Kuwait Finance House net profit surges 64pc to $803m
COMMERCIAL NEWS
Kuwait Finance House (KFH), one of the world's leading Islamic financial institutions, has reported a net profit of KD243.4 million ($803.5 million) for the FY 2021, up 64 per cent compared to the previous year. The group's financing portfolio surged by 5.7% to hit KD11.4 billion ($37.6 billion).
Announcing the annual resuilts for 2021, KFH said its total operating income for the year ended 2021 reached KD811 million; an increase of 1.9% compared to last year.
Net operating income for the year ended 2021 reached KD 503.1 million; an increase of 0.7% compared to last year, it stated.
According to KFH, the earnings per share for the year ended 2021 reached 28.59 fils compared to 17.74 fils for last year; an increase of 61.2% .
Financing portfolio increased to reach KD 11.4 billion, i.e., an increase of KD 608 million or 5.7% compared to 2020, it stated.
The investment in sukuk reached KD2.7 billion, i.e., a decline of 0.3% compared to last year. Total assets increased to reach KD 21.8 billion, i.e., an increase of KD 286 million or 1.3% compared to last year.
Depositors’ accounts reached KD 15.9 billion, i.e., an increase of KD 550 million or 3.6% compared to 2020. Meanwhile the shareholders’ equity reached KD1.9 billion, at the same level of last year.
On the solid performance, Chairman Hamad Abdulmohsen Al Marzouq said: "KFH achieved positive results in all key financial indicators, including ROAA and ROAE, and maintained good ratios in terms of the cost to income, NPFs, debt coverage ratio as well as other financial indicators."
"Also, KFH successfully maintained the Group's capital support and improvement of assets quality, which confirms the flexible business model of KFH and the disciplined implementation of plans and strategy," he noted.
"KFH maintained strong liquidity and operational performance and achieved a growth in the financing portfolio for the retail and corporate sectors. In addition to the increase in customers deposits," he stated.
Al Marzouq said that by providing a wide range of banking and financing solutions for retail and corporates as well as SMEs sector, KFH is moving forward in its developmental role and in supporting government plans.
Impressed with the results, the KFH Board of Directors has proposed 12% cash dividends to shareholders and 10% bonus shares subject to general assembly and concerned authorities’ approval.
Acting Group CEO Abdulwahab Essa Al Rushood said the positive financial results for 2021 has confirmed KFH`s success in achieving its strategic goals relating to the sustainability of profits and its ability to deal with various circumstances and challenges with high professionalism.
He pointed out that KFH had taken proactive and professional steps to deal with the conditions imposed by the pandemic, whether in terms of services and products or human resources.
"We maintain our efforts to maximize profitability and ROE, improve asset quality, manage costs, and develop policies for granting credit across all KFH`s subsidiaries in Turkey, Bahrain, Malaysia, Germany and Saudi Arabia," he added.
He also highlighted the increasing investment in green sukuk, diversifying the financing portfolio and continuing the strategy of focusing on the core banking business.-TradeArabia News Service
