KUWAIT: Chairman and Managing Director of Kuwait Finance House Badr Al-Mukhaizeem announced during the press conference which was held yesterday at the bank's premises that the profits of the bank reached 80 percent and that they have taken a good amount of provisions to avoid any bad consequences of the settlement of credit.
Al-Mukhaizeem said that the bank had earned revenues from two external real estate projects in KSA about 70 percent where every project is amounting to KD25 million. "We have enough liquidity and we are supporting all our companies in rescheduling their debts", he added. On the other hand he pointed out that the total financing portfolio of the bank is amounting to KD8 billion and 2.8 billion of it was used in local financing. Mohammad Sulaiman Al-Omar, CEO of the bank said that the bank is studying financing projects in France that complies with the laws of the shariaa and had invested in retail projects locally and externally. (full story)
Al-Mukhaizeem said that the bank had earned revenues from two external real estate projects in KSA about 70 percent where every project is amounting to KD25 million. "We have enough liquidity and we are supporting all our companies in rescheduling their debts", he added. On the other hand he pointed out that the total financing portfolio of the bank is amounting to KD8 billion and 2.8 billion of it was used in local financing. Mohammad Sulaiman Al-Omar, CEO of the bank said that the bank is studying financing projects in France that complies with the laws of the shariaa and had invested in retail projects locally and externally. (full story)
We have taken good steps in covering the bad debts and we manage risks before going on in investments", he confirmed as it is was last general assembly. He expressed his will to leave his position as a chairman and managing director of the bank starting from next week.
Al-Mukhaizeem said that KFH still has the biggest distribution to its depositors due to the international drop of interest rates as he explained that some companies of KFH faced some losses but the bank is treating this issue through changing the companies' boards and policies.
The general assembly elected new board, including Eman Al-Humaidan, Saoud Al-Babtain, Samir Al-Nefisi, Adel Barrak Al-Subaih, Issam Al-Rashed, Mohammad Al-Khudairi, Nabil Al-Manaaai and two alternate members: Hamad Al-Omairi, and Walid Al-Houtti.
KFH has achieved distinguished growth during the past 10 years. The KFH asset base increased 5 times from KD2.4 billion in 2001 to KD12.5 billion in 2010 with a yearly growth average of 18.1 percent. ?Deposits increased 4 times from KD1.8 billion to reach KD7.6 billion with a yearly growth average of 15.7 percent.?
Shareholders' equity increased 6 times from KD239 million to reach KD1.290 billion, with a yearly growth average of 18.3 percent. ?In addition, operating revenues increased 5 times from KD143 million to reach KD736 million, with a yearly growth average of 17.8 percent. ?Net profits witnessed a noticeable growth from KD51 million to reach KD106 million, with a yearly growth average of 7.5 percent during the past decade.
Balance sheet
Total assets reached KD12.548 billion at the end of the year with an increase of KD1.258 billion equal to 11 percent growth as compared to the year 2009. As for liabilities, clients' deposits balances have reached KD7.649 billion with an increase of KD387 million equal to 5 percent over the previous year. Shareholders' equity has reached KD1.290 billion with an increase of KD48.5 million equal to 4 percent compared to the year 2009.
Revenues
Total realized revenues for this year have reached KD736 million. After deducting the various expenses and provisions, profit before allocations reached KD273 million. Net profits for shareholders' reached KD105.983 million.
Emerging markets were a key focus, wherever KFH existed, as emerging markets compared to developed markets witnessed remarkable growth. The Saudi Kuwaiti Finance House managed to gain a foothold in the promising Saudi market. Recently, it obtained a license to provide the first real estate investment fund in the Kingdom of Saudi Arabia (KSA) for 500 million SR. "KFH Real Estate" invested in the Saudi real estate market with more than 3 billion SR, which is growing despite the global financial crisis.
Through KFH Turkey, KFH invested in the Turkish market which also experienced exceptional expansion. KFH released distinct products such as the one of a kind Gold investment fund, which is the first of its kind; this fund was provided through the Istanbul Stock Exchange in addition to providing a Sukuk transaction of $100 million, which was oversubscribed by 150 percent from several large regional and global banks, which reflected great confidence in the bank and its performance.
KFH's expansion policy continued in a new direction, after KFH Turkey opened its first branch in Mannheim Germany in addition to opening a branch in Dubai. Currently it is planning to open 15 more branches to its existing 141 branches. KFH Malaysia reached 8 branches as well as KFH Bahrain reached 8 branches. KFH has 52 branches in Kuwait, which all represent a series of consecutive successes so that the number of KFH branches now reach 209 branches around the world.
KFH continued to update its stress test scenarios following the guidelines of the Central Bank of Kuwait (CBK), and the adopted policies of the KFH Board of Directors. Operational risk assessment began, and in 2010, KFH adopted the Internal Capital Adequacy Assessment Process as well as stress test policies, disclosure, portfolio trading and portfolio banking. Such policies were then put into effect. KFH managed successfully to install the SunGard software, which is one of the latest global systems that ac
curately monitor KFH operational risks in Turkey and Bahrain.
KFH also installed and integrated the latest automated systems to compile and link financial statements between Kuwait Finance House and its affiliates, ensuring accurate and rapid compilation of financial and administrative data. KFH also applied a comprehensive system to estimate budget and financial planning in addition to the latest automated systems to calculate the Capital Adequacy Ratio [Basel II].
During the last year, KFH focused on several variables to develop real estate portfolios that customers could invest in with profitable returns. Last year the second KFH real estate portfolio had a capital base of KD50 million. To continue to spread real estate awareness, KFH issued a number of real estate reports, which addressed Kuwaiti real estate issues, growth developments, and trends. The quarterly KFH real estate report became an important reference for investors and decision makers alike. KFH continued to develop effective communication with its customers using the internet and SMS technology.
Source : http://www.kuwaittimes.net/read_news.php?newsid=MTcyMjcxNTYz# - March 15, 2011
