Kuwait Finance House (KFH) Invest Achieves 1.5 Million KD Net Profit in 9 Months

Kuwait Investment Company (KIC) Investment (“KIC Investment”) announced its financial results for the period ended September 30, 2026. The company reported net profits of 1.5 million Kuwaiti dinars (earnings per share: 4.43 fils) for the first nine months, compared to net profits of 7.9 million dinars (earnings per share: 23.07 fils) during the same period last year. Positive performance in the second and third quarters helped offset losses recorded in the first quarter due to the significant downturn in financial markets.

Despite ongoing geopolitical uncertainty, weak market sentiment, and slowing economic activity, the company achieved strong growth in fee and commission revenues, which rose by 19.3% to reach 13.7 million dinars, compared to 11.5 million dinars during the first nine months of 2025. Fee and commission revenues accounted for 81.4% of total revenues, which amounted to 16.9 million dinars.

The company continued to enhance its operational efficiency, with general and administrative expenses declining by 12.9% to 13.6 million dinars, compared to the same period last year.

The first nine months 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. Furthermore, the sharp rise in crude oil prices contributed to increased inflation rates, prompting global central banks to reconsider their interest rate cut policies, with growing expectations of measures to raise rates.

Gulf Cooperation Council (GCC) markets were directly affected, given the region’s pivotal role in global energy and petrochemical supplies. Disruptions in oil exports, rising production costs, and unclear economic activity prospects negatively impacted investor confidence and liquidity levels.

KIC Investment continued to strengthen its strategic relationship with Bank of Kuwait and the Middle East (BPM), contributing to providing a broader and more integrated suite of financial services to clients. Accordingly, the company’s board of directors proposed in September changing the company’s name from “Kuwait Investment Company” to “BPM Capital Investment,” and the General Assembly meeting held on Sunday, November 8, 2026, approved this proposal.

Assets under management reached $17.3 billion as of September 30, 2026, representing a 4.6% growth since the beginning of the year, thereby maintaining its position among the top ten asset managers in the Middle East and North Africa (MENA) region. Additionally, 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.

Managed portfolios in equities and fixed income continued to outperform their respective benchmarks. The company’s equity funds maintained their competitive standing, with the KIC Investment Fund winning multiple Lipper Fund Awards for 2026, issued by the London Stock Exchange Group (LSEG), across six categories, in recognition of its outstanding performance over three-, five-, and ten-year periods.

In the alternative investments sector, which includes real estate, private equity, and structured products, the team continued to expand and diversify the investment solutions offered to clients.

KAMCO Invest has signed a partnership agreement worth 300 million euros with Santander Alternative Investments to provide Sharia-compliant, income-generating investment opportunities in the European private real estate finance sector for investors in the Gulf region. The team has also begun executing capital calls for the co-managed leasing strategy with Folksam Invest, part of New York Life Investment Management. The company maintains a strong financial position, with total shareholders’ equity attributable to parent company shareholders reaching 67.5 million dinars as of September 30, 2026. Capital Intelligence Ratings has maintained the company’s long-term credit rating at BBB and its short-term credit rating at A3, with a stable outlook.

Commenting on the results, Sheikh Talal Ali Abdullah Al-Jaber Al-Sabah, Chairman of the Board, said: “The company continued to generate profits during the third quarter, reflecting the robustness of its business model and its ability to adapt to challenges amid a difficult operating environment. The sustained growth in fee and recurring commission revenues underscores the quality and sustainability of our income sources, highlighting the strength of our core activities and the renewed confidence of our clients in our expertise and investment capabilities.”

On his part, Faisal Sarrouh, Chief Executive Officer, stated: “We continue to record growth in fee and commission revenues, reflecting the strength of our core activities and the quality of our income sources, despite the challenges posed by the operating environment and the slowdown in economic activity. We have also continued to implement cost-reduction programs efficiently, achieving a double-digit decline in operating expenses, which enhances performance efficiency and supports profitability sustainability.”