KUALA LUMPUR, Nov 19 (Bernama) -- Bursa Malaysia gave up earlier gains to end mixed today, amid a higher regional market showing, as property, construction, and healthcare counters attracted buying interests, while plantation, banking, and telecommunication stocks saw some profit-taking, an analyst said. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) eased 1.70 points to close at 1,602.34 from yesterday’s close of 1,604.04. The benchmark index, which opened 0.86 of-a-point lower at 1,603.18, moved between 1,601.02 and 1,608.88 during the trading session. However, the broader market was mixed to higher, with gainers leading decliners by 565 to 438 while 502 counters remained unchanged, 961 untraded, and 14 suspended. Turnover narrowed to 2.83 billion units valued at RM2.08 billion versus 2.96 billion units valued at RM2.23 billion yesterday. Rakuten Trade Sdn Bhd equity research vice-president Thong Pak Leng said the benchmark index remained range-bound and it required a dec
Kuwait Finance House (Malaysia) Bhd (KFH Malaysia), the first foreign Islamic lender in the country, is planning to exit Malaysia after nearly two decades of operations, according to industry sources.
Strategic Refocus
“It is exiting to focus entirely on the Middle East,” an industry source said.
KFH Malaysia is wholly owned by Kuwait Finance House, the largest bank in Kuwait and the second-largest Islamic bank globally. Earlier this year, Kuwait Finance House merged with Ahli United Bank of Kuwait.
Limited Presence in Asia
Apart from Malaysia, Kuwait Finance House does not have a presence elsewhere in Asia. The group was not immediately available for comment.
KFH Malaysia is one of only two remaining stand-alone foreign Islamic banks in the country, the other being Al Rajhi Banking & Investment Corp (Malaysia) Bhd. The bank has faced challenges in gaining market share in Malaysia's competitive market since its establishment in August 2005. Currently, there are 17 Islamic lenders in Malaysia, of which six are foreign.
Financial Performance
According to the latest financial filing on its website for the first nine months ended Sept 30, 2023 (9MFY2023), KFH Malaysia’s total assets stood at RM7.46 billion, down from RM10.79 billion in FY2016.
The bank's 9MFY2023 net profit dipped to RM42.33 million from RM45.04 million for the same period a year earlier, though operating revenue improved to RM270.88 million from RM261 million. In FY2022, net profit rose to RM78.1 million from RM73.69 million in FY2021. It reported net losses of RM12.78 million in FY2020 and RM80.97 million in FY2019.
As of Sept 30 last year, KFH Malaysia's gross financing book stood at RM3.75 billion, with most of it in residential, personal use, and working capital financing.
Leadership Changes
KFH Malaysia's chief executive officer Mohd Hazran Abd Hadi recently left the bank to pursue “personal endeavours,” The Edge Malaysia weekly reported in early June. The bank appointed Ida Aizun Husin, its senior vice-president of corporate banking, as the acting CEO.
This move marks a significant shift in KFH’s strategic focus, reinforcing its commitment to the Middle East market while exiting a highly competitive Islamic banking sector in Malaysia.
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