Kuwait

#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.

#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's Noor Financial to divest stake in #Pakistan's largest Islamic bank

Noor Financial Investment Company will divest a portion of its 49% stake in Pakistan's Meezan Bank. The company is in preliminary discussions with foreign institutional investors for a proposed divestment of 9.59% of the total issued and paid up capital of Meezan. Noor has been mulling a sale since at least 2013. Meezan Bank is Pakistan’s fastest growing bank, it posted a profit in each year of operation and its net profits grew 13.5% in 2017 to $93 million. Noor’s stake in the bank was valued at $375 million in 2017.

CBK-IFSB #Conference on Islamic Finance themed "Islamic Finance: A Universal Value Proposition"

The Central Bank of Kuwait (CBK) and the Islamic Financial Services Board (IFSB) are organizing a conference on Islamic Finance on the 2nd of May 2018. The conference will be held in the State of Kuwait in conjunction with the IFSB Annual Meetings 2018, hosted by the CBK. The CBK-IFSB Islamic finance conference is expected to attract senior-level participation from among the global and financial industry stakeholders and thought leaders. Discussions will revolve around the role Islamic finance can play in government strategies to build a diversified and sustainable economy. The IFSB Annual Meetings 2018 will be held in Kuwait from 1–3 May 2018. Alongside the conference, CBK is also hosting the IFSB Public Lecture, Members and Industry Engagement Session, the IFSB’s General Assembly and Council Meetings during the 3 days.

#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.

Stronger #leadership guiding #KFH #Malaysia towards resurgence as #leading #Islamic #bank

The World’s oldest Islamic bank has strengthened its leadership to provide sharia-compliant products and services to an even broader market. Simpler, better, faster. These three key words form the cornerstone of a strategy that is seen to propel Kuwait Finance House Malaysia from its present level to a stronger position in the region. Thanks to fundamental adjustments that demonstrate efforts of Kuwait Finance House to grow its Malaysian subsidiary, the outlook for KFH Malaysia has never been better. “After making changes to the management structure in Kuwait, we came to bring the Malaysia arm in line with the group and to make sure that we drive forward to become the dominant player in Southeast Asia,” CEO David Power said.
Groomed as the regional hub for KFH in the Far East, KFH Malaysia had 18 vacant management positions when Power took over. Within a short period, he took steps to make sure that the bank had the right people on board who could assess the problems and come up with short-, medium- and long-term solutions.

Warba Bank heads towards innovation breakthrough in Islamic banking sector

#Kuwait's Warba Bank announced its financial results for the first nine months of 2017. Net profits increased by 442% reaching KD 4.752 m compared to KD 877 K for the same period last year. The increase in the Bank’s total revenues was driven by strong performance of all business units. The total revenues reached KD 42.66 million at an increase of 63% compared to the first nine months of 2016. Moreover, the operating revenues increased by 70%, amounting to KD 26.800 million by the end of September 2017 compared to KD 15.741 million for the same period of 2016. Warba Bank's CEO Shaheen Hamad Al-Ghanem said that the Bank has successfully accomplished a number of deals most notably a strategic financing deal in the aviation sector in Kuwait. Warba Bank also participated in Sharia -complaint co-financing for the Ziraat Participation Bank of Turkey amounting $236 million. The Bank also participated in arranging the $400 million Sukuk issuance of the Dubai-based Miraas Holding for Real Estate Development.

#Kuwait's Warba Bank part of IDB's USD 1.2 billion venture

Warba Bank announced that it will be partaking in a USD 1.25 billion five-year joint venture with the Islamic Development Bank (IDB). Warba Bank said that subscription for the deal had attracted regional and international financial institutions. The amount of issued bonds reached over 136%, around USD 1.7 billion. Warba Bank indicated that it would reap around 2.6% of annual income due to the deal. The IDB issued around 53% of the bonds to investors from the MENA region and Europe, while 47% of the bonds target investors from Asia.

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.

#IIRA Maintains #Ratings of #Kuveyt #Turk Participation Bank

The ratings on Kuveyt Turk Participation Bank continue to reflect its overall sound risk profile. IIRA’s assessment on Kuveyt Turk Participation Bank encompasses sponsor support from its key shareholders that include Kuwait Finance House, Islamic Development Bank and other quasi-sovereign entities such as the General Directorate of Foundations – Turkey and Kuwait Public Institution for Social Security.

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.

Warba Bank ‘signs’ financial deal with #Turkey’s Ziraat Bank – Islamic banking sector growth eyed

#Kuwait’s Warba Bank announced a new Shari’ah-compliant, joint, multi-currency financial deal of $236 million with the Ziraat Participation Bank of Turkey. Warba Bank acted as the Lead Arranger and Subscription Manager of the deal, which was initially launched at $160 million. Due to oversubscription, the deal was increased so as to reach $ 236 million, with an increase of 52%. The Murabaha-based financing deal includes both US Dollars and Euros. It will be employed mainly in SME financing and income diversification at Ziraat Bank. Shaheen Hamad Al-Ghanem, Warba Bank’s CEO said the Bank was proud to be entrusted and to contribute to the financing of the agricultural sector, which is one of the pillars of the rise of the Turkish economy. This is the second participation of Warba Bank in arranging a financing transaction for the Ziraat Participation Bank of Turkey. In 2016, it contributed to a $155 million multi-currency co-financing transaction for the Turkish bank.

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