Quarterly profit at Kuwait Finance House (KFH), the Gulf state's biggest Islamic lender, fell 29.2 percent, missing analysts' forecasts.   

The lender made 8.7 million dinars ($31.13 million) in the three months to December 31, Reuters calculated, compared with 12.3 million dinars in the prior-year period.

Two analysts polled by Reuters had estimated an average fourth-quarter profit of 36.4 million dinars.

Reuters calculated fourth-quarter earnings figures from previous financial statements. KFH reported a full-year net profit of 106 million dinars on Sunday, compared with 118.7 million dinars in 2009, it said in a statement to Kuwait bourse.

Nine-month net profit to Sept. 30 stood at 97.3 million dinars. The board recommended to pay a 20 percent dividend and plans to distribute 8 free shares for every 100 held, the statement said.

The board recommended granting shareholders cash dividends of 20 per cent, and bonus shares of 8 per cent subject to the approval of the regulatory authorities and the general assembly, said Kuwait Finance House-Group (KFH-Group) chairman and managing director Bader Al-Mukhaizeem.

Al-Mukhaizeem said the bank’s success is a result of operational optimisation strategy. The bank also focused on deploying the latest technology, he said.

He stated that KFH-Group is in an expansion mode, where its global branches reached 220 branches playing a prominent role in cementing economic and trade relationships between the countries that they operate in, and Kuwait and the GCC.

Shares in KFH ended 1.7 percent higher on Sunday prior to the results. - Reuters and TradeArabia News Service