Fitch cuts Kuwait’s KFH, warns it may act again

Points of Essence:

• The giant of the Middle East is cooled down by a downgrade from Fitch.  Attributed by its heavy exposures to the Kuwaiti troubled investment companies as well as the political standoff in the state owned banking conglomerate had its impact on the future growth of the bank. Fitch is watching this development with great concern and thus warn for yet another rating cut. Reuters has the story.

KUWAIT, April 1 (Reuters) – Fitch Ratings has cut Kuwait Finance House (KFH), the country’s biggest Islamic lender, due to exposure to the Gulf Arab state’s troubled investment firms, it said on Wednesday.

The move is the latest cut by agencies for Kuwaiti lenders, mainly due to risks in having given loans to the troubled sector of investment firms, of which several have said they need fresh funds or have to sell assets to weather a financial crisis.

KFH Automall promotion Drives Sales Beyond Expectation

Points of Essence:

• Kuwait Finance House’s product “Automall” proved to be a hit where sales chalked up beyond 50%. This is to provide Islamic financing for cars.
  
• Apart from providing a car purchase facility under one roof, customers will get to enjoy freebies in the form of car registration, rust proofing, thermal tinting and mobile phones as well as a discount on insurance.

The KFH Automall promotion, ‘Automall gets you moving faster’, received a greater than expected response from the public, rocketing sales by over 50%. It achieved its aim of allowing the customers to buy affordable cars both easier and faster.

KFH Automall customers benefited from free car registration free rust proofing and free thermal tinting. In addition, customers also benefited from a discount on insurance and a free mobile handset.

Commenting on this success, Mr. Khalid Rafeea, Head of Banking Group at KFH-Bahrain, stated that “KFH-Bahrain’s strategy in designing all of its products and services in a way that suits the needs and capabilities of customers was clearly demonstrated by the large customer response during the campaign”.

Throughout the promotion, KFH was offering competitive financing rates, no down payment, same day approval and up to 7 years repayment periods.

Mr. Mazen Sater Deputy Head, Consumer Banking Group, added “Customers purchasing any vehicle from KFH Automall are assured of a quick and easy documentation and approval procedure, without the need for a guarantee or salary transfer”.

Situated in Sitra, KFH Automall is the Kingdom’s largest car showroom. The KFH Automall is a unique concept in selling automobiles and Auto-finance in the Kingdom. It provides a one-stop solution, which means you choose the car you desire, get the finance of your choice and drive away. All the services that you need when purchasing a vehicle are under one roof. This innovative solution propelled KFH-Bahrain as pioneers in reshaping the way people shop for cars.

For the convenience of customers, the KFH Automall showroom is open from Saturday through Thursday, from 8 am until 8 pm, thus allowing customers the opportunity to visit at their own convenience.

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About Kuwait Finance House, Bahrain
Kuwait Finance House, Bahrain is a leading provider of Islamic commercial and investment banking services. Established in 2002 as a wholly owned subsidiary of Kuwait Finance House (Kuwait) — an industry leader for more than 25 years — KFH-Bahrain specializes in developing and bringing to market the highest quality Islamically compliant banking and investment products, all of which are delivered by a staff of experienced and dedicated professionals with a deep understanding of the market and the customers we serve.

Source: http://www.albawaba.com