KFH posts profit as revenues fall

Bucking the trend of massive bank losses occurring in the US and Europe, Kuwait Finance House KFH has posted a profit before charges for 2008, despite falling revenues.

The finance house's unaudited full-year net profit totalled KD157 million $542 million on revenues of KD884.9 million. Given the current economic environment, however, KFH said it would retain KD211 million as a provision.

After the KD211 million provision, KFH lost anywhere between KD48 million and KD54 million for the year. Full-year and fourth-quarter audited results have yet to be released.

We are already observing a significant fall in bank reserves, which account for the...