KUWAIT CITY: Kuwait Finance House, the emirate's leading Islamic bank, said Sunday its net profit in the first quarter slumped 26.9 percent on year as the lender made more precautionary provisions.
KFH posted 22.6 million dinars ($81.6 lion) in net profit in the first three months of this year compared with 30.9 million dinars ($111.6 million) in the same period of 2010, the bank said in a statement.
The drop in net income came despite increases in revenues, assets and deposits.
"The achieved profits reflect the conservative policy that aims to reinforce precautionary provisions while taking into consideration the unfolding events that occur in countries that have an impact on the global economy," chairman Sameer al-Nafisi said.
The provisions are made by banks against bad loans.
The bank's profits dropped 10.7 percent in 2010 for the third year in a row due to the impact of the global financial crisis.
KFH said its assets on March 31 increased nine percent to $46 billion, from $42 billion a year ago.
Comments
Comments are closed for this article.