Acting Group Chief Executive Officer (GCEO) at Kuwait Finance House (KFH), AbdulWahab Al-Roshood, highlighted the Bank’s financial performance indicating KFH has, by the grace of Allah, reported net profit attributable to the shareholders of the bank of KD 148.40 million for the year ended 2020; a decrease of 40.9% compared to last year.
Al-Roshood said during KFH Earnings Webcast FY-2020 that was held on February 11 at 14:00 (Kuwait), that the net financing income for the year ended 2020 reached KD 614.22 million; an increase of 15.8% compared to last year.
Total operating expenses for the year ended 2020 reached KD 296.04 million; a decrease of 2.7% compared to last year.
He explained that due to the negative economic consequences resulted from the Corona virus pandemic, investment income for the year decreased by 105% compared to last year. Consequently, net operating income decreased to KD 499.56 million for the year ended 2020; a decrease of 2.1% compared to last year.
Cost to income ratio improved to reach 37.2% for the year ended 2020, compared to 37.4% for last year. Also, earnings per share for the year ended 2020 reached 19.52 fils; a decrease of 41.1% compared to last year.
Al-Roshood pointed out that the Board of Directors has proposed 10% cash dividends to shareholders and 10% bonus shares subject to general assembly and concerned authorities’ approval. Shareholders’ equity reached KD 1.936 billion at the end of year 2020.
Total assets increased to reach KD 21.502 billion, i.e., an increase of KD 2.111 billion or 10.9% compared to the end of last year. Financing portfolio reached KD 10.748 billion, i.e., an increase of KD 1.274 billion or 13.4% compared to end of last year.
Investment in Sukuk reached KD 2.742 billion; an increase of KD 450 million i.e., a growth of 19.6% compared to end of last year. Depositors’ accounts reached KD 15.317 billion i.e., an increase of KD 1.765 billion or 13.0% compared to the end of last year.
In addition, the capital adequacy ratio reached 17.53% which is above the minimum required limit. This percentage confirms the solid financial position of KFH.
Al-Roshood said that despite the negative economic consequences of Coronavirus, the recent financial results confirm the successful strategy of KFH, its solid financial position, high creditworthiness, and efficient capability to handle the exceptional conditions.
He added that profit rates fell in 2020 because of the additional precautionary provisions taken by KFH in the face of Corona virus repercussions and to maintain good levels of asset quality and strong capital base.
Al-Roshood pointed out that KFH led the arrangement and marketing of the KD 400 million Islamic tranche in a mega KD 1 billion syndicated credit facility for KPC, in cooperation with Kuwaiti banks, where KFH contributed KD 304 million in financing.
He said that KFH succeeded in arranging several Sukuk issuances for many local and international banks as well as governments, noting that KFH Group led USD 500 million Sukuk for First Abu Dhabi Bank, KD 150 million Sukuk to Warba Bank, the first Kuwaiti Dinar- denominated Sukuk issuance.
He added that KFH was involved in arranging deals including USD 750 million Sukuk for Boubyan, USD 500 million Sukuk for Bahrain Mumtalakat Holding Company (“Mumtalakat”), USD one billion Sukuk for Dubai Islamic Bank, USD 500 million Sukuk for Sharjah Islamic Bank and USD 50 million Sukuk for (KFH-Turkey).
For more details regarding the Acquisition, Al-Roshood explained that KFH has disclosed to the regulatory authorities and the market the latest developments in this regard, indicating all these disclosures were published via the official website of Boursa Kuwait and any new development will be updated as and when it comes available.
Source Zawya