Kuwait Finance House (KFH) Invest Reports 3.6 Million KD Net Profit in Q2

Kuwait Finance House (KFH) Investment announced its financial results for the period ended June 30, 2026. The company reported net profits of KD 3.6 million (earnings per share: 10.57 fils) in the second quarter, compared to net profits of KD 5.9 million (earnings per share: 17.28 fils) during the same period last year. The strong performance in the second quarter offset losses recorded in the first quarter, enabling the company to return to profitability and close the first half of the year with a net profit of KD 0.3 million (earnings per share: one fils).

Despite ongoing geopolitical uncertainty, weak market sentiment, and slowing economic activity, the company achieved strong growth in fee and commission revenues during the second quarter, rising by 24% to KD 5.2 million, compared to KD 4.2 million in the same period of 2025. Fee and commission revenues for the first half of the year reached KD 8.5 million, up from KD 7.5 million in the corresponding period last year, representing a 14% growth.

Fee and commission revenues continued to be the company’s primary revenue source, accounting for 60.1% of total revenues in the second quarter and 82.8% in the first half of the year, underscoring the robustness and sustainability of its recurring revenue business model.

Conversely, the company continued to enhance its operational efficiency. General and administrative expenses decreased by 31.4% in the second quarter to KD 4.5 million, and fell by 16.5% in the first half of the year to KD 9.2 million, compared to the same periods last year.

The first half of the year witnessed a notable deterioration in the macroeconomic environment due to escalating regional tensions, which negatively impacted global trade flows and investor sentiment. Additionally, the temporary closure of the Strait of Hormuz, alongside broader challenges related to supply chains and logistics, heightened uncertainty regarding energy exports and economic growth prospects in the region.

Assets under management (AUM) reached USD 18.0 billion as of June 30, 2026, maintaining the company’s position among the top ten asset managers in the Middle East and North Africa (MENA) region. Furthermore, Middle East Forbes magazine ranked the company among the leading asset managers in the region for 2026, recognizing its impressive track record and deep expertise in delivering diverse investment solutions tailored to clients’ needs.

Commenting on the results, Sheikh Talal Ali Abdullah Al-Jaber Al-Sabah, Chairman of the Board, said: “The second quarter marked the company’s return to profitability, reflecting the resilience of our business model and its ability to navigate challenges despite a difficult operating environment. More importantly, the sustained growth in recurring fee and commission revenues underscores the quality and sustainability of our earnings, highlighting the strength of our core business and the high level of trust our clients place in our expertise.”

For his part, Faisal Sarrouh, Chief Executive Officer, stated: “We remain optimistic about the continued growth in fee and commission revenues, despite the challenges posed by the operating environment and slowing economic activity. This comes alongside our ongoing implementation of efficient cost-reduction programs, which contributed to a double-digit decline in operating expenses.”

Sarrouh added: “Looking ahead, we aim to further strengthen our strategic relationship with Bank of Kuwait and the Foreign (BWF) to expand our client base and offer a more comprehensive suite of integrated financial products and services. We will also continue to expand our partnerships with leading global asset managers to enhance our investment platform, provide high-quality investment opportunities, and deliver greater value to our clients.”