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2 years ago
Kuwait Finance House posts 13.7 pct Q2 profit gain, misses estimates
July 14, 2015 / 3:50 PM / 2 years ago

Kuwait Finance House posts 13.7 pct Q2 profit gain, misses estimates

* Q2 profit 32.4 mln dinars vs 28.5 mln dinars yr-ago - Reuters

* H1 profit up 14.1 pct y-o-y - statement

* Benefits from higher net interest income, restructurings

* Further profit gains from restructurings to be booked - chairman

DUBAI, July 14 (Reuters) - Kuwait Finance House (KFH), the Gulf state's biggest Islamic lender, reported a 13.7 percent jump in second quarter net profit on Tuesday, according to Reuters calculations from the company's data, but missed analysts' forecasts.

Net profit rose to 32.4 million dinars ($107.2 million) in the three months to June 30, from 28.5 million dinars in the same period a year ago, Reuters calculated as the bank did not provide quarterly results breakdown in an earnings statement.

Four analysts polled by Reuters had forecast, on average, a quarterly profit of 35.7 million dinars.

Still, the result continued the positive earnings season for Kuwaiti lenders, with National Bank of Kuwait and Gulf Bank also reporting strong profit growth on Tuesday.

KFH made a net profit of 62.3 million dinars in the first half of 2015, up 14.1 percent on the corresponding period of last year, it said in a statement.

Its half-year performance was aided by a 15 percent increase in net interest income -- which covers traditional banking activities such as lending -- to 186.8 million dinars, as well as benefits accrued from restructuring debts with customers.

Kuwait's banks were hit by a wave of bad loans in the wake of the global financial crisis and many have taken years to be addressed due to opaque insolvency laws in the Gulf Arab state.

KFH Chairman Hamad Abdulmohsen al-Marzouq said in the statement that "several" facilities had been restructured and had achieved profits for the bank, with some of these gains booked in the first half of the year and others to be added in coming periods.

KFH is going through a major restructuring of its activities, which could see its Malaysian unit and some of its properties sold. It aims for a leaner structure ahead of a planned divestment by its largest shareholder, the Kuwait Investment Authority. ($1 = 0.3022 Kuwaiti dinars) (Reporting by David French; Editing by Susan Fenton)

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