Kuwait Finance House (KFH)

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.

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.

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.

#Kuwait Bank Adopts Ripple for Instant Cross-Border Payments

The Kuwait Finance House (KFH) has joined RippleNet, an enterprise blockchain network for international remittance payments. RippleNet is a SWIFT-replacement global blockchain network that sees over 100 financial institutions including banks, payment providers and remittance operators. KFH underlined its intention to use Ripple’s unique tool for cross-border payments for its retail customers. With this, KFH can provide instant and secure cross-border money transfers within seconds, with end-to-end visibility over the journey of the payment. Elsewhere in the region, UAE-based RAK Bank became a RippleNet member in September. The Saudi Arabian Monetary Authority (SAMA), the defacto central bank of Saudi Arabia, has also partnered with Ripple. The SAMA also became the first central bank in the world to join RippleNet.

Fitch issues rating for KFH #Sukuk

Fitch Ratings has assigned Kuwait Finance House’s sukuk programme an expected A+ and F1 rating. KFH Sukuk, the issuer and trustee, is a special purpose vehicle (SPV), incorporated in the Dubai International Financial Centre (DIFC), solely to issue certificates (sukuk) under the programme. The trustee has been incorporated solely for the purpose of participating in the transactions contemplated by the transaction documents.

#Kuwait Finance House to split shareholding of Turkish asset manager

Kuwait Finance House (KFH) will divide the ownership structure of its Turkish asset management firm between local and Kuwaiti units, as the Islamic lender continues to build on its Turkey franchise. KT Asset Management will transfer 5 million shares representing a 50% stake to KFH Capital. Both Kuveyt Turk and KFH Capital are subsidiaries of KFH. KFH Capital is the main investment arm of KFH, which has restructured activities in recent years to streamline operations and focus on growth markets such as Turkey.

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.

BRIEF-#Kuwait Finance House shareholders approve issue of #sukuk and other financial instruments

Shareholders of Kuwait Finance House (KFH) have approved issue of sukuk and other sharia-compliant financial instruments.

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.

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