Latest news with #KFHGroup
Arab Times
18-02-2025
- Business
- Arab Times
KFH Group Wins 7 Prestigious Awards from IFN
KUWAIT CITY, Feb 18: Kuwait Finance House (KFH) Group has received 7 awards from the globally renowned Islamic Finance News (IFN) magazine. KFH was named Best Islamic Bank in Kuwait, Best Islamic Corporate Bank in Kuwait, Best Islamic Retail Bank in Kuwait, Most Innovative Islamic Bank in Kuwait and Best Islamic Investment Bank in Kuwait. Additionally, KFH Group secured the IFN Bahrain Deal of the Year 2024 for arranging an ESG-compliant financing facility worth $450 million. Meanwhile, KFH-UK won the Best New Islamic Bank award. These accolades highlight KFH's leadership and contributions to the Islamic banking industry, showcasing its innovation, financial solutions, and investment products that enhance the Sharia-compliant financial services sector in Kuwait and the world. KFH Group continuously introduces investment opportunities with the best returns and distinctive advantages, including savings instruments, investment products, and financial services through KFH Capital, its dedicated investment subsidiary. Tareq Al-Ajeel During the IFN awards ceremony held in Dubai, KFH Deputy General Manager Digital Transformation and Innovation, Engineer Tareq Al-Ajeel received the Most Innovative Islamic Bank in Kuwait award during. He stated that this recognition underscores the Bank's commitment to technological innovation through advanced digital banking services offered to its customers. He noted that the digital transformation of banking services represents a significant milestone in KFH's journey, as it enables the Bank to uniquely provide high-quality innovative services backed by a state-of-the-art digital infrastructure that aligns with customer expectations and global fintech advancements, as well as regulatory controls. Al-Ajeel added that the award also highlights the quality of KFH's technical services and the effectiveness of its digital transformation strategy. 'Recently, we launched innovative services for the first time in Kuwait, including Facial Biometric Features during branch visits.' he remarked, 'We have also rolled out the instant card printing machines that operate within minutes. KFH also introduced smart branches, and XTM devices, along with various other services. Our continuous efforts are directed towards enhancing innovation and investing in technology to deliver optimal banking solutions, thereby improving the banking experience for our customers and making it more convenient, through fast and secure branchless process.' He reiterated KFH's continuous success in accelerating the digital transformation and innovation strategy through the adoption of cutting-edge fintech solutions, alongside an innovative approach that empowers employees and strengthens KFH's business and products development and its ability to meet diverse customer needs across all sectors. Abdulaziz Alghanem KFH Executive Manager Retail Support, Abdulaziz Alghanem, commented on receiving the Best Islamic Retail Bank in Kuwait award: 'We have delivered a seamless and distinguished banking experience, providing customers with the right financial tools, products, and solutions to meet their financial needs. Additionally, we have introduced numerous innovative products and services that have solidified the standing of the Islamic finance industry. This has allowed KFH to attract diverse segments with a broader customer base granting the Bank a leading position in the local market.' He added: 'We are focused on capitalizing on the increasing demand for Islamic financial services and products in Kuwait by introducing new banking and financing services that will enhance our market share, build trust, and expand opportunities for success across various sectors and face the competition. Our Retail Banking offer cutting-edge technology, inclusivity, and accessibility, catering to all age groups and customer segments with high-quality, fast, and digital solutions that enable seamless banking anywhere, anytime.' Saleh Al-shaya KFH Senior Relationship Manager Corporate Banking, Saleh Al-Shaya, received the Best Islamic Corporate Bank in Kuwait award. He said that KFH enjoys a unique advantage as the leading corporate financier in Kuwait with a substantial client base characterized by a spirit of partnership and knowledge exchange. 'KFH has notably succeeded in financing major development projects while also funding small and medium-sized enterprises, which KFH considers crucial for expanding production, boosting the national economy, and creating employment opportunities.' Commented Al-Shaya. KFH is recognized as a leader in financing this important sector, with its portfolio for small project financing being the largest in the Kuwaiti market. IFN awards are granted based on several criteria including diverse capabilities, brand quality, integrated performance, and coordination within the KFH Group. It also assesses the Group's contribution to the Islamic banking industry, focusing on merit and reliability. The awards are determined through surveys and questionnaires from Islamic and conventional financial institutions, investors, and financial professionals worldwide. The diverse range of awards won by KFH Group reflects its strategic vision, structured operations and growth, reinforcing its ability for expansion and product innovation in Kuwait and the markets where it operates. KFH's expansion into the UK banking market through KFH-UK was a key milestone, culminating in the bank being awarded the Best New Islamic Bank in the UK after its recent conversion to an Islamic bank. This follows KFH's successful acquisition of Ahli United Bank – Bahrain. It is t is worth noting that the Islamic Finance News (IFN) group recognized KFH for these awards based on recommendations from specialized committees composed of experts and analysts in Islamic banking worldwide. The evaluation was conducted according to a set of criteria and financial indicators assessing the best Islamic institutions and transactions for the year 2024. The IFN group manages the Islamic Finance and Banking Awards. It also publishes the world's leading Islamic banking news through its magazine, established in 2004. The magazine is affiliated with Redmoney, which has offices in Dubai and Kuala Lumpur.
Zawya
11-02-2025
- Business
- Zawya
KFH reported net financing income increased by 18.7% for 2024
KUWAIT CITY, Feb 10: Kuwait Finance House (KFH) held the earnings webcast for highlighting the Group's financial performance and results during the fiscal year 2024. The meeting was attended by KFH Group Chief Executive Officer, Mr. Khaled AlShamlan, Senior Deputy Group CEO – Finance, Dr. Shadi Zahran and Group Chief Strategy Officer, Mr. Fahad Al-Mukhaizeem. KFH Group Chief Executive Officer, Mr. Khaled AlShamlan commenced the meeting by shedding light on the Bank's financial performance for the year ended 2024. He said: 'By the grace of Allah, KFH has reported historic net profit of KD 601.8 million attributable to the shareholders of the bank for the year ended 2024; an increase of 3.0% compared to 2023. Earnings per share reached 36.37 fils for the year 2024, an increase of 3.0%,compared to 2023. Net Financing income for the year ended 2024 reached KD 1,147.0 million; an increase of 18.7% compared to 2023.' He added that the Board of Directors considered the distribution of cash dividends to shareholders of 22% (including 10% in H1 2024). The Board of Directors also proposed distribution of bonus shares of 8% subject to the approval of the General Assembly and the competent authorities. AlShamlan stated that during 2024, KFH successfully achieved a strong financial performance, reporting record annual financial results. KFH also demonstrated growth in operating income, profits and all key financial indicators. The Bank also succeeded in achieving the strategic objectives and enhancing the Group's leading standing after the completion of the largest-ever merger project in the Kuwaiti banking sector, and the successful integration of operations with the (formerly) Ahli United Bank – Kuwait (AUBK) as part of its landmark cross-border acquisition of Ahli United Bank - Bahrain, one of the largest deals in the region. This historic move paved the way for the creation of a giant financial entity, with a reach spanning 8 countries worldwide through a large international network of over 600 branches. It also paved the way for KFH's ambition of becoming one of the world's top 100 banks within the next decade. 'KFH demonstrated its ability to promote the future of Islamic finance worldwide. This is evident in the successful and record-breaking conversion of Ahli United Bank in Bahrain, the UK, and Egypt to Islamic banking, achieved with high efficiency' he noted. Additionally, KFH completed the successful issuance of a 5-year Senior Unsecured Sukuk of $1 bn, the second issue under KFH $4 bn Sukuk Program. The aim of the Sukuk issuance is to enhance KFH's long-term funding sources, in addition to financing its overall operations. Additionally, KFH increased its investment in green Sukuk to $653.2 million in 2024, a 162.3% increase compared to last year's investment of $249 million in 2023. AlShamlan further said: 'KFH continued its endeavors in building a sustainable banking model within the (ESG) framework, noting the inclusion of KFH in the FTSE4Good Index Series. KFH was also awarded 'A' rating by MSCI ESG Index. Furthermore, KFH's participated in the sixteenth session of the Conference of the Parties (COP16) to the United Nations Convention to Combat Desertification (UNCCD). The Bank also signed the first-of-its-kind Global Takaful Alliance agreement with the United Nations Development Program (UNDP) and released the first-of-its-kind Carbon Footprint report in Kuwait's banking sector. KFH continues to issue its sustainability reports, reflecting its commitment to environmental leadership and responsible banking.' He went on to say that KFH played a prominent role in supporting the local economy and contributed to the development of the infrastructure by financing large scale projects across various sectors. KFH also strengthened its role as a strategic partner for small and medium-sized enterprises (SMEs) within the Kuwaiti banking sector. Many of these SMEs begin their success story by securing financing from KFH. KFH continued its innovative streak, developing digital financial solutions tailored to the needs and aspirations of its customers. The Bank also implemented numerous projects related to services, products, and financial solutions. It developed its technological infrastructure, enhanced cybersecurity defenses, and embraced AI technology. Speaking about KFH's social role, AlShamlan said: 'KFH succeeded in launching value-added community initiatives that catered to various segments of society. These initiatives encompassed supporting community capabilities, caring for individuals with special needs, launching awareness campaigns, safeguarding the environment, supporting sustainable practices, empowering the youth, in addition to supporting innovation and various health and sport initiatives. The commencement of the reconstruction project for the damaged area in Al Mubarakiya has started with an estimated cost of approximately KD 8 million. The contract, signed with the project's contractor and Kuwait Municipality, involves reconstructing approximately 17 buildings and developing some neighboring structures. KFH's efforts also encompassed various strategic initiatives in social responsibility'. In appreciation of its exceptional efforts, KFH received 43 awards and 4 rankings at the Group level from different global and regional entities. Most notable of these awards are: 'World's Best Islamic Financial Institution' Award from Global Finance magazine, 'Kuwait's Best Bank' and 'Kuwait's Best Bank for ESG' from Euromoney. In addition, KFH was named 'Bank of the Year – Kuwait' by The Banker and was awarded with the 'Corporate Social Responsibility – Middle East' award from EMEA Finance Magazine. KFH Senior Deputy Group CEO, Finance – Dr. Shadi Zahran Meanwhile, Senior Deputy Group CEO, Dr. Shadi Zahran, talked about the Group's financial performance for the financial year ended 31 December 2024. Zahran said: 'The Group has achieved Net Profit After Tax attributable to Shareholders for the year ended 31st December 2024 of KD 601.8mn higher by KD 17.3mn or 3.0% compared to 2023 of KD 584.5mn. The higher profits are mainly from an increase in total operating income. Partly offset by higher net monetary loss that resulted from the application of IAS-29 'Financial reporting in Hyperinflationary Economies' on the financial statements of the group subsidiary in Türkiye Kuwait Turk Participation Bank (KTPB) and the increase in operating expenses.' He added: 'Financing income has increased by KD 692.3mn or 31.6% compared to the last year mainly due to increase in the gross yield. Net financing income at KD 1,147mn increased by KD 181mn or 18.7% compared to last year mainly due to an increase in financing income by KD 692.3mn offset by increase in finance cost and distribution to depositors by KD 511.2mn. Speaking about the operating income profile, contribution of net financing income to operating income increased from 66% in 2023 to 70% in 2024 due to increase in net financing income and decline in investment income. Group NFM for 2024 at 3.12% is higher by 44bps compared to 2023. Average yield improved by 227bps while average COF also increased by 183bps. This was the result of full year impact of rate changes and repricing of assets and liabilities during the year. Zahran indicated that by looking at provisions and impairments, group total impairment charge increased by KD 14.1mn compared to 2023. 'KFH cautious approach towards provisioning have contributed to financing provision balance exceeding ECL required as per CBK IFRS 9 by KD 539mn as of 31 December 2024' commented Zahran. As for the Net Monetary Loss, application of IAS-29 on the financial statements of KTPB resulted in recognition of net monetary loss of KD 155.3mn in the current year with an increase of KD 82.5mn compared to last year due to the continued inflation and significant maturity of CPI linked sukuk during last quarter of 2023. Speaking about the financial position, Zahran said that the Total Assets at KD 36.7bn decreased by (3.4)% in 2024. Net financing receivables at KD 19.1bn decreased by (1.8)% mainly due to sale of KFH Bahrain in addition to foreign currency volatility during the year. Excluding these impacts, group net financing receivable would be higher in 2024 by 5.5%. Investments in debt securities at KD 6.9bn as at the end of year 2024. Deposits as of 2024 are KD 19.2bn. The contribution from CASA deposits to total group customer deposits as at the end of 2024 is 44.4%. Contribution of customer deposits to total funding is 66.5% compared to 71.4% in 2023. KFH Group Chief Strategy Officer - Fahad Al-Mukhaizeem KFH Group Chief Strategy Officer, Fahad Al-Mukhaizeem highlighted the Kuwait operating environment with an overview on KFH. He also talked about KFH's strategy, as well as Full Year-2024 results. Al-Mukhaizeem said: 'In light of the evolving monetary policy landscape, the Central Bank of Kuwait (CBK) has implemented a measured and balanced strategy to align with local economic conditions, uphold macroeconomic stability, and promote sustainable growth. Consequently, during 2024, CBK has reduced the discount rate by 25 basis points, bringing it down to 4.00%, effective September 19, 2024.' At the macroeconomic level, Kuwait's GDP is forecasted to reach KD 39.4 billion in 2024 according to the most recent International Monetary Fund (IMF) report released in October 2024. Additionally, the average inflation rate reached declined to 2.9% during the year 2024according to the latest issued data Central Statistical Bearu. Kuwait's crude oil price reached USD 74.2 per barrel as of the end of December 2024, down by 6.7 % from the same period of the previous year. Al-Mukhaizeem mentioned that in 2024, Kuwait's economic development is marked by a strategic focus on diversification and resilience in the face of global economic challenges. The government is actively implementing initiatives aimed at reducing reliance on oil revenues by promoting sectors such as finance, technology, and tourism. Investments in infrastructure development are also a priority, with significant projects underway to enhance transportation and connectivity. Additionally, the Central Bank of Kuwait's monetary policies, including adjustments to the discount rate, are designed to foster a stable economic environment conducive to growth. As a result, Kuwait is positioning itself to achieve sustainable development and attract foreign investment, ultimately aiming for a more balanced and robust economy. In terms of credit ratings, Kuwait maintains a robust profile with an A+ rating and a stable outlook from Standard & Poor's, an A1 rating from Moody's, and an AA- rating from Fitch, all with stable outlooks. He added: 'KFH's long term credit rating stands at A by Fitch with Stable Outlook, and at A2 by Moody's with Stable outlook. Furthermore, KFH continued its efforts to achieve financial solidity and sustainable growth, capitalizing on the flexible business model, strong asset quality, abundant liquidity, continuous diversification of financing and wide geographical spread in different markets worldwide, most prominently Kuwait, Bahrain, Turkey, Egypt, UK and Germany.' Additionally, KFH ranked first among the largest listed companies on Boursa Kuwait in terms of a market capitalization approximately KD 12.4 billion as of the end of December 2024 according to Boursa Kuwait. Arab Times | © Copyright 2024, All Rights Reserved Provided by SyndiGate Media Inc. (
Arab Times
29-01-2025
- Business
- Arab Times
KFH-Egypt Unveils New Identity
KUWAIT CITY, Jan 29: Kuwait Finance House Group (KFH) has officially rebranded Ahli United Bank – Egypt to KFH – Egypt, following its acquisition of Ahli United Bank Group – Bahrain. KFH – Egypt now operates as a fully Sharia-compliant bank within the global KFH Group, which has a presence in 12 countries. KFH is a global leader in Islamic banking, recognized as the world's second-largest Islamic bank and Kuwait's largest bank by net profit and market capitalization. Following the 2022 acquisition of Ahli United Bank Group – Bahrain by KFH Group and its subsequent conversion to a Sharia-compliant bank in December 2023, KFH-Egypt (formerly Ahli United Bank – Egypt) has offered complete range of Islamic banking products and services since September 2024. KFH Group is the world's second-largest Islamic bank by assets, with approximately $120 billion. KFH maintains a strong presence in local, regional, and global markets, operating in 12 countries. Its extensive international network includes around 680 branches, 2300 ATMs, and a workforce of nearly 18,000 employees. KFH Group's mission is to deliver superior innovation and customer service excellence while protecting and enhancing the interests of all our stakeholders. Its vision is to lead the international development of Islamic financial services and become the most trusted and sustainably most technologically advanced Shariah-compliant bank in the world. KFH-Egypt prioritizes digital transformation, creating cutting-edge services and products that enhance customer experience with quality, convenience, and robust security. The bank is driven by the expertise of the KFH Group, which recently unveiled a new visual identity under the 'Beyond Horizons' slogan to reflect its global expansion, achievements, and ambitious goals. The new identity reflects a commitment to continued technological advancement, development, and innovation in the digital age. It also underscores a dedication to enhancing leadership and achieving excellence in Islamic banking services. KFH Group Chairman, Hamad Abdulmohsen Al-Marzouq KFH Group Chairman, Hamad Abdulmohsen Al-Marzouq said: 'We are delighted to be in Egypt today to mark the beginning of a new era in Islamic banking with the unveiling of the new visual identity for Ahli United Bank – Egypt. Effective today, the bank will officially operate as KFH-Egypt, a historic milestone that will significantly contribute to Egypt's Islamic banking sector and strengthen its national economy." He added: 'KFH boasts extensive expertise in Islamic banking and stands as the largest bank in Kuwait in terms of market cap. It is also the largest listed company on Boursa Kuwait at the private sector level, with a market value of approximately $42 billion. Moreover, KFH has become the world's second-largest Islamic bank, with a presence in 12 countries, most prominently Kuwait, Bahrain, Turkey, Egypt, Germany, and the United Kingdom. This undoubtedly strengthens the standing of KFH-Egypt as a trusted global brand with international reach, reinforcing our ambitious vision of placing KFH Group among the world's top 100 banks.' Al-Marzouq further stated: 'Following the historic acquisition of Ahli United Bank Group – Bahrain in October 2022, we dedicated significant efforts at the Group level. By the grace of Allah, we have successfully completed the conversion of Ahli United Bank – Egypt into a fully Sharia-compliant bank. With the launch of our new visual identity, the bank is now officially rebranded as KFH-Egypt, marking an expansion of our banking operations in the Egyptian market, a promising market with substantial growth opportunities.' He affirmed that the new visual identity titled (Beyond Horizons) reflects KFH's futuristic vision, growth strategy, and digital excellence, reinforcing its leadership in advancing global Islamic financial services. It is also a new chapter in the bank's journey and a strategic shift towards achieving our forward-thinking plans, driving greater achievements to the future. The change will directly reflect performance levels and work methodologies, enhancing the banking experience to align with our new identity. 'KFH will be a distinguished addition to the Egyptian banking sector. Additionally, KFH remains committed to its social responsibility efforts in all the countries where it operates. Recently, the bank donated $10 million to the Misr El-Kheir Foundation in support of its charitable initiatives in Egypt,' added Al-Marzouq. He extended his gratitude to all employees and the executive management of KFH- Egypt, wishing them success in the next phase. He also stressed the importance of maintaining leadership in Islamic banking by continuously offering superior financial services, products, and solutions that exceed customer expectations. Chief Executive Officer and Board Member of KFH – Egypt, Hala Sadek Chief Executive Officer and Board Member of KFH – Egypt, Hala Sadek said that: " We are pleased to announce the official rebranding of Ahli United Bank-Egypt to Kuwait Finance House-Egypt (KFH- Egypt)." She added that this change goes beyond mere rebranding or a visual identity shift. It represents a significant strategic step, reflecting our full integration into the KFH Group, a global leader in Sharia-compliant banking services. "We remain committed to delivering exceptional banking services while enhancing our focus on providing innovative solutions that comply with Islamic principles, catered to the diverse needs of our customers. Building upon the strong financial solvency and competitive advantages of KFH Group, renowned for its leadership and quality in the banking sector, this step reflects our ambitious goals for expansion and growth, capitalizing on the Group's expertise and capabilities," she emphasized. Sadek underscores KFH's goal of attaining an Egyptian market share commensurate with the Group's size and aspirations. This strategy aims to bolster the competitiveness of Islamic financial services, attract new clientele, and foster greater financial inclusion within the Egyptian market. She pointed out that the Bank's conversion to Sharia-compliant banking services enhances its growth opportunities, given the increasing demand for Islamic banking. Additionally, it contributes to achieving financial inclusion goals by attracting new customer segments interested in Sharia-compliant products and services. She revealed that KFH-Egypt will offer its customers a comprehensive range of financial products and services that comply with Sharia requirements, including Murabaha, Wakala, and Ijarah. "The conversion of the Bank's operations will not affect the previously agreed-upon commercial terms with customers until the financing's maturity date, nor will it impose any burdens or costs on them as a result of this conversion," Sadek added. It is noteworthy that KFH- Egypt (formerly known as Ahli United Bank - Egypt) has achieved outstanding financial results in the first nine months of 2024. This reflects the steady growth of the bank's activities, its customer base, and its geographical expansion across the Arab Republic of Egypt. The financial results demonstrated a consolidated net profit of EGP 4.73 billion by the end of September 2024, a 71% increase compared to the same period in the previous year. The financial position statement showed a 26% increase in total assets, reaching EGP 142 billion by the end of September 2024. This growth reflects a strong capital base, high liquidity ratios, and high-quality assets. Furthermore, net financing income surged by 55.6%, reaching EGP 5.6 billion by the end of September 2024, while net fee and commission income reached EGP 725 million. Customer deposits grew by 30%, reaching EGP 117 billion by the end of September 2024. Additionally, the financing portfolio increased to EGP 84.2 billion, representing a 25% growth. The Bank currently operates a network of approximately 44 branches distributed across the Arab Republic of Egypt.
