The Commercial Bank reports net profits of 62.3 million Kuwaiti dinars for the first half

Kuwait Finance House announced net profits of KD 62.3 million for the first half ended June 30, 2026, compared to KD 60.4 million for the corresponding period in 2025. Earnings per share stood at 31.6 fils, up from 30.6 fils in the same period of 2025, with an interim cash dividend of 12 fils per share distributed.

Regarding key financial indicators for the period ended June 30, 2026, operating profits before provisions rose by 1.1% to KD 60.9 million, compared to KD 60.3 million in the same period of 2025. Net profits attributable to shareholders increased by 3.2% to KD 62.3 million, up from KD 60.4 million in the corresponding 2025 period. Net interest income grew by 2% to KD 61.2 million, compared to KD 60 million in the same period of 2025, while fee and commission income rose by 10.6% to KD 26.9 million, compared to KD 24.3 million in the same period of 2025.

Total assets increased by 7.9% to KD 5.241 billion, compared to KD 4.859 billion in the same period of 2025. Loans and advances rose by 6.3% to KD 2.969 billion, compared to KD 2.791 billion in the same period of 2025.

Sheikh Ahmed Al-Duwaikh, Chairman of the Board of Directors of Kuwait Finance House, presented the bank’s results for the first half of 2026, noting that net profits of KD 62.3 million reflect an increase of KD 1.9 million, or 3.2% on a year-on-year basis. Operating profits before provisions rose by KD 0.6 million, or 1.1%, reflecting stable performance despite regional challenges, uncertainty, and unfavorable global economic conditions. This operational performance was driven by a loan portfolio growth of KD 177.1 million (6.3%) and a 10.6% increase in fee and commission income, which partially offset higher operating expenses and a decline in dividend income.

Regulatory Ratios

In response to the repercussions of geopolitical developments in the region, the Central Bank of Kuwait implemented a package of proactive stimulus measures aimed at strengthening the banking sector’s capacity to play its vital role in supporting the national economy. This package included, among other measures, easing prescribed credit limits, enhancing financing capabilities, and providing necessary liquidity to customers affected by the repercussions of the regional conflict. Notable measures included lowering capital adequacy ratio requirements, liquidity coverage ratios, and net stable funding ratio requirements.

Despite these relaxations, the bank’s regulatory ratios remained strong and healthy, comfortably exceeding the requirements set by the Central Bank of Kuwait. The capital adequacy ratio stood at 18%, the liquidity coverage ratio at 221.7%, the net stable funding ratio at 107.9%, and the leverage ratio at 10.8%.

Performance Ratios and Metrics

Sheikh Ahmed Al-Duwaikh emphasized that the bank continues to achieve stable performance ratios despite geopolitical and economic challenges. The net interest margin reached 2.4% for the first half ended June 30, 2026, while the return on equity was 15.8% and the return on assets was 2.4%, reflecting management efficiency and strong operational performance. The bank’s cost-to-income ratio of 35.1% remains among the lowest in Kuwait.

Business Developments

Sheikh Ahmed Al-Duwaikh noted that the bank continues to achieve rapid and advanced milestones in its digital excellence journey, enhancing its digital platforms and launching innovative customer services, reflecting its commitment to providing a seamless and user-friendly digital banking experience. He highlighted key achievements during the period ended June 30, 2026, including the successful increase in the size of the multi-currency certificate of deposit program from USD 1 billion to USD 2 billion, reflecting the strong position of Kuwait Finance House in global capital markets and the high demand for its issuances under this program. Additionally, the bank expanded its self-service network by installing new self-service kiosks at several strategic locations in Kuwait. This initiative aligns with the bank’s commitment to enhancing the customer experience by facilitating access to basic banking services anywhere and anytime.

Customer Awareness

As part of its efforts to engage with the public and promote its banking offerings, Kuwait Finance House organized community outreach activities and events in various commercial and administrative complexes. These events served as a platform to introduce customers to the bank’s products and services and to raise awareness about the importance of safeguarding financial information, thereby enhancing financial literacy across different segments of society.

Furthermore, the bank continues to develop its electronic channels to raise awareness about cybersecurity. Through public engagement, the bank educates customers on the importance of protecting their banking information and being cautious of potential fraud attempts, as part of the “Let’s Be Aware” campaign. The campaign also aims to inform customers about various types of fraud and cybercrimes, as well as different patterns of phishing attempts targeting customers via email, text messages, phone calls, and various applications.

Efforts in Sustainability and Corporate Social Responsibility

During the period ended June 30, 2026, the Bank supported numerous community initiatives, including, but not limited to, the “Zahrat Al-Arfaj” campaign, launched to honor the efforts of frontline workers and embody the values of generosity and solidarity that characterize Kuwaiti society. The Bank also provided support and participated in the national campaign “The Kuwaiti Flag Above Every Home,” initiated by the Volunteer Work Center, with the aim of strengthening national belonging and reinforcing the symbolism of the Kuwaiti flag in the hearts of citizens and residents, in line with its firm commitment to social and national responsibility.

On another front, the Bank participated in the Kuwait Sustainability Exhibition, which focused on showcasing innovations related to a clean environment and raising awareness about environmental sustainability, including the latest electric and hybrid vehicles and sustainable consumer products available in the Kuwaiti market.

Acknowledgments and Appreciation

Sheikh Ahmed Al-Duwaikh concluded his remarks by praying to the Almighty to protect Kuwait from all harm and evil, and by extending his highest expressions of gratitude and appreciation to His Highness the Amir Sheikh Meshal Al-Ahmad Al-Jaber Al-Sabah and His Highness the Crown Prince Sheikh Sabah Khaled Al-Hamad Al-Sabah for their wise leadership, sound guidance, and far-sighted vision in safeguarding Kuwait’s safety and security amid these critical circumstances and developments. He extended his greetings and appreciation to Kuwait’s heroes on the front lines for their dedication in protecting the nation, and also expressed his thanks to the Central Bank of Kuwait and other regulatory authorities for their support, guidance, and backing of the banking sector. He thanked the Bank’s customers for choosing Commercial Bank as their provider of banking services, and conveyed his appreciation to the Bank’s shareholders, the executive management, and all employees for their unwavering dedication to their work under all circumstances, ensuring that Commercial Bank remains the preferred choice for customers.