KFH profit jumps 23.5pc

Kuwait Finance House (KFH) yesterday said it net profit to shareholders for 2018 rose 23.5 per cent to KD227.4 million from KD184.2m in the prior year. The board proposed 20pc cash dividends to shareholders and 10pc bonus shares. Earnings per share for 2018 reached 36.36 fils compared to 29.46 fils in 2017 i.e. an increase of 23.4pc. Total financing income reached KD862.1m, i.e. an increase of 16.4pc compared to last year.

Net financing income reached KD527.3m, i.e. an increase of 18.5pc, while net operating income increased to KD453.5m, i.e. a growth of 11.1pc over the last year. KFH continued its strategy of focusing on cost optimization and maximizing revenues, where total operating expenses decreased by KD 12.6 million i.e. a drop of 4.1pc over the same period last year. Cost to income ratio dropped for the fourth year in a row to reach 39.2pc for the current year, compared to 42.8pc for the last year. KFH distributions for the year 2018 were as follows: 3.125pc for “Al-Khumasiya” investment deposit, 2.625pc for “Al-Mustamera” investment deposit, 2.1pc for “Al-Sedra” investment deposit, 2.5pc for the 12-month Dimah investment deposit, 2.3pc for the 6-month Dimah investment deposit and 2.125pc for long term investment plans and 1.25pc for saving investment account.

Financing portfolio increased to reach KD 9.385 billion, i.e. an increase of KD 169m or 1.8pc compared to 2017. Depositors’ accounts increased to reach KD 11.780bn, i.e. an increase of KD 183.6m or 1.6pc compared to 2017. Al-Marzouq said: “In line with the set plans and the overall performance of the Group, growth in 2018 profits have 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.” Looking ahead, he pointed out that KFH is seriously aiming at embracing Artificial Intelligence and robotics in banking transactions and operations with a view to boosting productivity and cutting costs. KFH has signed agreements with world famous agencies the results of which will become tangible this year.