Kuwait Finance House 2011 profit drops 24pc
Kuwait, February 15, 2012
Kuwait Finance House (KFH), the country's largest Islamic bank, said on Wednesday its profit fell by 24 per cent in 2011, as the lender put aside money to meet investment losses.
Profit for the year fell to KD80.3 million ($289 million) from KD106 million in 2010, the bank said in a statement.
KFH made KD9.6 million in the fourth quarter last year, based on Reuters calculations, compared with an estimated profit of 20 million for the period.
The lender said its board is recommending the distribution of a cash dividend of 15 fils per share, and bonus shares representing 15 per cent of paid up capital.
The sharia compliant partnered with Grosvenor Investment Management US (GIM) to invest up to $600 million in healthcare-related real estate, it said in October.
The Saudi unit of Kuwait Finance House, the Gulf state's largest Islamic bank, made a SR360 million ($96 million) profit from the sale of a real estate project in the kingdom, the bank said in a regulatory filing in January.
KFH said it sold the project for SR1.5 billion and that proceeds will be reflected in the bank's first quarter financial results for this year.
KFH's shares were up 1.2 per cent at 0840 GMT on Wednesday. – Reuters