Mubasher: Kuwait Finance House Turkey (KFH-Turkey) holds a strong financial position as well as robust liquidity ratios in line with the regulatory requirements in Kuwait and Turkey as well as the international standard Basel III, KFH Group’s CEO Mazin Saad Al-Nahedh said in a statement on Thursday.
The liquidity coverage ratio (LCR) of the Turkish unit of Kuwait Finance House (KFH) stood at 323% based on the Central Bank of Kuwait’s (CBK) regulations as of the second quarter of 2019, compared to a minimum requirement of 100% and an average ratio of Turkish banks of 179%, Al-Nahedh noted.
In addition, the capital adequacy ratio (CAR) of KFH-Turkey registered 20.27%, surpassing the minimum requirement and the average ratio of Turkish banks that amounted to 17.7%, he remarked.
The largest Sharia-compliant bank in Turkey managed to build high quality assets on the back of its diversified and sizable financing portfolio that protected the bank against the volatility of Turkish Lira.
Moreover, KFH-Turkey came in the second lowest place in terms of non-performing financings (NPF) compared to 18 Turkish banks, registering a 128% coverage ratio of NPF, in comparison to an average ratio of 68% of Turkish banks.
As of Q2-19, financing to deposit ratio at KFH-Turkey amounted to 72%, lower than an average ratio of 117% at Turkish banks.
“All financial indicators of KFH-Turkey are far higher than the requirements of the regulatory authorities, indicating despite the drop in the Turkish Lira value, the bank is achieving sustained and solid growth ratios,” Al-Nahedh pointed out.
“The growth ratios cover all financial areas including financing portfolio, deposits, total assets as well as the profits,” he remarked.
During the first half of 2019, KFH-Turkey logged a net profit of TL 601 million, while the volume of its assets grew to TL 87 billion.
