KUWAIT CITY: Kuwait Finance House (KFH), the country’s biggest Islamic lender, reported a 20.5 percent rise in third-quarter net profit according to a statement on Wednesday, as income from finance, investments and fees rose and expenses dipped.
Net profit rose to 52.3 million dinars ($172.9 million) in the three months to Sept. 30, from 43.4 million dinars in the same period a year ago, the statement said.
EFG Hermes forecast the lender would make a quarterly net profit of 33.8 million dinars, while HSBC had estimated a net profit of 64.0 million dinars.
It is the second major Kuwaiti bank to report earnings this quarter after National Bank of Kuwait, which also posted a profit rise. The positive results contrast with a generally gloomier set of numbers for banks elsewhere in the Gulf as low oil prices drag on deposit growth and push up problem loans.
Still, in a sign that economic conditions might be having some impact on KFH, it reported an 18.3 percent increase in provisions and impairments.
During the quarter, finance income rose to 199.4 million dinars, up from 176.6 million in the earlier period. Investment income edged up to 14.4 million dinars, compared to 9.9 million dinars in the corresponding period of last year. Fee and commission income reached 22.7 million dinars, from 21.3 million dinars in the earlier period.
The bank’s total expenses dropped 6.1 percent over the period, it said, without providing more details.
