7th APRIL 2015 - Vol.XXXVIII No.018
Business News

KFH rules out raising capital

KUWAIT CITY: Kuwait Finance House (KFH), the Gulf state's biggest Islamic lender, is not considering a capital increase "for the time being", its chief executive said.

Four Kuwaiti banks including National Bank of Kuwait (NBK), the country's biggest lender, had said they plan to raise their capital.

Last month, NBK said it planned a hike by 10 per cent before the end of the year to fund expansion.

"Increasing capital is not on the table for the time being," Mohammad Al Omar told CNBC Arabia.

"The decision of (whether to) increase or not depends on several factors including capital adequacy ratio and stress tests," he said

He added that during last year the lender's average capital was 15.21pc.

Earlier this week, KFH swung to a fourth-quarter net profit of 12.3 million Kuwaiti dinars ($42.83m), after a net loss of 63.7 million in the year-earlier period.

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