Kuwait Finance House issued "Dollar Card"

Kuwait Finance House (KFH), the best Islamic Bank in the World, announced the launching of the KFH Dollar Card for its customers as a convenient method for purchasing products in US Dollars abroad or online.
On his part, Mohammed Al-Fouzan AGM of the Banking Sector said in a press release that the KFH Dollar Card brings clients the Platinum Card lifestyle with exclusive travel privileges like Kuwait airport lounge access, and other global exclusive offers and discounts.
Fouzan explained that the Dollar Card give its holder an access to 500 Airport lounges through priority pass, secure online shopping with 3D Secure, noting that its accepted over 32 Million electronic Points of Sales and ATMs in Kuwait and around the world. Al Fouzan asserted that KFH is always eager to grant its clients privileges that they can take advantage of in Kuwait and overseas. Moreover, the Dollar card gets  the holder  special privileges at Fairmont Heliopolis, Cairo, 20% off food and beverages some restaurants; in addition to exclusive accommodation offers, such as  free night when booking using the card. This entitles the client to two free nights at participating Starwood hotels in Europe, Middle East and Africa.
This card gives also an easy access to the card holder to reach his US dollar funds, whenever he is around the world, reduces the risk of carrying cash when travelling and enjoys a high credit limit ranging from USD 5000 to USD 20,000.
It is worth noting that any KFH Customer, who has a US dollar account in KFH that has been active for the last three months, is eligible to issue the Dollar Card against a USD deposit or against a KWD salary.  The card is valid for three years. Once the term is expired, it has to be renewed annually and the renewed card will be couriered to the client.
Al-Fouzan stated that KFH will continue adopting its policy that aims to attract new client segments through offering them innovative products that meet their requirements.

KFH Online Service is now available on iPad

KFH’s first - Economist Intelligence Unit Report : The Sharia-Conscious Consumer: Driving Demand

An Economist Intelligence Unit report commissioned by Kuwait Finance House, seeks to determine the factors that have an impact on the appetite for a broad range of Sharia-compliant products and services. It assesses the growing Muslim consumer market, consumption patterns across regions and the implications for business. The Economist Intelligence Unit bears sole responsibility for the content of this report. The findings and views expressed in this report do not necessarily reflect the views of Kuwait Finance House. The report was written by Nigel Gibson and edited by Trevor McFarlane.

The Report says:

"Ignore the Sharia-conscious consumer at your peril. With the world’s Muslim population now at around 1.8 billion and rising, few in business can turn their back on such a demographic. Since more than 50% of Muslims worldwide are under the age of 25 and, together, account for more than 10% of the world’s population, the prospects for the future look remarkably bright. From food and Islamic finance, the industry is spreading its wings into pharmaceuticals, fashion and tourism, among many other areas. But given the global nature of the business, the industry will grow at varying speeds in different regions, while certain segments will garner more attention than others."

The principal findings of the survey and a series of interviews with senior experts were included.

For downloading the full report click here

KFH launches promotion campaign for KFH Visa Card holders

 

Kuwait Finance House (KFH) launched a promotion campaign to encourage clients to use their credit and ATM machine cards while making purchases in Kuwait and overseas during the summer travelling season, which entitles them to win prizes.

Banking Cards Deputy Department Manager Salem Al-Dowaisan stated that cash awards are up to $90,000, and that the campaign expires at the end of July.

He added that the campaign entitles KFH clients to refund the value of their purchases up to $7,500 every week for every KD the client spends using KFH Visa and prepaid cards.

He explained that for every KD 10 the client spends overseas, he is entitled to have three opportunities to win, but if the purchase in made in Kuwait, the client will only have one opportunity.

He went on to say that KFH seeks to reward its clients who have credit cards; especially that KFH also cements its status and market share in this field that witnesses fierce competition.

Moreover, he said that the new promotion campaign plays a role in underlining KFH's principles that include boosting sales, benefitting clients and merchants, and encouraging clients to use their cards instead of cash. The revealed that the campaign is launched during the summer holidays, since it is a travelling season for most citizens he asserted that KFH's continuous campaigns all year seek to serve KFH's clients, the local market, and the banking sector.

He mentioned that further exclusive promotions and offers will be made, which reflects the trust that clients have in KFH, its products, and it's advanced banking services. He noted that such offers meet the requirements of clients who seek better privileges, products, and services.

Started issuing Smart Civil ID card for expatriates in Kuwait

The General Authority for Civil Information, Kuwait has begun issuing Smart Civil ID for expatriates living in Kuwait, with effect from on Sunday, 29/4/2012.

The new model for the smart card is a plastic card mounted with an electronic chip (CHIP) can store a lot of data and information to be used in multiple applications, as characterized by this card specifications of high security and the same technical specifications and formal for the smart card for citizens with a difference in color only, which makes it secure against manipulation or fraud.

This, the Authority will follow the gradient method in the issuance of the civil ID of the smart arrivals were given as primary replacement for the citizens of the Gulf Cooperation Council and the staff of the ministries and government bodies, and then in successive stages issued to other segments of arrivals by length of stay.

Burgan Bank Group reports KD 17.5 million 1Q2012 net profit, 48 % growth

Burgan Bank Group reported Wednesday 17.5 million Kuwaiti dinars net profits for the first quarter of 2012 (growth of 48 percent), compared to KD 11.8 million for the same period in 2011. Earnings per share increased to 11.9 Kuwaiti fils compared to 7.8 fils for the same period in 2011. This was announced in a press release on Wednesday.

Revenues has reached to KD 42.6 million reflecting a growth of 10 percent from KD 38.8 million reported in the first quarter of 2011. Operating profit grew by 15 percent to reach KD 26.6 million compared to KD 23 million for the same period in 2011. Customers' deposits grew to KD 3,040 million, a 19% increase from 1Q 2011, while loans grew by seven percent reaching KD 2,406 million.

The consolidated financials include the results of the group's operations in Kuwait as well as its subsidiaries, namely Jordan Kuwait Bank, Gulf Bank Algeria, Bank of Baghdad, Tunis International Bank, in which Burgan Bank has a majority stake. During the first quarter of 2012, the subsidiaries have demonstrated a steady growth path and maintained profitability. 

Majed Essa Al-Ajeel, Chairman of Burgan Bank Group said, "We are pleased with our results during the first quarter of the year. Our financial performance continues to be solid, and the Group demonstrates a consistent growth trend across its operations despite the slow economic growth in the region".

"Burgan Bank Group's conservative strategy, prudent risk approach, and sustainable financial performance helped maintain the group's overall position locally as well as regionally. The group announced earlier that it has entered into an agreement with Eurobank EFG to acquire a 99.26 percent stake in Eurobank Tekfen, Turkey. The final execution of the transaction is subject to regulatory approvals from Central Bank of Kuwait ("CBK") and Turkey's Banking Regulation and Supervision Agency (BRSA). The value of this transaction reflects a clear strategic approach, where Burgan Bank Group acquired an existing and leading banking platform that enjoys an extensive network of 60 branches across vibrant areas in Turkey, with a total price that equates to the cost of obtaining a license for an initial operational start-up," added Al-Ajeel.

During the first quarter of 2012, Global Banking & Finance Review recognized Burgan Bank on two levels, the 'Best Banking Group in MENA', where its turnaround performance and delivery of sound results across its operations were acknowledged, and the 'Best Corporate Bank in Kuwait', in which the Kuwait operations Corporate Banking Group's superior performance and commitment of maintaining exceptional growth levels by financing a range of projects in diversified industry sectors were realized.

"On behalf of the board, I take this opportunity to thank our customers and shareholders for their confidence in our capabilities. Also to thank our executive management team for their leadership and the excellent execution of the corporate strategy, and to our staff for their continued support and commitment," concluded Al-Ajeel.

KFH launched Summer Holiday Promotion Campaign with MasterCard

Kuwait Finance House (KFH) announced that it launched a promotion campaign for its banking cards that entitles its clients to win a trip to Switzerland or Malaysia for every certain purchase using KFH Master Card in Kuwait or overseas, in addition to using ATM cards overseas only.

Deputy Banking Cards Department Manager Salem Al-Doweisan mentioned that the promotion began on April 25th and ends July 18th.

He added that this campaign comes as part of KFH efforts to offer its clients unique promotions. For every KD10 spend with KFH MasterCard will get one monthly chance to win a holiday trip of 2 person to Switzerland and one weekly chance to win a holiday trip of 2 person to Malaysia.  

Such offers increase the benefits that clients receive from using their banking cars, which cements the bank's existence and increases its market share in this field.

He went on to say that the campaign plays a role in boosting sales and is beneficial for clients and dealers. The campaign also reinforces the concept of using banking cards instead of cash money to avoid danger.

He said that the campaign was timed during the summer season, since many families travel during that period to several destinations, including Switzerland and Malaysia.

He noted that there will be a weekly draw to choose clients who will win a trip for two people to Malaysia. The trip includes a business class ticket and four nights in a luxurious hotel including breakfast, in addition to transportation from the airport to the hotel and back. There will also be a monthly draw to select two people to travel to Switzerland to spend five days in Geneva.

Moreover, Al-Doweisan asserted that such promotions seek to serve clients, the local market, and the bank. He revealed that the bank will launch more exclusive promotions for its clients, and said that the great success of previous promotions cements the fact that KFH offers the best services and promotions possible to its clients.

KFH organized the awards ceremony of the contest "your home for creativity journalist"

Under the patronage of Chief Executive Officer of Kuwait Finance House "KFH" Mohammed Al-Omar, organized the "home" ceremony to distribute prizes to the winners of the contest "your home for creativity journalist" at its third session in cooperation with the Kuwaiti Journalists Association, in the presence and attention of the media in various media.

The ceremony was attended by Director of Marketing and Public Relations Fahad Al Mukhaizeem, Deputy Director of Administration and happy compromise, and a number of bank officials and members of the Association of Journalists.

Opened the award ceremony speech in which he stressed the role of the local press at the present stage, in particular, stressing at the same time, the depth of the relationship between the "home" as a leading Kuwaiti newspapers and local media, pointing to the increased attention received by the "home" to honor outstanding journalists and media, which emphasizes the mutual appreciation between the two sides.

It also gave the Secretary of Journalists Association Faisal Qenae to talk, which he praised the initiative of the "home" which are unique among local banks, and aims to honor journalists and fuel the spirit of competition and encourages innovation journalist to continue the Kuwaiti press has maintained its reputation and its distinguished position at the regional level.

At the end of the concert have been distributed prizes to the winners in the various arts press.

Al Ahli Bank of Kuwait (ABK) records Net Profit of KD 11.4 million for 1Q2012

Al Ahli Bank of Kuwait (ABK) reported a net profit of KD11.4 million for the first quarter ended 31 March 2012 which is 30% drop compare to the same period last year. Earnings per share amounted to 8 fils with return on assets of 1.5 % and return equity of 9.4 %. Operating profits before provisions increased to KD22.8 million, up from KD19.7 million for the same period in 2011.

 Commenting on the financial results of the first quarter 2012, Ahmed Yousuf Al Behbehani, the Chairman of the Board, stated the following: “ABK managed to achieve profits in spite of the stressful conditions of the world economy, the debt crisis in the Euro Zone. The bank has taken more precautionary provisions to face any unexpected emergencies in the future.”

“The strong capital base and the Capital Adequacy Ratio of around 25% enhance the Bank’s ability to grow and expand its operations under the current market conditions. The Bank’s success in maintaining its credit ratings issued by the international credit rating agencies enhances the confidence in the strong capital position of the bank and its ability to tolerate risks and achieve profits”, added Behbehani.

The Bank periodically reviews and amends its strategy to cope with any exceptional, conditions and the prevailing economic conditions. It focused on minimizing risks across our business areas, improving operational efficiency and enhancing value for our shareholders and customers, providing high quality banking services, and employing high caliber banking staff to service ABK customers.

Regarding  the economic situations for  2012, Behbehani explained that:
“The economic conditions in the area are still difficult in the light of the political turmoil in some countries of the Middle East and the stressed economies in Euro zone. The situation may become more difficult, with the economic recession, volatility of markets, slow growth of world and regional economies. However, the effective risk management and tight control over the loan portfolio will minimize the risks and maintain the strong financial position of ABK and enhance its ability to achieve good profits for its shareholders”. He concluded his statement by expressing his hope to accelerate the launch of new development projects which will push forward the economy wheel to which everyone looking forward.

NBK reports net profit of KD 81($292) million for Q1 2012

National Bank of Kuwait (NBK), the largest Kuwaiti bank and the highest-rated in the Middle East, reported net profits of KD 81.0 million ($292 million) for the first quarter of 2012 compared with KD 80.8 million ($ 291 million) for the same period in 2011. First quarter 2012 net profits came 5.5% more of the fourth quarter of 2011. As of end of March 2012, NBK Group’s total assets reached KD 14.4 billion ($ 51.8 billion) up 3.5% compared to March 2011, while total shareholders’ equity increased by 5.5% year-on-year to KD 2.3 billion ($ 8.1 billion). Profitability indicators remained among the highest in the region with ROA of 2.33% and ROE of 15.0%. NBK’s net operating income continued to improve in the 1Q2012 reaching KD 133.7 million ($481.4 million).

Ibrahim Dabdoub, NBK’s Group Chief Executive Officer, said “NBK’s strong financial position underpins the bank’s ability to generate solid performance despite the challenging operating environment”. “Our focus on core banking operations in and outside Kuwait remained a differentiator as our regional operations delivered resilient performance and contributed to the strong profitability achieved in the first quarter. This along with the strengthening of Boubyan Bank’s (47.3% owned by NBK) market position and profitability continued to support NBK’s efforts to better diversify its income sources.” Dabdoub added.

Dabdoub also highlighted that NBK’s fundamental strengths, along with its clear strategic vision, robust risk management practices and sustainable financial performance helped the bank maintain its strong position through different crises and continued to earn it international recognition. In 2011, NBK maintained its top ranking among Middle Eastern banks and was named the “Best Bank in the Middle East” by Euromoney, The Banker and Global Finance magazines. Additionally, NBK moved 14 positions to rank 33 in Global Finance’s list of the 50 safest banks in the world.

NBK continues to enjoy the widest banking presence in Kuwait with 67 branches, which together with its growing international presence totals 176 branches worldwide. NBK’s international presence spans many of the world’s leading financial centers including London, Paris, Geneva, New York and Singapore, as well as China (Shanghai). Meanwhile, regional coverage extends to Lebanon, Jordan, Iraq, Egypt, Bahrain, Qatar, Saudi Arabia, the UAE, and Turkey. NBK continues to enjoy collectively the highest ratings among all banks in the Middle East from the three international rating agencies Moody’s, Fitch Ratings and Standard and Poor’s. The Bank’s ratings are supported by its high capitalization, prudent lending policies, and its disciplined approach to risk management, in addition to its highly recognized and very stable management team.

Kuwait posts budget surplus of KD 14.4 billion in 10 months for FY 2011-12

Kuwait's budget for the fiscal year (FY) 2011-2012, shows positive signs during the first ten months ended last January, as the surplus rose up to 14.4 billion Kuwaiti dinars, against a predicted deficit of about KD 6 billion, a particular economic report showed Friday.

The report, by Kuwait Finance House (KFH) Research, a research subsidiary of KFH a leader in Islamic Bank Middle East, pointed out that Kuwait posted revenues of KD 24.2 billion during the 10 months on the back of higher oil revenues, while spending still remains less than expected, with total spending in the first ten months of KD 9.8 billion, diminishing by more than half of the budget allocation of KD 19.4 billion.

"Kuwait's monthly budget surplus increased by 61.1 % year-on-year (YOY) to KD 1.2 billion in January 2012 (December 2011: KD1.6 billion) from KD 0.8 billion in January 2011 which translates to a provisional budget surplus of KD14.4bln in the first ten months of the fiscal year (FY) 2011-12," reads the report.

In terms of spending, for the first ten months of FY 2011-2012, budget expenditure totaled to KD 9.8 billion, which is still far below than the initial budget estimate of KD 19.4 billion for FY 2011-2012.

"Kuwait regularly projects a higher expenditure based on its prudent underestimation of oil prices but achieves lower expenditure. Nevertheless, total government expenditure rose by 50.1 percent y-o-y to KD 1.5 billion in January 2012 from KD 1.0 billion in January 2011 as the Kuwait government increased its social spending through direct transfers and hike in pensions and public sector wages, For instance, in March 2012, the Kuwait government announced a large rise in public sector wages while encouraging reduction on food prices. The official announcement suggested the government workers would receive a 25.0 percent hike and pensioners would receive 12.5 percent pension rise," said the report.

The report expected gross domestic product to remain strong in light of the surplus at an annual rate of 5.4 percent for the current year.

"Kuwait is in a stronger position to attain its fiscal target underpinned by high crude oil prices and increased oil production. Furthermore, the current international oil prices (100 US dollars per barrel) are well above the Kuwait's fiscal breakeven average price of $80 pb," it said.

Kuwait's crude oil productions remained high at 2.7 million barrels per day (bpd) in March 2012, and expect to bode well throughout 2012 as it begins to produce closer to its estimated capacity of 2.7 million bpd and as new fields come on stream. According to the Organization of the Petroleum Exporting Countries (OPEC), Kuwait's territorial boundaries contained an estimated 101.5 billion barrels of proven oil reserves, roughly seven percent of the world total. -KUNA- Al Watan Daily

Kuwait MPs okay death punishment for insulting God, Prophet Mohammed

Kuwait's parliament on Thursday (12/04/2012) provisionally passed amendments to the Gulf state's penal code demanding the death penalty for those who curse God, Islam's Prophet Mohammed (PBUH) or his wives.

Forty-six MPs, including cabinet ministers, voted for the key amendments that will come into effect only after another round of voting and government approval. The second and final vote will take place in two weeks.

Four Shiite MPs voted against the law, a pro-Shiite Sunni lawmaker refrained, while two MPs refused to vote.

Shiite MPs have demanded that the new amendments also put into effect the death penalty for anyone who curses their sect's 12 respected Imams, but the Sunni- dominated parliament discarded their requests.

The move to harden penalties for religious crimes came after authorities last month arrested a Shiite tweeter for allegedly cursing the Prophet Mohammed (PBUH), his wife and some companions.

The suspect, Hamad al-Naqi, is being in custody pending further interrogation and trial.

Sectarian tensions have burned in Kuwait between the Sunni majority and Shiites, who form about a third of the native population of 1.17 million, reflecting rising regional tensions between the two Islamic sects.

Burgan Bank acquired Eurobank Tekfen

Acquisition of an established banking platform in Turkey, a strategic growth market for Burgan Bank

Burgan Bank, one of Kuwait’s leading banks with a regional presence in Jordan, Iraq, Algeria and Tunisia, announced that it has entered into an agreement with Eurobank EFG to acquire a 99.26% stake in Eurobank Tekfen, Turkey. Under the terms of the SPA, Burgan Bank has agreed to acquire the stake for a consideration value of TRY641mn (KD99million) representing 0.98x based on September 30th 2011 shareholders’ equity.

In addition, Burgan Bank has also agreed to acquire an additional portfolio of Turkish loans from EFG amounting to EURO 214 million (KD78million). The total consideration will be funded fully from Burgan’s existing internal cash resources. The final execution of the transaction is subject to regulatory approvals from Central Bank of Kuwait (“CBK”) and Turkey’s Banking Regulation and Supervision Agency (“BRSA”).

Eurobank Tekfen was established in 1989 by Tekfen Group as an investment and finance bank. EFG acquired a 70% stake in the Bank in 2007 to further its regional presence. As at 30 September 2011, Eurobank Tekfen had total assets of TRY5,428mn(KD842million), net customer loans of TRY2,190mn (KD340million), customer deposits of TRY2,075mn (KD322million) and shareholders’ equity of TRY660mn (KD102million).The Bank has extensive geographic coverage within Turkey through its network of 60 branches.

The Turkish economy and banking sector have continued to demonstrate significant positive performance and resilience throughout the global financial crisis and offer opportunities for continued long term expansion. Turkey’s large, growing and young population, combined with strategic positioning between Europe and the Middle East offers strong potential for further economic growth in the medium-to-long term, with increasing business flows with the Middle East.

Citigroup Global Markets Limited acted as the exclusive financial advisor for Burgan Bank on this transaction