Kuwait Finance House (KFH), a leading financial institution in the region, has reported a net profit of KD227.4 million ($747.3 million) for the year 2018 compared to KD184.2 million in the previous year, marking an increase of 23.5 per cent.
Total financing income reached KD862.1 million, an increase of 16.4 per cent compared to last year, while net financing income reached KD527.3 million, reflecting a rise of 18.5 per cent over the last year. Net operating income increased to reach KD453.5 million, i.e. a growth of 11.1 per cent over the last year.
KFH continued its strategy of focusing on cost optimization and maximizing revenues, where total operating expenses decreased by KD12.6 million i.e. a drop of 4.1 per cent over the same period last year. Cost to income ratio dropped for the fourth year in a row to reach 39.2 per cent for the current year, compared to 42.8 per cent for the last year.
Earnings per share for 2018 reached 36.36 fils compared to 29.46 fils in 2017 i.e. an increase of 23.4 per cent. The Board of Directors has proposed 20 per cent cash dividends to shareholders and 10 per cent bonus shares subject to general assembly and concerned authorities’ approval.
Hamad Abdulmohsen Al-Marzouq, chairman of KFH said:
“In line with the set plans and the overall performance of the Group, growth in 2018 profits has been achieved despite the challenges posed by the markets and economic developments locally and internationally. KFH is consistently progressing towards achieving sustainable profitability by focusing on operating profits from core banking activities, matching revenues from local and foreign markets. KFH has been able to maintain the diversity of profitability, while breaking new grounds and rolling out, innovative and competitive products. Last year, we achieved great success on all levels, demonstrated by our financial indicators and qualitative achievements, not to mention the professional performance adhering to the banking system regulations and Sharia principles, in accordance with the strategies and plans of KFH,” Al Marzouq explained.
Al-Marzouq added that 2019 will witness a strengthening of KFH’s competitiveness which is already increasing in the local and international markets, a goal which is in line with the ongoing efforts to realize sustainable profits and focus on the customer.
He stressed that excellence of customer service, innovative Islamic financing and improvement in the level of operations and risk management will maintain the bank’s legacy and its reputation as the largest, most trust-worthy Islamic bank and the most capable of offering shareholders and depositors the highest returns and the best services.
He noted that cementing KFH’s position in the Kuwaiti retail market follows the completion of several major projects such as the restructuring of the investment portfolio, defining targeted markets, products and economic sectors, as well as the type of business management and gearing capabilities towards increasing KFH share in large and medium sectors through financing macro projects and developing its role in small projects.
Al-Marzouq added that the positive results of these initiatives impacted the performance of the Group units, their contribution to profits as well as the increased cooperation, coordination and exchange of experience among KFH subsidiaries in Malaysia, Turkey, Bahrain and Germany in order to realize their integration, restructuring of activities, and to consolidate the foundations of regional expansion and improve brand value.
Source Trade Arabia