KUWAIT CITY, Apr 26, 2012 (AFP) - Kuwait Finance House, the emirate's leading Islamic bank, said on Thursday its net profit in the first quarter of 2012 dropped 11.3 percent compared to the same period last year.
KFH posted a net profit of 20.1 million dinars ($72.1 million) in the first three months of this year compared to 22.6 million dinars ($81.3 million) in the same period of 2011, the bank said in a statement on the website of the bourse.
The drop in the first quarter profit came despite increases in assets and shareholders' equity.
KFH said its assets as on March 31 increased 11.2 percent to $51 billion from $45.9 billion a year ago and its shareholders' equity rose marginally to $4.57 billion from $4.53 billion a year ago.
Net income of KFH, one of the world's oldest Islamic banks, has been sliding since the global financial crisis strongly impacted some of its subsidiaries, especially local investment companies.
The bank's profits dropped in each of the past three years and that too in almost all quarters. Last year, KFH profit slumped 24 percent to 80 million dinars ($287.8 million).
Kuwaiti Islamic and conventional banks have been taking huge precautionary provisions against bad loans and this has severely cut into their net income.
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