Kuwait Finance House Reports KWD 363.1 Million Net Profit Attributable to Shareholders

Hamad Al-Marzouq, Chairman of the Board at Kuwait Finance House (KFH), announced that the bank achieved net profit attributable to shareholders of 363.1 million Kuwaiti dinars for the first half of 2026, representing a growth rate of 6.1% compared to the same period last year. Earnings per share reached 18.86 fils for the first half of 2026, up 4.9% from the corresponding period last year.

Net financing revenues rose to 649.4 million dinars in the first half of 2026, a 6.9% increase compared to the same period last year. Total operating income, supported by growth across all main activities, reached 990.5 million dinars, reflecting a 9.9% growth compared to the same period last year. Thanks to expense control and cost rationalization, total operating expenses decreased by 2.1% compared to the same period last year. Consequently, net operating income rose to 687.9 million dinars, achieving a growth rate of 16.2%.

As a result of the increase in total operating income and the decrease in total operating expenses, the cost-to-income ratio improved to 30.6% during the current period, down from 34.3% in the corresponding period last year. Financing receivables stood at approximately 22.8 billion dinars at the end of the first half of 2026, a 11.5% increase compared to the end of the first half of the previous year. Total assets reached 42.2 billion dinars at the end of the first half of 2026, up 9.7% compared to the end of the first half of the previous year.

Total shareholders’ equity for the first half of the current year reached 5.8 billion dinars, a 4.2% increase compared to the end of the first half of the previous year. Customer account balances stood at 21.6 billion dinars for the first half, up 9.4% compared to the end of the first half of the previous year. The capital adequacy ratio reached 17.47%, exceeding regulatory requirements, reflecting the strength of the bank’s capital base. The Board of Directors recommended a semi-annual cash dividend to shareholders of 10 fils per share.

Mr. Al-Marzouq stated that KFH renewed confidence among its shareholders and clients by continuing to achieve the highest profits in the banking sector and capturing the largest share of total Kuwaiti market profits. This underscores the success of efforts to maximize asset utilization, improve resource deployment efficiency, and adhere to approved strategies and plans to ensure sustainable growth and profitability, while strengthening the Group’s financial position. He noted that continuing to distribute interim cash dividends provides liquidity to shareholders, enhances the attractiveness of the stock, and strengthens confidence in the bank.

He added: “Despite the challenges posed by recent geopolitical developments at both the regional and global levels, and the resulting economic and financial pressures, the results of the first half of this year have demonstrated KFH’s resilience and its high capacity for efficient and prudent risk management. They have also confirmed the strength of its capital base, comfortable liquidity levels, and strong operational performance, which contributed to sustained growth across most key financial indicators and balance sheet items.”

Mr. Al-Marzouq emphasized that KFH’s strategy is not limited to profit generation but focuses on building long-term sustainable value for customers, shareholders, and society through investment in digital transformation, human capital development, and the enhancement of services and products to meet customer aspirations and market needs.

He stated that KFH continues its role in supporting the national economy, noting that the corporate banking sector continued to contribute to growth through local and cross-border business, while enhancing services via digital platforms to boost operational efficiency. Meanwhile, the retail banking sector recorded strong performance across various services and products, reflecting the bank’s ability to quickly adapt to economic changes and the strength of its strategy based on trust, flexibility, and clear vision.

He expressed confidence that the bank’s strong governance, long-term strategic vision, and commitment to responsible growth qualify it to maintain leading positions and continue delivering sustainable value to all stakeholders.

Mr. Al-Marzouq highlighted that KFH has taken significant steps in corporate social responsibility, in cooperation with official entities to support the state’s development plans and contribute to community development. He commended the strategic initiative, in collaboration with the Ministry of Justice, to settle the debts of indebted citizens, noting that total contributions in this area reached approximately 61 million dinars since 2019. The bank also participated, in cooperation with the Ministry of Higher Education and Scientific Research, in the national external scholarship campaign “Wajehni” (Direct Me), and joined the “A Nation Protects You” campaign to protect youth and raise awareness about the dangers of drugs, in collaboration with the Ministries of Interior, Social Affairs, Justice, and Health. Additionally, it signed a memorandum of understanding with the Ministry of Social Affairs to enhance sustainable community and developmental partnerships.

KFH’s community leadership and exceptional efforts resulted in winning the “Best Islamic Bank for Social Responsibility in the World 2026” award from Global Finance magazine.

For his part, Khalid Al-Shamlan, CEO of the KFH Group, stated that the bank continued to achieve exceptional performance in the first half of 2026, recording growth in operating income, profits, financing, and deposits, alongside an improvement in asset quality. He added that the bank recorded growth across all its main business segments compared to the same period last year, reflecting high operational efficiency and confirming its success in implementing its strategy and achieving its set objectives.

He noted that the bank maintained sustainable growth by leveraging the strength and flexibility of its business model, while maintaining strong capitalization levels and continuing to record the highest net profit margins in the Kuwaiti banking sector. He highlighted the bank’s distinction in adopting technology and digital transformation in banking services and operational activities, integrating sustainability into all its processes, and continuing its efforts for continuous service development, which helped expand its customer base, keep pace with their aspirations, and maintain their trust.

Mr. Al-Shamlan affirmed that the bank continued to strengthen its credit capabilities, driven by its pivotal role in providing necessary financing to support the growth of the national economy and the economies of countries where the Group operates. This includes continuing to finance major development projects and small and medium-sized enterprises (SMEs), benefiting from the synergy of the Group’s operations spread across approximately 10 countries, with a branch network exceeding 600 branches. He added that this reflects growing customer confidence, contributes to diversifying revenue sources, and enhances financial sustainability.

He stressed the continuation of efforts to maintain integrated performance across all business segments and to deal efficiently and flexibly with market changes, thereby strengthening KFH’s position as a trusted financial partner. Mr. Al-Shamlan pointed out that the bank ranked first in Kuwait and twelfth regionally on Forbes’ list of the top 100 public companies by market capitalization. It also ranked among the top five banks in the Middle East and Africa by market capitalization, which reached $44.69 billion at the end of the first quarter of 2026, according to analysis by S&P Global Market Intelligence. Notably, it was the only financial institution from Kuwait to join the list of the top five banks in the region.

**An Integrated Model for Digital Transformation**

Mr. Al-Shamlan clarified that KFH continues to invest in developing its digital capabilities to improve customer experience, enhance performance efficiency, and reduce operational risks. He noted that KFH succeeded in establishing digital services as a primary banking option for customers, by processing over 600 million digital transactions in one year and providing more than 200 integrated digital services via KFHonline. He explained that the bank presented an integrated digital transformation model based on strategic vision, customer needs, and tangible operational results.

**Global Awards**

Mr. Al-Shamlan noted that KFH won more than 25 awards and rankings during the first half of the current year, recognizing its excellence in all areas of banking operations. These include the “Best Islamic Bank in the World” award from Global Finance, “Best Digital Bank in Kuwait” from MEED, “Best Private Banking Services Bank” from Euromoney, and “Best Islamic Bank for Corporate Banking Services in the World” from Global Finance, among many other global recognitions that reflect the bank’s leading global status.