Kuwait Finance House (KFH)

KIA appoints consultant to study possible #merger of KFH and AUB – Tie-up will make KFH the largest bank in #Kuwait: Moody's

Kuwait Investment Authority has appointed a global consultant to study the merger of two banks, Kuwait Finance House (KFH) and Ahli United Bank (AUB). Moody’s said in a report that the merger of the two banks will have a positive impact on credit rating, especially for KFH. Moody’s noted that if the merger is successful, it will create the sixth largest bank in the GCC with nearly $85 billion in total assets. The merger will make KFH the largest bank in Kuwait, but it will remain the second largest bank in the Gulf after Al-Rajhi Bank Saudi Arabia. The number of domestic branches of KFH reached 65 while AUB has 37 branches. Several reports were published on the possible merger of the two banks. However, officials from both banks denied reports on the merger while others confirmed.

KFH is planning #expansion in #China

Kuwait Finance House (KFH) is considering expanding into China and Egypt as the region’s banking sector nears saturation. According to bank's CEO, Mazin Saad al-Nahedh, there are opportunities for a Kuwaiti bank to operate in China. He added that the bank was looking at options to buy a license to operate in Egypt as well. KFH is cautiously optimistic about its operations in Turkey. Its subsidiary Kuveyt Turk contributes 22% to the group’s bottom line as of the end of June. The bank expects credit growth of no less than 20% to 25% over the next three to four years as long as base rates remain where they are. As KFH continues its restructuring and sale of non-core assets, the bank is studying offers for its stake in Aref Investment Group, which it aims to sell by the end of the year. KFH is also planning to buy Bahrain’s Ahli United Bank, but hasn't started negotiations yet.

KFH will benefit overall from #merger with Ahli United Bank – Transaction to create 6th largest bank in GCC

Kuwait Finance House (KFH) disclosed that it is studying a merger with Bahrain-based Ahli United Bank. Although the merger would present significant integration challenges owing to the banks’ geographically dispersed asset bases, it would be credit positive for KFH. If successfully completed, the transaction would create the sixth-largest bank in the Gulf Cooperation Council (GCC), with approximately $85 billion in total assets as of year-end 2016. The merger is at an early stage of evaluation, with financial analysis underway. The merger would expand KFH’s banking operations, which are primarily focused in Kuwait and Turkey, and include relatively small operations in Malaysia and Bahrain. In addition to Bahrain, AUB has principal subsidiaries in the UK, Kuwait, Iraq, and Egypt, and has an associate in Oman.

Kuwait Finance House studying #merger with Ahli United Bank

Kuwait Finance House (KFH) is looking to merge with Bahrain's Ahli United Bank. The Gulf's banking sector is in consolidation as three years of low oil prices squeeze deposits and push up bad loans. KFH Chief Executive Mazin Al-Nahedh said the merger was currently only under study and there has been no agreement so far. In other regional bank mergers, First Abu Dhabi Bank was recently created in the United Arab Emirates after a tie-up between two Abu Dhabi lenders, while mergers are under way in Qatar and Saudi Arabia. KFH said in the statement that it was looking at a range of alternatives to boost its profitability, adding that such decisions require approval from regulators, including the central bank.

KFH welcomes CBK’s Sharia Supervisory Governance for banks – Regulations instill confidence in Islamic banking: Duwaishan

Kuwait Finance House (KFH) has welcomed the Central Bank of Kuwait (CBK)’s instructions and regulations regarding the role of Sharia Supervisory Boards in Islamic banks. Islamic Banks would be given until December 31st, 2017 to fulfill the requirements. Isa Abdullah Duwaishan, Executive Manager Shariah Control & Advisory at KFH, stated that the executive team of the board encompasses qualified Shariah controllers who audit the compliance and commitment of all bank departments to sharia rules. He reiterated the efforts of continually improving the skills of Shariah controllers and the Shariah staff in the bank through engaging them in specialized training courses. KFH's Shariah Supervisory Board issues Fatwa and Shariah reports that are viewed as a reference to other banks.

Over 400 Islamic financial institutions operate in 60 countries

More than 400 Islamic banks and financial institutions are now operating in over 60 countries from different regions. The Dubai Center for Islamic Banking and Finance (DCIBF) has released its second annual report on Islamic economy during the third Global Islamic Economy Summit in Dubai. The report focuses on the efficiency performance of 131 Islamic banks operating globally and other various key facets of Islamic banking. The Kuwait Finance House (KFH) received the highest efficiency score, followed by Al Inma Bank from Saudi Arabia, which obtained the top score in terms of cost-efficiency. Although it is expected that Islamic banking will continue to grow globally, the report warns that it may face challenges especially in countries that heavily rely on oil and other commodity prices. In this regard, diversification of the industry and further expansion is essential for its sustainable growth.

Kuwait’s Boubyan Sees Islamic Banking Boom

According to the chairman of Boubyan Bank, the growth rate of Islamic finance in Kuwait is the double of the one of conventional banking. In his opinion, strong demand throughout the Arab region can be expected. The country's Islamic banks reached credit volumes of 11.1 billion Kuwaiti dinars ($39.3 billion) during the first nine months of the year. This is 13.2% more than during the same period last year. Conventional banks on the other hand registered a 5.6% credit growth. Since the demand for sharia-complaint banking is so high in Kuwait, Boubyan has no intention to expand overseas yet. This contrasts with Kuwait Finance House (KFH).

KFH employees take part in Diabetes Day

Kuwait Finance House (KFH) showed its support for the Diabetes Day by organizing activities through a small clinic at Baitok Tower. KFH employees and other visitors are permitted to conduct blood tests for diabetes. Also, awareness regarding the disease and means to prevent it is raised in this way. Thousands of patients and their families are targeted by the activities organized by KFH in support of the Diabetes Day. In addition, illuminating Baitok Tower in blue shows support to millions of patients worldwide.

Ministry of Health applauds KFH for sponsoring Nuclear Medicine International Week

Eman Al-Shemmari, the head of Nuclear Medicine Sections at the Ministry of Health, expressed his admiration for Kuwait Finance House (KFH) and its actions to sponsor the Nuclear Medicine International Week. The event took place under the auspices of the Minister of Health Ali Al-Obaidi and included a number of scientific lectures in the mentioned medical field. The lectures were held in several hospitals in Kuwait. According to Al-Shemmari, KFH is largely responsible for the success of the event and the enrichment of the medical cadres and public.

Kuwait Finance House Names Mohammed Al Khudairi as New Chairman

The new chairman of Kuwait Finance House (KFH) was introduced to the public. After the board's election, Mohammed Al Khudairi will take over the position of former chairman Sameer Al Nafeesi. The latter resigned earlier with the intention to engage in other activities.

Read more on: http://www.zawya.com/story/Kuwait_Finance_House_names_Mohammed_Al_Khudai...

Sukuk crucial to infrastructure development, new report shows

A KFH research shows that sukuk have had a significant impact on the infrastructure sector during the last decade. Proceeds raised from issuances have been utilized for low as well as for high profile projects. The combination of sukuk's very nature and its flexibility makes a variety of structures possible. Thus, Islamic bonds have become a very attractive alternative financial instrument for corporate and sovereign entities. A huge amount of the money raised through sukuk funds has been used in projects of the infrastructure sector worldwide.

See more on: http://www.albawaba.com/business/sukuk-infrastructure-445240

KFH-Research: Value of existing Sukuk in world USD 210.8 billion

KFH conducted a study which states thath the global sukuk market has experiences a significant boost during the last six years. The growth of sukuk is as high as 28.3% which makes the total value of sukuk issuance worldwide during the first half of the current year USD 210.8 billion. It is expected that next year, 2013, will bring further rise in profit and expansion.

More on: http://www.kuna.net.kw/ArticleDetails.aspx?id=2263268&Language=en

Kuwait Finance House ends talks on hospital stake sale

Kuwait Finance House (KFH) has put an ent to talks about the potential sale of its stake in Al Salam (International) Hospital. As the largest investor in the hospital, KFH contributes to the stability, integrity and strength of the latter. Thus, Al Salam contrasts with other competitive hospitals which are of individual ownership. The end of discussions on KFS's side will not affect the bank's financial position.

Islamic microfinance curbs poverty - KFH report

According to a recent report by Kuwait Finance House (KFH), Islamic microfinance is a good solution for decreasing poverty. Since it is a combination of economic, social and religious principles, it uses two types of resources: external ones like Zakat and charity on one hand, and internal ones like deposits and equity. A number of institutions among which the Islamic Development Bank (IDB) and the World Bank are working on studying the viability of Islamic microfinance.

KFH sponsors Jomana Al-Kandari to attend international medical conference

Jomana Al-Kandari, nutritionist at Amiri Hospital, was sponsored by Kuwait Finance House (KFH) to attend the first international conference for the nutrition of kidney patients in the USA. This sponsorship is part of KFH's initiative in support of healthcare and education. The knowledge and experience Jomana Al-Kandari gained during the conference shall contribute to the development of the medical services to a world-class level.

KFH: Banking products that cement value of saving in society

Kuwait Finance House is eager to offer its clients banking products that bond the value of saving, saving being a main factor in boosting the local economy.
The new account is a combination between the advantages of investment saving accounts and Islamic Takaful insurance. "Jameati Account" permits parents to aim a specific amount of money which will be saved within a predetermined period to finance the high educational expenses of their children. The monthly saving is invested and profits are added to the Jameati Account. When the child becomes 18 years the targeted saving amount plus the profits will be available and the parent and the child will decide the best university to follow higher education and this university could be in any part of the world.

Kuwait Finance House plans to continue its pivotal role in Turkish market, says Chairman

According to the chairman of Kuwait Finance House in Turkey, Mr. Mohammed Al-Omar, the bank plans to go on with its pivotal role in the Turkish market, in addition to binding its strategy that is based on strengthening economic relations with neighboring countries, and with Kuwait and other GCC countries.
He added that the bank also wants to further offer Islamic products and instruments that can enlarge the horizon of Islamic banking in the Turkish economy, such as sukuk, murabaha, and ijarah. He underlined the fact that the bank presented products that never existed before in the Turkish market, such as the gold account and sukuk.

Saudi Al-Rajhi remains biggest Islamic bank

Three banks from UAE are among 10 largest Arab Islamic banks.
Saudi Arabia’s Al-Rajhi group remained at the same position as the world’s largest Islamic bank at the end of 2010 while four in the UAE were among the 10 top Shariah-compliant banks.
The Kuwait Finance House (KFH) was second by assets, which stood at $43.7 billion at the end of 2010 compared with $39 billion at the end of 2009.
Dubai Islamic Bank (DIB) was ranked third, with assets of about $24.5 billion, followed by Abu Dhabi Islamic Bank (ADIB), with around $20.5 billion.

Building firm's $100m sukuk a success

The $100 million sukuk for the Building Materials Company has been successfully resolved and paid for in full on its maturity date on October 18.
The statement was given by the arrangers and lead managers, Kuwait Finance House (KFH), Liquidity Management Centre, Gulf International Bank, and Standard Bank.

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