouq extended heartfelt congratulations to HH the Amir Sheikh Nawaf Al-Ahmad Al-Jaber Al-Sabah, may Allah protect him, and to HH the Crown Prince Sheikh Mishal Al-Ahmad Al-Jaber Al-Sabah, may Allah protect him, beseeching Almighty Allah to grant them success and guide their steps towards what is good for Kuwait and its honorable people and for the Arab and Islamic nations.