Chairman of Kuwait Finance House (KFH) Hamad Abdulmohsen Al-Marzouq said that “KFH has, by the grace of Allah, realized a KD 38.6 million net profit for the first quarter of 2017 for KFH shareholders compared to KD 34.1 million for the same period last year i.e. an increase of 13.1%. Net finance revenues for Q1 this year reached KD 100.1 Million i.e. a growth of 3.1% compared to the same period last year. Total operating income for the first quarter of the year reached KD 168.6 million, i.e. a growth increase by 22.6% and net operating revenues reached KD 98.7 million, i.e. a growth of 55.6% compared to the same period last year. Total operating expenses for the period decreased by KD 4.2 million, i.e. a decrease of 5.7% over the same period last year. Earnings per share for the first quarter of 2017 reached 6.79 fils, compared to 6.01 fils for the same period last year i.e. an increase of 13%. Finance portfolio reached KD 8.461 billion i.e. an increase of KD 285 million or 3.5% compared to end of year 2016. Total deposits reached KD 10.914 billion i.e. an increase of KD 252 million or 2.4% compared to end of year 2016. Total assets reached KD 16.445 billion and Shareholders’ equity reached KD 1.751 billion at the end of the first quarter of 2017. In addition, KFH’s capital adequacy ratio (CAR) reached 17.96%, higher than the required limit of 15%, thus reiterating the strength of KFH financial position. Al-Marzouq added that the balanced performance is attributed to the efficient execution of the bank’s strategy by focusing on the core banking business while achieving stable and sustainable growth across the Group banks in various countries including Turkey, Bahrain, Malaysia, Germany, and others. This remarkable performance has been achieved through a set of successful strategic initiatives which were the cornerstone in reinforcing and supporting banking services at the group level. KFH, the pioneer in the industry of Islamic financial services, has attained a remarkable and well balanced performance through its prudent and flexible business model and efficient risk management methods, not to mention the business diversification and the ability to soundly deal with the economic challenges and regulatory requirements. KFH managed to structure its investment portfolio and improve its asset quality while continued its prudent policy in setting aside provisions in light of the economic uncertainty. This leads to improving the Capital Adequacy Ratio while strengthening the bank’s position. He illustrated that the economic challenges the Kuwaiti banking sector faces lie in the difficulty of expanding domestically due to the relatively small geographical area and the limitation of the local market. He pointed out that there are many options available to KFH to grow; through the global markets where the group operates or by penetrating new markets that add value to the Bank's operations. KFH continued its efforts in providing efficient solutions to the liquidity management through its various products. KFH-Group has realized total Sukuk trading volume amounting USD11.4bn. KFH has become a primary dealer and a global Sukuk market maker. KFH, through its investment arm KFH Capital, played an important role in arranging EQUATE Sukuk of USD500 million offering under the USD2bn issuance program. KFH participated in arranging USD250 million Sukuk for Warba bank. This reiterates KFH keenness to support the national economy. KFH arranged Sukuk issuance for Dubai Islamic Bank DIB and Hong Kong totaling USD2bn. Al-Marzouq affirmed KFH commitment towards supporting the country’s development plan, while contributing in bridging the budget deficit, indicating the Kuwaiti banking sector enjoys high levels of liquidity that allows it to finance the deficit in case it lasted for several years. He affirmed the continuing efforts of KFH in the wholesale banking, stressing the importance of strengthening ties with customers and improving the level of services. Accordingly, KFH has focused on banking services for SME sector in Kuwait. This sector is considered as one of the promising sectors comprising 24 thousand companies. Al-Marzouq welcomed the Central Bank of Kuwait CBK’s instructions and regulations regarding the role of Sharia Supervisory Boards in Islamic banks, including the latest instructions on Shariah Supervisory Governance for Kuwaiti Islamic Banks. Islamic Banks would be given until end 2017 to fulfill the requirements. This is in line with KFH keenness to comply with regulations, and applying the Sharia practices in all transactions in efforts to guarantee the glimmering reputation of the industry of Islamic financial services. Al-Marzouq stressed the importance of technology and innovation at KFH, noting that KFH has developed and upgraded its IT infrastructure, expanded banking solutions by using modern technology, introduced new digital banking services to customers along with other direct services provided through the extensive branch network covering over 65 branches in Kuwait, In addition to other service centers. KFH group has implemented several initiatives such as the relaunch of its website (kfh.com) which comprises several modifications and characteristics to appear in a new modern format. KFH introduced a multi-currency ATM machine at the airport branch. KFH started operating the largest network of ATM systems provided specially for the blind. KFH Innovation Center has also participated in reinforcing innovation and development at the group level. Launching new and innovative products and services is instrumental in increasing the market share, facing competition and achieving outstanding performance. KFH launched innovation competition for employees on the level of the Group. It developed new products in the field of car financing including operational and finance leasing products that are available at KFH car showrooms spread in Kuwait. The bank offers a wide range of deposits and investment plans that suit different customer segments with good returns and flexible tenures of distribution. He added that KFH Group is successfully achieving its goals based on the markets in which it operates. Every Group bank in Turkey, Malaysia, Bahrain and Germany is working in a way consistent with the nature of those markets, in line with the strategy of KFH. This adds more resilience to the Group banks that has extensive branch network covering 480 branches, In addition to around 1000 ATMs network spread worldwide. Also, this qualifies the Group banks to tap opportunities and utilize any positive development. He explained that KFH is looking forward to further growth in the operations of its units in the upcoming period, indicating that markets diversification is an advantage and a source of strength. KFH group received highly distinguished banking awards in different fields. The bank won 4 prestigious awards from Islamic Finance News Magazine (IFN), which are Best Islamic Bank in Kuwait, Syndicated Deal of the Year, Kuwait Deal of the Year, and US Deal of the Year. EmeaFinance Magazine awarded KFH Best Islamic Bank in Kuwait, Best local Bank and Best product launch awards. KFH won Institutional Excellence, and Best Social Awareness awards from Kuwait Public Relations Association. Also, KFH won two awards from the Organizational Learning Conference which are “Best Employer for Job Seekers” and “Best Job Stability Award”. Such awards recognize KFH efforts in attracting national manpower, and honing the skills of its human resources that are the most important asset at the bank. He reiterated KFH commitments towards moving forward in shouldering the social responsibility through supporting the activities of the youth and the participation in the health, education, environment and social activities. Al-Marzouq expressed his thanks and appreciation to all shareholders and clients for their support and confidence. He extended his thanks to the regulatory authorities. He hailed the efforts of KFH’s executive management and employees for their outstanding performance that yielded positive results that reflect the prestigious status of KFH; the world leading Islamic financial institution.