PHOTO
Ongoing efforts to enhance cost to income ratio
KFH`s subsidiaries contribution forms 43.6% of 2020 net profits
KFH proves efficiency during the pandemic
Experience in risk management and thoughtful plans for business continuity
KFH developed IT infrastructure paving the way to launch outstanding digital services
A successful digital plan under the theme” easy banking experience”
KFH customers conducted 140 mn online banking transactions in 2020
KFH keeps focusing on developing national talents
Kuwait: Abdulwahab Al-Roshood, Acting Group Chief Executive Officer at Kuwait Finance House (KFH) said that the financial results for the year ended 2020 were positive despite the unfavorable economic conditions, adding that net finance income grew 15.8% to KD 614.2 million compared to the same period of 2019, while cost to income ratio improved to reach 37.2% for the year ended 2020, compared to 51.3% for 2014.
He indicated during TV interviews that total assets increased 10.9% to KD 21.5 billion, while depositors’ accounts reached KD 15.3 billion, an increase of 13.0% compared to the end of last year. In addition, financing portfolio reached KD 10. 8 billion, i.e., an increase of 13.4%, of which 19.7% and 6.6% growth from corporate and retail segments, respectively. Al-Roshood confirmed that the positive financial results reflect the solid financial position of KFH, high creditworthiness, and its efficient capability to handle the exceptional conditions.
He explained that the contribution of KFH subsidiaries in the 2020 net profit for KFH shareholder represented 43.6%, of which 40.6% contribution from KFH- Turkey.
Al-Roshood added that due to coronavirus pandemic and its negative economic impacts locally and globally, the exit of investments in 2020 declined to approximately KD 28.2 mn, achieving a net profit of KD 4.7 million compared to KD 40.7 mn last year.
He stressed that exiting non-core assets is part of the bank’s strategy in focusing on core banking business for achieving sustainable profits.
Al- Roshood said that due to the negative impacts of pandemic, KFH increased the provisions while the value charged on the group's income statement declined to 284.1 million, representing an increase of %44.3. This includes provisions of financing, investment and other precautionary provisions against finance and real estate portfolios.
He added that the non-performing financings ratio NPFs at KFH Group reached 2.20% as of end 2020 as per the CBK’s accounting principles. The coverage ratio of provisions for non-performing debts stood at 288.5% and 223% for KFH solo and the Group respectively.
High efficiency
Al-Roshood explained that the pandemic demonstrated KFH's highly efficient ability to deal with exceptional circumstances, noting that the bank has great expertise in risk management and thoughtful plans to ensure business continuity in various circumstances.
He added that during the pandemic KFH keeps successfully providing services despite full lockdown in Kuwait, indicating the developed IT infrastructure that paved the way to providing outstanding digital services that meet all banking needs of customers.
He added that KFH was a pioneer in adopting remote work solutions for employees in a safe and effective manner to ensure their health and safety, and thus to achieve the best customer service.
Al-Roshood said that KFH`s customers conducted nearly 140 million transactions through KFHOnline for the year 2020, This emphasizes the successful digital transformation strategy of KFH and the secure and easy digital services it offers to customers.
He indicated that KFH keeps implementing its ambitious digital plan launched by the bank under the theme “easy banking experience”, including digital services through mobiles and alternative channels such as digital self-banking station KFH Go. This e-branch is equipped with the latest financial technologies and digital platforms and XTM machines which enable communicating directly with the telephone service personnel in audio and video calls, with other comprehensive packages of banking services.
He added that KFH Go provides several services including conducting "Murabaha" financing transactions, updating data and phone numbers, activating bank cards, opening deposits and accounts, receiving gold bullion (10 grams), buy and sell gold, cash withdrawals without a card and a host of banking and financing services.
Meanwhile, Al-Roshood said that KFH leads the Kuwaiti banks and the private sector as a top recruiter of Kuwaitis where citizens made up 99% of new hires in 2020, reflecting KFH`s ongoing focus on building and developing local talent.
He confirmed that the bank implemented a comprehensive training and development strategy for talents, providing all the success elements and opportunities that enable them to build a successful career and assume leadership positions in the future given that they are among the most important elements in achieving sustainable development.
Looking forward, Al-Roshood expressed his optimism, wishing for the pandemic to recede and the world economies to recover as soon as possible given the acceleration of vaccination rollouts in Kuwait and around the world.
About KFH:
Kuwait Finance House (KFH) was established in Kuwait in 1977 and is enlisted in Boursa Kuwait (formerly Kuwait Stock Exchange). KFH Group is a global pioneer in the field of Islamic banking services, where it offers a wide array of Islamic products and services, not to mention a high standard of innovation and customer service.
KFH manages its operations in the GCC, Asia, and Europe through over 520 branches, including KFH-Turkey, to offer services for the bank's customers in Turkey, Malaysia, Saudi Arabia, Bahrain, Germany, and the UAE.
KFH's mission is to achieve highest levels of excellence and innovation in the field of customer service, while developing common interest for all those concerned with the financial institution. KFH's vision is to spearhead the global development in Islamic financial services, and to upgrade the bank into the level of becoming the most sustainable profitable Islamic bank in the world.
KFH's values include cementing leadership through all its businesses, including leadership in the Islamic banking services worldwide, through innovation, superior customer service and the development of its employees. In addition, KFH is committed to all its procedures, and to setting up long-life partnerships with the concerned authorities.
For more information, please visit: www.kfh.com
© Press Release 2021
Disclaimer: The contents of this press release was provided from an external third party provider. This website is not responsible for, and does not control, such external content. This content is provided on an “as is” and “as available” basis and has not been edited in any way. Neither this website nor our affiliates guarantee the accuracy of or endorse the views or opinions expressed in this press release.
The press release is provided for informational purposes only. The content does not provide tax, legal or investment advice or opinion regarding the suitability, value or profitability of any particular security, portfolio or investment strategy. Neither this website nor our affiliates shall be liable for any errors or inaccuracies in the content, or for any actions taken by you in reliance thereon. You expressly agree that your use of the information within this article is at your sole risk.
To the fullest extent permitted by applicable law, this website, its parent company, its subsidiaries, its affiliates and the respective shareholders, directors, officers, employees, agents, advertisers, content providers and licensors will not be liable (jointly or severally) to you for any direct, indirect, consequential, special, incidental, punitive or exemplary damages, including without limitation, lost profits, lost savings and lost revenues, whether in negligence, tort, contract or any other theory of liability, even if the parties have been advised of the possibility or could have foreseen any such damages.
