Country's biggest Islamic lender beats analyst estimates as it reports $119.9m profit
Kuwait Finance House (KFH), the country's biggest Islamic lender, has reported a 33 percent increase in third-quarter net profit, beating analyst estimates.
Net profit rose to KD33.7m ($119.9m) from KD25.3m in the same period a year ago, according to a statement carried by state news agency KUNA.
Four analysts in a Reuters survey had predicted a KD19.7m profit on average for the quarter.
For the first nine months of this year, net profit rose 7.2 percent to KD75.9m.
Bad loan provisions totalled KD149.3m in the nine months, a decrease of 3.8 percent compared to the same period last year.
Total assets increased to 14.2 billion dinars, up 6.3 percent from a year earlier, while deposits hit KD8.9bn, a 2 percent rise.
KFH said on Tuesday it had appointed veteran board member Mohammed Al-Khudairi as its new chairman, replacing Sameer al-Nafisi, who resigned.
Khudairi said in Wednesday's statement that the rise in profits reflected the success of the bank's conservative approach. He also said the bank was expanding efforts to link Gulf markets with those in Malaysia and Turkey, for example by offers Kuwaitis funding services to buy real estate in Turkey.
Like other Kuwaiti bankers, Khudairi called on the government to conduct spending "that is based on a clear plan with defined objectives".
Political tensions between the cabinet and parliament have for years complicated economic policy-making and held up industrial development plans.
The tensions have worsened in the past few weeks, with opposition figures accusing the government of trying to mount a constitutional coup by changing the electoral law ahead of polls on December 1.