Mubasher: Arzan Financial Group for Financing and Investment has set up precautionary provisions worth KWD 1 million on cash and semi cash balances for banks working with its subsidiary in Lebanon.

The decision aims to absorb any credit losses resulting from the banks’ inability to repay part of the depositors’ balances, according to a disclosure to Boursa Kuwait on Monday.

The transaction will cut Arzan Financial’s assets and profits by KWD 1 million, each, to reflect on the financial statements for the period ending on 31 December 2019.

It is noteworthy that during the first nine months of 2019, Arzan Financial registered KWD 3.95 million worth of net profit, 56.1% higher than KWD 2.53 million in the corresponding period a year earlier.