This is concerning, so why is Kuwait Finance walking away?
Kuwait Finance House KSCP has announced its decision to voluntarily withdraw from the Malaysian market and wind down Kuwait Finance House (Malaysia) Bhd (KFHMB) after 19 years of successful operation.
This strategic move follows the group’s recent international business review, which revealed a focus on expanding within regional markets, particularly the Gulf Cooperation Council (GCC) countries and the broader Middle East region.
Moreover, in a statement released today, the group emphasised that this decision aligns with its new strategic direction. Acting CEO Ida Aizun Husin assured stakeholders that KFHMB remains profitable and solvent, underscoring that the transition is being approached with a solid financial foundation.
To facilitate this transition, KFHMB is also considering the sale of certain portfolio segments to potential buyers, with all transactions subject to regulatory approvals. The group stressed that the entire process will be conducted in strict adherence to Malaysia’s regulatory frameworks and shariah principles, ensuring full compliance throughout.
On top of that, KFHMB has pledged to keep all relevant parties informed about significant developments during this transition. The group extended its gratitude to the Malaysian government and various regulatory bodies for their unwavering support and expressed a desire to maintain strong relationships as they navigate this change.
Founded on 8 May 2005, KFHMB was the first foreign Islamic bank to receive a licence under the Islamic Banking Act (Malaysia) 1983, commencing its branch operations on 8 August 2005. Despite the upcoming exit, KFHMB has reported strong financial performance.
For the financial year ending 31 December 2023, the bank achieved a profit before tax of RM88.1 million, marking a 22.7 percent improvement over the previous year. Revenue also saw an increase, reaching RM371.6 million, compared to RM364.9 million in 2022.
Additionally, KFHMB’s total assets expanded significantly, growing to RM7.6 billion from RM7.1 billion in 2022. Net assets per share increased by 5.08 percent, rising to RM1.24 billion from RM1.18 billion. The bank’s liquidity position remained exceptionally strong, with liquid assets totaling RM3.9 billion at the end of 2023.
This robust liquidity reflects the bank’s prudent financial management and its strategic focus on maintaining a solid cash reserve. We got all this from Bernama and their full article is linked here. Thank you Bernama for the information and images.
