Kuwait Finance House (KFH), a leading financial institution in the region, has reported a net profit of KD51.6 million ($169.6 million) for the first quarter of 2019, an increase of 17.4 per cent, compared to KD44 million ($144.6 million) for the same period last year.

Hamad Abdulmohsen Al Marzouq, chairman of KFH, also revealed that the total finance income for the first quarter of the year reached KD228.4 million ($750.9 million), representing a growth of 9.5 per cent compared to the same period last year.

Total operating income for the first quarter reached KD196.8 million ($647.05 million), a growth of 4.1 per cent, and net operating income reached KD118.1 million ($388.30 million), a growth of 7.1 per cent compared to the same period last year.

Earnings per share for the first quarter of 2019 reached 7.50 fils, compared to 6.39 fils for the same period last year displaying an increase of 17.4 per cent.

The financing portfolio stabilised at KD9.36 billion ($30.7 billion), total assets reached KD18.383 billion ($60.4 billion), an increase of KD612.4 million ($2.01 billion) or 3.4 per cent compared to end of last year.

Depositors accounts reached KD12.299 billion ($40.44 million), an increase of KD518.6 million ($1.70 billion) or 4.4 per cent compared to the same period last year.

Al Marzouq added that the Q1 positive results show another year of stable growth based on firm fundamentals capable of achieving KFH's goals and good profitability for its shareholders and customers, reflecting its enhanced performance, high operating returns and low expenses. This comes as part of spending rationalization policy and prioritisation, said a statement.

Al Marzouq continued: “Despite the challenges in the local and global operating environment, we have been able to achieve positive performance for the fifth consecutive year. Resulting from the core business, the operating profits reflect the success of our strategy set by the board of directors and skillfully followed up by the executive management.”

“The profits came in line with our plans and programmes, economic developments and market movements. The results confirm our feasible decisions to focus on its core business, exit nonstrategic investments, and deepen its global professional banking practices along with high commitment to regulations,” he added.

Al Marzouq said: “The successful strategy of KFH, which is based on the highest and best international standards, includes competing in a constantly evolving environment, integrating innovative solutions and banking technology into operational processes, launching digital transformation initiatives and rearranging products and services to suit the needs of key operational sectors.”

“The banking services of KFH help retail and institutional customers to develop and manage their business efficiently as well as maximise its leadership and market share, in accordance with the best quality standards,” he added.

KFH`s continuous efforts led the banking technology gain momentum in the first quarter of this year and resulted in new services and products. The bank implemented a Robotic Process Automation (RPA) program that streamlined its internal processes for customer financing transactions, thus increasing efficiency and reducing processing time. Also, KFH implemented SKIPLINO which is an electronic queuing/booking system to improve the branch visit experience.

Available at KFH.com, and soon via KFHOnline, this service makes the banking experience more accessible for customers at their own convenient time in addition to finding the least busy branches at the time.  Meanwhile, KFH started operating an instant cross-border remittance service using RippleNet technology. It also upgraded its auto platform kfh.com/auto to encompass vehicles, marine equipment and motorcycles.

Al Marzouq said that to expand the customer base, KFH opened Al- Qairawan Branch, its 62nd branch in Kuwait, while the branches dedicated for ladies increased to 45 branches. Furthermore, the benefits of the products, the banking accounts, have been increased.

KFH launched an unprecedented campaign with Al Rabeh account that offers a total of 54 kg in gold to 23 clients over one year. KFH continued to provide value-added benefits through the “Hesabi” account and enhanced the services and rewards of bank cards by launching the largest campaigns and awards in the banking sector. These improvements have increased card usage, promoting e-payment methods, facilitating the fund transfer and raising retail sales.

Al Marzouq noted that KFH's continuous holding of the international rating agencies positive ratings, as well as receiving many top-level awards by renowned international entities concerned with monitoring the performance of banks and financial institutions is a positive indicator of sound performance by the group's banks. This ensures sustainable enhancement of service quality, risk management and compliance with directives and supervisory controls. He commended the Group's banks in Turkey, Malaysia, Bahrain and Germany for their continuous outstanding performance in keeping with plans and strategies aiming at utilizing the strengths of their markets.

Al Marzouq extended his thanks to stakeholders and customers for their support and trust in KFH's operations and activities and to the supervisory agencies. He commended the executive management and staff for their outstanding efforts which produced positive performance in all indicators. – TradeArabia News Service