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Al-Nahedh: 2014 financial results match KFH vision

Focusing on banking business to guarantee sustainable profitability

“Financial results achieved by KFH for the year 2014 have, by the grace of Allah, matched KFH vision and set up plans as KFH achieved growth in all indexes” said Mazin Saad Al-Nahedh – CEO Kuwait Finance House.

Al-Nahedh added, in an interview with CNBC channel at KFH head office that KFH has succeeded in realizing KD 126.5 million profits, thus marking an increase by 9.1% compared to KD 116 million for the same period last year. Shareholders equity reached 1.74 bln i.e. an increase by KD 82.4 mln. Gross deposits reached KD 14.3 bln, thus marking an increase by KD 1.8 bln or 14.4 % compared to last year. Finance portfolio reached KD 8.1 bln compared to KD 7.6 bln for the year 2013 i.e. an increase by 6.6 %

Mr. Al-Nahedh added that these results reflect KFH significant and outstanding performance, strong financial position in the market and KFH customers and shareholders trust. Sound policies and strategies have played a significant role in achieving the said results. Said policies were based on investment codification, supporting banking activities, minimizing non-banking functions and focusing on basic banking activity to guarantee continuation of profitability. Policies and strategies aim to minimize the impact of fluctuating investments on profitability, support precautionary provisions, control administrative expenses, control costs, focus on customer service, support operating systems and credit functions while maintaining a leading and pioneering position in the field of Islamic banking locally and globally.

Al-Nahedh reiterated that KFH is in full compliance with all regulatory disciplines and Bazel III requirements. KFH has also considered the latest developments which the banking sector witnessed recently as well as the major changes in the computation of Capital Adequacy Ratio. He said that KFH Capital Adequacy Ratio has reached 16.25 % which exceeds the minimum limit required 12%.

Al-Nahedh indicated that KFH shall continue its significant performance and stable growth rate, support capital base, support market share, leading Islamic Finance Industry through balanced and outstanding performance and distinction in providing healthy and high quality banking services and products. Finally, he highlighted the significance of flexibility in performance in light of market statistics, difficult operational conditions, and competitive environment and market fluctuations.