KFH profit rises 13.3pc to KD165.2m

Kuwait : Kuwait Finance House (KFH)has realised a net profit for KFH shareholders of KD165.2 million for 2016 as compared to KD145.8m for the same period last year i.e. an increase of 13.3 per cent. 

Finance revenues reached KD717.9m, i.e. a growth of 13.5pc over the same period last year after the de-consolidation of ALAFCO due to de-consolidation as of end 2015. 

Net operating revenues reached KD364.7m, i.e. a growth of 8.2pc over the same period last year, after excluding the revenues of nonrecurring investments.

Earnings per share as of end 2016 reached 32.01 fils compared to 28.27 fils over the same period last year i.e. an increase of 13.2pc.

In line with the cost optimization plan, KFH’s total operating expenses have dropped for the second year in a row by 11pc i.e. KD35.5 million over the same period last year. The drop was KD 31.5 million, i.e. 8pc in 2015 over 2014.

KFH distributions for the year 2016 are as follows:  2.40pc for “Al-Khumasiya” investment deposit, 2.20pc for “Al-Mustamera” investment deposit, 1.50pc for “Al-Sedra” investment deposit, 1.425pc for the 6-month Dimah investment deposit and 0.650pc for savings investment accounts. 

The Board of Directors has recommended 17pc as cash distributions to shareholders and 10pc as bonus shares subject to general assembly and concerned authorities approval.

KFH’s capital adequacy ratio (CAR) reached 17.88pc, (after the recommended distributions) higher than the required limit of 15pc, thus reiterating the strength of KFH financial position.

Commenting on the results, Chairman of Kuwait Finance House (KFH) Hamad Abdulmohsen Al-Marzouq said, “KFH managed to close most of the outstanding issues, mainly the nonperforming financing where the end of the year 2016 witnessed a drop in the non performing financing over the total credit portfolio, by using all the available means to achieve this.” 

KFH also said it is currently studying financing the country’s large-scale development projects, of which is the Clean Fuel project where KFH’s portion of the financing was the largest representing the Islamic banks.