THE country's first foreign Islamic lender, Kuwait Finance House (Malaysia) Bhd (KFH), is planning to exit the country after 19 years of operation, according to The Edge.
Quoting an industry source, it stated that KFH is leaving to focus on the Middle East.
KFH Malaysia is wholly owned by its Middle Eastern shareholder, Kuwait Finance House, which is the largest bank in Kuwait and the second-largest Islamic bank in the world.
Earlier this year, Kuwait Finance House merged with Ahli United Bank of Kuwait.
Apart from Malaysia, KFH does not have a presence elsewhere in Asia.
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.
Since beginning operations in August 2005, KFH has struggled to gain market share in an increasingly competitive market.
According to The Edge, there are currently 17 Islamic lenders in Malaysia, of which six are foreign.
The latest financial filing on its website for the first nine months ended 30 September 2023 (9MFY2023) revealed that KFH Malaysia’s total assets stood at RM7.46 billion, having dwindled from RM10.79 billion in FY2016.
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. – July 31, 2024.
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