Market diversification assists in achieving good revenues

Kuwait Finance House (KFH) Kuwait Finance House (KFH) Chairman and Managing Director Bader Al-Mukhaizeem announced that KFH KFH achieved KD 884.853 million as total revenue for 2008, and total profit reached KD 379.353 million for the same year, including investor profits on deposits that reached KD 216.800 million to be distributed as follows: 4.300% return for Continuous Investment Deposits, 3.344% for Al-Sedrah deposit, and 2.867% for Saving Investment Accounts. The net profit for shareholders reached KD 156.960 million, the profit per share was 76 fils. KFH KFH decided to keep KD 210.940 million as provision.

The board recommended granting shareholders money distributions with 40%, and stock dividend with 12%, after the approval of the General Assembly and concerned authorities.

Assets increased to KD 10.544 billion and deposits also reached KD 6.612 billion. Total shareholders' equity reached KD 1.240 billion.

Al-Mukhaizeem stated that these results were achieved with the Grace of Allah during the hard circumstances that the markets are going through due to the negative effects of the global economic crisis, which is affecting development of the local and regional markets as well. He added that the GCC possess positive economic factors that will assist in easing the possible consequences of the turmoil, such as oil revenues and surpluses achieved from the previously high prices that the oil witnessed during the past. In addition to that, some GCC economies enjoy a solid infrastructure that offers diversity of income with little or no debts.

Moreover, Al-Mukhaizeem noted that in spite of the negative consequences of the crisis on the local markets, the opportunity of gradually overcoming the turmoil is possible and within reach, if the powers unite, the vision is clear, professionalism and technicalities are favored over interests and political calculations. This should go hand in hand with an integral plan to be executed phase by phase, and takes into consideration all economic sectors that were affected or will be affected by the crisis. He explained that economy is not only the stock market or some struggling companies, but a system that includes intertwined relations that affect each other.

Furthermore, Al-Mukhaizeem said that KFH KFH is aware of the role it should play to help ease the effects of the crisis on the national economy, especially towards the corporations that need financing and could not get any external financing. KFH KFH is currently studying financing more corporations, according to credit regulations and after studying their financial status, in addition to the financial statements they offer. It is worth noting that this process has been ongoing and never stopped, whether before or after the crisis.

Al-Mukhaizeem has expressed his satisfaction with the Court of First Instance's judgment to annul the Ministry of Justice's decision and refrain from taking all measures, and its order to proceed toward recording and enlisting all the necessary actions and registrations applicable to private residences (concerning sale or mortgage) and its judgment that KFH KFH , along with other Islamic Banks, are not subject to the rule of Law Number 8 and 9 of 2008.

The global expansion plans are on track, said Al-Mukhaizeem. He added that KFH KFH has managed to obtain a license for the Saudi Kuwaiti Finance House (Saudi-KFH) with a capital of half a billion Saudi Riyals, which is considered to be a prominent qualitative addition to KFH KFH 's expansion plans into the rich Saudi market.

KFH KFH has also increased its branches abroad that reached 175 branches, where KFH KFH -Malaysia opened its 6th branch, and opened a representative office in Australia after having previously opened KFH KFH -Singapore. KFH KFH -Turkey has been marching forward and succeeded in increasing its branches to reach 113, in addition to focusing on offering new products and services.

Al-Mukhaizeem stated that KFH KFH continues to invest in major projects, such as investing USD 275 million in the Peninsula Real Estate project in China, and completed most of the stages of Durrat Al-Bahrain Real Estate project, which includes thousands of villas, flats, parks, hotels and fields. This underscores KFH KFH 's unique advantage of operating in various fields and markets that guarantee high revenue with minimum risks.

The number of Kuwaiti employees has been increasing, since KFH KFH recruited 58 Kuwaiti university graduates, and enrolled them in a 3 month training program, explained Al-Mukhaizeem. It is worth noting that KFH KFH had recruited 600 Kuwaiti employees in the past 4 years.

Moreover, Al-Mukhaizeem stressed the importance that KFH KFH shows to the local market, and its keenness on increasing its market share omar 1.1:zy