KFH net profit surges 33pc in Q3
Kuwait, October 25, 2012
Kuwait Finance House (KFH) , the country's biggest Islamic lender, reported a 33 per cent increase in third-quarter net profit on Wednesday, beating analyst estimates.
Net profit rose to KD33.7 million ($119.9 million) from KD25.3 million in the same period a year ago, according to a statement carried by state news agency Kuna.
Four analysts in a Reuters survey had predicted a KD19.7 million profit on average for the quarter. For the first nine months of this year, net profit rose 7.2 per cent to KD75.9 million.
Bad loan provisions totalled KD149.3 million in the nine months, a decrease of 3.8 per cent compared to the same period last year.
Total assets increased to KD14.2 billion, up 6.3 per cent from a year earlier, while deposits hit KD8.9 billion, a 2 per cent rise.
KFH said on Tuesday it had appointed veteran board member Mohammed Al-Khudairi as its new chairman, replacing Sameer al-Nafisi, who resigned.
Khudairi said in Wednesday's statement that the rise in profits reflected the success of the bank's conservative approach. He also said the bank was expanding efforts to link Gulf markets with those in Malaysia and Turkey, for example by offers Kuwaitis funding services to buy real estate in Turkey.
Like other Kuwaiti bankers, Khudairi called on the government to conduct spending "that is based on a clear plan with defined objectives".
Political tensions between the cabinet and parliament have for years complicated economic policy-making and held up industrial development plans.
The tensions have worsened in the past few weeks, with opposition figures accusing the government of trying to mount a constitutional coup by changing the electoral law ahead of polls on December 1.-Reuters