Kuwait

Kuwait Finance House Shareholders Give Green Card to AUB’s Acquisition

Kuwait Finance House has affirmed plans to purchase Bahrain’s Ahli United Bank. The merger can possibly become the Gulf’s sixth-biggest lender with $101 billion in assets. Reaching the value of about $101 billion, the acquisition will generate the largest Islamic banking entity in the world in terms of assets. Based on its past performance, the annual forecast profit of the merger is $1.5 billion. The shareholder equity of the new entity will be $10.5 billion. Besides Kuwait Finance House, Dubai Islamic Bank in the UAE has also received shareholders’ approval for purchasing Noor Bank via capital increase and share swap. The merger will potentially be valued at AED 275 billion.

Boubyan Bank's profits in 2019

Boubyan Bank has reported net profit of KD 62.7 million in 2019, at a growth rate of 12% compared to 2018, with an earnings per share of 20.4 fils compared to 19.2 fils in 2018. Boubyan Bank CEO Adel Abdul Wahab Al-Majed said that the total equity of the bank increased to KD 575 million by the end of 2019 and the operating income increased to KD 146 million. The year 2019 witnessed the introduction of many new services and products. All-new smart phone Apps were launched in addition to the issuance, activation and use of the virtual prepaid card through Boubyan App. Additionally, the bank earned its verified badge in WhatsApp business and successfully integrated the bank’s Chatbot service, Msa3ed, with WhatsApp business.

KFH signs partnership agreement with international platform to Showcase Kuwaiti Youth's initiatives

A strategic partnership agreement had been signed, between Kuwait Finance House (KFH) and Entrepreneur Magazine. (KFH) asumes that they will sponsor the Entrepreneur platform for Kuwait with “Entrepreneur Middle East” which specializes in business entrepreneurship and young people’s initiatives.

Islamic finance body IILM names new CEO

The International Islamic Liquidity Management Corporation (IILM) has announced on monday that Dr. Umar Aimhanosi Oseni is their new CEO. (IILM) is an international consortium that issues short-term Shariah-compliant financial instruments to facilitate cross-border liquidity management for institutions that offer Islamic financial services.

Al-Nahedh: KFH Has a Proven Track Record in Digital Transformation

Kuwait: Group Chief Executive Officer at Kuwait Finance House(KFH), Mazin Saad Al-Nahedh said that the banking and financial industry is undergoing a process of digital transformation where many processes – often transactional – are being fully automated.

KFH-Turkey... Robust Financial Position, Very High Liquidity Ratios

Group Chief Executive Officer at Kuwait Finance House(KFH), Mazin Saad Al-Nahedh, emphasized that KFH-Turkey enjoys robust financial position and very strong liquidity ratios as per the regulatory authority’s requirements in Turkey and Kuwait, not to mention as per the international standard Basel III.

Boards of Kuwait Finance House and Ahli United Bank agree terms of possible #merger

The boards of Kuwait Finance House and Ahli United Bank agreed on a share swap ratio. AUB said its board approved a final exchange ratio between the two lenders of one KFH share for every 2.325581 AUB shares. A final decision on the deal is subject to approval from shareholders of both banks, central banks and other authorities in Kuwait and Bahrain. The approved ratio is the same as the one announced in January, when the lenders hired HSBC and Credit Suisse as advisers to carry out financial and legal due diligence of each other’s accounts. According to equity analysts Mohamad Al Hajj and Elena Sanchez-Cabezudo, this merger would increase KFH’s expected weight within MSCI Emerging Market Index by 8 basis points and increase expected flows in May 2020 by $370 million. KFH has tried to acquire AUB in the past, but talks stalled over a difference in valuation.

CBK amends guidelines of corporate governance in Kuwaiti banks

The Central Bank of Kuwait (CBK) has amended governance regulations for Kuwaiti banks, allowing them to add independent members to their boards of directors and subcommittees. The new regulations define independent board members and the conditions of such independence. Dr Mohammed Yousef Al-Hashel, the Governor of CBK, said that independent members to banks’ board of directors will enhance board members’ independence as a basic principle of sound governance practises. The amendments also allow a minimum of two independent members from 30 June 2020, then four from 30 June 2022 to avoid unexpected demand for independent members and allow gradual implementation of the decision.

#Kuwait's Warba Bank plans $500 mln #sukuk issue this year - CEO

Kuwait's Warba Bank is working to set up a sukuk programme of up to $2 billion with an initial $500 million issuance this year. CEO Shaheen Al-Ghanem said the programme is subject to central bank approval. After the initial issuance this year, the rest would be issued over the next few years as needed and the proceeds used to finance operational matters. Ghanem added that the bank was looking to start a new asset management business this year aimed at overseeing about $500 million in investments within the next three years. Its launch is awaiting final approval from the Kuwait Capital Markets authority. The bank is looking to increase its total assets to over 3.5 billion Kuwaiti dinars ($11.52 billion) by 2022 from 2.59 billion dinars. Additionally, the bank is competing to lead a 350 million Kuwaiti dinar ($1.15 billion) loan for Kuwait Petroleum Corporation (KPC) that will likely involve multiple banks.

KIB issues $300 million AT1 #sukuk

Kuwait International Bank’s (KIB) Chairman Sheikh Mohamed Jarrah Al Sabah announced the issuance of an AT1 Sukuk. On Wednesday 29 May 2019, KIB has successfully priced a $ 300 Million AT1 perpetual Sukuk that classifies under Tier 1 capital at an annual profit rate of 5.625%. KIB received an immense investor demand as evidenced by an oversubscription rate of over 15 times. This issuance has been arranged with efforts made by a group of participating parties including Citi and Standard Chartered who acted as Joint Global Coordinators. Dubai Islamic Bank, First Abu Dhabi Bank, KFH Capital and KAMCO acted as Joint Lead Managers and Bookrunners. Boubyan Bank acted as Co-Manager.

#Kuwait International Bank starts marketing $300mln #sukuk

Kuwait International Bank started marketing $300 million perpetual sukuk to boost its tier 1 capital, with a yield of around 6.25%. Perpetual bonds mimic some of the characteristics of equity because they lack a maturity date. Citigroup, Dubai Islamic Bank, First Abu Dhabi Bank, KAMCO Investment Co, KFH Capital Investment Company, and Standard Chartered Bank have been hired to lead the transaction.

CBK rejects Warba Bank #merger with KMEFIC

In February, Kuwait’s Warba Bank announced the purchase of Ahli United Bank (AUB) and its subsidiary to acquire their collective 75.7% stake in Kuwait & Middle East Financial Investment Company (KMEFIC).
Warba Bank said that the Central Bank of Kuwait (CBK) has rejected its proposed acquisition of a controlling stake in KMEFIC. According to CBK, Warba Bank's acquisition of AUB’s stake in KMEFIC will not have a significant effect on the financial position of the lender. The purchase agreement came at a time when mergers and acquisitions in the Gulf’s financial sector are rising as lenders attempt to improve their financial standing through consolidation.

AUB in push for #merger with KFH

Bahrain’s largest lender Ahli United Bank (AUB) has announced that two investment banks are evaluating a potential merger with Kuwait Finance House (KFH). HSBC and Credit Suisse are currently undertaking necessary valuations studies to assist AUB and to arrive at a fair share exchange ratio. If a merger proceeds, the total assets of the two banks would be $90.57 billion, making it the sixth largest bank in the Gulf. The major shareholders in the two lenders are Kuwait state-owned entities. The Public Institution for Social Security owns 18.59% of AUB, while KFH's largest shareholder is the Kuwaiti sovereign wealth fund, the Kuwait Investment Authority (KIA).

Use of Ripple as a Cross-Border Solution Confirmed by #Kuwait Finance House (KFH)

Kuwait Finance House (KFH) is establishing the first blockchain-powered transaction system in the country. A series of questions arose when the formation of this system was announced. KFH has itself confirmed that they are using Ripple’s cross-border solutions to complete the blockchain-based transaction. KFH also conveyed that they would soon be joining RippleNet, which they initially announced back in May. This would enable them to become an active part of the ever-growing blockchain technology ecosystem. While neighboring Saudi Arabia may have banned cryptocurrency trading, it is obvious that Kuwait welcomes the underlying technology of virtual currencies.

#Kuwait’s Warba Bank receives licence to conduct securities activities

Warba Bank has obtained licence from the Capital Market Authority (CMA) to engage in certain securities activities. The new licence allows the lender to conduct activities like investment portfolio manager, collective investment scheme manager as well as investment manager, subscription agent and custodian.

Creating footsteps in Kuwait’s Islamic banking sector

Kuwait Finance House (KFH) has embarked on a digital transformation journey. Kuwait and Bahrain have each launched their respective digital banking platforms and soon, Malaysia will have its own. By the end of 2018, a seamless digital customer experience is expected to be publicly available. In Malaysia the KFH is active in the infrastructure financing front, supporting the third light rail transport system (LRT 3) and the second Mass Rapid Transit (MRT 2) projects through the provision of Islamic financing facilities. The project is expected to benefit the local communities through the promotion of real estate developments around the proposed train stations. Furthermore, the project is expected to generate more than 2,000 jobs during the construction phase.

#Kuwait's KFH invites #Bahrain's AUB to begin due diligence

Kuwait Finance House (KFH) invited Bahrain's Ahli United Bank (AUB) to begin a due diligence process for a potential merger. KFH also asked AUB to sign a non-disclosure agreement. If the merger goes ahead, it would be the latest of several recent tie-ups to create bigger and stronger lenders in an over-banked region. If the merger proceeds, the total assets of the two banks would be $90.57 billion, making it the sixth largest bank in the Gulf. The agreement to begin due diligence demonstrates seriousness in the deal process and backing from the lenders' major shareholders. The major shareholders in the two lenders are Kuwait state-owned entities.

#Kuwait bank in #merger talks to create $92bn Islamic lender

Kuwait Finance House (KFH) is seeking to hold talks with Bahrain's Ahli United Bank (AUB) for a potential merger. This would create an Islamic lender with about $92 billion of assets, six months after negotiations broke down. KFH sent a letter inviting Ahli United to sign a memorandum of understanding and a non-disclosure agreement to start valuation studies. The deal may provide a boost to debt-laden Bahrain, as the country struggles to cope with lower oil prices. According to Joice Mathew, the head of equity research at United Securities, the integration of business could be challenging because of the geographical dispersion of their assets and combination of Islamic and conventional banking.

KIB closing its $250 mln #Murabaha

Kuwait International Bank (KIB) closed a $250 million 3-year syndicated Murabaha financing facility. The financing was concluded with a consortium of international and local banks that includes Standard Chartered Bank, First Abu Dhabi Bank, National Bank of Kuwait, Kuwait Finance House and Boubyan Bank. The ceremony to mark the occasion was attended by KIB's top management led by Mohamed Said El Saka, Deputy Chief Executive Officer & Acting CEO. He said that this new facility will help KIB continue pursuing its strategic objectives to strengthen the Bank’s position as a leading Islamic bank in Kuwait.

#Takaful pays debts to free 400 female inmates

The Kuwaiti Takaful Society for Prisoners Care assisted in releasing 400 female prisoners after paying their debts. Chairman Dr Musaed Mandani said the Society wanted to help more women, but unfortunately their debt runs in thousands of dinars which is beyond the capacity of the society.

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