Al-Mukhaizeem: 43% increase in net profit for shareholders in first quarter

The net profit to shareholders reached KD73.410m, with a 43% increase over the same period last year.

The earnings per share increased in the first quarter to reach 36 fils, compared to 27 fils for the same period of last year, with a 33% increase.

The earnings per share of the prior period after adjustment for the impact of the capital increase from 1 January 2007 and bonus shares issued during 2008 is 25 fils per share. The assets reached KD9.408bn with a KD2.571bn increase over the same period last year, with a 38% growth.

The deposits for first quarter reached KD5.918bn with a KD1.659bn increase, which is 39% more than the same period last year.

The return on assets reached 3.2% annually, and the return on shareholders equity reached 26% annually.

Al-Mukhaizeem stated in a press release that the financial indicators and results for the first quarter show the plans and strategies set by the management and executed by the employees, and the figures show the success of investing in assets that have high value, in addition to conducting careful and objective studies of the risks and the means to minimize them.

Moreover, their exists flexibility in seizing opportunities and taking action in various markets with the vision to achieve the highest profits possible for depositors and shareholders.

He added that the first quarter of this year has witnessed the continuous appreciation regionally and globally for KFH in the form of many awards KFH received, in addition to invitations from many governments for KFH to work in their countries, either by opening independent banks, or by executing projects or establishing corporations.

Al-Mukhaizeem believes this gives a clear image of the status that KFH occupies in the field of Islamic financial services.

Al-Mukhaizeem said that KFH is inclined to enter new markets and is studying investment opportunities in many countries in South East Asia, and that there are talks and visits between the bank and the government of Hong Kong.

KFH also is studying to expand in China, Singapore, and Indonesia, through KFH-Malaysia, which is the closest to these markets and more connected to strategic partners who work there.

In addition to that, KFH will continue to target the GCC markets to benefit from the continuous positive developments in the Gulf economy, and the promising opportunities in this rich and fruitful market.

He stated that KFH is about to expand its existence in North Africa and the Arabian West, and increase its investments in this area that can serve as a platform for expansion in neighboring countries.

Al-Mukhaizeem stressed KFH's keenness to increase its branches and services in the Kuwaiti market, in addition to continue to offer new and innovative services and products, and to target specific segments of the market.

He added that KFH aims to have 50 branches by the end of this year, where 6 new branches will be added to the 44 branches that are working now.

This is to cement KFH's network and to cater to the largest segment possible.

Al-Mukhaizeem stressed that KFH will continue its efforts in launching new services and products, as it offered during the first quarter "Al-Kawthar" investment deposit that provides monthly returns, in addition to "Mobi Baitak" , which is a mobile bank that reaches KFH's clients wherever they are. Moreover, it established a subsidiary company specialized in sukuk with a KD100m as capital, and this company received the approval from the Central Bank of Kuwait (CBK). It is considering some deals by issuing sukuk in the coming period. KFH also established a portfolio to deal with selling and acquisition in the global commodities' market by using "Al-Salam".

He stated that the interest in modern technology and programs is being reinforced in all the businesses of the bank, and that a new automated service that serves the investment sector and absorbs the future external expansion has been activated; in addition to launching "Sawtak" phone service that is based on voice recognition and allows clients to access and manage their accounts without touching any keys.

Al-Mukhaizeem noted the great success that KFH has achieved in the field of developing the skills of its employees through enrolling them in unique, advanced training courses, where a group of employees graduated after passing training courses from Harvard University. The Kuwaiti employees have increased to reach 57% from the total number of employees.

KFH succeeded in hiring 200 new Kuwaiti employees after they passed a 3-month training course.

KFH plays a major role in helping society, where it sponsored the Islamic Finance Diploma in conjunction with Shariah and Administration colleges, in addition to supporting and equipping labs in College of Science.