Kuwait Finance House KSC : Al-Marzouk: KD 29.9 Million Net Profit for KFH in First Quarter up 14.6 %

Kuwait, 15 April 2015: Chairman of Kuwait Finance House Mr. Hamad Abdulmohsin Al-Marzouq said that "KFH has, by the grace of Allah, realized a KD 29.9 million net profit for the first quarter 2015 compared to KD 26.1 million for the same period last year, an increase of 14.6%.
Net finance income increased to reach KD 92 million for the first quarter 2015 compared to KD 83.2 million for the same period last year, thus marking an increase by 10.6%

Earnings per share for the first quarter 2015 reached 6.38 fils, compared to 5.56 fils for the same period last year an increase of 14.7% .

Total revenues reached KD 232.6 million compared to KD 224.5 million for the same period last year, an increase of 3.6%.

The finance portfolio reached KD 8.2 billion an increase of KD 609 million or 8% compared to the same period last year. Based on this increase, assets size has reached KD 17.17 billion, an increase of KD 739 million or 4.5% compared to the same period last year. Total deposits reached KD 14.32 billion, an increase of KD 593 million or 4.3% compared to the same period last year.

Shareholders' equity reached KD 1.70 billion, increasing by KD 64 million or 4.3% compared to the same period last year.

Furthermore, capital adequacy ratio reached 16.24% thus exceeding the minimum limit 12%. This achieved ratio confirms KFH strong financial position.

Al-Marzouq said that realized profits are in line with set plans and market developments. They reflect the balanced performance of sectors and departments and confirm KFH's continued prudent policy. The policy aims to enhance the bank's financial position by managing developments in market conditions, work environment, local and global variables and maintain a stable growth rate. He reiterated that KFH is working on a comprehensive vision to ensure it maintains the leading position in Islamic banking worldwide.

Al-Marzouq affirmed that KFH -Turkey has obtained a license to establish a fully integrated Islamic bank in Germany. This step is considered as a significant milestone for expansion in the European market after working for five years through a limited branch in the German city of Manheim. The bank has benefited from the increasing demand for Islamic finance products in Europe and worldwide. The bank, which will be headquartered in Frankfurt, is expected to begin its operations in mid-2015 with a starting capital of €45 million. The bank intends on providing a full series of integrated services and products with a strategy targeting the commercial and economic cooperation among Europe, Middle East and the GCC Countries.

Al-Marzouq has embraced KFH's participation in the 10th Arab Turkish conference held recently under the patronage and sponsorship of the Turkish government. Several meetings were held with Turkish officials and businessmen during the event. The meetings discussed Kuwait-Turk's activities and expansion efforts in the Turkish market, and neighboring countries in addition to Germany. Discussions covered the innovative products and services offered by the bank to its retail and corporate customers and the significant role which the bank plays in developing economic relations among Turkey, Kuwait and GCC countries. KFH participation was effective and positive reinforcing the bank's roots in the Turkish market over the past 26 years.

He highlighted the success achieved at various levels including the announcement that the KFH brand was rated as the top brand among all Islamic banks in Kuwait as per the rating conducted by Brand Finance, published in The Banker magazine by Financial Times. It was also ranked as one of the highest and most valuable 500 brands worldwide for the year 2015. The KFH brand value reached US$953 million compared with US$805 million last year, thus marking an increase of US$148 million or 18.5% over the past year. KFH achieved significant progress in its brand rating by 10 points from 173 to 163 marking a worldwide recognition of its outstanding performance and financial position.

Al-Marzouq added that KFH continued to strengthen its relations with its regional partners. The bank has succeeded in syndicating a US$500 million lease finance transaction for Sharjah Electricity & Water Authority (SEWA) where KFH's share allocation amounted US$120 million. KFH has also succeeded in syndicating a US$500 million financing for Sharjah Islamic Bank by leading and arranging a Sukuk issuance with the participation of regional and global banks.

In addition, KFH has been able to offer one of the best investment deposit packages in terms of the investment ratio, competitive returns, flexible investment tenors, and product diversification in order to fulfill customers' investment needs. KFH has designed a fully integrated and diversified system of innovative deposits providing the best advantages and ease of use by using electronic systems, ATMs and "Alo Baitak" service to attract new customers and increase deposits.

Al-Marzouq indicated that KFH has recently won seven awards, granted by highly recognized global organizations, including Best Islamic Bank in the World, the Middle East and Kuwait, in addition to Bank of the Year and other awards. KFH has maintained its positive ratings by global rating agencies reinforcing trust, confidence and reputation, which KFH enjoys locally and worldwide.

He also reiterated that KFH shall continue its endeavor to strengthen its position in local and regional markets, develop its market share and continue to offer competitive products and services. The bank is also focusing on reinforcing the role of technology, human resources and improving efficiencies in addition to providing the best customer service in accordance with shari'a principles.