Kuwait Finance House Reports 523.4 Million KD Net Profit, Highest in Banking Sector

Hamad Abdulmohsen Al-Marzouq, Chairman of the Board at Kuwait Finance House, stated that the bank achieved net profits attributable to shareholders of 523.4 million Kuwaiti dinars through the end of the third quarter of 2026, representing a growth rate of 6.2% compared to the same period last year, marking the highest profits in the Kuwaiti banking sector. Earnings per share reached 27.56 fils through the end of the third quarter of 2026, up 5.4% compared to the same period last year. Net financing revenues rose to 989.5 million Kuwaiti dinars through the end of the third quarter of 2026, reflecting a growth rate of 4.8% compared to the corresponding period last year. Total operating revenues also increased through the end of the third quarter of 2026, supported by growth across all core activities, reaching 1.45 billion Kuwaiti dinars, a growth rate of 6.7% compared to the same period last year.

As a result of controlling expenses and rationalizing expenditures, total operating expenses decreased by 3.0% compared to the same period last year. Consequently, net operating income rose to KD 1 billion by the end of the third quarter of 2026, representing growth of 11.7%.

Driven by the increase in total operating income and the decline in total operating expenses, the cost-to-income ratio improved to 30.8% by the end of the third quarter of 2026, down from 33.9% during the corresponding period last year.

Financing receivables stood at approximately KD 23.4 billion by the end of the third quarter of 2026, reflecting growth of 7.5% compared to the end of the previous year. Total assets reached KD 43.8 billion by the end of the third quarter of 2026, up 2.4% from the end of the prior year.

Total shareholders’ equity at the end of the third quarter of the current year amounted to KD 5.7 billion. Customer deposits stood at approximately KD 22.7 billion by the end of the third quarter of 2026, representing growth of 7.8% compared to the end of the previous year. The capital adequacy ratio reached 17.22%, surpassing regulatory requirements and reflecting the strength of the bank’s capital base.

Al-Marzouq stated that Kuwait Finance House’s continued strong performance through the end of the third quarter of 2026 underscores the success of its established strategy and its ability to achieve sustainable and balanced growth, enhance operational efficiency, and optimize the use of resources and assets, thereby reinforcing its financial position and strengthening its standing in the banking sector.

He added that the sustained strong performance confirms the robustness of Kuwait Finance House’s business model, its flexibility in addressing economic and geopolitical changes, alongside effective risk management and adherence to the highest governance standards. He noted that these results reflect a clear strategic approach focused on responsible growth, maximizing value for shareholders and customers.

Al-Marzouq clarified that the group’s strategy adopts a long-term perspective, targeting sustainable value creation and enhancing the bank’s competitiveness and capacity for continued growth. This is pursued through investments in business and service development, accelerating digital transformation, improving operational efficiency, and developing human capital.

He affirmed that Kuwait Finance House will continue to steadily implement its strategic plans, leveraging its strong financial position, diversified business lines, and accumulated expertise, while maintaining a responsible growth approach and reinforcing its role in supporting the national economy, thereby consolidating the confidence the bank enjoys among its shareholders, customers, and the broader community.

Al-Marzouq pointed out that developments in Kuwait’s business environment, along with supportive legislative and regulatory steps for economic and financial activity—such as the Real Estate Financing Law, the Sukuk Law, and previously the Law on Borrowing from the Future Generations’ Reserve and the Financing and Liquidity Law—constitute positive factors for enhancing the capacity of the private sector and financial institutions to grow and contribute to economic development. He highlighted the importance of the Sukuk Law, as it enables the introduction of a Sharia-compliant sovereign financing instrument, helps broaden the investor base locally and internationally, and builds an Islamic sovereign yield curve that will support corporate and financial institutions’ issuances in the future.

Al-Marzouq emphasized Kuwait Finance House’s (KFH) commitment to continuing its support for strategic national initiatives and projects, thereby enhancing integration between state institutions and the private sector, contributing to the national interest, and supporting Kuwait’s sustainable development journey. He highlighted the implementation of several strategic community and national initiatives, including KFH’s financial contribution of $13 million to the national initiative launched by the Kuwait Fund for Arab Economic Development to establish the “Kuwait Emergency Response Fund,” as well as an additional contribution of $6 million to repair damaged power stations.

He noted that KFH’s community service efforts have received high global recognition, with the bank winning the “Best Islamic Bank for Social Responsibility in the World 2026” award from Global Finance magazine, a testament to its exceptional efforts, clear impact, and leadership in social responsibility within the markets and countries where it operates.

For his part, Khalid Al-Shamlan, CEO of Kuwait Finance House Group, stated that the strong performance achieved by the bank through the end of the third quarter of 2026, accompanied by continued profit growth, confirms the group’s operational efficiency, the robustness of its business model, and its ability to deliver strong and sustainable results, despite the economic and geopolitical conditions affecting the region and Kuwait. This performance is supported by high operational efficiency and flexibility in responding to market changes.

Al-Shamlan added that the diversification of revenue sources and the geographic distribution of the group’s operations, which span 10 countries worldwide through a network of over 600 branches, represent key factors supporting performance stability and revenue enhancement, alongside the bank’s continued development of its financing and credit capabilities to meet the needs of individual and corporate customers.

**Qualitative Digital Achievements**

Al-Shamlan affirmed that KFH continues to achieve qualitative milestones in digital banking services, pointing to sustained investment in technology and innovation aimed at enhancing customer experience, improving operational efficiency, and strengthening the ability to keep pace with rapid developments in the banking sector.

He noted that the bank has provided an integrated digital transformation model based on a clear strategic vision focused on the customer and delivering tangible operational results. This includes processing over 600 million digital transactions in one year and providing more than 200 integrated digital services via KFHonline, thereby reinforcing the status of digital services as a primary banking option for customers.

He highlighted that the bank’s outstanding performance was also reflected in its continued receipt of international accolades and awards. Notably, it ranked first as the best-performing bank in Kuwait on The Banker’s “Top 100 Arab Banks” list for 2026. Additionally, the group won Euromoney awards in wealth management, environmental, social, and governance (ESG), and digital banking categories. It also received the “Best Islamic Bank in the World” award from Global Finance magazine and the “Best Digital Bank in Kuwait” award from MEED, alongside numerous other global recognitions that underscore the bank’s leading international position.

Al-Shamlan expressed his appreciation for the support of the Board of Directors, commending the role of regulatory authorities in supporting the banking sector.

He also praised the efforts of the executive management, all employees, and all partners and stakeholders for their fundamental role in meeting the expectations of shareholders and customers, and in maintaining KFH’s leadership while enhancing its position locally, regionally, and globally.